9 - Building a Campaign Budget presentation 1-18-13

Report
Combined Federal Campaign 2013 National Training
Building A Campaign Budget
February 26 - 28, 2013
Atlanta, GA
Session Objectives
• Maximize donor funds going to charities by
keeping expenses as low as possible
• Understand importance of a sound Financial
Management Plan
• Establish detailed budget categories in the
contract solicitation
• Negotiate budget amounts annually
• Conduct monthly expense reviews
• Verify final expense recovery reimbursement
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Presented by
• Sally Good-Burton, Office of Information Services
Group Director, Centers for Medicare and
Medicaid Services, U.S. Dept Health and Human
Services, and LFCC Chair, Chesapeake Bay Area
CFC
[email protected]
• William Henrikson, Chief Financial Officer, Volpe
National Transportation Systems Center, U.S.
Dept of Transportation and LFCC Chair, Eastern
Massachusetts CFC
[email protected]
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Chesapeake Bay Area CFC
• Third largest CFC in 2011; over
4,000 charities participated
• Functions under direction of the
Baltimore Federal Executive Board
• Campaign area includes Baltimore
city and 16 counties in Maryland
and Virginia
• Includes 135 Federal agencies
with 91,391 employees
• 2011 CFC raised a record $6.8M
(19% participation rate; $390
average pledge)
• Won National Performance Award
for $1M+ campaigns in 2011 for
11.3% increase over 2010
• Utilized 7 Loaned Executives from
4 Federal agencies
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Eastern Massachusetts CFC
• Created in 2004 – 3 CFCs merged
• Area includes city of Boston
(Suffolk County) and surrounding
counties
• ~150 federal agencies with
approximately 30,000 employees
• 2011 CFC raised $1.99 (24%
participation rate, $278.35
average pledge
• 10 Loaned Executives work directly
with PCFO
• Participant in the New England
Region Local Eligibility Application
Process. Shared local federation
application review process with
other New England PCFOs.
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Importance of detailed financial
management plan and budget
•
The LFCC is responsible for overseeing a campaign in a given area in
accordance with OPM direction; fiduciary responsibilities are paramount!
•
Must ensure that all donor contributions are safeguarded and used as
intended by the donor
•
Financial management plan presents sound fiscal approach and describes
internal controls
–
Internal controls provide reasonable assurance that the following objectives are being achieved:
• effectiveness and efficiency of operations,
• reliability of financial reporting, and
• compliance with applicable laws and regulations.
•
Currently, expenses are recovered from donor contributions; campaigns
must strive to minimize costs and maximize funds going directly to
designated charities
•
Budget must be based on projected expenses – not based on a percentage
of funds raised in the campaign
•
Approve only necessary, legitimate campaign expenses
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Financial Management Plan
Components
• Describe internal controls designed to provide reasonable
assurances that fiduciary responsibilities of § 5 CFR 950.105 will
be achieved
U.S. Government Accountability Office (GAO)’s Five Standards
for Internal Control
• Control Environment
• Risk Assessment
• Control Activities
• Information and Communications
• Monitoring
• Specifically address the system for reconciliation of original pledge
amounts with final distribution of funds
• Identify checks and balances in place to ensure accountability and
integrity of financial system
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Campaign Budget Justification
• Projected expenses for upcoming campaign(s)
with narrative justification explaining rationale
and/or formulas used in calculating major cost
categories
• Expenses must be presented at a sufficient level
of detail to enable understanding of all necessary
costs to run a campaign
• LFCC approval required annually for campaign
budget; collaborative approach may provide
greatest efficiencies
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Sample Campaign Budget Categories
• Total Payroll-Related Expenses
– Salaries – by individual position, full-time and part-time and all
temporary positions….direct and indirect
– Employee benefits – direct and indirect
– Payroll Taxes – direct and indirect
• Other Campaign Staff Expenses
– Local transportation and parking
– Staff development
• Volunteer Development
– Local transportation and parking
– Professional development
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Sample Campaign Budget Categories
• Campaign Processing Expenses
–
–
–
–
–
–
–
–
Third party processor expenses (if used)
Pledge processing system
Electronic pledging system
Telecommunications (voice and data)
Postage and Shipping
Warehouse
Office supplies
Website
• Design and development
• Maintenance and Update
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Sample Campaign Budget Categories
• Total Marketing Expenses
– Printing – list individual items and estimates for each item
Examples:
• Paper pledge forms
• Paper charity list or Giving Guide
• Brochures, posters, postcards, banners
• Volunteer training and support materials
– Storage and shipping materials to agencies
– Video / Media aids
– Donor recognition and incentive gifts
– Campaign and special events – list individually (campaign or agency
kick-off; mid-campaign rally; recognition events)
• Reminder: Campaign cannot pay for food or entertainment at
these events
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Sample Campaign Budget Categories
• Other Expenses
– Occupancy (rent, utilities; office amenities)
– Depreciation (office and computer equipment, furniture,
fixtures)
– Annual Audit - An assessment by an independent certified
public accountant using generally accepted auditing standards
(GAAS) and following the Agreed-Upon Procedures (AUP)
provided by OPM
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Projected Revenue
Conservatively estimate amount expected to be
raised
• Based on Federal employee population (current and
projected)
• Performing at campaign average participation rate and
average gift – adjusted for future expectation
Example:
50,000 employees – 25% participation &
$300 average gift = $3,750,000
Shrinkage: The difference between the amount pledged
and the amount actually collected. Used in adjusting
distribution payment; not part of budget
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Campaign Overhead Rate
Total Estimated Expenses per year
Divided by
Campaign Projection Revenue per year
Equals
Percent of CFC Expenses to Campaign
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Monthly Budget and Expense Reports
• After LFCC approval of campaign budget, the PCFO submits
detailed monthly expense reports to LFCC showing all expense
transactions, accompanied by copy of invoices/receipts, by
15th of following month.
• An LFCC member reviews materials for accuracy and
completeness; meets with PCFO CFO staff to discuss any
questions or missing receipts
• Summary financial reports presented regularly to the full LFCC
• Summary and detailed financial materials maintained in LFCC
office for 3 years after close of campaign
• Budget and expense information must be made available to the
public upon request
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Example of Summary Report
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Example of Detailed Report
PCFO Name
Transaction Journal 2012 Campaign
For the Period March 1, 2012 - November 30, 2012
Date
Transaction
Journal
Reference
account number and description
Payroll
Description of item
Journal Entry
Accounts Payable
Debit Amount Credit Amount
$
$
Project ID
campaign year
account number and description
account number and description
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PCFO Expense Recovery
§ 950.106 “The PCFO shall recover from the gross receipts of the
campaign its expenses, approved by the LFCC, reflecting the actual
costs of administering the local campaign.”
•
•
Final expense amount equals cumulative LFCCapproved expenses for a campaign
Monitoring/reviewing /approving expenses and
receipts on a monthly basis supports a timely and
smooth LFCC approval process!
Reminders:
• The amount to be recovered cannot exceed 110 percent of
estimated budget (unless approved by OPM Director)
• Expenses shared proportionately by all recipient organizations
reflecting their share of gross receipts
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Recap
• LFCC responsible for ensuring sound financial
management of campaigns
• Budgets need to be detailed to allow for understanding of
costs and cost drivers
• Budgets must be negotiated annually
• LFCCs should approve only necessary, legitimate
campaign expenses
• Conduct monthly reviews of actuals versus budget
• Verify final expense recovery reimbursement
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Any Questions?
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