Preparing Budgets

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18.1 Introduction

Procedures have been established to ensure that Church resources are handled properly in ERC operations. The following is an overview of how finances are handled in centers in the U.S. and Canada. Centers outside the U.S. and Canada follow standards set by their area operations finance office.

For information on business expenditures, see section 19, “Spending and Reimbursement.”

 

 
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18.2 Preparing the ERC Operations Budget

The ERC annual budgeting process for the next year typically begins in May. Professional center managers prepare all professional and volunteer center budgets within their area of responsibility.Seek input from your ASOC, AWM, and MFO about your ERC’s operations budget. Contact your MFO or AWM with questions.

Controllership Services (the finance department of Welfare Services) will typically send the following tools, along with their due dates:

  • Budget Form A forecasts your current year expenses and includes the April year-to-date (YTD) statement. Use this form to project your spending for the coming year, based on your best understanding of seasonal activities, trends, and costs that might occur later in the year.
  • Budget Form B highlights your next year requests that are better or worse (by more than 2 percent) than the current year’s budget. Projections must be done by account, not by budget category. Use this form to explain why your next year’s requests are better or worse.
  • Budget Form C forecasts category amounts for the current year which are better or worse (by more than 2 percent) than the current year’s budget. Projections must be done by account, not by budget category. Use this form to explain why your current year’s amounts are better or worse.
  • The Sample Budget Letter is the letter you can send to inform your agent stake president that you will be coordinating with the ASOC about preparing the budget.

After receiving input from your ASOC, AWM, and MFO, send the completed forms back to Controllership Services at Church headquarters. Final budgets may be adjusted at ERS headquarters in light of priorities set by the Presiding Bishopric.

18.3 Replacement and Improvement (R&I)

It is important to keep the ERC in good condition; therefore, expenses such as office equipment, major maintenance, and construction do not impact the ERC operations budget. The Replacement and Improvement (R&I) process helps to maintain a professional environment at the ERC. The R&I process is done in conjunction with the operations budget.

To complete the R&I process, work with the local facilities management (FM) group that oversees your center.

  • Take into account all repairs and replacements you may need throughout the next year.
  • Meet with your FM manager to suggest which items should be replaced.
  • Review the R&I assessment with your ASOC to allow input and priesthood review.
  • The FM manager will submit the request to headquarters for approval.

For information on replacing vehicles, see section 20.5, “Vehicles.”