Strat budgeting for brgy final by Liezel P. Dolotallas; designed by Marvin F. Tortor

• 1. OBJECTIVES:Strategic PlanStrategic ImplementationBudgetExercises

2. STRATEGY-DEFINEDStrategy can be defined as the determination of thebasic long-term goals and objectives of anorganization, and the adoption of courses of actionand the allocation of resources necessary for carryingout these goals. 3. What is Strategic Planning? Process to establish priorities on what you willaccomplish in the future Forces you to make choices on what you will doand what you will not doBroad outline on where resources will get allocated 4. Why do Strategic Planning? If you fail to plan, then youplan to fail be proactive aboutthe future Strategic planning improvesperformanceCommunicate to everyone whatis most important 5. Strategic Planning ModelA B C D EMatt H. Evans,[email protected] Environmental ScanAssessment BackgroundInformation SituationalAnalysis SWOT Strengths,Weaknesses,Opportunities,Threats Situation Past,Present and Future Significant Issues Align / Fit withCapabilities Mission & Vision Values / GuidingPrinciples Major Goals Specific Objectives PerformanceMeasurement Targets / Standards ofPerformance Initiatives andProjectsBasis Components PerformanceManagement Review Progress Balanced Scorecard Take CorrectiveActionsDetails EvaluateWhere we are Where we want to be How we will do it How are we doing Gaps Action Plans Feedback upstream revise plans 6. AssessmentAssessment Basis Components Details Evaluate 7. Assessment Model: S W O TExternal Assessment: Marketplace,competitors, social trends, technology,regulatory environment, economic cycles .Internal Assessment: Organizationalassets, resources, people, culture,systems, partnerships, suppliers, . . . Easy to Understand Apply at anyorganizational level Needs to beAnalytical andSpecific Be honest about yourweaknessesGood Points Possible PitfallsSWOT SWOTAssessment 8. Barangay SWOT Strengths Strong leadership & cooperative community members Supportive government financial aid Weaknesses Uncertain objectives Weak system or leadership style Opportunities City government emphasis on fighting crime Implementation of systematic garbage disposal Threats Crime and corruption Weak budget systemAssessment 9. BasisAssessment Basis Components Details Evaluate 10. Why create a baseline?Baseline Puts everything about the organization into asingle context for comparability and planning Describe the organization as well as theoverall environment Include information about relationships customers, suppliers, partners, . . .Organizational Profile 11. Organizational Profile Products and ServicesOrganizational Culture Barriers, Leadership,Communication, Cohesiveness . . . . Workforce Productivity Skill levels, diversity,contractors, aging workforce, . . . Infrastructure Systems, technology, facilities, . . Regulatory Safety, Environmental, Govt. Laws. . .Baseline 12. Barangay Problems & Issues Social Drug Addiction Gambling Illegal Activities That Affects Our Natural Resources Drunkenness Petty Crimes Economic Unemployment Landless SquattersBaseline 13. Barangay Problems & Issues Employment Record Labor Force 50% Employment Rate 87% Average Family Income Php 3 000.00/mo. Average Family Expenditures Php 3 000.00/mo. Infrastructure City Barangay Roads Maintenance Needs Asphalt Overlaying Administration Improvement of Barangay Hall Covered Court for Social Activities Held Outdoor Improvement of our Mangrove Plantation Project to Attract More Touristsas Well as Domestic.Baseline 14. ComponentsAssessment Basis Components Details Evaluate 15. Strategic Plan / Down toActionMatt H. Evans,[email protected] we existWhat we want to beIndicators andMonitors of successDesired level ofperformance andtimelinesPlanned Actions toAchieve ObjectivesSpecific outcomes expressedin measurable terms (NOTactivities)Strategic PlanAction PlansEvaluate ProgressTargetsInitiativesWhat we must achieve to be successfulComponents 16. Mission Statement Captures the essence of why the organizationexists Who we are, what we do Core values of the organization Should be brief and to the point Easy to understandComponents 17. Sample Mission Statement: The most endearing brand...that has ever been... We will lead in product taste at alltimes... Happiness in every moment... By year 2020, with over 4,000 storesworldwide, Jollibee is truly a GLOBAL BRAND.(and the Filipino will be admiredworldwide)Components 18. Barangay Mission Statements100% Crime free communityProvide family oriented servicesProper waste disposal and sanitarydrainageAid in the transformation of a livableand healthy communityComponents 19. Vision How the organization wants to be perceived inthe future what success looks like An expression of the desired end state Challenges everyone to reach for somethingsignificant inspires a compelling future Provides a long-term focus for the entireorganizationComponents 20. Sample Vision StatementTo serve great tastingfood, bringing the joyof eating to everyone.Components 21. Barangay Vision StatementA peaceful community and 100%compliance of citizen to citygovernment policies and regulations.Components 22. Goals Describes a future end-state desired outcomethat is supportive of the mission and vision. Shapes the way ahead in actionable terms.Puts strategic focus into the organization.Components 23. ObjectivesComponents 24. Barangay Objectives Distribute relief goods on 120 families affected by thecalamity 3 days general cleaning of clogged sewage and drainagesystems. Painting of barangay hall within the allocated 20%annual budget CY 2012 Restoration of Barangay court to promote sportsoriented teens Serve 250 boys in Operation TuliComponents 25. Matt H. Evans,[email protected] Basis Components Details EvaluateDetails 26. What are Action Plans?ObjectivesInitiativesAction Plans Action Plans are geared toward operations,procedures, and processesDetails 27. ROLES OFSTRATEGIC PLANProvides top- down guidanceAlignment of internal actions with strategyConsistencyPowerful leverDetails 28. Who takes thelead?Employees/BarangayBrgy.CaptainBrgy.Kagawads 29. Targets For each measurement, you should have at leastone target Targets put focus on your strategy When you reach your targets, you have successfullyexecuted your strategyDetails 30. 2012 Barangay Target 120 families had properly followed the propersegregation of waste to promote clean community andavoid drainage systems clogging and possible floodduring the rainy seasonsDetails 31. Assessment Basis Components Details EvaluateEvaluate 32. Link Budgets toStrategic Plan The worlds best Strategic Plan will fail if itis not adequately resourced through thebudgeting process. Strategic Plans cannot succeed without people,time, money, and other key resources Aligning resources validates that initiatives andaction plans comprising the strategic plan supportthe strategic objectivesEvaluate 33. What Resources?How to Link?Every Action Plan should identify the following:The people resources needed to succeedThe time resources needed to succeedThe money resources needed to succeedThe physical resources (facilities,technology, etc.) needed to succeedEvaluate 34. Barangay Monitoring &Evaluation Monitor percentage of gang and juvenile delinquencyrelated incidents resulting to violence within thevicinity in a week. Reporting of crimes and petty thefts connected withthe number of tanod routing in the area and thetime when incidents frequently happen. Monthly meeting of barangay officials for updates onimplementation and execution of action plans. Updating of records every time the barangay hasincurred expenses.Evaluate 35. OBJECTIVES:Strategic PlanStrategic ImplementationBudgetExercises 36. KNOWING THE NUMBERSAnalyzing Budgets 37. What is a Budget? It is a political document. It is a financial planning tool. It is not etched in stone.We must do more than understandthe budget we must organize andbuild power to win our demands. 38. Why budget?Budgeting is the key to financial management.enables you to monitor your income andexpenditure and identify any problems.is a basis for financial accountability andtransparency.raise money from donors unless you have abudget. 39. When do you do the budgeting? After strategic planning and action planning When need to work out how much it will cost to run aparticular project. When you want to ask a donor to support a particularaspect of your work. 40. BASIC PRINCIPLESA good practice in budgeting involves :clarity of purposedetailed planningconsiderable thought. 41. Issues to address in Budgeting: Who should be involved in budgeting?o Barangay officials & constituents The operational planso Projects, administrative expenses Estimating costso Information comes from previous projects & expenses Sources of finance.o Government fundingo Donation 42. DefinitionIt is a list of allplannedexpenses&revenues 43. The process of makingthe list is BUDGETING 44. The Planning Cycle Prepare youroperational plans.Assess theresources youneedImplement plans &monitor impactDraw a budgetTo cover thework.Review whatYou have doneIn the pastReview &Clarify yourVision & Mission 45. COSTS CATEGORIES: Operational costs the direct costs of doing the worke.g. the cost of hiring a venue, or of printing a publication, or oftravelling to the sites where fieldwork needs to take place. Hereyou would include materials, equipment, transport and services. Administrative /Organisational costs (also called corecosts) the costs of your organisational base, includingmanagement, administration, governance. Personnel costs 46. COSTS CATEGORIES: Capital costs these are costs for largeinvestments which, while they may be necessarybecause of a project or projects.Ex. vehicles and equipment. 47. Sources of Budget:Promised donationsProbable donationsIncome generated from salesIncome generated from servicesPermit FeesSpecial eventsInvestments 48. Sample barangay projects Botika ng Barangay Bagsakan Barangay meat & vegetable market Linis Barangay project Reconstruction or Repainting of Brgy Hall Barangay Mini Library Project Concrete Pathwalk Project Develop health-related brochures for distribution toagencies, patients Conduct research on the health risks of body alteration(tattooing or piercing) and make a presentation to at riskteens in a local school. 49. Sample barangay projects Health promotion and disease prevention activities such asgiving short presentations inschools, senior centers, and churches. Promoting health literacy. Make presentations at places such as youth rehabilitationand training facilities; countyjuvenile detention centers Working with adolescents and youth to increase physicalactivity. Sports clinics. Childhood Obesity awareness and screening events. 50. An operating budgetA capital budgetA cash budget 51. The operating budgetAn operating budget consists of twoparts:The revenue budgetThe expense budget 52. The revenue budget The revenue budget, which is a projection ofestimated income for the coming year. 53. The expense budget The expense budget, which consists ofall anticipated costs of operating thebusiness and conducting the projectedlevel of business. 54. Elements Salaries & wages Payroll taxes Insurance Training & seminars Publications Memberships Fringe benefits Medical Others Depreciation Amortization Travel Supplies Taxes & licenses Rent Miscellaneous/Others 55. DIFFERENT KINDS OF BUDGETSWorking budget what you realisticallyexpect to generate or raise, and how this willbe spent . 56. What if BUDGETS: A survival budget. This is the minimum required inorder for the organisation or project to survive and douseful work. A guaranteed budget. This is based on the incomeguaranteed at the time the budget is planned. Usually theguarantees are in the form of promises from donors. An optimal budget. This covers what you would liketo do if you can raise additional money. 57. DIFFERENT BUDGETING TECHNIQUES Incremental budgets percentage increasefrom the previous years. Zero based budgets - past figures are not used as thestarting point. The budgeting process starts from scratchwith the proposed activities for the year. 58. TimeframeAnnually, quarterly, monthlyProject based wholeduration of the project 59. Working the Budget List your likely sources of income orrevenue. Categorize them. List the items on which you spend money. Estimate the cost monthly and then theannual costs. 60. Working the Budget Prepare your budget format. Do your addition. Add in notes to explain items thatmay not be clear. Get feedback on your budget. Finalize your budget. 61. You and your budgetEffectivenessEfficiency 62. Budget VarianceVariances against budgetVariances against history(usually prior year) 63. PeriodicReports 64. Corrective Actions:With the use of the StrategicPlan coupled with properBudgeting andImplementation, surely youwill achieve your desiredend-result. 65. OBJECTIVES:Strategic PlanStrategic ImplementationBudgetExercises 66. Exercise72 67. 73