Budget Preparations and Analysis

You have been assigned the task of

1) the variance review of the actual expenses for the previous year to the budgeted expenses and preparing a variance report for any variance from the budget of 8% including explanations for the variances and how those variances should be considered in the upcoming budget and

2) completing the proposed budget for the next fiscal year for your department, which runs from January – December. As a tool, you have the budget from the previous year, the salary worksheet and the monthly expenses report. You will be using the historical data provided as well as considering your projections for future costs.

  1. Click the link below to download the instructions that you received in an email from the Department’s manager. Use these instructions to guide you through the budget preparation assignment.
    1. Click the link below to download a copy of the budget tool that you will use to prepare your proposed budget for the next fiscal year. You may use this tool as a guide for your own budget spreadsheet.
      1. The Budget Tool Spreadsheet includes a column of the previous year’s actual expenditures for use in Variance Analysis. Create a Variance Report spreadsheet for 2011 which includes any variance from budget of 8% over or under budget. Include explanations/justifications for the variances and then use this additional historical information in your 2012 budge preparation
      2. Create an Excel spreadsheet for your budget for 2012 that should include three workbook tabs for your proposed budget.
        1. One listing salaries.
        2. One that is broken down by month.
        3. One that is an annual budget.