Effective Budget Creation and Presentation Guidelines for Departments

Sr. Vice Presidents Training Department Budget March 2025

What is a Budget? It is an estimate of income and expenses. It s your best guess of what the future might hold. Restricted funds are budgeted separately. The budget must be in balance. Only Departments and National have a Budget. Auxiliaries & Districts do not. Once voted on, a budget cannot be changed. Once you vote on your Department Budget, your Treasurer can expend money for items included in the budget. You do not need additional approval for these expenditures. (unless it s over) Your approved budget must be sent to National Headquarters by October 1st 2

Budget Creation Revenue and Expenses must Balance. This means the total expected revenue must equal the amount planning to be spent A budget cannot be passed that does not balance! It s your job to appoint a Budget Committee The committee consists of a Chairman and a minimum of two (2) members Your Dept. Treasurer should not be chairman of the Budget Committee. Your Dept. Treasurer shall prepare a tentative budget for financial operations for the ensuing year The budget sets forth all estimated receipts and anticipated expenditures for the use of the Budget Committee in preparing the proposed budget 3

Budget Creation Work with your Budget Chairman so they know what you may want before they start working on your budget. If you plan to increase award money, where will you increase revenue and/or where will you cut from other expenses? This is up to you and your Chairman It is your job and that of your committee, to give the best guess Do not predict more revenue from dues if your membership has been steadily declining If you increase the amount you pay for mileage in your Standing Rules, be sure to increase your mileage expense in your budget Plan your budget carefully Then Budget Chairman will bring it to Council for approval 4

Budget Presentation The budget should be sent to voting members prior to the meeting, if possible. During the Council meeting when the Budget will be voted on, the Budget chairman should report on any large changes from the previous year. Once the budget is approved, overages or expected overages need to be explained and voted on (if not previously voted on). Significant underestimates in revenue should be explained. 5

Budget Tips When creating the budget, round amounts to whole dollars Moving funds from savings accounts where revenue has previously been recognized in prior years cannot be counted as revenue again! (No double dipping) 6

Approved Department Budget & Audit Copy of the Council approved Department Budget for the upcoming fiscal year forwarded to the National Treasurer (no later than October 1st) (This can be done electronically!) May request an extension. The request would go to the National President via the National Secretary Treasurer, via the Director of Accounting Copy of the Council approved Department Audit for fiscal year ended June 30th forwarded to the National Treasurer (no later than October 1st) (This can be done electronically!) May request an extension. The request would go to the National President via the National Secretary Treasurer, via the Director of Accounting 7

You can do this! Questions? 8