It’s in the detail | When drawing up budgets, it is easy to overlook items of expenditure. Presented here is a detailed checklist to help you ensure that all items of expenditure are included.
Setting up an office
- Letterhead, design, DTP, printing.
- Compliment slips.
- Business cards.
- Identification badges/photos for staff.
- Envelopes, invoices, photocopy paper, note pads, pens, tipex, paper clips, staples, toner.
- Minor equipment: cash box, staplers, first aid tin, post scales, franking machine (large volumes only).
- Telephones: Consider future needs over three to five years. Hand sets, switch board, line connection. ISDN line, fax line, internet subscription.
- Photocopiers: Purchase or lease costs, and maintenance.
- Set-up costs: Software, computer(s), printer, scanner, monitors, modem, additional telephone lines and rental, security devices, anti-glare shields, mouse, keyboard, zip drive or other back-up system.
- Recurrent costs: Discs, printer cartridges, paper, internet subscriptions, telephone charges, staff training, maintenance and repair. Depreciation.
- Lease payments or purchase price.
- Road fund license.
- Basic maintenance.
- Subscription to recovery organisation.
- Salary and training.
- Additional maintenance.
- Payments to casual drivers.
- Legal cost (for both sides).
- Rent, service charges, mortgages and loans.
- Heat & light.
- Rates, water and sewage, refuse collection.
- Building works (including architects, surveyors etc.) and adaptations, access issues and compliance with fire regulations and health and safety, environmental health, building and planning controls, Factories Act, Office, Shops and Railway Premises Act.
- Decoration, costs of compliance with the lease including redecoration on vacation, carpets, blinds, upgrade of security – shutters, locks and burglar alarms.
Furniture: how many parts of the building might need furnishing?
New, donated or secondhand? Is it all needed straight away or can it be phased in? Would trusts fund parts of the capital expenditure?
- Entrance and hallway: Signs, lights, ramps, entryphone.
- Reception: Carpets, chairs, noticeboard, receptionist’s desk and chair, staff/department pigeon holes.
- Office: Desks, filing cabinets, chairs, notice boards, room dividers, curtains/blinds, tables, desk lamps, tea/coffee making and storage/fridge, noticeboards, coat hanging, shredder and bins.
- Other work spaces: Floor covering, work benches/equipment tables, seating, lighting, ventilation, cleaning materials/equipment and work equipment.
- Training/meeting room(s): Curtains/blinds, carpets, chairs, tables, flip charts, white boards, OHP, video and TV, kettles, cups, sufficient toilets for large meetings.
- Play areas/creche: Carpet, children’s tables and chairs, play equipment, water supply, wet area, sink, fridge, children’s toilets.
- Storage: Stationery, other supplies and stocks, safe, equipment, library, archives.
- Recruitment: Advertising, photocopying, postage, panel expenses, applicant expenses, refreshments and venue.
- Salaries, National Insurance, pensions, increments and inflation in future years.
- Staff training, external supervisors/consultants.
- Travel expenses.
- Volunteers: Recruitment, insurance, training, travel and meal costs.
Do staff grades look reasonable?
The following provides a very rough outline. The “green book” available from local authority grants officers provides greater detail. The grade awarded depends on the ability of the person to organise their own work and undertake complex tasks:
- Scale 3 to Scale 5: for admin staff.
- Scale 6/SO1/SO2: for development workers, advisors and technical staff.
- S02/PO1 for managers of 2 or 3 people with turnovers of up to £200,000 and overall responsibility for the organisation.
- PO2/3: for managers of 5 to 20 people with turnovers of £200,000 plus and overall responsibility for the organisation.
- PO4: for managers of £500,000 plus turnovers. Also people with strong professional qualifications – Chartered Accountants, Solicitors etc.
- PO5: directors of organisations turning over above £800,000.
PEACE at LVSC have developed a job evaluation system for the voluntary sector. It includes a CD ROM which analyses the job and recommends which grade the person should be on. It took PEACE four years to develop and can be purchased for £90. This is cheap when you consider how large a year’s salary is or even what the difference is between two scale points – generally £1,000. Email: email@example.com for details of how to buy “Just Job Evaluation”.
See also CASHFACTS: Payscales
- Public liability.
- Employer’s liability.
- Personal accident or injury to staff, volunteers and management committee members.
- Loss or damage to assets, either on specified premises (contents) or anywhere else (all risk).
Also consider your need for:
- Building insurance. Essential if you own the property, or check lease re: who is responsible?
- Increased cost of working. Relates to costs following a fire etc., i.e. temporary office rent hire, of equipment etc.
- Motor vehicle insurance for volunteer drivers using their vehicles as well as your vehicles.
- Professional indemnity. Re: giving poor or wrong advice that the organisation might be sued over.
- Money insurance. Is there a lot of cash being handled?
- Fidelity bond. Insuring for dishonest staff.
Office type costs
- Bank charges.
- Print & stationery.
- Telephone & fax.
- Professional fees/consultancy.
- Depreciation or equipment.
Compliance costs/management and administration
- Audit or independent examination.
- AGM and annual report.
- Staff, marketing, leaflets.
Direct costs of the service
- Specialist equipment.
- Recruitment and training.
- Publicity and marketing.
- Subscriptions, memberships and publications.
- Wages/salaries and employer’s N.I., pension contribution, volunteer expenses.
- Cover for sickness/maternity.
- Telephone communications.
- Property costs – rent, heat/light.
Is there enough supervision and quality control for the number of staff?
Last updated: Mon, Mar 31 2008 - 02:49:43 PM
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