The 10 Commandments
of Effective Budgeting & Fiscal Controls
Barry S. Mael
USCJ Director of Kehilla operations & Finance
[email protected] |
@BarryCRDMO
Jeff Shlefstein
CPA | Partner at Tanton and Company, LLP
Pirkei Avot 2:17
Ethics of Our Fathers
Rabbi Yose says: Let your
friend’s property be as
dear to you as your own.
5 Key Questions
1. What are the 10 commandments of effective
budgeting and controls for synagogues?
2. What are the core functions of a Budget &
Finance Committee?
3. What is a healthy process for ongoing review
& adjustment?
4. Does your budget follow your vision?
5. What is contingency planning and why is it
important?
What is a Budget?
A budget is a plan for
getting and spending
money to reach specific
goals by a certain time
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
1. Establish a timetable, and guide the
budget process for maximum input,
consensus and mutual goal setting
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
2. Establish priorities and related
projects that reflect the goals of the
institution.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
3. Gather adequate information for a
realistic budget.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
4. Do not confuse cash versus accrual
accounting.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
5. Understand, and benefit from, the use
of fund accounting.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
6.
Do not ignore the budgetary
implications of the operating surpluses
and deficits.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
7. Do not play budget games.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
8. Understand parsonage.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
9. Do not keep the budget a secret.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
The Ten Commandments of
Effective Budgeting & Controls
for Synagogues
10. Monitor and control financial
activities and budgetary performance.
Adapted from
Wilkin &
Guttenplan,
PC,
Synagogue
Services
Group
Budget and Finance
Committee
Core Functions
 Oversees organizational financial planning
 Monitors that adequate funds are available for
the plan
 Safeguards organizational assets
 Drafts organizational fiscal policies
 Anticipates financial problems
Board Source,
Thomas A.
McLaughlin
Budget and Finance
Committee
Core Functions
 Ensures that the board receives accurate and
complete information
 Helps the rest of the board understand financial
statements and the general financial situation of
the organization
 Makes sure that the federal, state and local
reporting takes place
 Sustains the committee itself
Board Source,
Thomas A.
McLaughlin
Budget Review and
Adjustment
 A budget review committee should meet on
a monthly basis to monitor performance
against goals.
 The budget review committee should review
budget variances and assess issues
associated with budget overages.
 It is important to do this on a monthly basis so
there can be a correction to overspending
or modification to the budget if needed.
Waiting until the end of the year to make
corrections could negatively affect the final
budget outcome
“Budget Follows Vision”
As with most things in managing an
organization, budgeting needs to be
driven by the vision of the organization
and the strategic plan. Organizations
that stay focused on their strategy and
plan know exactly where they want to
spend their resources and have a plan
to help keep them from spending in
areas that do not line up with the
vision.
The Thriving
Small Business
© 2013
Why Contingency
planning is important
A contingency plan is a plan devised for an
outcome other than in the usual (expected) plan.
 An alternative plan
 Backup system
 Readiness before emergency
 Preparedness
 “He who fails to plan, plans to fail”
Budgets, Missions & Priorities
small group work
Budget Review
 What percentage of your budgetary spending is discretionary?
 What contingency planning is currently built into your budget
or should be ?
 How does your mission and vision shape how you look at these
issues?
 Write down two takeaways.
&
Contact: Barry Mael
Director of Kehilla Finance and Operations
732-738-4301 or 646-519-9330
 [email protected]
@barrycrdmo
http://uscj.org/LeadingKehilla/Resources/Operations/KehillaOperationsFinanceandDues.aspx