Annual budgets provide SLSC’s an opportunity to review their upcoming income and expenditure, their operational plans and make decisions about the best allocation of their resources. The Annual budget will be managed by the Treasurer and signed off by the CMT. Once approved, budgets become part of your core internal controls and allow for actual v budgeted financial reporting and may be incorporated into financial delegations.
A standard budgeting process will include operational (profit and loss) budgets, cashflow budget, capital expenditure budget and investment budget. Consideration should be given to ongoing capital maintenance and when asset replacements may occur to determine what level of reserves is appropriate.
From time to time, SLSC’s may undertake building programs, which will require construction budgets, cashflow budgets and consideration of ongoing changes to operational budgets. Treasurers are encouraged to reach out to their branch or SLSNSW for advice when commencing these projects.