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How do I figure out 2012 ym yw budgets.
thanks
jepcked

jedwards7 wrote:How do I figure out 2012 ym yw budgets.

Did you really mean 2012? If so, there's not much to figure out -- in MLS just use the Budget Report to see what has been spent for each category (that assumes that all expenses have been charged to the correct category, of course).

If you instead meant 2013 and are wondering how to decide what portion of the budget allowance should be allocated to a particular organization for the coming year, I would recommend that you review Budget allocation methods.

thinks I did mean 2013

For all organizations I figured out what percent of the total 2012 budget allowance used and then give each organization that percent or close to it.

We ask the organizations to submit budget requests based on what they think is needed to support their programs and activities. We then modify these requested amounts to fit within the estimated ward budget allocation. This works relatively well for us.

Gary_Miller wrote:For all organizations I figured out what percent of the total 2012 budget allowance used and then give each organization that percent or close to it.

Note that Handbook 1, Section 14.7.1 specifically says that organizations are supposed to estimate their needs for the upcoming year. The previous year's expenses could certainly be a factor when considering recurring expenses, but the budgeting should be based on a detailed analysis of needs for the future, not expenses of the past.

Isn't there a "trap" with using last year's budget to work out next years? What I'm talking about is if a organization had a surplus at the end of 2011 that they were allowed to carry over. AFAIK, the only way to do that is to up the 2012 budget by that amount. So, if you use the 2012 budget (or expenses) as the starting point for the 2013 budget, you may be giving them more then intended.

aebrown wrote:Note that Handbook 1, Section 14.7.1 specifically says that organizations are supposed to estimate their needs for the upcoming year. The previous year's expenses could certainly be a factor when considering recurring expenses, but the budgeting should be based on a detailed analysis of needs for the future, not expenses of the past.

You won't get any disagreement from me. If I had my way I require an activity based budget from all organizations, as I feel that makes the leaders justify their needs. However I'm not in charge so the best I can do is give them a starting point, and since activity needs seldom change from year to year a percent of the estimated allowance was the best way to start. Each organization is free to submit their estimate based on needs if they disagree with the estimated percentage.

RussellHltn wrote:Isn't there a "trap" with using last year's budget to work out next years? What I'm talking about is if a organization had a surplus at the end of 2011 that they were allowed to carry over. AFAIK, the only way to do that is to up the 2012 budget by that amount. So, if you use the 2012 budget (or expenses) as the starting point for the 2013 budget, you may be giving them more then intended.

No problems with a surplus carry over by organization. If you did not use it last year then you did not need it and it gets added to the new years overall amount and reallocated. The percentage allocated is based on a comparison of expenses for 2011 and 2012 not what was allocated. Last year we carried over a large amount of funds. This year I guarantee that the budget will be zero on December 31.

Sometimes an organization has a surplus that they are allowed to carry over because they have a plan. The surplus wasn't because they didn't need it, but because they've got something in mind for the following year.