Financial Management

Ch 4

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

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

Types of budgets

Spending ceiling model Justification of expenditures that

exceed previous budget cycle Problem: inflation rate

Types of budgets

Spending reduction model Administrators are required to reduce

their budgets to preserve institutional funds.

Most be creative Eliminate luxury items

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 ??

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

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

Variable budgeting Used in clinics Expenditures are adjusted according

to income

Lump sum budgeting Fixed amount of money with no

specifications on spending Accountable after the fact Most freedom

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

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??

1st year budgeting

Inventory Purchasing Estimates for following year Saving for a rainy day

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

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

Budget Process

Inventory: quarterly or semiannually

Project numbers and prices: look at who is served, objectives of the program

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

Line Item categories

Salaries Permanent

equipment Expendable

Supplies Travel CEUs Liability Insurance computers

Maintenance and repair

Professional organization memberships

Contractural services

Physician retainers Miscellaneous

Purchasing and Negotiating

Purchasing Requisition – written

ok to purchase1. Request for quote 2. Brand names – be

specific3. Vendors – how many4. Freight5. Products v. services6. When – as soon as

able 

Negotiations

1.  Lower cost2. price3. supply4. quality5. shipping6. support

Purchase Order

complete after bid How are they processed

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.

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.

Other Purchasing Ideas

Pooled consortia: pool orders to price. Used in schools, clinics, departments

Alumni or Boosters Be sure you go through proper

channels+

Inventory Management

1. Hard to do2. inventory regularly

1. Throw away out of date, damaged items

3. central storage4. automate inventory5. restrict access6. put year on items so you use oldest

first