Hi Mike,
Yes, it’s a bit disheartening to propose this after such a bang-up year. And
you’re correct, I forecast a need to pull $30k from reserves (although you can
think of ~ $12K being technically from this year’s budget surplus. However,
doing that in the books would call for a different type of accounting ie:
‘accrual’, which we shouldn’t switch to). We wouldn’t transfer $7K into
reserves, that was just last year’s estimate of an expected shortfall that
didn’t actually occur.
Gene can correct me if I’m wrong, but the line for reserves in the annual
budget is a) a way to inform the board of an expected shortfall where income is
expected be less than expenses so that b) the budget can reflect a net-zero
balance between income/expenses. We don’t actually transfer any cash for it,
it’s just an accounting protocol to show that, as a non-profit, [Income –
Expenses = 0] in the budget.
Hope I explained that in a way that makes sense?
From: sdaa_bod-bounce@xxxxxxxxxxxxx [mailto:sdaa_bod-bounce@xxxxxxxxxxxxx] On ;
Behalf Of Mike Chasin (Redacted sender "mikechasin" for DMARC)
Sent: Saturday, June 6, 2020 7:51 AM
To: sdaa_bod@xxxxxxxxxxxxx
Subject: [sdaa_bod] Re: May Treasurer's report plus Budget draft
Hi Melany,
Thanks for preparing the budget. The task was made extra challenging in these
times. To be clear, with a virtual banquet and the work at TDS you are
forecasting a need to pull $30,000 out of reserves to balance the budget? Also
with our reduced expenses you forecast a transfer to reserves of about $7,000?
On Friday, June 5, 2020, 02:57:52 PM PDT, Melany Biendara <bieme@xxxxxxx
<mailto:bieme@xxxxxxx> > wrote:
Hey everyone,
In addition to the treasurers report, please see the budget proposal for next
fiscal year, I look forward to your feedback.
I recommend starting with the Powerpoint as it has a user-friendly format to
review the budget, where I’ve grouped and consolidated items to compare income
with corresponding expenses and separate the operating expenses.
The PP also has a few additional slides to show some challenges in using Wild
Apricot summary numbers to provide membership counts with some discussion
questions for the board The member info isn’t super critical, and we may not
have to time for it this meeting - it was an interesting analytical exercise
into how WA works.
The spreadsheet has 3 tabs:
- first tab (Draft 20-21 budget) is the actual budget in standard
accounting format
- second tab (Consolidated) is the layout used in the PowerPoint slides
- third tab is last year’s budget with historical years used to model
this year
