April 2013 RSB Mtg RSB Budgeting Process Improving

April 2013 RSB Mtg RSB Budgeting Process Improving the world through www. imeche. o 1

December RSB Mtg • Agreement at Dec RSB that we should try and move to a Programme year budget basis • Today’s presentation considers how we might achieve this and is intended to capture your opinions and agree a way forward… Improving the world through www. imeche. o 2

RSB Programme Year Budget Proposal § Key purpose: Alignment of the Regional budget with the programme year to facilitate more accurate budgeting and overcome the over-budgeting problem currently experienced Programme Years 2012/13 2013/14 Budget Prep 2014/15 Institution Budget Year Current Visible programme Jan 2013 Improving the world through July 2013 Sept 2013 Jan 2014 www. imeche. o July 2014 Sept 2014 Jan 2015 3

Budgeting Process Comparison Programme Years 2012/13 2013/14 Budget Prep 2014/15 Institution Budget Year Current Visible programme Jan 2013 July 2013 Sept 2013 Jan 2014 July 2014 Sept 2014 Jan 2015 Programme Years 2012/13 2013/14 RSB Budget Year Budget Prep Proposed Jan 2013 2014/15 Visible programme July 2013 Improving the world through Sept 2013 Jan 2014 July 2014 www. imeche. o Sept 2014 Jan 2015 4

RSB Budgeting Process st September- 31 § New RSB budget year will run from 1 August each year § Regional event programmes will have to be sufficiently defined to support accurate budget preparation § We will need your budget submissions by end July latest (mid Budget Prep process shown), ideally sooner? § Budget allocations will be confirmed End August st Programme Years 2012/13 2013/14 RSB Budget Year Budget Prep Proposed Jan 2013 2014/15 Visible programme July 2013 Improving the world through Sept 2013 Jan 2014 July 2014 www. imeche. o Sept 2014 Jan 2015 5

RSB Budgeting Process § For this first transition year, we will need to understand what you expect to have actually spent of your current 2013 budget as at 31 st August 2013. Any remaining st September 2013 required but unspent budget from 1 end 2013 should be included in your new budget submission Improving the world through www. imeche. o to 6

RSB Budgeting Process Worked example § Region X had a 2013 budget of £ 20 k and is anticipating having spent £ 12 k by 31 st August 2013. § For the 2013/14 RSB Programme year Region X is estimating a budget requirement of £ 18 k and the notional split of this is: § £ 7 k required: § £ 11 k required: 1 st Sept 2013 to 31 st Dec 2013 1 st Jan 2014 to 31 st Aug 2014 § By the end July we would require detail of the £ 18 k programme year budget, any adjustments will then be made to 2013 drawdowns § Any significant forecast variances over the current budget for 2013 will be discussed and settled individually with Regions § 2013/14 Budget will be determined and notified Improving the world through www. imeche. o 7

RSB Budgeting Process § RSB budget process will not require further re-budgeting by Regions to support the Institution budget § The RSB feed into the Institution budget will be made handled by RSB Chair and Exec. Regional Chairs will be engaged if any known anomalies exist § It is inevitable that this change will cause some disruption and effort to make it work – but hopefully long term gains through a better budgeting process can be achieved § Proposed that RSB Chair controls a larger discretionary budget over the first year to handle any unexpected budget issues that arise as a consequence of the change, which could impact on regional operation Improving the world through www. imeche. o 8

RSB Budgeting Process What would success look like? A significantly more accurate Regional budget process that fully supports Regional activity and doesn’t tie up unnecessary Institution funds and a budget process that is in harmony with the planning cycle of regional activity Improving the world through www. imeche. o 9