FY2014 K&C Division FY2014 K&C Division Budgeting PlanBudgeting Plan

November 10, 2012

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Why is Division Budgeting Why is Division Budgeting Important?Important?

1. ASME Budgeting Consistency; brings all divisions in sync. with society-wide budgeting cycle.

2. ASME Policy 2.1 Compliance; divisions with expenditures over $100K must satisfy itemized budget requirement.

3. ASME Policy 8.1 Compliance; budgets are a key component of division health assessment.

4. Continuous Improvement; provides a key financial tool for effective division management.

5. Fiduciary Responsibility; improves financial visibility and accountability.

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Division Budgeting OverviewDivision Budgeting Overview

Background• Technical Divisions have no previous budgets or budgeting process.

• Divisions can view financial data through crystal reports; however timing lags and net conference surplus bookings limit the usefulness of historical financial data for planning purposes.

FY2014 Budgeting Objectives• Introduce division budgeting as part of continuous improvement effort.

• Develop preliminary activity budgets for all divisions.

• Update budgets to include BOG-K&C Targets.

• Auto upload final budgets to ASME Systems; Starting March 1, 2013.

• Complete Budgeting Process: March 15, 2013.

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Division Budgeting ProcessDivision Budgeting Process

InitializedMS Excel

Workbooks

CreateMS Excel Template

MS ExcelTemplate

InitializeMS Excel

Workbooks

Review, Update& Approve

Preliminary Budgets

ASME Finance and Program Mgt.

Staff

ASME Accounting

Systems

EPAT

Division Leaders & Program Mgt. Activity Focus(Bottoms Up)

Approved Preliminary

Budgets

Revise andApprove

FinalBudgets

BOG – K&C Targetsfor Rev & Exp allocation

(Top Down)

ApprovedFinal

Budgets

Upload toASME

Accounting

Sept Nov Dec Jan MarOct Feb

TimelineRoll Out at Congress

ASME Finance

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Excel Workbook TemplateExcel Workbook TemplateSummary Worksheet: e.g. Aerospace

SUMMARY Historical Current Plan2010A 2011A 2012A 2013B 2014B 2015B 2016B

Revenue Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz … $xyz $xyz $xyz $xyz $xyz $xyz $xyz Total Revenue $xyz $xyz $xyz $xyz $xyz $xyz $xyzExpense Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz … $xyz $xyz $xyz $xyz $xyz $xyz $xyz Total Expense $xyz $xyz $xyz $xyz $xyz $xyz $xyzNet Surplus $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Custodian Fund Beginning Balance $xyz $xyz $xyz $xyz $xyz $xyz $xyz Net Change $xyz $xyz $xyz $xyz $xyz $xyz $xyz Investment $xyz $xyz $xyz $xyz $xyz $xyz $xyz Ending Balance $xyz $xyz $xyz $xyz $xyz $xyz $xyz

ADMINHistorical Current Plan

2010A 2011A 2012A 2013B 2014B 2015B 2016B

Revenue

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Revenue $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Expense

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Expense $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Net Surplus $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Schedules (sub-worksheets)

CONFHistorical Current Plan

2010A 2011A 2012A 2013B 2014B 2015B 2016B

Revenue

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Revenue $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Expense

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Expense $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Net Surplus $xyz $xyz $xyz $xyz $xyz $xyz $xyz

AWARDHistorical Current Plan

2010A 2011A 2012A 2013B 2014B 2015B 2016B

Revenue

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Revenue $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Expense

Item 1 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Item 2 $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Total Expense $xyz $xyz $xyz $xyz $xyz $xyz $xyz

Net Surplus $xyz $xyz $xyz $xyz $xyz $xyz $xyz

…

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Excel Workbook InitializationExcel Workbook Initialization• FY2010 through 2012 Historical

– Actual from Accounting Systems.

• FY2013 Budget – Based on input from divisions if they submitted a plan.– Flat to FY2012 for divisions that did not submit a plan.

• FY2014 Budget– Includes Conference Budget download from EPAT.– 3% growth assumption.

• FY2015 & 2016 Budget– 3% growth assumption.

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Budget Review and UpdatesBudget Review and Updates• Preliminary Budgets (bottoms-up)

– Focus on developing activity/transactional based budgets relative to custodian funds:

– Updates Can be Entered as:

• Amount values in revenue and expense cells, or

• Percentage growth rates in rate cells

• Final Budgets (revise for top-down targets)– Includes “Higher Level” BOG-K&C Targets– Approval by Division Chair and Program Manager– Group Leader Approval (with staff director)– TCOB Leader Approval (with staff director)– K&C Approval

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Excel Workbook UploadExcel Workbook Upload

Div 1 Approved Final

Budgets

Div 2 Approved Final

Budgets

Up to Div 32 Approved Final

Budgets

. . .

Upload toASME

Accounting

Standard ExcelTemplate ReducesData Upload Effort

Division OperationsAnd Evaluation

Upload toCoincide WithASME Society-WideBudgeting Process(Target March 1, 2013)

Budgets UsedAs A Vital ToolFor EffectiveDivision Management

Budgets UsedIn Division Health Assessment

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Potential Issues & ConsiderationsPotential Issues & ConsiderationsPotential Issue Consideration

Lack of Involvement & Incentive

• K&C Staff has reorganized to provide dedicated Program Managers who will engage Division Leaders.

• ASME Executives and K&C Leaders will emphasize importance with Division Leaders.

• Divisions under-participating risk reduced budgets.

Lack of Education

• Staff Program Mangers skilled in budget management will partner with Division Leaders throughout.

• Staff Financial Managers are dedicated to support the process and lend expertise as needed.

• Getting an early start in the budget cycle is essential for learning.

ResourceFocus

• Primary focus on divisions requiring budgets by policy. • Secondary focus to include all divisions in process.

Budget Accuracy

• Starting early and working iteratively, division leaders working with staff will refine budget forecasts.

Meeting Target Upload Date

• Starting Early, Providing dedicated support with clear direction.

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Budgeting Milestone ScheduleBudgeting Milestone Schedule

Milestone Deliverable ResponsibleNovember 15, 2012 Pre-populated Budget (Excel File)

Distributed to Each Division

ASME Finance and

Program Management

December 15, 2012 Submit Preliminary Budget Division Chair and

Program Management

January 15, 2013 Establish K&C Targets K&C Leadership and

ASME Finance

February 15, 2013 Submit Final Budget

(Revised to include K&C Targets)

Division Chair and

Program Management

March 1, 2013 Final Budget Approved

(File Upload between March 1 and 15)

K&C Leadership and

ASME Finance

March 15, 2013 ASME FY2014 Budgeting Process Complete

ASME Leadership

Thank You!