Transcript RSB Budgeting Process - Institution of Mechanical Engineers

April 2013 RSB Mtg
RSB Budgeting Process
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December RSB Mtg
• Agreement at Dec RSB that we should try and move to a
Programme year budget basis
• Today’s presentation considers how we might achieve this and is
intended to capture your opinions and agree a way forward…
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RSB Programme Year Budget Proposal
 Key purpose: Alignment of the Regional budget with the
programme year to facilitate more accurate budgeting and
overcome the over-budgeting problem currently experienced
Programme Years
2012/13
2013/14
Budget Prep
2014/15
Institution Budget Year
Current
Visible programme
Jan
2013
July
2013
Improving the world through engineering
Sept
2013
Jan
2014
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July
2014
Sept
2014
Jan
2015
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Budgeting Process Comparison
Programme Years
2012/13
2013/14
Budget Prep
2014/15
Institution Budget Year
Current
Visible programme
Jan
2013
July
2013
Sept
2013
Jan
2014
July
2014
Sept
2014
Jan
2015
Programme Years
2012/13
2013/14
RSB Budget Year
Budget Prep
Proposed
Jan
2013
2014/15
Visible programme
July
2013
Sept
2013
Improving the world through engineering
Jan
2014
July
2014
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Sept
2014
Jan
2015
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RSB Budgeting Process
 New RSB budget year will run from 1st September- 31st August
each year
 Regional event programmes will have to be sufficiently defined
to support accurate budget preparation
 We will need your budget submissions by end July latest (mid
Budget Prep process shown), ideally sooner?
 Budget allocations will be confirmed End August
Programme Years
2012/13
2013/14
RSB Budget Year
Budget Prep
Proposed
Jan
2013
2014/15
Visible programme
July
2013
Sept
2013
Improving the world through engineering
Jan
2014
July
2014
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Sept
2014
Jan
2015
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RSB Budgeting Process
 For this first transition year, we will need to understand what
you expect to have actually spent of your current 2013 budget
as at 31st August 2013. Any remaining required but unspent
budget from 1st September 2013 to end 2013 should be included
in your new budget submission
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RSB Budgeting Process
Worked example
 Region X had a 2013 budget of £20k and is anticipating having
spent £12k by 31st August 2013.
 For the 2013/14 RSB Programme year Region X is estimating a
budget requirement of £18k and the notional split of this is:
 £7k required:
 £11k required:
1st Sept 2013 to 31st Dec 2013
1st Jan 2014 to 31st Aug 2014
 By the end July we would require detail of the £18k programme
year budget, any adjustments will then be made to 2013
drawdowns
 Any significant forecast variances over the current budget for
2013 will be discussed and settled individually with Regions
 2013/14 Budget will be determined and notified
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RSB Budgeting Process
 RSB budget process will not require further re-budgeting by
Regions to support the Institution budget
 The RSB feed into the Institution budget will be made handled
by RSB Chair and Exec. Regional Chairs will be engaged if any
known anomalies exist
 It is inevitable that this change will cause some disruption and
effort to make it work – but hopefully long term gains through a
better budgeting process can be achieved
 Proposed that RSB Chair controls a larger discretionary budget
over the first year to handle any unexpected budget issues that
arise as a consequence of the change, which could impact on
regional operation
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RSB Budgeting Process
What would success look like?
A significantly more accurate Regional budget process that fully
supports Regional activity and doesn’t tie up unnecessary
Institution funds and a budget process that is in harmony with the
planning cycle of regional activity
Improving the world through engineering
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