1. Budget Planning Boot Camp
Governors Round Table 2019: Strong Roots, Strong Regions
Budget Planning Boot Camp
Iesha Brown
Senior Director, Membership & Leadership Development
© Soroptimist International of the Americas, Inc. ®

2. Strategic Financial Management
GOVERNANCE
PEOPLE
PLANNING
OPERATIONS
MONITORING
TECHNOLOGY
PROCESS

3. Budget Development: A 5 Step Process
Assemble a budget team
Create a budget calendar
Prepare for budget process
Build the budget
Monitor the budget

4. Step 1: Build a Budget Team
Chief Financial Officer
Champions the Budget Planning Process
Chief Executive Officer
Human Resources Director
Board of Directors
Program Directors

5. Step 1: Build a Budget Team
Region Treasurer
Champions the Budget Planning Process
Region Governor
Region Governor-elect
District Directors
Program Chairs

6. Step 2. Create a Budget Calendar
Timing is very critical
Thoughtful, advanced planning is required
Begin 6 months into the year (THE LATEST)
Do not work in isolation

7. Step 3. Prepare for the Budget Process
Set financial goals that will guide your decisions, key components might include:
Program Goals
Reserves
Capital Expenses
Depreciation
Gather data and begin building the budget template
Forecast current year results (are we going to come in over or under projected expenses)?

8. Step 4. Building the Budget
Conduct a kick off meeting
Budget expenses based on the PLANS you want to implement
Identify direct expenses, shared expenses and overhead
Make conservative revenue projections using scenario planning (e.g. what do we do if revenue comes in higher or lower than anticipated?) Also make cash flow projections.

9. Step 5. Monitoring the Budget
Ongoing monitoring of the budget is important as it allows you to course correct and revisit throughout the year.

10. Internal Financial Controls
Internal controls are policies & procedures that protect our assets.
Procedures include:
Handling of funds received & expended
Preparation of accurate and timely financial reports
Annual or bi-annual audit of financial statements

11. Why have Financial Internal Controls?
Provide members with assurance that our money and assets are safe
Help identify a loss quickly to minimize damage
Prevent any chance of fraud or theft
Protect our volunteers

12. Examples of Internal Financial Controls
Procedures to keep cash and checks safe
Regular financial reports
Annual operating budget approved by your Board
Segregation of duties
Officer review
Two signers on a bank account
Monthly reconciliation of the bank statement
Record retention policy

13. Essential Internal Controls
Financial policies
Clear role definition
Internal financial controls
Handling cash
Bank reconciliation

14. Financial Best Practices
Follow nonprofit best practices:
Clearly written policies & procedures
Transparency, accuracy & careful monitoring
Board & leadership understanding of financial reports
Avoid related party transactions
Periodic outside review by an independent professional.

15. Region Financial Reporting
Our Federation Board requires:
Annual Financial Statement(s) to headquarters by October 31
Copy of all financial agreements $10,000 and over
Procedure in your SIA procedures manual section 9

16. Healthy Region - Financial
*Region is financially solvent. Region should assess how long financial assets/structure of the region can sustain if there is no increase in membership, or a decrease in membership.
Region has made its annual financial report to SIA as required in the SIA Procedures F.9.a. Reporting. [HQ data]
Region has a budget, and has sent it to headquarters as required in the SIA Procedures F.9.a. Reporting. [HQ data]

17. Healthy Region - Financial
Region calculates profitability is positive and region’s expenses do not exceed revenue.
Region calculates its unrestricted reserves can sustain the region for 6 months.
Region has diverse streams of revenue and is not solely reliant on dues.
Region calculates their net assets balance is strong and increasing.

18. Supporting Clubs in Your Regions
Club Treasurer guidelines
Club Treasurer Calendar
Sample Club Budget
Audit procedures
501(c)(3) Organizations: Fundraising, the IRS and State Law (US only)