Budget Project
Instructions
Do not use the disk included with your student manuals. Use the files found on this site to complete your budget project. They contain all the background information required for your budget project. Beginning with chapter 7, we will work on your budget project as we progress through the manual.
This project is based on the financial statements contained in Appendix 1 of your manuals. An electronic copy of these financial statements is located in the Content are for the Budget Project.
The project is an individual project. Group work is allowed, but each student is expected to submit and individual and unique project. Participation in also encouraged through the discussion board.
Weekly submissions are not required to the budget project, you are required to submit only the final budget itself. All projects are to be handed in hardcopy, electronic submissions are not accepted.
Whats in the Content Area:
There are several Word and Excel documents you will need for this project:
• There is a Word document "Sample - Budget letter to owners" - This is a sample owner budget letter that you will need to complete and submit with your owners "mini budget".
• There is a Word document "ACMO Budget Project" - This document contains all the information your need on the building you are budgeting for, including schedules such as D and E. Corporate spending policy, information on contracts, staff and repair and maintenance. This disk also contains all the financial information you will need for the project. The first page of this document details what is required to be submitted and the marking structure for the project.
• There is an Excel file "ACC%20#123-UTILITY LOG" - This contains the raw utility data taken directly from the utility bills.
• Another Excel file "ACMO 123 at July 31 20X0 FS pkg" - This contains an electronic copy of the financial statements included in Appendix 1 of the manual.
• The final Excel file "ACMO Standard Budget Project Templates" is the template you will use to complete the project. The template has multiple workbooks included in it. The workbooks are directly related to the documents you are to submit for marking.
PROJECT:
The Budget must be based on the following condominium scenario.
The Budget must include: Marks
a) Projected Year end for the current fiscal year 30
b) Projected Year end Variance Report 5
c) New Operating budget with full notes 40
d) Budget spreadsheet weighted throughout the year 10
e) Calculation of new common element fees 5
f) Budget package to be sent to the Homeowners 5
g) Presentation, Format and Accuracy of numbers 5
All projects must be typed and be fully legible. Font size must be readable or project will not be marked.
The nine (9) month statement and General Ledger expense account details are to be taken from the financial statements found in appendix one of your manuals and are are separate files included on the CD enclosed in your manuals and are to be used for the project.
The date format for the project is structured to be flexible for future years. Reference to year "w9" pertains to last year, "X0" pertains to current year and "X1" pertains to next year.
This corporation has a fiscal year end of October 31st. The current year covers November 1, 20w9 to October 31, 20X0. You will be budgeting for the period November 1, 20X0 to October 31, 20X1.
The project should be in the following sections:
A. Projected Year End
Please provide a rationale/calculation for the Projected Year End amounts presented using the excel template provided. This is Tab A of the template.
B. Projected Year End Variance Report
The corporations materiality limit for variance reporting is $1,100.00 Please provide a rationale for each variance between the Projected Year End and the Annual budget - state the amount of variance for which you will provide an explanation, using the excel template provided. This is Tab B of the template.
At a minimum, your budget for the new fiscal year should include the above column headings.
A note for each budget category, showing the rationale for the development of the new budget number must be included. Please work on the assumption that you are providing this written document to the Board of Directors a week prior to the Budget meeting. Board members should be able to understand what types of expenses go into each category and the reasoning behind each budget number, without you being there to translate.
C. Budget and Notes for the New Fiscal Year
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GL CODE
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CATEGORY NAME
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PROJECTED YEAR-END OCT 31, 20X0
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CURRENT BUDGET 20w9/20X0
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PROPOSEDNEW OPERATING BUDGET
20X0/20X1
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APPROVEDNEW OPERATING BUDGET
20X0/20X1
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From Statement
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From Statement
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From Projected Year End Table
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An excel Operating Budget template utilizing this format, with some notes and a partial utilities analysis, has been provided.
The new budget template is provided in 2 sections. Tab C (a) is a summary of the budget and the operating, contingency and reserve funds. Tab C (b) is the budget template. The column marked 20X0/20X1 Proposed Budget is the column that is used to calculate your course mark. The Approved Budget column would be completed once the board has reviewed and made any changes to your proposed budget.
D. Weighted Budget Spreadsheet
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GL
#
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CATEGORY NAME
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TOTAL
BUDGET
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Nov
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Dec
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Jan
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Feb
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Mar
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Apr
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May
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Jun
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Jul
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Aug
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Sep
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Oct
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Total
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Surplus/ Deficit
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An excel template has been provided. This is tab D.
It is best if this report is printed in landscape, preferably on legal size paper.
E. Common Element Fee (CEF) Calculation
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# OF UNITS
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% INTEREST
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TOTAL %
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COMMON ELEMENT FEES
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TOTAL MONTHLY CEF
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Number of units with the same % interest
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% interest of this group of units
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Total % interest represented by this group
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CEF for each individual unit
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Monthly CEF for this group
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Please provide Proof totals at the end of the Number of units, Total percentage and Total Monthly Common Element Fee columns. An excel template - Fees Matrix - has been provided. This is Tab E.
F. Owners' Package
1. A letter to the individual owner indicating:
a) The fiscal year and the increase in common element fees of the approved budget.
b) The individual owner's common element fees for the new fiscal year
Please do not submit a table with each individual unit and their individual common element fees. It is not necessary to attach parking and locker units to individual suites. For this project only, you may attach the Fees Matrix you produced for E.
c) The method(s) in which the common element fees may be remitted and the deadline for such remittance.
2. The new fiscal year summary budget with brief suitable notes.
Attachment:- homework.zip