Budgets are essential tools for internal controls and cash flow projections. Budgets must be integrated and internally consistent with operating goals. Additional details should be provided, if needed, by the Chapter.
Annual chapter budget is required for Revenues and Expenses. Budgets are reviewed with the District Director. Monthly budget is recommended for larger chapters. Budgets may be built based on historical trends or built up from a $0 balance. Best practice for one built on historical trends is to build a budget using these steps:
- Start with a monthly projection of revenues from all sources. This will allow completion of the budgeted revenue lines. Consider all relevant factors which affect revenue generation.
- Consider historical trends when projecting revenue and expense.
- Calculate cost of revenue applicable to the sale of publications and workshops.
- Estimate forecasted expenses by month at the chart of accounts category level.
- Compute the overall surplus or deficit (Change in Net Assets) to determine if this meets the chapter’s goals.
Once the Budget is finalized with the Chapter Executive Committee and approved by the District Director, the budget may be submitted to SCORE Headquarters during October using applicable templates for upload into Sage Intacct. HQ Accounting will provide these templates in September. This upload may be an annual budget or broken out into monthly budgets depending on the chapter’s needs. Please work with your district director and watch for announcements in September.
Any budget changes approved by the chapter leadership can be requested by the Chapter Chair or Treasurer by emailing firstname.lastname@example.org or SCORE HQ Staff Accountant directly.
About the National Allocation Budget
Each district is provided an annual operating budget, allocated directly from SCORE’s federal award, called the National Allocation to help cover SCORE-related district and chapter expenses for the fiscal year. District Directors allocate funds for district and chapter expenses between the district and the chapters, and all funds are available on a reimbursement basis or a direct payment to a vendor. The National Allocation funds are “restricted” as federal award funds.
For more information about restricted funds, please see the following on the Support Center: Volunteer Leader Expense Quick Reference Guide, Use of Funds, Chapter Accounting Policies and Procedures (CAPP), or Federal Award Compliance Video and Quick Guide. In addition to the annual National Allocation, each chapter should have ongoing fundraising efforts to ensure that the chapter’s operations for 6 to12 months are maintained.