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Today Agency-wide Budgeting: Counting Every Dollar Because Every Dollar Counts

July 20 More than Math: The Board’s Role in Financial Oversight and Monitoring

July 27 The COSO Internal Control Integrated Framework

August 17 Strategic Resource Development: Fundraising and Revenue Creation Plans

August 24 Tapping into the Time, Talent, and Treasure of the Tripartite Board

September 14 Quality Improvement: The Payoff from Internal Controls

Webinar Series Schedule

© 2011 Community Action Program Legal Services, Inc.

A Joint Project of CAPLAW and Meliora Partners

Agency-wide Budgeting:Counting Every Dollar Because

Every Dollar Counts

5© 2011 Community Action Program Legal Services, Inc.

Session Overview & Learning Objectives

� Simplify budgeting, expand understanding

� Understand actual and possible revenue and expense allocations across funds

� Understand how to use the agency-wide budget as a management tool

� Some planning techniques and tools

6

Why An Agency-wide Budget?


7

Webinar Agenda


8

Source of unnecessary complexity

“It just grew!”


Universal Chart of Accounts

Chart Goals: Multi-program categories

Pass the Goldilocks test:

Not too manyNot too few;

JUST RIGHT

9

A Detailed REVENUE Chart Of Accounts


Federal

Weatherization 1,500,000

Emergency

Shelter

State

CSBG 350,000

LIHEAP

Local

Adams County 10,000

Jefferson UW

Weatherization CSBG Adams County

10

Too Little Detail


Funds Adams Co CSBG DOE WX ESG Jeff UW LIHEAP

Revenue 10,000 350,000 1,500,000 435,000 35,000 2,476,529

Expenses

11

A Useful Approach


FUND TOTAL CSBG LIHEAP

Budget Period Oct-Sep Oct - Sep Oct-Apr Apr-Sep Oct-June June-Sep Oct-Dec Jan-Sep Oct-Jan Feb-Sep Oct - Sep

REVENUE

Federal 3,315,000 675,000 540,000 850,000 1,250,000

State 1,580,000 350,000 1,230,000

Local, public 60,000 45,000 15,000

Local, private 20,000 5,000 15,000

Allocations to Admin Pool 131,368

Other 17,000 17,000 0

TOTAL REVENUE 4,992,000 1,580,000 1,215,000 60,000 20,000 2,100,000 17,000 131,368

Admin

PoolWAP DOE Adams County Head Start

Rental

IncomeJefferson United Way

12

Too Little; Too Much


Funds�� Adams Co CSBG DOE WX

EXPENSES

Personnel

Travel and Training

Occupancy Costs

Communications

Phone

Internet

Cell service

CSBG Office expense

Polk County

Tyler County

Van Buren County

Grant County

Wx Equipment and Supplies

Truck 1

Truck 2

Warehouse

Inventory


Useful

Expenses Chart

Funds�� Adams Co CSBG DOE WX ESG LIHEAP Donations

EXPENSES

Salaries and Wages

Fringe Benefits

Travel

In-area

Out-of-area

Facilities

Rent

Utilities

Maintenance

Communications

Phone

Internet

Cell service

Office expense

Copies

Postage/parcel

Supplies

Equipment

Computers

Vehicles

Copiers

Head

Start

14

Question

Does your agency’s chart of accounts have more than 100 revenue and expense line items?

If so, do you regard this as a barrier to creating an agency-wide budget?


15

Constructing an Agency-wide Budget

Follow the remainder of the webinar with the sample agency-wide budget workbook provided

as a download for this presentation:

Excel file: Agency Wide Budget Workbook

Tab 1 – Budget

Tab 2 – Hourly and Annual

Tab 3 – Computed Fringe


16

Build a Personnel Costs Worksheet - 1


Name

List each employee

with job title

17



Name Position

Revise this list

with correct job

titles

List each employee

with job title

18



Name Position Hourly

Revise this list

with correct job

titles

List each employee

with job title

Only non-

exempt

19



Name Position Hourly Annual

Revise this list

with correct job

titles

List each employee

with job title

Only non-

exempt All Exempt

20



Name Position Hourly Annual Increase

Revise this list

with correct job

titles

List each employee

with job title

Only non-

exempt All Exempt

As appro-

priate

21



Name Position Hourly Annual Increase TOTAL

Revise this list

with correct job

titles

List each employee

with job title

Only non-

exempt All Exempt

As appro-

priate


Start Here: Personnel Costs

Name Position Hourly Annual Increase TOTAL

Angela Baker Executive Director 69,852$ 101% 70,551$

Cindy Davis Finance Director 53,658$ 101% 54,195$

Ellen Folkes HR Director 46,555$ 101% 47,021$

Gaylee Howard Family Services 48,629$ 101% 49,116$

Ida Jackson EHS/HS Director 51,685$ 101% 52,202$

Kevin Lynch Housing Director 33,335$ 101% 33,669$

Marian Newton Teacher 25,325$ 103% 26,085$

Orlando Palmer Teacher Assistant 11.00$ 22,880$ 103% 23,567$

Quinella Ransom Teacher Aide 8.50$ 17,680$ 103% 18,211$

Steve Traynor House inspector 15.15$ 31,512$ 105% 33,088$

Udell Vickers Crew leader 14.50$ 30,160$ 105% 31,668$

Wayne Xavier Wx Technician 12.25$ 25,480$ 105% 26,754$

Yolanda Zenith Intake Worker 9.50$ 19,760$ 100% 19,760$

Abby Baker FD Specialist 12.75$ 26,520$ 100% 26,520$

Christa Dodd Receptionist 8.00$ 16,640$ 100% 16,640$

519,671$ 529,047$

computed Increase 9,376$

Revise this list

with correct job

titles

List each employee

with job title

Only non-

exempt All Exempt

As appro-

priate

Build in increase

calculation

Build in increase

calculation

23

Importing Employee Data


Name Position TOTAL

Angela Baker Executive Director $70,551

Cindy Davis Finance Director $54,195

Copy over all employees, their positions and their annual cost from the Wages and Salaries tab The formulas are built into the worksheet

24

Fixed Fringe Benefits


Soc Security (S) 7.65%

Medicare (M) 1.85%

Pension (P) 4.75%

Unemployment (U) 1.85%

SMPU 16.10%

These fringe

benefits are

usually at a fixed

rate for the

organization

25

Variable Fringe Benefits


Employee only $350

Empl. +spouse $450

Employee + 2 $750

Family $850

Health Insurance (annual)Itemize

health

insurance

plans

26

Adding Fixed Fringe Benefits



Medicare (M) 1.85%

Pension (P) 4.75%

Unemployment (U) 1.85%

SMPU 16.10%

SMPU

Name Position TOTAL 16.1%

Angela Baker Executive Director $70,551 $11,359

Cindy Davis Finance Director $54,195 $8,726

Ellen Folkes HR Director $47,021 $7,571

Fixed fringe rages will be automatically computed

27

Adding Variable Fringe Benefits


SMPU

Name Position TOTAL 16.1% Rate Amount

Angela Baker Executive Director $70,551 $11,359 2% $1,411

Cindy Davis Finance Director $54,195 $8,726 2% $1,084

Ellen Folkes HR Director $47,021 $7,571 2% $940

Gaylee Howard Family Services $49,116 $7,908 2% $982

Ida Jackson EHS/HS Director $52,202 $8,405 2% $1,044

Kevin Lynch Housing Director $33,669 $5,421 4% $1,347

Marian Newton Teacher $26,085 $4,200 2% $522

Orlando Palmer Teacher Assistant $23,567 $3,795 2% $471

Quinella Ransom Teacher Aide $18,211 $2,932 2% $364

Steve Traynor House inspector $33,088 $5,328 4% $1,324

Udell Vickers Crew leader $31,668 $5,099 4% $1,267

Wayne Xavier Wx Technician $26,754 $4,308 4% $1,070

Yolanda Zenith Intake Worker $19,760 $3,182 3% $593

Abby Baker FD Specialist $26,520 $4,270 3% $796

Christa Dodd Receptionist $16,640 $2,680 2% $333

Wrkrs Comp

Add in any wage/salary increases you anticipate

28

Individualizing Fringe Benefits


Add in health (and other) insurance costs

SMPU Hlth Ins


Angela Baker Executive Director $70,551 $11,359 2% $1,411 $850

Cindy Davis Finance Director $54,195 $8,726 2% $1,084 $0

Ellen Folkes HR Director $47,021 $7,571 2% $940 $750

Gaylee Howard Family Services $49,116 $7,908 2% $982 $0

Ida Jackson EHS/HS Director $52,202 $8,405 2% $1,044 $750

Kevin Lynch Housing Director $33,669 $5,421 4% $1,347 $850

Marian Newton Teacher $26,085 $4,200 2% $522 $350

Orlando Palmer Teacher Assistant $23,567 $3,795 2% $471 $350

Quinella Ransom Teacher Aide $18,211 $2,932 2% $364 $0

Steve Traynor House inspector $33,088 $5,328 4% $1,324 $850

Udell Vickers Crew leader $31,668 $5,099 4% $1,267 $450

Wayne Xavier Wx Technician $26,754 $4,308 4% $1,070 $0

Yolanda Zenith Intake Worker $19,760 $3,182 3% $593 $0

Abby Baker FD Specialist $26,520 $4,270 3% $796 $750

Christa Dodd Receptionist $16,640 $2,680 2% $333 $0

Wrkrs Comp

29

Obtaining a Fringe Rate



Medicare (M) 1.85% Employee only $350

Pension (P) 4.75% Empl. +spouse $450

Unemployment (U) 1.85% Employee + 2 $750

SMPU 16.10% Family $850

SMPU Hlth Ins


Angela Baker Executive Director $70,551 $11,359 2% $1,411 $850

Cindy Davis Finance Director $54,195 $8,726 2% $1,084 $0

Ellen Folkes HR Director $47,021 $7,571 2% $940 $750

Gaylee Howard Family Services $49,116 $7,908 2% $982 $0

Ida Jackson EHS/HS Director $52,202 $8,405 2% $1,044 $750

Kevin Lynch Housing Director $33,669 $5,421 4% $1,347 $850

Marian Newton Teacher $26,085 $4,200 2% $522 $350

Orlando Palmer Teacher Assistant $23,567 $3,795 2% $471 $350

Quinella Ransom Teacher Aide $18,211 $2,932 2% $364 $0

Steve Traynor House inspector $33,088 $5,328 4% $1,324 $850

Udell Vickers Crew leader $31,668 $5,099 4% $1,267 $450

Wayne Xavier Wx Technician $26,754 $4,308 4% $1,070 $0

Yolanda Zenith Intake Worker $19,760 $3,182 3% $593 $0

Abby Baker FD Specialist $26,520 $4,270 3% $796 $750

Christa Dodd Receptionist $16,640 $2,680 2% $333 $0

$529,047 $85,184 $13,547 $5,950

Total Fringe $104,681

Fringe Rate 19.8%

Health Insurance (annual)

Wrkrs Comp

These fringe costs are usually fixed

These fringe costs are usually fixed

These fringe costs

may vary by position

or individual

These fringe costs

may vary by position

or individual

Combine fixed and variable fringe

costs to obtain a fringe rate

Combine fixed and variable fringe

costs to obtain a fringe rate

30

Apply Fringe Rate to Wages


Fringes CSBG DOE WX Head Start LIHEAP LIHEAP

Salaries/Wages 55,464$ 125,394$ 129,335$ 33,246$ $178,500

Fringes @ 20% 11,093$ 37,619$ 38,801$ 9,974$ 53,550$

31

Distributing Personnel and Admin Costs


TOTAL

Position TOTAL % Amount % Amount % Amount % Amount Subtotal % Amount

Executive Director 71,400$ -$ -$ -$ -$ -$ 100% 71,400$ 71,400$

Finance Director 56,100$ -$ -$ -$ -$ -$ 100% 56,100$ 56,100$

HR Director 51,000$ -$ -$ -$ -$ -$ 100% 51,000$ 51,000$

Family Services 45,900$ 50% 22,950$ -$ -$ 50% 22,950$ 45,900$ 45,900$

EHS/HS Director 61,200$ -$ -$ 100% 61,200$ -$ 61,200$ 61,200$

Housing Director 45,900$ 10% 4,590$ 90% 41,310$ -$ -$ 45,900$ 45,900$

Teacher 25,750$ -$ -$ 100% 25,750$ -$ 25,750$ 25,750$

Teacher Assistant 19,282$ -$ -$ 100% 19,282$ -$ 19,282$ 19,282$

Teacher Aide 16,604$ -$ -$ 100% 16,604$ -$ 16,604$ 16,604$

House inspector 28,392$ -$ 100% 28,392$ -$ -$ 28,392$ 28,392$

Crew leader 30,576$ -$ 100% 30,576$ -$ -$ 30,576$ 30,576$

Wx Technician 25,116$ -$ 100% 25,116$ -$ -$ 25,116$ 25,116$

Intake Worker 18,720$ 45% 8,424$ -$ -$ 55% 10,296$ 18,720$ 18,720$

FD Specialist 26,000$ 75% 19,500$ -$ 25% 6,500$ -$ 26,000$ 26,000$

Receptionist 17,680$ -$ -$ -$ -$ -$ 100% 17,680$ 17,680$

539,619$ 55,464$ 125,394$ 129,335$ 33,246$ 343,439$ 196,180$ 539,619$

Admin Pool Rate 16.1% 36.5% 37.7% 9.7%

Admin allocation 31,682$ 71,628$ 73,879$ 18,991$ 196,180$

CSBG DOE WX Head Start LIHEAP Admin Pool

32

Build in Variation


Non-Admin

TOTAL % Amount % Amount % Amount % Amount % Amount Subtotal

71,400$ 100% 71,400$ -$ -$ -$ -$ -$

45,900$ 50% 22,950$ -$ -$ 50% 22,950$ 45,900$

18,720$ 45% 8,424$ -$ -$ 55% 10,296$ 18,720$

26,000$ 75% 19,500$ -$ 25% 6,500$ -$ 26,000$

Admin Pool CSBG DOE WX Head Start LIHEAP

Distribute by % and amount Separate Admin and Non-Admin Costs

Change percentages to change amounts

33

Alternate What if? Scenarios

�Wage increases to some

�Insurance rates change after # months

�Revenue stream not replaced

�Drop in administrative cost revenue


34

Personnel Costs Worksheet


� Excel file: Agency-Wide Budget Template

Q. Do you budget total personnel costs as a

whole before you assign them to individual or multiple funds?

35

Sample Budget Format


Fund �� Total Adams Co CSBG DOE WX ESG Head Start LIHEAP Donations

REVENUE

Federal $4,967,000 $1,500,000 $3,467,000

State $2,826,529 $350,000 $2,476,529

Local $10,000 $10,000

Subcontracts $75,000 $75,000

Program Income $7,885 $7,885

Other $10,000 $10,000

Inkind HS $1,250,000 $1,250,000

TOTAL $9,146,414 $10,000 $350,000 $1,500,000 $75,000 $4,724,885 $2,476,529 $10,000

EXPENSE

Salaries and Wages

Fringe Benefits

Travel

In-area

Out-of-area

Facilities

Rent

Utilities

Maintenance

36

Cost Types


Definition Examples

Pooled

Collection of costs not clearly

identifiable with one or more

specific programs/funds

Admin wages, benefits

Admin travel

General office supplies

Allocated

Costs chargable to two or

more programs, on the basis

of an objective criterion

Facility costs (sq. ft.)

Copies (usage)

Vehicle (miles by program)

Direct Charged to one source only

HS Teacher

Classroom food

Insulation

37

Administration – to pool or not to pool


Indirect

Cost Pool

Indirect

Cost Pool

Program

BAdmin

Program

BAdmin

Program C

Admin

Program C

Admin

Program

AAdmin

Program

AAdmin

Program D

Admin

Program D

Admin

38

Overlooked Revenue and Expense


39

The “Local Fund”


40

Question:

Do you have a cost you don’t know where to locate in your budget?


41

Budget Input from Programs


42

Gaps and Surpluses


LIHEAP Budget - 1

1 Award amount 1,000,000 Control

2 Administrative Expenses 86,450 (1,450) Not more than 8.5% of line 1

3 Outreach Expenses 298,367 (48,367) No more than 25% of line 1

Direct Client Assistance 290,000

4 Home Energy 175,000 (75,000) At least 25% of line 1

5 Crisis 100,000

6 Weather/Supply/Distaster 15,000 (5,000) At least 2% of line 1

GRAND TOTAL 674,817

(x,xxx) Amount short of "at least"

Amount exceeding "Not more than"

43

Gaps and Surpluses Corrected


LIHEAP Budget - 2

1 Award amount 1,000,000 Control

2 Administrative Expenses 84,965 35 Not more than 8.5% of line 1

3 Outreach Expenses 249,995 5 Not more than 25% of line 1

Direct Client Assistance 665,040

4 Home Energy 545,040 295,040 At least 25% of line 1

5 Crisis 100,000

6 Weather/Supply/Distaster 20,000 - At least 2% of line 1

GRAND TOTAL 1,000,000 -

(x,xxx) Amount short of "at least"

Amount exceeding "Not more than"

44

Allowable Redistribution


CSBG Original 5/15 6/3 7/6

Salaries/wages 100,000 80,000 80,000 90,000

Fringe benefits 30,000 24,000 24,000 27,000

Facilities 9,000 9,000 9,000 9,000

Communications 5,000 5,000 4,500 4,500

Travel 5,000 5,000 5,000 5,000

Training 4,000 4,000 2,500 2,500

Indirect 15,000 15,000 15,000 15,000

Co-funding 50,000 76,000 78,000 65,000

218,000 218,000 218,000 218,000

45

Contingency Planning


46

Meeting Revenue Shortfalls

�Use of reserves part of a contingency plan?

�Seek loan or line of credit

�Fundraising to offset shortfall

Must reflect in budget(s)

Must have governing body approval


47

Fundraising as a Revenue Source


48

Major Purchases and Cash Flow


49

End of Year Crunch


50

Review and Revise


51

Wrap-Up

Q. What is your deadline for board approval of an agency-wide budget? (Relative to the

end/beginning of the fiscal year?)

a. 3 months before

b. 1 month before

c. First month after

d. Third month after

e. Don’t submit an agency-wide budget to the board



Resources & Tools

�OMB Circular A-110: Uniform Administrative Requirements http://www.whitehouse.gov/omb/circulars_a110

�Documents provided for seminar

o Agency Wide Budget Template.xls

o Agency Wide Budget Worksbook.xls

o Standards of Excellence Addressed.doc


The Presenters

Meliora Partners, Inc.

www.meliorapartners.org

Dan Miller

[email protected]

641-691-0033

Owen Heiserman

[email protected]

641-751-1022This publication was created by Meliora Partners, Inc., in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office

of Community Services Grant Number 90ET0430. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.

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