budget checkup – the calendar · 2017. 7. 17. · budget checkup – the calendar your quarterly...
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BUDGET CHECKUP –THE CALENDARYOUR QUARTERLY GUIDE TOBUDGET MAINTENANCE AND REVIEWThroughout the year, your budget managers, executive team, and even your board of directors, have set tasksthey need to perform for your organization to maintain the health of your budget in real time and in the future.
Many scheduled tasks are recurring on a monthly or quarterly basis, ensuring continued input and review fromstakeholders. Yet, some expenses need to be carefully managed at different times of the year, for example, tomake the most out of grant funding. A properly prepared budget review and regular “checkups” will keep yournonprofit on schedule and allow you to achieve your mission.
To ensure you remain on track and are prepared for your new fiscal year, we’ve crafted a checklist ofrecommended actions – let’s call it your prescription for success.
BUDGET REVIEW: MONITORING AND REVISING
Q1 Q2
Q3 Q4
Schedule budget checkpoints for the year withboard and program managers
Review and determine which grant budgets mayor may not follow your budget year (if applicable)
Evaluate current budget estimates for accuracyand possible seasonal fluctuations
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Review grant budgets for required adjustmentsand unused funds (if applicable)
Determine gap between actuals and budget;identify and plan for dependencies going into Q4(for example, upcoming fundraising goals,expected grants, potential over expenditures)
✓ Review annual report
Compare actuals versus budget estimates
Revisit budget assumptions; determineif prior assumptions are no longer validor are proved to be untrue
Review expense and revenue modeling
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Review for unbudgeted revenue or expenses Example: Receipt of a grant that was not
budgeted for or any unexpected expense suchas a new program or service
End of Q2, revisit budget and determine ifadjustments are needed, based on H1 actuals
Obtain approvals of mid-year budget revisions
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BUDGET CHECKUP –THE CALENDARYOUR QUARTERLY GUIDE TOBUDGET MAINTENANCE AND REVIEW
MONTHLYREVIEW TASKS
QUARTERLYREVIEW TASKS
Evaluate actual versus budgetedrevenue and expenses for eachprogram, as well as your nonprofitas a whole
Review balance sheet checks;maintain prepaid, accrual schedules
Assess year-end forecasting;project future cash flow to ensureyou remain on track
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Quarterly review of variancereports – actual versus budget
Review grant budgets for requiredadjustments and unused funds
Quarterly budget check in;review significant variances andunbudgeted expenses or revenues
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BUDGET CREATION: PREPARING FOR YOUR FISCAL YEARProperly planning one’s budget is crucial to ensuring missionachievement. Once created, it should serve as the guide to managingyour nonprofit’s programs and financial responsibilities throughoutthe year.
Here’s what your fiscal year-end budget preparation schedule should look like:
Q3: Budget Planning Review financial performance (prior year and forecasted year-end)
Assemble budget team and assign responsibilities
Estimate and draft your budget timeline and goals• Set deadlines to review in Q4• Define organizational and program goals• Determine expenses, project income, forecast cash flow
Draft initial budget
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Q4: Budget CreationDiscuss, clarify, and agree on organizational financial goals
Determine timeline for budget creation and approvals, includingsetting milestone dates with internal staff and board
Distribute draft budget; collect recommendations; then revise,based on feedback and assumptions
Formulate new budget, prepare proposal, and acquire approvalbefore beginning of next fiscal year
Internally communicate budget and goals for the new year
Implement budget, assigning management responsibilities
Upload budget into accounting system
Create calendar for budget review and monitoring responsibilitiesfor the upcoming year
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