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

financial@multiplebirthscanada.org