Ann-Marie Fontaine, Vice President of Finance

simpleluncheonΔιαχείριση

10 Νοε 2013 (πριν από 4 χρόνια και 1 μήνα)

79 εμφανίσεις

Ann
-
Marie Fontaine, Vice President of Finance

Peggy Cook, Associate Director of Finance

Workshop Objectives


State the fiduciary responsibilities of nonprofit boards that are fulfilled
through the development and monitoring of the budget


Differentiate between operating and capital budgets


Discuss the key sources of income and standard expenses of
housing corporations


Understand the process of developing an operating budget


Identify the NHC and sorority resources that are available to support
local house corporations in the budget development process


Explain how monthly financial statements are used to monitor
budgets


Fiduciary Responsibilities

Legal responsibilities that apply to all nonprofit boards


Participate in financial planning


Assure sufficient available cash


Maintain adequate reserves


Understand relationship between revenue & expenses


Set and adhere to the budget


Assure propriety of expenses


Insure against risk



Lang, Andrew S., CPA,
Financial Responsibilities of
Nonprofit Boards,
BoardSource
, 2003.

Why Budgets?


Planning tool that addresses many of the required
fiduciary responsibilities of the board


Contribute to transparency and accountability of the
board


Guidelines for staff and committees (e.g., decorating
committee) regarding acceptable expenditures


Eliminate the need to secure approval for individual
expenses

Operating and Capital Budgets

Operating


Day
-
to
-
day revenue and
expense


Goal for operations
covering one fiscal year
(June 1


May 31)


May be updated monthly
or quarterly if conditions
change


Line items based on chart
of accounts

Capital


Specific to one or more
large projects


Long
-
term and based on
long
-
range plan


Cover the life of the
project


Common expense line
items include H/F project
expense, equipment &
furnishings, and property
repairs & maintenance

Operating Budget: Revenue


Housing/furnishing fees


Parlor fees


Room and board


Interest income


Transfer from reserve savings and/or H/F fund


Other (e.g., meal plans, vending/laundry)

Operating Budget: Expenses


Business/professional


Board


Taxes


Staff


Property management and administration


Other


Convention/conferences

Operating Budget: Procedure



Estimate revenue


Schedule of charges


Revenue worksheet


Plan expenses


Salary worksheet


Management fees


Other expenses


Adjust expenses and/or fees, if necessary, to address deficits or
surpluses


Budget: Revenue Exercise


Review the Invoicing Schedule for the (hypothetical)
Omega Alpha house corporation


As a group, prepare the Income Worksheet for the
FY14 budget


Review the Summary Budget to see that figures
carried over correctly from the Income Worksheet

Budget: Expense Calculations


Salary worksheet


Management Expense worksheet


Analysis of prior year budget and actual expenses


Knowledge of necessary housing & furnishing
projects, property repairs and maintenance, and
equipment & furnishings expense.

Budget: Deficit Exercise



Following the income and expenses calculations, the
Omega Alpha corporation’s budget is showing a
deficit


How would you recommend eliminating this deficit?

Budget Monitoring


Review monthly Revenue & Expense and Balance
Sheet (quarterly financial reports if non
-
NHC)


Indentify and analyze variances from the budget


Discuss possible budget adjustments


Approve by motion of Corporation Board


Submit to NHC office (or corporation liaison)

Capital Budget


Based on corporation’s long
-
range plan


Revenue to fund the project


Operating surplus


Reserve savings and/or housing/furnishing fund


Fundraising


Loan


Expenses for each phase/component of the project


No standard Sigma Kappa template


Assistance from Corporation Liaison or NHC Property Management and
Finance Teams

Workshop Objectives


State the fiduciary responsibilities of nonprofit boards that are fulfilled
through the development and monitoring of the budget


Differentiate between operating and capital budgets


Discuss the key sources of income and standard expenses of
housing corporations


Understand the process of developing an operating budget


Identify the NHC and sorority resources that are available to support
local house corporations in the budget development process


Explain how monthly financial statements are used to monitor
budgets