Bramer, Retired Auditor-CPA
RE: Glossary of Mostly Budget Terms Originated: March 1998
ACTUAL TO BUDGET or A to B Reporting
A term used to compare what has actually happened to what was supposed to happen; it is sometimes reversed ... BUDGET TO ACTUAL.
ADJUSTED ANNUAL BUDGET
Sometimes Ministry plans change during the fiscal year requiring the governing bodies to change to a new approved spending budget. See some financial policies related to this when you click here.
ALTERNATIVE TO THE USUAL LINE ITEM BUDGET
Please go Here and read about the alternative to the usual expense line item budget method. This method helps you control your spending when you place receipts into to a BuxBoxes (like Envelopes, etc.) and you spend only what is within that BuxBox, etc.
Term used to describe the pre-approved distribution of discretionary money to DAGS or BuxBoxes; this is preferable done on a weekly basis. Also see the BuxBox process below.
AUTHORIZED ANNUAL BUDGET
As approved by the governing bodies of the Ministry and becomes the 'yard stick' for spending during the following fiscal year.
An alternative method to the expense line item process, or you place money in categorized BuxBoxes. If there is a balance in the BuxBox then buying can take place. No balance in BuxBox no can buy. The system can assist a struggling Church or Ministry as it lives within the money placed within a BuxBox. Or a BuxBox method can be used as an alternative to the Envelope method used successfully by many Christians in carrying out their Righteous Personal Finance commitments. Be especially aware of such Internet Centric (or Ministry Finance Internet Friendly) resources when you digest the content when you go HERE .
Pre-approved financial spending
DAG - Dollar (Department) Accountability Groups
Ministry areas that are managed by a specific Ministry Team Leader who has money responsibilities for this certain focused area.
Section or program group of a Ministry
Term used to declare that there are no 'strings attached' to funds on hand; the Board of Leadership makes the use choices.
Contributions/Gifts/Donations that come into the Ministry with no 'Please use' preferences. The Ministry's Board conclude how to spend, etc. Often referenced as money coming into the General Fund.
FinCom - FINANCE COMMITTEE
A Committee of the Board of Leadership
FYE - FISCAL YEAR END
As opposed to the calendar year and year end, or 1/1/xxxx to 12/31/xxxx.
GAAP and Budgets
Please Go Here and Here for some information about Budget aspects of GAAP, etc.
GPFund - GENERAL PURPOSE FUNDS
Money controlled completely at the discretion of the Ministry Board for the General Exempt purpose of the Ministry. Generally controlled by pre-approved spending budgets. Information Here is helpful here.
Click Here and go to an alpha list by JIMs JRNL topics and search for Ministry Budget information.
A term that applies to expenses; See NAT expenses; Often a method to compare Actual to Budget. An example of a expense line item is "Utilities" and you can compare the Actual Costs of Utilities for a time period to what was Budgeted for this NAT expense.
MFTEAM - MINISTRY FINANCE TEAM
Sometimes functions as an alternative to the Board's Finance Committee.
Often a DAG group of a Church Ministry.
NAT (NATURAL EXPENSES)
Way to identify kind or types of expenses; usual samples are: Salaries/Benefits; Operating supplies (per detail needed); Operating expenses (per detail needed); includes Internal transfer of Funds (per detail needed). As opposed to 'why' the expense, or Ministry or Program ID, or grouping.
PLANJECTING - PJECTING
A contraction of the words "Planning" and "Projecting"; as the Ministry has applied the principal of converting plans to dollars as final spending budget is determined and authorized. Go Here for more details.
PROG - PROGRAM EXPENSES
A way to categorize expenses by operating unit; or Ministry and/or Program ID -- groupings. This concept closely ties in with DAGs. See DAG Info; As opposed to Natural expense, or kind of expenses ... see NAT info.
Ministry groups; DAG; like Music, Youth, AWANA, VBS, etc.
A preliminary spending plan flowing through the various bodies of the Ministry.
Another term for a Ministry focus group who spends money.
SPFUND - SPECIAL PURPOSE FUNDS
Generally money provided by Donors for a particular Board approved special purpose; expenditure is controlled simply by any residual balance remaining in the specific fund; pre-approved expense budgets are seldom applicable. The Board sometimes sets aside certain discretionary monies via the Budget for an assigned Special Purpose.
Often a DAG group of a Ministry; salaries and benefits of the staff.
Truisms regarding Church Budgets
Please Go Here for such a list
YTD - YEAR TO DATE
Normally used to indicate the historical months since the first of the fiscal operating year.
This publication originated in March 1998 and was UPTD: March 09, 2012
ABOUT US | OUR PURPOSE | TABLE OF CONTENTS | SEARCH MATTERS | HELP DETAILS | FUND ACCTG VIA COMPUTERS | GLOSSARY