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Budget report - previous activity field
Posted: Wed Feb 15, 2012 8:37 pm
Now that we have started the new year and we are dealing with our carryover from 2011, we can not figure out how to enter our carryover into the budget report. When we click on view/edit budget there are only fields to split the current budget between the organizations and not any fields to split up the carryover.
Posted: Wed Feb 15, 2012 9:27 pm
CWatsonJr wrote:Now that we have started the new year and we are dealing with our carryover from 2011, we can not figure out how to enter our carryover into the budget report. When we click on view/edit budget there are only fields to split the current budget between the organizations and not any fields to split up the carryover.
There is only one budget total allocation you are operating from -- the grand total of the carryover from last year (positive or negative), the Q1 allocation, and the estimated allocations for Q2-Q4. You need to enter your estimates for Q2-Q4, but the carryover and the Q1 allocation are automatic and cannot be changed. It really doesn't make any sense to talk about treating the carryover separately from the total amount.
Using the Edit Budget screen, you determine what how that one total figure is divided up among organizations. The Edit Budget screen will show at the bottom how the total of the various budgeted amounts compare with that total figure.
Posted: Wed Feb 15, 2012 10:34 pm
Uh oh. From the reports I have seen, I thought the carryover was on top of the estimated yearly budget (Q1 allocation + Q2-4 estimates), not included.
If I add the carryover to the estimated and then split that up amongst the organizations, I will come out with a negative balance. The amount in the "previous activity" column is 0 for each organization, not showing any carryover amounts (which is why I thought I had to put amounts in those columns). That may be where my problem lies and I am in real trouble and will have to adjust the amounts I have given to the Ward Council.
Thank you for your help.
Posted: Wed Feb 15, 2012 10:58 pm
CWatsonJr wrote:Uh oh. From the reports I have seen, I thought the carryover was on top of the estimated yearly budget (Q1 allocation + Q2-4 estimates), not included.
The carryover is indeed added to the Q1 allocation and the Q2-Q4 estimates -- it is not included. If you go to the View/Edit Budget screen you will see several figures in the top part of the screen:
- Balance Forward
- 1st Quarter (this will be shaded gray, since it is an actual)
- 2nd Quarter (this will be an entry field that you can change, since it is an estimate)
- 3rd Quarter (also an entry field)
- 4th Quarter (also an entry field)
- Manual Adjustment by Unit
- Total (sum of all the above)
The Miscellaneous and Manual Adjustment lines are typically 0.
Then the lower part of the screen will show all the budget subcategories, each with their "Budget Assigned by Unit" amounts.
Then at the very bottom are three figures:
- Total Estimated/Actual Allowance (that is the same as the Total in the upper section)
- Budget Assigned by Unit (the total of all the figures in the lower section)
- Difference (the difference between those two previous numbers)
On that screen it should be very clear what total number you are aiming for (the "Total Estimated/Actual Allowance" amount) and how much you've assigned to organizations so far (the "Budget Assigned by Unit" amount). Since that is the screen where you actually set budgets, I don't see how you could be off, unless you were ignoring those totals and the all-important Difference amount as you were setting organization budgets.
CWatsonJr wrote:If I add the carryover to the estimated and then split that up amongst the organizations, I will come out with a negative balance.
That seems like that could only be possible if your carryover was negative.
In any case, I'd recommend that you review the Local Budget Instructions that were sent out last year. They are attached to this post
if you don't have them handy.
Posted: Fri Feb 17, 2012 6:16 am
Whew - it works the way I thought it did. Thank you.
My original question still stands then - how do I split up the carryover (which is positive)? My total estimated does not include my carryover. If I add the carryover to any of my quarters, then my total will be higher than my total estimated.
You know, I have my auditor coming on Sunday... I will pose this question to him and hope he doesn't say "I don't know."
Posted: Fri Feb 17, 2012 7:12 am
CWatsonJr wrote:My original question still stands then - how do I split up the carryover (which is positive)? My total estimated does not include my carryover. If I add the carryover to any of my quarters, then my total will be higher than my total estimated.
I don't understand your question. You only estimate quarters
for which you have not yet received your actual allocation. So the phrase "total estimated" doesn't make sense. The only total that is important is the only total that is shown on the View/Edit Budget screen, which is the total of your carryover, Q1 actual, and three estimates (at this point in the year): Q2, Q3, and Q4. As I have shown, that grand total does
include the carryover.
Assuming you have entered reasonable estimates for Q2, Q3, and Q4, the key figure for you to look at is the Difference displayed at the bottom of the View/Edit Budget screen. If that number is zero, or reasonably close, then your organizational budgets already consume the available funds -- you're done. If that number is a large positive, then you have the option of increasing organizational budgets to use those unallocated funds. If that number is a large negative, then you need to reduce organizational budgets (but that doesn't seem to be your case).
But here's another way to look at this. If somehow your organization budgets total to a figure that doesn't include the carryover, then just don't worry about it. Since you have a positive carryover, one school of thought is that you should operate on what you estimate will come in over the course of 2012, without the carryover. That way you have the carryover as a cushion against unexpected expenses, or lower than estimated actual allocations in the remaining quarters of the year. With this approach, you also don't run the risk of having an extra generous 2012 and set expectations that won't be met in 2013 when you might not have a carryover.