Managing the Budget and Program

1
Managing the Budget and Program

• Chapter 11
• Carolyn Masterson

2
What is a Budget

• Written estimate of anticipated income and
  expenditures.
• Types of Budgets
• Operational Budgets
• Capital Outlay Budgets

3
Budget Systems

• Budget Systems Method of Budgeting
• Line-Item Budgets each line gets a number
• Incremental Budgets- each line gets money
  specific amounts of money.
• Formula Budgets- formula figured for each of the
  lines
• Planning-Program Budgeting- lines based on
  planning and program needs.
• Zero-based Budgeting- the budget must pay for
  itself.

4
Principles of Effective Budgeting

• Budget must be
• Based on the Goals and Objectives of the
  Department.
• Realistic.
• Flexible.
• Prepared Early.
• Easily Understood.

5
Dangers in Budgeting

• When budget goals are more important than Program
  Goals
• Over-budgeting.
• Budgeting by precedent Budgets based only on
  past experiences.
• Being Inflexible with Money

6
How to Prepare a Budget

• Review Goals of Program
• Decide which Programs Get Money.
• Estimate Costs.
• Write up Budget Request

7
How to Fund Budgets

• Memberships and Fees
• Fund-raising Events
• Concessions
• Contributions and Endowments
• Grants
• Bond Issues

8
Purchasing Equipment

• Take Inventory.
• Purchase Considerations- best for the dollar.
• Competitive Bidding
• Write Specifications
• Local Merchants
• Accepting Gifts
• Others