A budget is a plan. The chapter starts with examining the importance of financial planning. Through understanding the basics of planning and why it is important, an organization can then develop a budget. The chapter examines the impact of financial planning and, often more important, the danger of not planning or of using the wrong information to develop plans. The chapter ends with strategies to help develop a formal plan to convey the future direction of an organization through pro forma financial statements (including a budget) and business plan.
Budgeting is a process that focuses on providing managers with information and tools to manage fiscal resources and operations. Well-constructed budgets ultimately allow managers to make informed decisions. Budgeting is linked to organizational goals and objectives. Budgeting allows sports, tourism, and leisure service organizations to translate their organizational visions into realities. In today’s competitive and changing society, sport organizations cannot function effectively without a clear understanding of how good fiscal management contributes to their day-to-day success. Few decisions facing sport managers are more daunting than those concerning how to allocate limited fiscal resources.
Read-Budgeting 101 Ch3
Using the chapter and your own research/experience, create(do not copy) in an excel spreadsheet a detailed DI intercollegiate athletic budget (entire athletic department: admin costs down to each sport offered). The budget needs to include a DETAILED breakdown of revenue and expense line items with your budgeted dollar amounts. Dollar amounts can be estimated, the line items are more important. The more breakdown of revenue and expense items the better. Make sure you include a line item for each sport(men & women), admin costs, sponsorships, guarantees, (just to name a few) etc. Ask yourself, where is the revenue coming from and where is the money going(expenses). This is a DI budget proposal you are submitting to the College/University’s budget committee for approval. You have 2 weeks to complete it, so I expect to see some high quality budgets. Submit by Sunday, October 1, 11pm EST. Let me know if you have any questions.
