ANNUAL BUDGET PROCESS
The Annual Budget is the document which shows how much money EBHC will take in from your payments, HACSA payments, the laundry rooms, and any other sources of income over a one-year period. It also shows what this money is to be spent on during the next year. The first budget proposed by the Board of Directors and accepted by the Membership was for only six months (January 1, 1982 to June 30, 1982); since then they have been for a full year.
The budget year runs from July 1 through June 30th and is approved by the General Membership after individual committees have submitted their portions. The budget is initially prepared from this information by the Office Manager and the Management Committee reviews a preliminary draft which is then voted on by the General Membership.
- From January to March committees should start planning the projects that will take place during the next budget year and determine the cost of each. Ideally committees already have projects planned out for several years, and it is simply a matter of which one/s will happen next and how much they will cost. These project costs must be turned in to the Office Manager by March 31st.
- The Office Manager will then:
- Review the projected income for the year, the fixed and operating expenses for the year, and the money requested by each committee for the year.
- Prepare a proposed budget for the April Management meeting.
- The Management Committee will review the budget, discuss possible changes, and propose the budget to the April GM.
- The GM will review the budget, discuss possible changes, and approve the budget or send it back to committee.
- If sent back to committee Management will make as many of the changes requested by the GM as possible or determine that no changes can be made and send it back to the May GM for approval.
- A proposed budget (or revised budget) must be approved by the June GM.
The total expenses for any budget year should not exceed the total income for the year.
We must spend to zero every year. In other words when preparing the budget we should not show a profit.