1. The Life Cycle of the Budget …sufficient for the day...

2. The Budget: n The operating picture : the day to day financial operation of the school so that the administrator can make intelligent decisions accurately. This becomes the data for the production of an accurate budget.

3. The Life Cycle: Second Month: Basic assumptions based on hard data Third Month: 1st rough draft Fourth Month: Determination of income Fifth Month: 1st draft to pastor, Council; study of line items, rationales listed Sixth Month: Final revisions, final draft Seventh-Eighth: Adjustments to final draft Ninth: Publication July 1st: Budget implemented

4. Basic Assumptions: 1. There are fixed costs 2. There are non-fixed costs 3. Tuition should at least cover salaries and benefits 4. Allow for contingencies 5. Follow line items 6. ALL MONIES BELONG TO THE SCHOOL

5. Essentials of Good Financial Management: n Purchase order system n Triplicate checks n File procedure n Controls over fundraising n Accountability n Policies for financial aid n Assurances for collection of tuition n Preparation, control, revision of budget

6. Some things to remember: n Accountability is essential n Careful monitoring is more essential n Presume nothing n Do careful, honest forecasting n Don’t micromanage