1. Understanding Budgets RSLNSW 23 May 2011 Presented by: Kirsten Forrester

2. Today… 9.00am Welcome and introductions »Constitution changes »Budgets – the big picture »How to budget »The budget as a financial management tool 12.00pmLunch 1.00pm Administration seminar continues

3. Purpose

7. Constitution

8. 34.3 Obligations of a Trustee Each sub-Branch Trustee must keep detailed records of all transactions relating to any property of the sub-Branch under their control. Each sub-Branch Trustee must submit the accounts together with all title documents, securities, mortgage or charges to the sub-Branch President, sub-Branch Auditors or other sub-Branch Officer as required from time to time.

9. 34.4(j) Dealings with SB property The sub-Branch Trustees must not: (i) make a donation or gift of $5,000 or more and may not make donations or gifts totalling $50,000 or more in any one calendar year (ii) incur an expense of $20,000 or more on any single item, activity or event and may not incur expenses totalling $50,000 or more in any one calendar year (iii) lend to any person or body or invest money totalling $5,000 or more in any one calendar year without State Council prior written consent.

10. 35.1 Sub-Branch accounts Each sub-Branch must maintain accounts of all money received and expended by the sub- Branch and of all assets and liabilities of the sub- Branch, including any mortgages, charges or securities affecting its property in accordance with the By-Laws and Regulations.

11. 36.1 Sub-Branch auditors and audit Subject to clause 36.2, a sub-Branch must at the annual general meetings of the sub-Branch either: (a) elect two honorary auditors; or (b) appoint an auditor who is a suitably qualified accountant…, to inspect the accounts, books, vouchers and securities of the sub-Branch and verify them against the statement of financial position.

12. 37.1 Sub-Branch annual returns Each sub-Branch must… by 31 March each year: (a) lodge with RSL NSW SBA1, SBA2 and SBA3. (b) ensure that any Subsidiary associated with the sub-Branch, has forwarded an audited copy of its annual financial statements to the sub-Branch

13. RSL NSW Property & Finance Regulation 3.30 It is compulsory for a sub-Branch that has a total amount of all expenditure… exceeding $50,000.00 in aggregate in any one financial year to submit a budget for approval to State Council / Executives.

14. RSL NSW Property & Finance Regulation 3.31 Budgeting is simply the process of planning the sub-Branch’s finances for a 12 month period. The budget is made up of all the activities you plan to undertake in the next 12 months expressed in terms of money. Budgets should be drawn up for the calendar year.

15. RSL NSW Property & Finance Regulation 3.32 Best practice guidelines require all sub- Branches to prepare a budget and present it to the AGM for acceptance.

16. RSL NSW Property & Finance Regulation 3.32 The Treasurer is responsible for drafting the budget with input from other executive and committee members, as required.

17. RSL NSW Property & Finance Regulation 3.32 Once accepted, the Treasurer is responsible for keeping track of income and expenditure and how the figures match budget expectations.

18. Obligations of a Treasurer Annex D to Chapter 3 RSL NSW Governance Regulation

19. Obligations of a Treasurer

20. Quick!

21. Obligations of a Treasurer

24. The Budget A prediction of the aspirations, dreams and fears of the financial future of the organisation.

25. The Budget »The Budget is the costing of the business plan - how much will it cost to get where we want to »A forecast to guide decisions »Must be approved by the Trustees and sub-Branch members »Scheduled reviews, varied if needed »Basis for the next budget

26. Why budget?

28. »Good financial information = good decision making »Assists sub-Branch committee in meeting their obligations under the Constitution »31.3 …”be responsible for the management and operations of the sub-Branch”

29. Financial responsibilities »The organisation has an approved budget for the year and that expenditure is within the budget »The organisation has sufficient funds to meet its obligations »The conditions of any funding or grants are followed

30. Financial responsibilities » Clear and accessible financial reports are presented at each Committee meeting » Funds are properly accounted for and an audit is completed every year » Proper financial systems are in place

31. Due Diligence

34. RSL NSW Property & Finance Regulation

36. 8 steps to a sub-Branch budget 1.Look at last year’s income 2.Look at the timing of last year’s income 3.Ask, “What will happen this year?” 4.Work out this year’s overall figures 5.Write down the income, month by month 6.Follow the same steps for expenditure 7.Discuss the options 8.Present budget to the AGM for acceptance

37. RSL NSW Property & Finance Regulation

39. NOTE 1 A. This is calculated on a conservative return after reinvestment of X%. B. This is included simply for comparison & reference purposes to 200? Income and should be deleted for 200? NOTE 3 Voluntary donations to support the operating costs of the Welfare Bus. All costs associated with the running of the bus are including registration, insurance and servicing. NOTE 4 Replacement and additional computers for Secretary and Welfare Pensions Officers & office furniture

42. Financial Statements

43. Income & Expenditure Report Profit & Loss Report Statement of Comprehensive Income SBA1

44. Income & Expenditure Report Cash and Accrual accounting method Earning and spending over a period of time Must compare to budget to be meaningful

45. Income and Expenditure Budget to Actual

46. What Committees should know »Do we have enough resources to deliver the services we have committed to deliver? »What are our outstanding liabilities and what are the risks? »What will our future look like in terms of a store of resources? »Are we effectively managing our financial processes? »Do we have the right team in place to do what we say we do?

47. In Summary »Start how you want to end »Take responsibility to understand, ask questions and challenge »Ensure reports are readable, timely and accurate »It’s not rocket science, take lessons from your personal situation »It’s empowering to lead

48. Thank you To contact us: Kirsten Forrester Matrix on Board T: 02 9281 1700 E: kirsten@mob.com.au W: www.mob.com.au