Understanding Budgets RSLNSW 23 May 2011 Presented by: Kirsten Forrester

transcript

Understanding Budgets

RSLNSW23 May 2011

Presented by: Kirsten Forrester

Today…

9.00am Welcome and introductions» Constitution changes» Budgets – the big picture» How to budget» The budget as a financial

management tool12.00pm Lunch1.00pm Administration seminar continues

Purpose

Constitution

34.3 Obligations of a Trustee

Each sub-Branch Trustee must keep detailed

records of all transactions relating to any property

of the sub-Branch under their control.

Each sub-Branch Trustee must submit the accounts

together with all title documents, securities, mortgage or

charges to the sub-Branch President, sub-Branch Auditors

or other sub-Branch Officer as required from time to time.

34.4(j) Dealings with SB property

The sub-Branch Trustees must not:(i) make a donation or gift of $5,000 or more and may not make

donations or gifts totalling $50,000 or more in any one calendar year

(ii) incur an expense of $20,000 or more on any single item, activity or event and may not incur expenses totalling $50,000 or more in any one calendar year

(iii) lend to any person or body or invest money totalling $5,000 or more in any one calendar year

without State Council prior written consent.

35.1 Sub-Branch accounts

Each sub-Branch must maintain accounts of all money received and expended by the sub-Branch and of all assets and liabilities of the sub-Branch, including any mortgages, charges or securities affecting its property in accordance with the By-Laws and Regulations.

36.1 Sub-Branch auditors and audit

Subject to clause 36.2, a sub-Branch must at the annual general meetings of the sub-Branch either:(a) elect two honorary auditors; or(b) appoint an auditor who is a suitably qualified

accountant…,to inspect the accounts, books, vouchers and securities of the sub-Branch and verify them against the statement of financial position.

37.1 Sub-Branch annual returns

Each sub-Branch must… by 31 March each year:

(a) lodge with RSL NSW SBA1, SBA2 and SBA3.

(b) ensure that any Subsidiary associated with the sub-Branch, has forwarded an audited copy of its annual financial statements to the sub-Branch

RSL NSW Property & Finance Regulation

3.30 It is compulsory for a sub-Branch that has a

total amount of all expenditure… exceeding

$50,000.00 in aggregate in any one

financial year to submit a budget for

approval to State Council / Executives.

3.31 Budgeting is simply the process of planning

the sub-Branch’s finances for a 12 month

period. The budget is made up of all the

activities you plan to undertake in the next 12

months expressed in terms of money. Budgets

should be drawn up for the calendar year.

3.32 Best practice guidelines require all sub-

Branches to prepare a budget and present

it to the AGM for acceptance.

3.32 The Treasurer is responsible for drafting the

budget with input from other executive and

committee members, as required.

3.32 Once accepted, the Treasurer is responsible

for keeping track of income and

expenditure and how the figures match

budget expectations.

Obligations of a Treasurer

Annex D to Chapter 3RSL NSW Governance Regulation

Quick!

The Budget

A prediction of the aspirations, dreams and fears of the financial future of the organisation.

The Budget

» The Budget is the costing of the business plan - how much will it cost to get where we want to

» A forecast to guide decisions

» Must be approved by the Trustees and sub-Branch members

» Scheduled reviews, varied if needed

» Basis for the next budget

Why budget?

» Good financial information = good decision making

» Assists sub-Branch committee in meeting their obligations under the Constitution

» 31.3 …”be responsible for the management and operations of the sub-Branch”

Financial responsibilities

» The organisation has an approved budget for the year and that expenditure is within the budget

» The organisation has sufficient funds to meet its obligations

» The conditions of any funding or grants are followed

Financial responsibilities

» Clear and accessible financial reports are presented at each Committee meeting

» Funds are properly accounted for and an audit is completed every year

» Proper financial systems are in place

Due Diligence

8 steps to a sub-Branch budget

1. Look at last year’s income2. Look at the timing of last year’s income3. Ask, “What will happen this year?”4. Work out this year’s overall figures5. Write down the income, month by month6. Follow the same steps for expenditure7. Discuss the options8. Present budget to the AGM for acceptance

NOTE 1A. This is calculated on a conservative return after reinvestment of X%.B. This is included simply for comparison & reference purposes to 200?

Income and should be deleted for 200?NOTE 3Voluntary donations to support the operating costs of the Welfare Bus.All costs associated with the running of the bus are including registration, insurance and servicing.NOTE 4Replacement and additional computers for Secretary and Welfare Pensions Officers & office furniture

Financial Statements

Income & Expenditure ReportProfit & Loss ReportStatement of Comprehensive Income

Income & Expenditure Report

• Cash and Accrual accounting method

• Earning and spending over a period of time

• Must compare to budget to be meaningful

Income and Expenditure Budget to Actual

What Committees should know

» Do we have enough resources to deliver the services we have committed to deliver?

» What are our outstanding liabilities and what are the risks?

» What will our future look like in terms of a store of resources?

» Are we effectively managing our financial processes?

» Do we have the right team in place to do what we say we do?

In Summary

» Start how you want to end

» Take responsibility to understand, ask questions and challenge

» Ensure reports are readable, timely and accurate

» It’s not rocket science, take lessons from your personal situation

» It’s empowering to lead

Thank you To contact us:

Kirsten ForresterMatrix on BoardT: 02 9281 1700

E: kirsten@mob.com.auW: www.mob.com.au

Understanding Budgets RSLNSW 23 May 2011 Presented by: Kirsten Forrester

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