1. DECEMBER 2013 ASYLUM ACCESS Budget vs. Actual Briefing

2. Introduction The Budget vs. Actual is introduced to track actual expenditures against budgeted line items: 1. This would allow overall office operational expenses to be determined for a certain period 2. This would allow material variances for each line item to be seen. 3. This would enable the organization to take corrective action and improve planning in the following fiscal years.

3. Requirements 1. To fill out only the Budget spreadsheet, part of the Budget vs. Actual, every month starting in January 2014 2. To submit a completed Budget vs. Actual at the time of submitting the completed monthly BBRs (Book and Bank Reconciliations), bank statement, and support documentation to HQ

4. Spreadsheets The Budget vs. Actual is an Excel file that contains two spreadsheets: 1. The first section resembles an office’s current Budget worksheet and a separate section contains columns to be completed each month with actual monthly expenses for each line item. 2. The Budget vs. Actual spreadsheet is structured to capture all the financial information needed to track actual expenditures against budgeted amounts and to manage the usage of the Unforeseen Expenses Fund. This section does not need to be completed and is only for internal use.

5. Budget Spreadsheet Template

6. Budget (Office) Spreadsheet This is the template for a Budget worksheet for an office This is the same spreadsheet with actual figures for each line item

7. Budget (Office) Spreadsheet What financial information is needed to fill out the Budget spreadsheet? 1. Actual monthly expenditures for each line item. 2. Total quarterly expenditures for each line item paid with the Unforeseen Expenses Fund. What sources are available to get this financial information? 1. The actual monthly expenditures can be collected from the BBRs since all monthly expenses captured in the BRRs should reflect the actual figures on the Budget vs. Actual. 2. The total quarterly expenditures are the unexpected expenses paid with the Unforeseen Expenses Fund, the 10 percent of an Office Operational Budget added to a final Office Budget. The total quarterly expenditures should resemble all the funds withdrawn from the Unforeseen Expenses Fund within a quarter.

8. Budget (Office) Spreadsheet This is part of the spreadsheet where the actual monthly expenses for each line item needs to be inserted

9. Budget (Office) Spreadsheet The following are the steps to complete the Budget spreadsheet : 1. Enter the actual expenditures for each line item into the appropriate monthly column. 2. Enter total quarterly expenditures for each line item paid with the Unforeseen Expenses Fund into the appropriate quarterly column. 3. If necessary, write a comment related to any amount added to this spreadsheet. 4. The purpose of this budget is internal control of funds which means that all the numbers on this spreadsheet should reflect numbers on the BBRS and withdrawals from the Unforeseen Expenses Fund within a quarter.

10. Example - Entering Monthly Expenditures Actual cost of Fiscal Sponsorship in July is $457. Insert this amount into the July column (cell D 13)

11. Example – Entering Quarterly Information Although some expenses are fixed during a fiscal year, other expenses may increase suddenly. For example, on the following Slide (12) Utilities expenses for the first two months of the first quarter equals $255 ($130+$125), but in September, the same service unexpectedly increases by an extra $50 per month. The following are the steps to report this unexpected increase: 1. This unexpected increase qualifies as a discretionary “operational expense.” 2. After approval of leadership staff in HQ, the Country Director has the authorization to withdraw $50 from the Unforeseen Expenses Fund to add it to the budgeted monthly amount (about $130 per month) to cover this monthly expense (see Slide 12). 3. Note: the purpose of the Unexpected Expenses Fund is to protect the organization from unforeseen risk or those wanting to take advantage of unforeseen opportunity. Please read the Unforeseen Costs Fund Policy to be aware of the regulations governing this fund.

12. Example – Entering Quarterly Information 1.The budgeted amount for Utilities in July, $130, and August, $125, are inserted into the corresponding cells. 2.The extra $50 used to cover the increase in Utilities expenditures starting in September is entered into the column labeled Q1: Unforeseen Expenses.

13. Example – Entering Quarterly Information When is a lump sum is withdrawn to cover multiple expenses? 1. After carefully reviewing the amount to allocate to each line item, insert these numbers into the Q1 Unforeseen Expenses column. 2. The Country Director or staff designated to fill out this spreadsheet also needs to write a comment in the last column of the spreadsheet (Comments/Recommendations) to describe the process used to allocate the expenses paid with the Unforeseen Expenses Fund. 3. Note: The sum of expenses paid with this fund within a quarter should equal the total of withdrawals from the Unforeseen Expenses Fund within a quarter.

14. Example – Entering Quarterly Information For example, in September the office’s Rent increases an extra $70 per month. Now the total amount needed to cover unexpected costs in September equals $120 ($50 for Utilities and $70 for Rent). The following are the steps to follow to report these two unexpected costs: 1.Insert the $50 extra (Utilities) in the Q1 Unforeseen Expenses column 2.Insert the $70 extra (Rent) in the Q1 Unforeseen Expenses column

15. The End Please carefully review each data entry exemplified in this training Use the cell reference that was presented to enter your monthly and quarterly financial information in your office’s Budget spreadsheet. The Budget vs. Actual spreadsheet is in read-only view to protect the financial information captured in this spreadsheet. If this training does not provide the guidance you need to fill out the Budget spreadsheet, please email your questions or suggestions to: luisa.sotelo@asylumaccess.org