Budgets

Budget vs. Pricing Pricing 1 program Seasonal Drives budget Budget Multiple programs Fiscal year Deals with revenues & expenditures

Budget Financial plan that outlines and forecasts the revenues and expenditures over a fiscal year

Some Terms Fiscal year Allocated & expended monies…

Clear Water Rafting Company Budget Statement - 1st & 2nd Quarters - End July 31 ActualBudgetCommitted%Balance Revenues Trips $42,113$72,500$058.1%$30,387 Concessions $8,671$14,000$061.9%$5,329 Store receipts $11,148$20,000$055.7%$8,852 Total revenues $61,932$106,500$058.2%$44,568 Expenditures Staff $35,963$52,100$1, %$14,637 Supplies $2,147$3,100$069.3%$953 Utilities $1,610$2,430$066.3%$820 Mortgage $8,051$16,000$050.3%$7,949 Marketing $2,684$4,300$ %$1,116 Maintenance $3,221$4,300$074.9%$1,079 Total expenditures $53,676$82,230$2, %$26,554

Some Terms Budget cycle Length of time required to prepare, administer & close out a single year budget

Budget Cycle National Park Service – 21 month cycle is in progress is under congress review preparation is beginning Fiscal Year 2010Fiscal Year 2011 Fiscal Year 2012

Why budget? Prediction of resources Prediction of a work schedule Used to make decisions Explains resource acquisition & expenditures to stakeholders How goals are being met

2 types of budgets Capital Major purchases lasting 10+ years Facilities, renovations, equipment Developed independently of operating budgets Arbitrary cut-off expense set Covers 5-6 years (CIP) Priorities are reviewed & shifted annually

Project Fairview Park Softball Field Fencing replacement $30,000 Underwood Tennis Court Rennovation $60,000 Shepard Park Development $750,000 Constitution Trail Repaving $40,000 $25,000 Misc ADA imnprovements $10,000 $ 15,000 Normal Parks & Recreation Dept.

Priority Project Name Finance Source RevenueExpenses 1 LINCOLN LEISURE CENTER- CONSTRUCTION WORKCIF $220,000 2 SKATEBOARD PARK- CONSTRUCTIONCIF $170,000 3 MCGRAW COMMUNITY PARK-2ND PHASECIF $700,000 4 MCGRAW COMMUNITY PARK-2ND PHASEOSLAD$400,000 5 MCGRAW COMMUNITY PARK- PARKING LOTCIF $550,000 6 CONSTITUTION TRAIL(GROVE ST. SOUTH TO LAFAYETTE)TEA$1,000,000 CIF = Capital Improvement Fund OSLAD = Open Space Lands Acquisition and Development TEA = Transportation Economic Assistance Bloomington Parks & Recreation Dept.

2 types of budgets Operating Annual, routine activities All revenues & expenditures for day to day operation

Operating Budgets Line item budgets Object classification budgets Program budgets Performance budgets Zero based budgets Running budgets

Line Item Budgets Item Specific item or object for which monies will need to be allocated Postage, equipment Line Process of placing the items in a line so that all items appear on the budget sheet

Line Item Budgets Process List all revenues Fees program 1 Fees program 2 Other sources List all expenditures Staff Utilities Office supplies Determine costs of each item Does not divide by fixed & variable costs…but these are still used in pricing.

Line ItemTotal Revenue Ticket Sales$1875 Reserve (Savings)$36 Total Revenue$1,911 Expenditures Meal$900 Appetizers$131 Damage deposit$50 Rental fee$75 DJ$300 Mailing$53 Printing - invite$53 Printing - info sheet$14 Envelopes$60 Total Expenditures$1,636

REVENUES Program fees$6400 EXPENDITURES Flights$ Rental Car$ Hotel$ Gas$ Meals$ City Walk$ Busch Gardens$ Titanic Exhibit$31.84 Arabian Nights$ Universal Studios$ Disney Quest$56.24 Walk Disney Theme Parks$ Medieval Times$ Sleuths Mystery Dinner$75.02 Kennedy Space Center$76.00 Wet and Wild$78.70 Pleasure Island$33.70 Ripley’s Museum$28.08 TOTAL:$ $1127/ $1130

Line Item Budgets Advantages Flexibility Add/delete items as needed No coding system Easy to administer Doesn’t require ee to conform to a single system

Line Item Budgets Disadvantages Easy to forget items, thus no $ allocated Confusion in comparing between departments Used most often in an informal situation

OCB Most common form of budget, similar to line item budgets Object - item for financial cost Salaries, phone bills Classification – uniform method of grouping the objects into certain categories & subcategories Personnel, Contractual services, Commodities See handout

Example Classification Expenditure Classification by Object 2000: Services: Contractual 2100 Communication & Transportation 2110 Postage 2120 Telephone 2300 Printing, Binding, Advertising 2350 Advertising & Publication Notice Expenditure Classification by Object 2000: Services: Contractual 2100 Communication & Transportation 2110 Postage 2120 Telephone 2300 Printing, Binding, Advertising 2350 Advertising & Publication Notice ClassificationsSub classificationsObjects

Table 13.2: Sample Object Classification Categories Object total Sub- category total Category Total 1000: Personnel Services$2,037, Salaries, Regular (Full Time)$1,500, Salaries, Temporary (Part time)$25, Wages, Regular (Hourly, FT)$250, Wages, Temporary (Hourly. PT)$175, Contractual employees$75, Other Compensations$12, : Contractual Services$641, Communication and Transportation$183, Postage$5, Telephone$23, Freight and Express$10, Travel & Lodging$70, Vehicles$32, Gasoline, Oils and Lubricants$43, Printing, Binding and Advertising$16, Printing/Photocopying$12, Typewriting/Word Processing$ Binding$ Photocopying & Blueprinting$ Advertising & Publication of Notices$3,225

Table: 13.4: Combination of a Program Budget and OCB Object total Sub-category totalCategory Total 1000: Personnel Services$802, Salaries, Regular (Full Time)$600, (12) Membership$160, (13) Marketing$80, (14) Meeting planning$120, (15) Special events$240, Salaries, Temporary (Part time)$190, (12) Membership$50, (13) Marketing$45, (14) Meeting planning$72, (15) Special events$23, Wages, Regular (Hourly, FT)$11, (12) Membership$1, (13) Marketing$2, (14) Meeting planning$3, (15) Special events$5,000.00

Advantages to OCB Uniform & standardized Categories are provided Easy to set-up Can compare line items across areas

Disadvantages to OCB May not be as flexible as needed May not be able to find the category needed Requires a lot of detailed cost estimates Multiple items in a category Repair to buildings Advertising

Making Purchases Charge account Petty cash Procurement card PO….

Normal Amusements Address line 1 Address line 2 Purchase Order Date: _______________PO #: Vendor: ______________ Staff name: ___________Requisition #: _________ QuantityDescriptionUnit price Total price Code 1Basketball backboard… $450 24– Adult League Basketballs $17$17024–