1. Financial Management Ch 4

2.  Every change to the athletic program may/can effect your budget ( new programs, year round care)  Include all staff input in reference to using financial resources to meet documented program needs

3. Types of budgets Line Item Budget Expenditures are itemized usually with subclasses Managers can reallocate $ w/I a line item to a subclass Usually can not transfer $ from one line item to another to make up for short falls. Not good for long term planning See in HS and colleges

4. Types of budgets Spending ceiling model Justification of expenditures that exceed previous budget cycle Problem: inflation rate

5. Types of budgets Spending reduction model Administrators are required to reduce their budgets to preserve institutional funds. Most be creative Eliminate luxury items

6. Programs Budget Seen in clinics Each area of operation is evaluated for total cost. Can be useful in determining user satisfaction and service delivery Performance budget is a type of programs budget. In it you look at $ spent and how programs are delivering. Change priorities ??

7. Zero Based Budgets: A new performance budget is created each year independent upon last year’s budget. All programs must justify their existence annually. Poor performance may result in elimination of a program. Success may result in an increase. Negative: time consuming to prepare

8. Fixed budgeting (similar to programs budget) For stable financial environments Project expenditures and income, month by month to determine total costa and revenues for the year

9. Variable budgeting Used in clinics Expenditures are adjusted according to income

10. Lump sum budgeting Fixed amount of money with no specifications on spending Accountable after the fact Most freedom

11. Line item budgeting Allocation of a fixed amount of money for each subfunction of the program More administrative control Money not usually moved from one line to another

12. Funding Source Decisions Meet with administrator(s) and agree which funds will be used Who controls each fund and what procedures will you have to go through to get the $ Should teams purchase equipment??

13. 1 st year budgeting Inventory Purchasing Estimates for following year Saving for a rainy day

14. Capital Equipments/Improvements Often very expensive items that are nonrecoverable Require various levels of authorization Can you roll over funds from 1 year to the next Prioritize Institutional fund raisers, let them know of your need grants

15. Budget Evaluation Allows administrators to reach informed judgments on how well the financial resources of the institution are being expended Maintain dual accounting systems Evaluate service contracts Compile statistical information

16. Budget Process Inventory: quarterly or semiannually Project numbers and prices: look at who is served, objectives of the program

17. Purchase Plan Open accounts: used to purchase small $ amounts (less than $1,000) Bidding: send out a bid request sheet Send out 3-8 bids (may be mandated by institution) The bid sheets should be identical Just in time scheduling: good if storage space is problem, negative = time consuming

18. Line Item categories Salaries Permanent equipment Expendable Supplies Travel CEUs Liability Insurance computers Maintenance and repair Professional organization memberships Contractural services Physician retainers Miscellaneous

19. Purchasing and Negotiating Purchasing Requisition – written ok to purchase 1. Request for quote 2. Brand names – be specific 3. Vendors – how many 4. Freight 5. Products v. services 6. When – as soon as able Negotiations 1. Lower cost 2. price 3. supply 4. quality 5. shipping 6. support

20. Purchase Order complete after bid How are they processed

21. Receiving Have your storage rooms/areas ready Check what you received against packing slips Check for back orders Inspect for damage before signing (you want the vendor or freight co. to remain responsible if goods are damaged.

22. Accounts Payable Who do the invoices go to for payment What needs to be filed out Pay in a reasonale amount of time SUBMIT THE ORIGINAL INVOICE! Keep track yourself of what you have spent from your budget.

23. Other Purchasing Ideas Pooled consortia: pool orders to  price. Used in schools, clinics, departments Alumni or Boosters Be sure you go through proper channels+

24. Inventory Management 1. Hard to do 2. inventory regularly 1. Throw away out of date, damaged items 3. central storage 4. automate inventory 5. restrict access 6. put year on items so you use oldest first