Building a Zero Based Budget

1
Building a Zero Based Budget

• Scott Larson CAA
• Apple Valley High School
• NIAAA National Conference
• December 18 2007
• Nashville Tennessee

2
What is a Zero Based Budget

• Zero Based Budgets are based upon the concept
  that every dollar in the budget has been
  allocated for a clearly identified need not as a
  part of a percentage allocation.
• A properly constructed and executed Zero Based
  Budget will find a zero balance at the end of the
  fiscal year.
  
• The use of the Zero Based Budget will enable you
  to ensure that your funds are allocated where
  they are needed most.

3
If it is so good why doesnt everyone use it

• It requires every individual budget manager
  (coach) spend time accurately identifying the
  needs of his/her program.
  
• The Athletic Director will need to allocate
  discretionary dollars based on need not
  history.
  
• Coaches will need to understand the concept that
  Fair is not Equal.

4
O.K. I am sold how do I start

• Identify which Fixed Cost and Discretionary
  budget line items you will be including in the
  budget
  
• Transportation
• Officials
• Event Workers
• Entry Fees
• Membership
• Printing
• Repair
• Misc (Accountants hate Misc.)
• Supplies

5
Got it now what

• Direct your coaches to identify the amount they
  will need for each line item.
  
• Budget Worksheet
• Coaches will need the tools necessary to identify
  the accurate amount.
  
• Next years schedule
• Pay rates for officials and workers
• Anticipated transportation formula
• Entry Fee Ice Rental Green Fee costs
• Current catalogs bid sheets from preferred
  vendors.

6
Budget Worksheet

• Sport __________________________________
• All Levels
• Transportation _______________________
• Officials _______________________
• Workers _______________________
• Membership _______________________
• Printing _______________________
• Repair _______________________
• Uniform Allocation _______________________
• See attached Uniform Rotation List
• Entry Fees _______________________
• Misc _______________________
• Supplies Please provide a prioritized list
  including subtotals by items
  
• _______________________
• _______________________
• _______________________
• _______________________
• _______________________

7
Event Worker Pay Schedule

• Workers
• Ticket Sellers/Takers 26.00 each per game
• Site Managers 33.50 each per game 50.25
  if over 3/12 hours
  
• Timer/Scorer/Announcer 26.00 each per game
  
  
• Chain gang/lines person/track workers 26.00
  each per game/event 38.75 if over 3.5 hours
  
  

8
Officials Pay Rates

• Soccer
• Varsity 183.00 (for three) per game JV/B/9 47.00
  each per game
  
• Volleyball
• Varsity/JV/B Combination 75.00.00 each. 9th
  grade 32.00
  
• Football
• Varsity 370.00 (for five) per game JV and B
  159.00 (for three) per game 9th 120.00
  (for two)
  
• Swimming
• Varsity/JV 120.00 (for two) per meet
• Cross Country
• Negotiated
• Basketball
• Varsity 183.00(for three) per game 126.00 (for
  two) JV/B Combination (138.00) for two 9th grade
  A
  
• and B game (138.00) for two 9A only 94.00 (for
  two)
  
• Gymnastics
• Varsity/JV 198.00 (for three)
• Hockey
• Varsity/JV 224.00 (for two) Third Official
  46.00
  
• Wrestling
• Varsity/JV 88.00 others see me

9
Transportation Formula

• Transportation
• School Buses - 44.50 per hour for each of the
  first two hours and 36.50 per hour for each
  additional hour. These rates include 100 miles.
  Excess miles are 1.00 each. Trailers are 80.00
  each. School buses pulling a trailer are
  prohibited in Wisconsin. You may deduct 5.00
  per hour when the trip runs between the hours of
  915 a.m. and 215 p.m. or after 400 p.m. during
  regular school days or on a weekend or holiday.
  The hours for billing will include 15 minutes for
  pre-trip drive time to and from the DOE from
  pick up and drop off and 15 minutes for post
  trip. There is a 44.50 charge for any charters
  cancelled less than two hours prior to the pickup
  time.
• Motorcoaches or overnight contracted trips you
  will be charged the contracted rate. Please
  call
  
• the transportation department with the
  information and they will provide you with a
  quote
  
• Van/Expedition- Van charges will be 36.00 per
  day. This rate includes 62 miles and .60 per
  mile for
  
• every mile thereafter

10
Then.

• Give the coaches time to work on their budgets
  (10-14 days)
  
• Be available to help them. Some will do a great
  job others will struggle
  
• Schedule individual meetings with each coach
  where you will
  
• Review their Fixed Costs
• Discuss their prioritized supply requests.

11
What do I do with all of this information

• On your budget template (I really hope you use
  Excel ) add in all of the fixed cost amounts as
  prepared by the coaches.
  
• Subtract (or let Excel subtract) the fixed cost
  subtotal from the total dollar amount you have
  available.
  
• Remaining funds are your Discretionary Funds to
  allocate.

12
Allocating Discretionary Funds

• This will be your toughest and most time
  consuming task.
  
• It is also the step that will allow you to
  accurately and effectively place the available
  dollars where they are needed most.
  
• Establish your priorities
• NFHS equipment/uniform changes
• Replacement of older/less effective materials
• Consumable items
• Address prior funding inequities

13
Final Steps

• Allocate Discretionary dollars to budget
  spreadsheet.
  
• Make note of sports that received additional
  dollars and why. Also note those sports which
  experienced unusual reductions.
  
• Return completed worksheets to coaches.
• If you choose-
• Allow coaches to shift dollars from one line item
  to another in order to fund specific items.
  

14
After the dust settles

• Be sure to review this budget with previous
  budgets to check on funding equity.
  
• Review budgets on a regular basis to check for
  overspending.
  
• Develop a process for those programs that
  overspend.
  
• Booster Club or Fundraising funds to cover the
  shortfall
  

15
Questions

• Scott Larson CAA
• Apple Valley High School
• 14450 Hayes Road
• Apple Valley MN 55124
• 952-431-8204
• scott.larson_at_district196.org