Budgeting of Events

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Budgeting of Events

• European School, Szeged March 2001
• Koen G. Berden, AEGEE-Academy

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Overview

• 1. Functions of a budget
• 2. Types of budgets
• 3. Creating a budget
• - Budget Structure
• - Brainstorming...
• - Proposed Budget Form
• 4. Sophisticated Budgeting
• 5. Controlling

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• 1. Functions of a budget
• Survival
• Planning
• Co-ordination
• Stop-or-go decision
• Requirement for EU or government subsidy
  application

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• 2. Types of budgets
• Results budget
• Projected balance sheet
• Liquidity budget
• Determined by
• Time frame
• Size of event
• Internal or External use

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• 3. Creating a Budget
• General Remarks
• A Budget has an income and expenses side
• Budgeting is a continuous process
• Budget ? Financial Report
• Budget shows bottle necks

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• When using old budgets as models
• Fit to your project?
• Experiences made with these budgets?
• Change Adapt
• Right values (prices, guestimates)
• Include a Reserve (Unforeseen) of 10

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Introducing the Budget Structure
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General Remarks on the Budget

• Time frame Budgeting as continuous process that
  starts when the planning of the event begins
• INCOME SIDE- EXPENSES SIDE
• Budgets are balanced!
• FIX COSTS vs VARIABLE COSTS
• Budgets show you the bottle necks
• Difference between sponsoring in kind and in
  money
• INTERNAL vs EXTERNAL BUDGETS
• Base your financial report on the Budget!!

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Budget Structure - A proposal...
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• Important issues !!!
• Sponsoring in Kind... Both sides!!!
• Reserve for Unforeseen
• Institutional Funding ? Check with CD!!!
• What happens if....??? ? Scenario - Analysis
• Loan??
• Stop-or-Go decision

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• 4. Sophisticated Budgeting
• Separate the finances of big budgets from the
  rest
• Creation of a Liquidity budget

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• 5. Expenditure Controlling
• ? Controlling is the tool to keep the budget
  lines in reality
• Very restricted access to cash bank account
• Treasurer only busy with Finances and nothing
  else (especially during the event!)

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• Appendix General Accounting Principles
• Understandability
• Relevance
• Reliability
• Comparability
• faithful representation
• prudence
• completeness
• True Fair View