Budget Allocations

Discussions around using and interfacing with the Church MLS program.
khasay
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Budget Allocations

Postby khasay » Sat Feb 26, 2011 4:39 pm

We have our first quarter allocation + carry-over already allocated to the Budget Sub categories in review/edit window and the numbers in the Budget Report are right on. Now it appears from our last instructions that we should estimate the amounts for the other three quarters and enter them as well. I would prefer to work with actual amounts allocated to each quarter, and add the numbers to the previous quarter distributions. No estimates would be made. Will that work or is it OK?

If we do estimate the allocations for the remaining quarters, and the actual amount received for the 2nd quarter, for example, is $350 more than the estimate for that quarter, do we manually break down the $350 to the individual categories or is that done automatically? I am quite certain that have do that manually, but I just want to be sure. I did not think the instructions were clear on that point, at least to me.

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aebrown
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Postby aebrown » Sat Feb 26, 2011 6:29 pm

khasay wrote:We have our first quarter allocation + carry-over already allocated to the Budget Sub categories in review/edit window and the numbers in the Budget Report are right on. Now it appears from our last instructions that we should estimate the amounts for the other three quarters and enter them as well. I would prefer to work with actual amounts allocated to each quarter, and add the numbers to the previous quarter distributions. No estimates would be made. Will that work or is it OK?

The Budget Reports are based on annual budgeting, which you are supposed to be doing, according to the Handbook. That's why you are told to put in estimates for future quarters to fill out the year.

If you were to attempt to do quarterly budgeting, the carryover would essentially be applied to the first quarter and thus would skew the numbers (assuming the carryover amount is not insignificant).

khasay wrote:If we do estimate the allocations for the remaining quarters, and the actual amount received for the 2nd quarter, for example, is $350 more than the estimate for that quarter, do we manually break down the $350 to the individual categories or is that done automatically? I am quite certain that have do that manually, but I just want to be sure. I did not think the instructions were clear on that point, at least to me.


What I have done in the past and plan to do with this new system is to create a category called "Contingency" or something like that. Especially if you have a carryover from the previous year, this should be easy to do -- just put your carryover into that subcategory. Then as your quarterly allocations arrive, you can use the contingency category to be your buffer; difference between the estimated and actual allocations can be absorbed by the contingency category.

That provides three advantages:

  1. You only have to adjust one budget number each quarter.
  2. Your auxiliaries can depend on their budget not changing throughout the year.
  3. You are budgeting conservatively, and will most likely have a carryover into the next year to use for this same purpose or for some unexpected expense.
Questions that can benefit the larger community should be asked in a public forum, not a private message.

TinMan
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Postby TinMan » Sat Feb 26, 2011 9:27 pm

We are doing the same thing Alan, but we are thinking of naming the catagory, "Bishop's Slush Fund."

Might as well call it what it is...

:)

khasay
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Postby khasay » Sun Feb 27, 2011 7:53 am

Thanks for the reply. I will create a sub account and adjust overages each quarter to that account or category. I guess I could make it a sub category under Administrative.

I love this site.


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