Create a budget
Word version of this agreement
Purpose: Create an annual budget in a spreadsheet that meets the requirements for the system grant.
Core skill: II-E-3 "develop, prepare, justify, administer and evaluate a budget based on short and long range goals."
Eligible participants: Librarians and trustees
Repeatable?: The same librarian can not repeat this project.
Do you want help from a CKLS consultant?
___ No help needed.
___ Yes, modify project agreement
___ Yes, suggest other readings or learning
___ Yes, early preparation visit
___ Yes, one-on-one coaching through activity
___ Yes, other: _______________________________
Learning component:Attend a CE event or read the following materials.
- Read pages 59 – 68 in Trustees and Librarians Working Together, CKLS, 2004. Trustees of CKLS members should have a copy of this book. Copies can also be borrowed from CKLS CE Projects Collection. CE Project II-E-3 (001)
- Read pages 93 – 105 in Working Together: A How-to-Do-It Manual, New York, Neal-Schuman, 1992. A copy of this book can be borrowed from CKLS CE Projects Collection.
- “Budget issues for library trustees” 3-page handout by the Kansas Library Trustee Association at http://tinyurl.com/ax5lr9 (PDF document)
- “Budget issues for library trustees” 4-page essay by the Kansas Library Trustee Association at http://tinyurl.com/yq2l35 (PDF document)
- Report of this project by Independent Township Library Director Judy Wondra.
Library work component:
- Download Excel spreadsheet "Budget Template" at http://tinyurl.com/3w3ypg (Excel document)
- Click File and Save As... to save this template on your computer as “BudgetTemplate”.
- Then a second time click File and Save As… and change the filename from “BudgetTemplate” to "[coming year] Budget.” Example, 2009 Budget, 2010 Budget, etc. (When the next year comes, open the blank “Budget template” and repeat this step to start the budget for the coming year.)
- Click cell A1 and type in the library’s name.
- Click A2 and replace the “?” with the number for next year.
- Replace the “?” in cells B6, C6, B24, C24 with the number for last year.
- Replace the “?” in cells D6 and D24 with the number for next year. This column is what is actually being spent this year.
- In column A, create line items for the budget. Add and delete rows as necessary.
- To delete a row, click the number of the row to be deleted. This highlights the entire row. On the Main Menu, click Edit -> Delete.
- To add a row, click the number of the row where the new row will be. This highlights the entire row. On the Main Menu, click Insert -> Row. This drops the current row down one line, leaving a new blank row. When rows are added in the middle of a group, the formulas the sum columns will automatically be adjusted to add in numbers of the new row.
- Down column A, under “Revenue,” assign line item labels for the library’s funding sources.
- Down column A, under “Expenditures – City Revenue,” assign line item labels for expenditure categories, e.g. salaries, materials insurance, etc. Add and delete rows as necessary.
- Down column A, under “Expenditures – State Aid,” assign line item labels for expenditure categories. Add and delete rows as necessary.
- Down column A, under “Expenditures – System Grant,” assign line item labels for expenditure categories. Add and delete rows as necessary.
- Down column A, under “Expenditures – Other,” assign line item labels for expenditure categories. Add and delete rows as necessary.
- Make separate groupings for each funding source.
- In column A, below “Expenditures” type a capital “N” after each item label that is a “non-discretionary” item. “Non-discretionary” items are items that must be paid to keep the library open, e.g., utilities, salaries, or insurance. “Discretionary” items are things the library could pay for or still stay open if they were not bought, e.g., books, salary increases, etc.
- In column C, under “Actual Revenue YEAR,” fill in the actual amount your library received from each revenue source during the most recent calendar year.
- In column C, under “Actual Expenditures YEAR,” fill in the actual amount your library spent for each line item during the most recent calendar year.
- In column B, under “Adopted Budget” and “Adopted Expenditures” enter the library's budgeted amounts for the current year.
- In column D, under “Proposed Expenditures,” enter the amount you think your library will need to cover the cost for the non-discretionary items first. Then fill the amounts you want to spend on discretionary items.
- The next step is to project how much money you will have for all library expenditures during the next budget year. You probably already know approximately how much your System Grant is going to be. And you can make an accurate guess about your state aid income. Be sure to include any savings or memorial money the library has in the bank. Next year's revenue from the city will probably be about the same as this year's.
- If the library's total is not enough to cover everything in the budget you have prepared you need additional funding from the city.
- If you cannot get more money from the city you may have to reduce the amount you plan to spend on discretionary purchases.
- Once the expenditures match the revenue take the final budget to the board for its approval. Send a copy to the city. Send a copy with your System Grant Questionnaire you send to CKLS in January of the new year.
- Use this budget to create your monthly financial statements and as a planning document for the rest of the year.
- Use the budget timeline on page 64 of Trustees and Librarians Working Together to help you know when to do different stages of the budgeting process.
- For credit, submit
- An outline of what you did,
- Who was involved,
- How well it worked,
- A copy of the created budget, and
- Filled out CE Project Agreement Evaluation form (Word document)
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