1. 1 Budgeting Training Trinity United Methodist Church June 20, 2013

2. 2 Introduction from Finance Ministry Team The objective of the budgeting process is to be sure we are being good stewards of Trinity’s (and God’s) money that are so graciously given to support Trinity and its ministries. Each year Trinity goes through a budgeting process to determine what each ministry needs and wants to meet their objectives aligned with the Strategic Plan. As fellow laborers in ministry, we recognize that prayer, God’s leading and the gifts & graces of ministry team leaders will drive ministry decisions We are spending the church ’ s – and God ’ s - money. Where will it provide the most support for the objectives and alignment with the Strategic Plan? Let each of you look out not only for his own interests, but also for the interests of others. Phillipians 2:4

3. 3 Why is Trinity using Zero Based Budgeting? Expenses were trending upward every year and outpacing revenues Mid-year freezes on spending were needed across the board – not based on what was most critical to the TUMC Strategic Plan and objectives The change was made in 2009 prior to the submission of 2010 budget requests

4. 4 Expenses Had Trended Up Since 2002 Implemented new Budgeting process's for 2010 NOTE: 2007 – 2009 – Spending freezes / cuts were implemented during the year

5. 5 Expenses Exceeded Revenues Implemented new budgeting Process for 2010

6. Budgets have remained “flat” since 2010 Approved Budgets from 2010 -2013 2010 - $1,025,407 2011 - $1,022,262 2012- $1,025,519 2013 - $1,024,375 6

7. 7 The Basis of the Budgeting Process: Analyze every program / activity – how is it contributing to the objectives and/or Strategic Plan? Has a certain program / activity achieved its objective and it’s now time to move on to another objective? Examine the wisdom of spending any money on the program / activity Ask: What is needed to achieve the objectives of your ministry team and the Church’s Strategic Plan?

8. The Basis of the Budgeting Process Ask: Just because it worked in the past, will it will work in the changing community?  Are different / new programs / activities needed?  Determine what programs / activities are needed  Develop your ministry team’s plan for the year

9. 9 How does the budgeting process work at Trinity? No assumptions Determine what needs to be done in 2014 to meet the objectives and the future vision Prioritize these activities Estimate the cost of each of the activities Submit your budget request

10. 10 What Needs to be Turned In? Budget Request form containing the following information: List of planned activities Prioritization of each activity Classify each as “A”, “B” or “C” Estimated cost for each activity Other resources needed for each activity (such as volunteers needed)

11. 11 Budget Request Form Input form is available on the TUM website www.catchthespirit.org Under the Quick Links Tab> Trinity Church Forms & Procedures > General Trinity Forms and Policies

12. Sample of Budget Input Form 12

13. 13 Key Dates for Budget Owners Budget Training Workshop is conducted in June Ministry and staff teams meet as a team to go through budget process during July & August Budgets are due on or before August 31, 2013

14. 14 How do I turn in my Budget Request? Email completed forms to Finance Ministry Team Co-Chairs Doug Powell AND Curt Peirson- Powell04@comcast.net cpeirson@comcast.net Leave completed forms in Finance Ministry Inbox in Church Office

15. 15 What happens after I turn in my budget request? Each budget request is reviewed by a Finance Ministry Team member Budget submitter will be contacted with any questions

16. 16 Budget Approval Process All budget requests are complied and presented as a "Wish List" to the Admin Board in October Stewardship Campaign begins in November & December Analysis of the "Wish List" budget & Stewardship Campaign results in January Final budget developed & presented to Ad Board in January Final budget letters sent to Ministry Teams in February

17. What happens if my Budget needs change? If circumstances change and additional budget funds are required, a budget owner can request a “modification” to their budget. Budget “modifications” must contain adequate substantiation for the budget increase request Budget “modifications” are reviewed and approved by the Finance Ministry Team. Budget owners will be notified of the decision made by the Finance Ministry Team 17

18. Ongoing Responsibilities Each budget owner is responsible for monitoring there actual expenditures versus their budget amounts. Budget owners must approve all expenses and designate budget item to be charged on invoice. Budget modifications can be requested. Budget owners must not exceed any budget amount without prior approval from the FMT 18

19. Sample Budget Submission 19