Budget Application Power Point Webinar

ADLA Budget ApplicationFor ParishesFY2015(c)2015 Archdiocese of Los AngelesGood Morning, todays webinar will introduce and demonstrate the Archdiocese of Los Angeles Budget Application to be used by the Parishes to forecast their budget for the current fiscal year 2014-2015 and to create an actual budget for fiscal year 2015-2016. With us today is , once the power point presentation and webinar are complete we will have some time for questions, comments and/or suggestions. So please save them till the end.

The Archdiocese of Los Angeles Budget Application webinar will be presented in five parts;1. We will begin by explaining the basics of budgeting 2. We will introduce the application and show some of the applications features3. We will do a quick walk-through in completing the application 4. We will explain how adjustments to the pre-populated amounts affect the application5. We will then summarize what we talked about in todays webinarSo lets begin

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationACC Financial Services Group Financial Services1FY 2015What is a Budget?Financial Plan of Action for the Parish

A Projected Cost of the Parish Plan and the Projected Income to Support it

A Systematic Approach to Realistically Estimate Income and Expenses

Helps to Foster Stewardship Growth

A Guide in Making Day to Day Financial Decisions

What is a Budget?ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services2Why Budget?The Parish Controls Its Expenses and Avoids Year-End Deficits

Confirms that Spending is Consistent with Parish Goals and Pastoral Priorities.

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services3Who Can Create & Approve The Budget?Business Manager/Accountant Responsible for maintaining & preparing financial records

Pastor Approves the BudgetConsults with the finance council & business manager/accountant

Pastor is Responsible for Establishing and Adhering to the Parish Budget

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services4When Should the Budget be Prepared?Fiscal Year 2015-2016 Budget is due May 15, 2015

Prior to the End of the Current Fiscal YearFiscal Year 2014-2015

Late Enough to Reflect the Performance of the Current Fiscal Year Fiscal Year 2015-2016

Early Enough to be Useful for the Upcoming Fiscal Year

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services5The Budget ProcessStep 1 DATA COLLECTION

Step 2 FINDING TRENDS

Step 3 APPLYING TRENDS

Step 4 PROJECTING & ESTIMATING EXPENSES

Step 5 EVALUATION & RECONCILIATION

The budget process involves several steps as listed on the slide, data collection (weekly, monthly and/or quarterly financial reports, bank statements, collecting income and expenses history), finding trends will include tend projection and evaluating the economy, applying trends will include estimating income and expenses, and what direction is the income or expense moving. You want to evaluate your expenses in the current and upcoming fiscal year, this will involve knowing your parish expenses. Finally evaluating and reconciliation all of your information this is when you prioritize your expenses, whats essential and what can wait.6Step 1 -Data Collection3 Year History of Income & Expenses

Current Fiscal Year Income & Expenses (first 9 months) Forecast

Capital Expenditure and Purchase Information

Payroll Information

The budget application will have 3 years of historical data entered that was taken from the annual reports submitted for the three previous fiscal years, you cannot change this number. In order to forecast the current fiscal year (projected) you will run a balance sheet as of March, 31st and divide the balances by 9 (months) and then you will use that number and multiply it by 12. this will give you a forecast fro the current fiscal year.

Have any current and future capital expenditures and purchases that need to be taken into account when creating the parish budget, and also have available any payroll records, payroll is usually the highest expense you will have.7Step 2 - Finding TrendsAny Seasonal Increases (Highs) or Decreases (Lows) in Income/Expenses

Income/Expense Accounts that are Continually Increasing/Decreasing

No Significant Changes in Prior YearsSafe to predict no changes in coming year

The Effect of the National and Local Economy

One element to always take into account when creating a budget is paying close attention to how income and expenses are affected by various seasons, (i.e., Holy week, Christmas, summer events, travel, charities contributions).Are there any accounts that are continually increasing? Is income (i.e., collections) constantly going up?, Are expenses (office supplies, utilities) on the rise?Maybe there has not been any significant change to an income or expense account in the previous three years, it would be safe to predict that no significant changes will occur in the coming fiscal year.How does the national and local economy affect your budget. Examples can be an increase in gas for parish vehicles, utilities, permits, taxes and payroll (is there an increase in the minimum wage?)8Step 3 - Applying TrendsFind the direction of the trend Increase, decrease or no change?

Is the Trend Continual or Constantly Changing?

What is the Extent of the Trend?

Using the Trend to PredictThe direction of income & expenses

Once you understand what direction your finances are headed you can applying these findings to better predict your budget in the coming fiscal year. These trends you have found can now be used to project the coming years income and expenses. After applying the trend to next years income and expenses, ask yourself the following;1. Does the projected income and expenses for next year seem reasonable?2. Are there any other factors we have not accounted for?3. Do we need to adjust our estimates after reviewing the trends we found?9 Step 4 - Projecting & Estimating ExpensesBreakdown of Expenses by Category1.Payroll (usually Parishs highest expense 35% to 50%)

2.Fixed Expenses (rent, loans, assessment, taxes, subsidies to schools)

3.Operating Expenses (day to day expenses, maintenance, utilities)

4.Discretionary Expenses (programs, ministries, events)

5.Capital Budgeting (large expenses, construction, cars)

A good way of projecting & estimating your expenses is by breaking down the various categories, payroll, fixed expenses, operating expenses, discretionary expenses and budgeting for future capital expenses and/or purchases. Payroll is usually a parishes biggest expense, using payroll records from previous years will be a quick and efficient way of estimating future payroll needs. Fixed expenses, what do we pay for rent?, do we have any outstanding loans with a fixed payment schedule? Do we provide a subsidy to the school (same amount every year?). What is our day-to-day operating expense?, how much do we pay for maintenance and utilities (weekly/monthly?)How much of the parish budget is being used for parish programs and ministries. How are future events funded? (i.e., ??????????????)10 Step 5 - Evaluation & Reconciliation Is the Budget Realistic & Reflects the Current Operating Environment?Income Expense = Profit/Operating Loss

What is the Parish Doing to Increase Revenue?

Is the Payroll in Line with the Pastoral Plan and Parish Goals?

Are there any Payroll Adjustments Needed in Regards to Hours and/or Personnel?

Fixed Expenses are Non-Negotiable!!!Once you have estimated the parish income and expenses, you can discern whether or not your budget is realistic and reflects the current operating environment. Are we estimating a profit or a loss in the coming fiscal year. What is the parish doing to increase revenue, and decrease expenses. Is payroll in line with the pastoral plan and parish goals? Will there be any changes in hours and personnel in the coming fiscal year?Remember fixed expenses are non-negotiable and are usually established by contractual terms,11 Step 5 - Evaluation & ReconciliationOperating and Discretionary Expenses;Which expenses are essential?Which of these expenses and/or purchases can be delayed?Can these expenses be solicited as donations to the Parish?What alternatives are available for existing programs without cost?Are there events that can be totally or partially self-supporting?What measures/programs can be initiated to manage cost?(i.e. water and electricity conservation?)

12Managing the BudgetManaging IncomeUsing the budget to be pro-active and not reactive

Creating Reports (Monthly/Quarterly)Monthly/quarterly review, accounting software

Managing ExpensesAre expenses increasing compared to the previous yearInvestigate, determine why

A budget c13 The ADLA Budget ApplicationCreate a Forecast for current FY 2014-2015

Create a Budget for FY 2015-2016

Previous 3 Year Annual Report Ending Balances FY 2013-2014 Actual Annual Report Amounts are used to calculate the 2014-2015 Forecast2014-2015 Forecast Amounts are used to calculate the 2015-2016 Budget

Amounts Can Only be Adjusted in Columns Labeled Forecast Projected 2014-2015 & Budget 2015-2016

As Information is Populated for Forecast Projected 2014-2015, Amounts will Populate the Budget 2015-2016 Column, but these Amounts Can Be Overwritten!

14The ADLA Budget ApplicationWARNING-!!!!Print out a copy of the summary (page 5)before you begin!!!Once you submit you report, you will not be able to make changes

3 Ways to save your informationDrop Down MenuForward (right) and/or back (left) arrowsLog out link at the top of the page

A Reset Button is Located to the Right of the ColumnsThis will return your information to the original pre-populated amounts

You may save your work and return later to complete the report,If you have not submitted the final report

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services15Application Login InstructionsSelect Your Internet Browser

16Application Login InstructionsEnter the Following URL:

http://apps.la-archdiocese.org/ADLABudget/

17Application Login InstructionsEnter Your Login Information When PromptedUser Name: ACC\Username

Password: Your Password

18Application Login InstructionsAfter Logging in, Click on View Parish Listing Button

19Application Login InstructionsIf No Records are Showing, Then Click on the Parish Fiscal Year 2015-2016 ButtonSee Figure A

20Application Login InstructionsIf There is Already a Record for 2015-2016, Click on the Details linkSee Figure B

21Application Login InstructionsThe Budget Form Will LoadReview the Pre-Populated AmountsIf changes are necessary, enter the new amounts in these two columns

22Application Login InstructionsOnce Complete, Click on the Arrow at the Bottom to Navigate to the Next PageThis Will Save Your Information

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Components of the ADLA Budget Application

Page 1 Ordinary Income

Page 2 Restricted Income

Page 3 Ordinary Expenses

Page 4 Other Expenses

Page 5 Summary Page

Page 6 Submission Page24Page 1 Ordinary Income

ARCHDIOCESE OF LOS ANGELES ADLA Budget ApplicationFY 2015ACC Financial Services Group Financial Services25 Show Summary Feature COOL FEATURE - Show Summary Box & Button Allows the User to Preview the Entire Report as Changes are Entered

26 Show Summary Feature

27Page 2 Restricted Income

28Page 3 Ordinary Expenses

29Page 4 Other Expenses

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Page 5 Summary Page

Will Display all the Pages of the ADLA Budget in Long Form

Amounts will Update as Information is Changed in the Previous Pages

No Adjustments can be Made to the Summary Page

31Page 5 Summary Page

32Page 6 Submission PageCan Only be Accessed after Clicking on the Summary Page Right Arrow

Once Submitted the Budget Application Cannot be Edited!!!

You Must Contact Financial Services for Changes to Your Report

33Page 6 Submission Page

34Submission PageOnce You Have Completed Reviewing All of the Pages, Submit Your ReportEnter Preparer Name, Phone #, and Any Comments as NecessaryHit Submit Button, ONCE SUBMITTED THE REPORT WILL BE LOCKED!!!

35How the Information is CalculatedEvery Account has a Percentage Assigned to it by The Archdiocese The Percentages can Range from 0% to 6.25%

The Archdiocese Assessment is Calculated Using the Ordinary Income Total from the Previous Fiscal Year

You Will Create Your Own Forecast!!!!

36ForecastingForecast Projected 2014-2015 Column has Pre-Populated AmountsBased on FY 2013-2014 Ending General Ledger Balances

Steps in Completing A Forecast for Fiscal Year 2014-2015Balance Sheet as of March 31, 2015Divide the Balances by 9 MonthsMultiply the Amounts by 12 MonthsThe Solutions will be your Forecast for FY 2014-2015The Amounts for Budget 2015-2016 will recalculate

Budget 2015-2016 will be Created!!!

Steps for Completing the ADLA Budget ApplicationGather All Current Fiscal Year Financial Information

Print Out a Hard Copy of the Summary (page 5)

Review Pre-Populated Amounts

Make Adjustments

Review Completed Report

Submit

38Making AdjustmentsYou May Enter an Adjustment in Both the Projected and Budget Columns Only

You Cannot Make Adjustments to the Summary Page (page 5)

Forecast Projected If You Change and Save Amounts, the Formula is not Protected!!!

Reenter Original Amounts, If Necessary (BE SURE TO PRINT OUT A COPY WHEN YOU START!!!!)

39How Adjustments Affect the ApplicationEliminates the Formula from the Forecast Projected Column

Changes Total on the Current Page & the Summary Page

Entries in Forecast Projected Column Changes the Budget Column

Manual Changes to Budget Column will not Affect Forecast Projected Column

40SUMMARYBudget What, Why, Who, When

Access Budget Application Online

Budget Due by May 15, 2015

Cannot Make Changes Once Submitted

Contact Financial Services for Updates & Make Changes

41CONCLUSIONAny Questions, Suggestions and/or Comments?fsbudgethelp@la-archdiocese.org

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