Budgeting Process

BUDGETING PROCESS

(sent to all Wardens) Version 1.0 January, 2014

1. Attached is the current Budget, without actuals. Notice that each line item in the budget has a Zone and a #. The Budget is ONLY for spending on items which will be paid for by General Funds. Items paid by monies from the CASH BOX of a zone is not covered in the Budget process, but rather has its own process, the instructions for which should be out in March, 2014.

2. You are authorized as Warden to spend up to the amount in the approved budget for the item listed in the budget. Do not spend more without a Budget Amendment, nor spend money allocated for one line item for a different or unlisted item. (eg spending Glass Grinder left over money for a Glass Cutter).

3. For expenditures not in a Zone within the budget, only the Treasurer or their designee, or a person explicitly designated by the Board for a particular line item is authorized to spend funds.(eg. Purchases for PotLuck, Halloween Party, etc).

4. Spend only the money indicated in the month it is indicated or a later month.

5. When you have spent money as allocated in the budget, use the Reimbursement Procedure to get reimbursed.

6. If you need funds/check prior to purchase, use the Pre-Purchase Dispersement Procedure.

7. If you need to add or change your budget items or amounts, use the Budget Amendment Procedure.

8. The Budget Process is NOT intended for items purchased with CashBox funds. Do not send in an email/receipt to budget@i3detroit.com for these items.

9. This is an initial attempt to write down some processes for i3 budgeting, which is itself in its first year. There will be bumps, mistakes, and just plain stupid ideas. The reason for budgeting is twofold. To make a standard way for the Wardens to handle larger purchases, so that it becomes easier to do. Second is to expand the planning horizon for i3 past a month or two. If these procedures aren't working for you as a Warden speak up.

10. Send all errors, questions, suggestions, etc on the budget to budget@i3detroit.com do not send them to the Treasurer, as he will just forward them to budget@ incurring an additional delay.

11. NOTE: We are still under Tight Budget Restrictions as of 1/24/14. The following is a copy of the notice from the Board. As you all remember, when our budget was developed, we discussed the need to keep an eye on our financial reports and the possibility that we might need to make adjustments to the budget as the year progresses. Our dues income has been less than projected, so we need to slow down our budgeted spending.

We are working on clarifying our financial reports, and we should have more accurate projections in a month or two. For now, we want to err on the side of caution. This is not a financial emergency, and we don't want to cause any undue worry. This is just our budget working the way it was designed to work. Using our budget in this way will help us avoid a financial emergency. When we have more accurate projections, we will work with the Zone Wardens to realign our budget with our dues income. Until further notice, the board directs the Zone Wardens as follows:

1. Any savings left over between the budgeted amount and the reimbursed amount for purchases should remain unspent. Please don't use these savings to buy other items as if the savings were additional budgeted funds.

2. Proceed with reimbursements for purchases that you have already made.

3. Proceed with budgeted purchases under $200.

4. Proceed with the following budgeted purchases over $200 because we have made external commitments: the payment we have arranged to make to the rigger for moving the CNC milling machines,  and the planned expenses for the Halloween party.

5. Please do not make any budgeted purchases over $200 unless you request and obtain permission from the board to do so. The board will consider these requests on a case-by-case basis, with preference given to shop safety and basic shop functionality.

6. Requests for budget increases and new budget line items will be considered by the board on a case-by-case basis, with preference given to shop safety and basic shop functionality.

i3 Board of Directors

Reimbursement Procedure

1. Reimbursement requires a scan/photo of the receipt. Expenditures against the Budget without a receipt will not be reimbursed, Exceptions will only be made by Board vote on a case by case basis.

2. Send an email for reimbursement with the attached WORD form filled out (or the equivalent information given by other means) and the word REIMBURSEMENT on the subject line. You will receive a confirmation email upon receipt. The reason to get the info and the receipt in the same file is that we are going to be digitally archiving these. One file is easier.

3. Once I get an email, I will:

• Send you a email that your email was received and is being reviewed, within 24 hours.
• Review, usually within 72 hours, your email to see if all information and the receipt are present and it matches with the approved funds in the Budget.
• I will send you a 2nd email indicating your reimbursement is in order and has been forwarded to the Treasurer for cutting checks. If your data is not in order, I will tell you what I need you to do. When everything is in order, it goes to the Treasurer for check cutting.

4. Dispersing checks by mail through online banking is much easier for the Treasurer and faster for you. Please accept mailed checks if at all possible. Delivery method is a selection on the form. Manual checks will be dispersed on the 1st and 3rd Tuesdays at the Members meeting for emails received and approved by me on or before one week prior to those dates.

5. Send the email to budget@i3detroit.com Do not send to board or treasurer, this will only cause confusion and delay. We are confused enough already.

Pre-Purchase Dispersement Procedure

If the purchase is such that you need a check from i3detroit to the vendor, or if you need funds to you prior to the purchase, we can do a Pre-Purchase Dispersement. This is more work for the Treasurer, so please only select this option when necessary.

1. Send an email for disbursement with the attached WORD form filled out (or the equivalent information given by other means) and the word PRE PURCHASE on the subject line. You will receive a confirmation email upon receipt. The reason to get the info and the receipt in the same file is that we are going to be digitally archiving these. One file is easier. 2. Once I get an email, I will: 3. a) Send you a email that your email was received and is being reviewed, within 24 hours. 4. b) Review, usually within 72 hours, your email to see if all information is present and it matches with the approved funds in the Budget. 5. c) I will send you a 2nd email indicating your dispursement is in order and has been forwarded to the Treasurer for cutting checks. If your data is not in order, I will tell you what I need you to do. When everything is in order, it goes to the Treasurer for check cutting. 6. Dispersing checks by mail through online banking is much easier for the Treasurer and faster for you. Please accept mailed checks if at all possible. Delivery method is a selection on the form. Manual checks will be dispersed on the 1st and 3rd Tuesdays at the Members meeting for emails received and approved by me on or before one week prior to those dates. 7. Take the check and buy the item in question. 8. Send a 2nd email to budget@i3detroit.com with the word PRE PURCHASE on the subject line, the Budget Line Number in question and a scan/photo of the receipt. 9. If the check was higher than the purchase amount, put a check for the change made payable to to i3detroit in an envelope and in the black box near the door.  Mark on the check "Line Item xxx xx#xx" with the appropriate data in the memo field on the check AND the outside of the envelope, please.

Budget Amendment Procedure

• Send an email with the following WORD form filled out and attached and AMENDMENT on the subject line. You will receive a confirmation email upon receipt.
• Decisions will be sent by the day after the Board Meeting of the month after receipt. eg. If you send in an amendment January 15, it will be placed before the Board Session on the 2nd Tuesday in February.
• Send the email to budget@i3detroit.com Do not send to board or treasurer, this will only cause delay. You will want to attend the Board meeting to field questions.

2013-14 Budget January 24, 2014 (no actuals)