1. ADLA Budget Application For Parishes
ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
ADLA Budget Application For Parishes
Good Morning, today’s 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 and to create an actual budget for fiscal year 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’ features
3. We will do a quick walk-through in completing the application
4. We will explain how adjustments to the pre-populated amounts affect the application
5. We will then summarize what we talked about in today’s webinar
So let’s begin
FY2015
(c)2015 Archdiocese of Los Angeles
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2. ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
What 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?
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3. ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
Why Budget?
The Parish Controls Its Expenses and Avoids Year-End Deficits
Confirms that Spending is Consistent with Parish Goals and Pastoral Priorities.
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4. Who Can Create & Approve The Budget?
ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
Who Can Create & Approve The Budget?
Business Manager/Accountant
Responsible for maintaining & preparing financial records
Pastor Approves the Budget
Consults with the finance council & business manager/accountant
Pastor is Responsible for Establishing and Adhering to the Parish Budget
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5. When Should the Budget be Prepared?
ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
When Should the Budget be Prepared?
FY 2015
Fiscal Year Budget is due May 15, 2015
Prior to the End of the Current Fiscal Year
Fiscal Year
Late Enough to Reflect the Performance of the Current Fiscal Year
Fiscal Year
Early Enough to be Useful for the Upcoming Fiscal Year
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6. The Budget Process Step 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, what’s essential and what can wait.

7. Step 1 -Data Collection 3 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.

8. Step 2 - Finding Trends
Any Seasonal Increases (Highs) or Decreases (Lows) in Income/Expenses
Income/Expense Accounts that are Continually Increasing/Decreasing
No Significant Changes in Prior Years
Safe 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?)

9. Step 3 - Applying Trends Find 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 Predict
The 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 year’s income and expenses. After applying the trend to next year’s 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?

10. Step 4 - Projecting & Estimating Expenses
Breakdown of Expenses by Category
1.Payroll (usually Parish’s 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., ??????????????)

11. 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,

12. Step 5 - Evaluation & Reconciliation
Operating 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?)

13. Managing the Budget Managing Income
Using the budget to be pro-active and not reactive
Creating Reports (Monthly/Quarterly)
Monthly/quarterly review, accounting software
Managing Expenses
Are expenses increasing compared to the previous year
Investigate, determine why
A budget c

14. The ADLA Budget Application
Create a Forecast for current FY
Create a Budget for FY
Previous 3 Year Annual Report Ending Balances
FY Actual Annual Report Amounts are used to calculate the Forecast
Forecast Amounts are used to calculate the Budget
Amounts Can Only be Adjusted in Columns Labeled “Forecast Projected & “Budget ”
As Information is Populated for “Forecast Projected ”, Amounts will Populate the “Budget ” Column, but these Amounts Can Be Overwritten!

15. The ADLA Budget Application
ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
The ADLA Budget Application
WARNING-!!!!
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 information
Drop Down Menu
Forward (right) and/or back (left) arrows
Log out link at the top of the page
A Reset Button is Located to the Right of the Columns
This 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
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16. Application Login Instructions
Select Your Internet Browser

17. Application Login Instructions
Enter the Following URL:

18. Application Login Instructions
Enter Your Login Information When Prompted
User Name: ACC\Username
Password: Your Password

19. Application Login Instructions
After Logging in, Click on View Parish Listing Button

20. Application Login Instructions
If No Records are Showing, Then Click on the Parish Fiscal Year Button
See Figure A

21. Application Login Instructions
If There is Already a Record for , Click on the Details link
See Figure B

22. Application Login Instructions
The Budget Form Will Load
Review the Pre-Populated Amounts
If changes are necessary, enter the new amounts in these two columns

23. Application Login Instructions
Once Complete, Click on the Arrow at the Bottom to Navigate to the Next Page
This Will Save Your Information

24. 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 Page

25. ARCHDIOCESE OF LOS ANGELES ADLA Budget Application
FY 2015
Page 1 – Ordinary Income
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26. Show Summary Feature
“COOL FEATURE” - Show Summary Box & Button Allows the User to Preview the Entire Report as Changes are Entered

27. Show Summary Feature

28. Page 2 – Restricted Income

29. Page 3 – Ordinary Expenses

30. Page 4 – Other Expenses

31. 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

32. Page 5 – Summary Page

33. Page 6 – Submission Page
Can 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

34. Page 6 – Submission Page

35. Submission Page
Once You Have Completed Reviewing All of the Pages, Submit Your Report
Enter Preparer Name, Phone #, and Any Comments as Necessary
Hit Submit Button, ONCE SUBMITTED THE REPORT WILL BE LOCKED!!!

36. How the Information is Calculated
Every 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!!!!

37. Forecasting Steps in Completing A Forecast for Fiscal Year 2014-2015
“Forecast Projected Column has Pre-Populated Amounts
Based on FY Ending General Ledger Balances
Steps in Completing A Forecast for Fiscal Year
Balance Sheet as of March 31, 2015
Divide the Balances by 9 Months
Multiply the Amounts by 12 Months
The Solutions will be your Forecast for FY
The Amounts for Budget will recalculate
Budget will be Created!!!

38. Steps for Completing the ADLA Budget Application
Gather 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

39. Making Adjustments
You 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!!!!)

40. How Adjustments Affect the Application
Eliminates 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

41. SUMMARY Budget – 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

42. CONCLUSION Any Questions, Suggestions and/or Comments?