Agricultural Education 842

1
Agricultural Education 842

• Leadership
• and
• Administration

2
Review

• 1. Team is a group of people who work together
  to achieve a desired outcome.
• 2. Groups have some trait/characteristic in
  common, but team members will sacrifice for the
  common good.
• 3. Team building processes involve forming,
  storming, norming, and performing.

3
Review (cont.)

• 4. Cohesion and esprit de corps result from
  focusing on synergy produced by working together
  as a team.
• 5. Team leadership style influences
  cohesiveness and performance.
• 6. Team leadership must balance between concern
  for production and concern for people.

4
Lesson 10

• Budgeting and
• Financial Management

5
Objectives

• Define budgeting terms
• Describe the purposes of a budget
• Explain how to develop a budget for an
  organization

6
Objectives (cont.)

• Identify factors to consider in budget
  preparation.
• Describe strategies for managing an
  organizations budget
• Examine alternatives sources of revenue

7
Budget defined . . .

• Budget . . . Is an itemized forecast of an
  organizations expected revenue and expenditures
  for a specified period of time.

8
Purposes of a Budget

• Planning tool
• Secure needed resources
• Guide resource allocation and decision making

9
Role of Administrators in Preparing a Budget

• Anticipate program needs and changes
• Predict costs
• Justify requests
• Account for expenses
• Be prepared for windfall or rescission
• Know the budget process
• Understand budget issues and institutional
  priorities
• If formula budgeting, know the components

10
Windfall

• Additional and unexpected revenue to your budget.

11
Rescission

• Unexpected decrease in your current operating
  budget

12
Budgeting Process

• Budget Request submitted to administration for
  review and approval
• Operating Budget amount allocated by
  administration
• Financial Statement summary account report
  reflecting all expenditures
• Audit reconciliation, documentation, and
  verification of expenditures

13
Planning Strategies

• Review records of past budget years
• Anticipate future program changes
• Anticipate future staff changes
• Potential grant support
• Enrollment trends

14
Planning Strategies (cont.)

• New programs/activities/initiatives
• Flexibility of budget transfer (10)
• Justification / rationale for budget request
  should use official institutional data
• Use graphs, charts, tables to illustrate trends

15
Alternative Revenue Sources

• Grants
• Contracts
• Gifts
• In-Kind Donations
• Tuition and fees
• Workshop registration
• Conference registration

16
Budget Management

• Review and approve all expenditures
• Allocate expenses to appropriate accounts and
  budget lines
• Monitor accounts on a monthly basis
• Understand accounting procedures used in budget
  management
• Accrual Accounting
• Cash Accounting

17
Budget Management (cont.)

• Do not co-mingle funds for different purposes
• Identify an individual in central
  accounting/business office
• Prepare a time line of activities to assist with
  identifying budget needs and timing
• Communicate with staff potential budget problems
• Report budget standing to administrator
  occasionally

18
Budget Management (cont.)

• Limit line-item transfers to 10
• Keep accurate records and account for each dollar
  
• Funds left over identify alternative solutions
  and seek approval well in advance
• Identify economic trends that may affect budget
• Secure an extension of deadline if work is not
  completed and adequate funds remain

19
Conclusions

• Budget is a forecast of planned revenue and
  expenses
• Purpose of a budget is to anticipate and plan
  resource needs in the organization
• Budget preparation should consider organizational
  goals and objectives

20
Conclusions (cont.)

• Organizational changes and previous years budget
• Budget reports should be review on a monthly
  basis
• Alternative funding sources should be considered
  to leverage the operating budget

21
Next Week

• Final Examination
• (take home via web site)

22
Thank you for a great quarter!
23
Have a great summer!