Tips for Prepare the Budget

- Establishing a budget committee
- Determining who is responsible for the
budget
- Determining who adopts the budget
- Determining the fiscal year
- Creating a budget sheet
- Predicting income
- Planning for future expenditures
- Implementing operating control
procedures
- Evaluating existing procedures
- Controlling cash disbursements
- Handling vouchers and invoices
- Handling cash receipts
- Amending the budget

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Establishing a budget committee

If the local constitution does not mention a budget committee, it may still be a good idea for the local President to appoint a budget committee to assist the treasurer.

Determining who is responsible for the budget

If there were no planned budget in place, then there would be no plan for the logical allocation the local’s resources.
In the long run, it becomes a fiduciary responsibility for all the local officers to develop a budget.

Determining who adopts the budget

The size of the local is a good determining factor on which group should adopt the budget. The executive board generally provides a more streamlined operation.

Determining the fiscal year

The CWA's fiscal year runs from October 1st till September 30th.

Creating a budget sheet

Any given spreadsheet application can be used to prepare the budget.

Predicting income

The bulk of a local’s income is derived from membership dues and, thus, may be difficult to predict. Some of us are in periods of fast growth, some locals are fairly stable, and others are faced with declining membership. In the interest of safety, it usually makes sense to assume the "worst possible" scenario in making membership predictions.
Do not include income that cannot be accurately predicted and do not include unrealistic income for the sole purpose of balancing the budget.
The CWA Member Dues Hotline provides reimbursement (revenue) information; contact CWA – the Membership Dues department - at 1-800-232-4166 for more information, if it is required.

Planning for future expenditures

Get estimates for projects such as printing a newsletter or having the newsletter posted on the Internet. Don’t guess how much it will take.
You should also include a "contingency line" in the budget, because it is impossible to predict with certainty all events that occur in a coming budget year.
Also, you may want to include a line called "Special Projects" to allow for items and issues that were not foreseeable at the time that the budget was prepared.

Implementing operating control procedures

The operating control procedures used, should produce a report detailing items in both the current balance sheet and the statement of income and expenditures.
These procedures should contain enough detail and internal controls to support the size of your local.

Evaluating existing procedures

Bank statements should be addressed to and opened by the local President for inspection.
The same individual who has the responsibility for writing the checks should not perform the bank reconciliations.
Never pre-sign checks.

Controlling cash disbursements

All bank accounts, including savings, money market accounts and certificates of deposit should be dual-signature accounts. All certificates of deposit that are not in the position of the local must have a letter of safekeeping from the financial institution on file.
No checks for large amounts should be written to "petty cash" and no checks at all should be written to "cash."
It is also advisable for the bank statement to be sent directly to the local president. The local president should review the statement and canceled checks and then forward the entire contents to the treasurer for reconciliation. This gives the president an overview of all of the financial transactions and builds in another cash control procedure.
Disbursements of significant amounts should always be made by check.

Handling vouchers and invoices

No checks should be prepared based on verbal authority.
Documentation will usually be in the form of invoices or personal/staff expense vouchers.
Some expenses, such as rent, will not be billed monthly. There is, however, documentation for this type of expense in the form of leases and other agreements.
Payment should not be made until after the merchandise or service has been received.
Only original invoices, not copies, should be used to support disbursements.

Handling cash receipts

All checks received should be marked "For Deposit Only" with local name and bank account number. A copy of each check submitted for deposit should become part of the record.

Amending the budget

Throughout the year, based upon budget reports, the body that approves the budget initially has the authority to make changes in the budget as needed.