A budget is a plan that identifies the financial resources required to achieve programmatic objectives. Once constructed, this plan assists staff in managing the program efficiently throughout the year.

What is a Budget?

How long the process takes and who should be involved varies depending on the management style and complexity of the entity. Typically the budgeting process should start four months before the end of the fiscal year to ensure the budget is approved.

Planning the Process:

Clearly communicate responsibilities of staff involved so that information is processed in a timely manner for completion of budget on schedule.

Constant communication throughout the year will also keep Managers or Directors apprised of any issues that are happening that would impede service delivery which could lead to funding issues or cash flow issues as well.

Communication of Process:

Once you know what services you are providing you can structure a budget to fit the needs of the clients/participants and the community.

Construct budgets using historical data. Keep in mind any issues that occurred the previous year such as unit reductions or unit increases. Also drastic increases in expenses such as vehicle maintenance or insurances.

Information Gathering:

Compilation of Data: Know your two largest expenses-Food &

Salaries/Fringe Use of spreadsheets to compile Staff across

services Use of Time Studies for staff not program specific

to identify percentages per service Use of Production Studies to monitor staff to meal

production ratios Cost worksheets prepared monthly to help track

cost issues Cost of In-Kind Expenses

Time & Production studies should be done several times during the fiscal year, not just at budgeting time.

Time studies are performed on staff who are not program specific meaning not employed under a specific program such as a Program Director for FGP.

Examples of staff that would perform time studies are In-Home Service Managers & their assistants, Homemakers that perform service across different programs such as Title III & Respite. Also staff that are listed under different contracts such as Adult Day Care that has both Title III and Title XX contracts.

Time studies should be performed at different times of the fiscal year to encompass events that might occur during the year with staff.

Production studies can be prepared monthly to monitor accurate staffing for nutrition services.

Time & Production Studies

Compile all worksheets Salaries/Fringe Cost worksheets Know your revenue available per service Prepare Financial Statements per service Present to Board or Municipality for

approval

Putting the Budget Together:

Non-Metro AAA (Area Agency on Aging) Other Providers in Network Attending all Trainings

Contacts for Guidance: