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BUDGETING & FINANCIALS
Roles and Responsibilities
Budget
Bookkeeping
Reading financial statements
ROLES & RESPONSIBILITIES
The Board
The finance committee
The treasurer
Senior staff
BUDGET APPROVAL QUESTIONS
1) Does the budget reflect the organizations priorities?
2) What are the assumptions upon which the budget has been prepared?
3) Who is responsible for monitoring and controlling the budget expenditures?
4) Are there policies in place to govern the preparation and control of the budget?
THE BUDGET Has to be well thought out.
Prepared and approved by the Board.
Broken into time periods.
Financial statements prepared on a timely basis.
The Board has to be open to discussion and will take action when a significant difference is noted.
PLANNING THE BUDGET List the goals of the organization for
the year.
Estimate the cost of each goal.
Forecast your income.
Compare the expected revenue to the expenses.
Present the budget to the Board for approval.
BOOKKEEPING
Maintaining Financial Records
Chequebook register
EXCEL spreadsheet
Accounting software program
Cash Receipts/Disbursements Analysis
Appendix A
TREASURER’S REPORT
Name of Organization
Period Covered
Cash Beginning
Income Received
Expenses Paid
Cash ending (should agree with the bank statement)
Signature of Treasurer
READING A FINANCIAL STATEMENT
1) Statement of Financial Position - Balance Sheet
2) Statement of Operations - Income Statement
3) Statement of Changes in Net Assets or Fund Balances
4) Statement of Changes in Financial Position – Cash Flows
WHEN REVIEWING STATEMENTS:
What is the difference in Revenue? Why?
What is the difference in particular expenses? Why?
Are the results what we anticipated?
What is the bottom line?
What is our policy to deal with surplus?
What are the plans to cover a deficit?
If there is a deficit from previous years, how are we managing that?
BALANCE SHEET
ABC Society Balance Sheet As of 31 August 2009
ASSETS 31 Aug 2009
Current Assets
Chequing/Savings
TD Bank $48,915.95
Total Chequing/Savings 48,915.95
Total Current Assets 48,915.95
TOTAL ASSETS $48,915.95
LIABILITIES & EQUITY
Equity
Retained Earnings $48,915.95
Total Equity 48,915.95
TOTAL LIABILITIES & EQUITY $48,915.95
INCOME STATEMENT ABC Society Profit & Loss
September 2008 through August 2009 Sep '08 - Aug 09
Income Fundraising
Hot Dog Day $ 642.25
SUTP 4,780.00
Yearbook 65.00
Total Fundraising 5,487.25Total Income $5,487.25
Expense Hot Dog Day Expenses $ 335.49 Miscellaneous 21.57
Resources 639.92 Welcome Back BBQ 635.50 Yearbook 2,347.84Total Expense $3,980.32
Net Income $1,506.93
THE BOTTOM LINE
Paying close attention to the position of the
organization’s financial resources will help a
Board achieve its goals and objectives.
It is everyone’s responsibility to contribute to the financial portion
of the organization.
Questions ?
Shirley CombdenDirector of Finance
Mulitple Births Canada
