Sheet 1: Instructions and Guidance

	
	
	
	
	

		
Budget Narrative Instructions and Guidance
		


		


		


	
	

		
The purpose of the Budget Narrative is to explain (in writing) variances and changes in forecasted financial results. These explanations will assist in the conversations with leadership about forecasted financial results as we move through the budget process.
		
	

		
	

		
	

		
Budget Narrative Tab
		


		


		


	
	

		
There are 4 columns that we request be filled out on this material. Each column is described below, and has instructions/guidance for input. 
		


		


		


	
	

		


		


		


		


	
	

		


		
Fill Type
		
Dropdown Options
		
Use of Option
	
	

		
Comparison Period
		
Drop Down
		
FY17 Budget to FY17 Forecast
		
Used to compare a variance between the FY17 forecast and budget
	
	

		
FY17 Forecast to FY18 Budget
		
Used to compare a variance between the FY18 forecast and the FY17 Forecast
	
	

		
FY19-21 Forecast
		
Used to explain known/planned changes in years FY19-FY21
	
	

		
Source
		
Drop Down
		
Unrestricted
		
Column of THE Budget Sheet where the variance/change is occurring
	
	

		
Designated
		
	

		
Repair and Replacement Reserves
		
	

		
Gifts and Endowments Distributions - Restricted
		
	

		
Restricted Funds
		
	

		
THE Budget Sheet Row
		
Drop Down
		
Any row in TBS
		
Row of THE Budget Sheet where the variance/change is occurring
	
	

		
Explanation
		
Freeform
		
Up to 500 characters
		
Explanation of variance/change
	
	

		


		


		


		


	
	

		
What should be explained on this material?
		


		


		


	
	

		
We are not looking for explanations on minor variances in the financial projections. Rather, we are looking for significant changes, and the related explanations. Significance will be determined by the planning unit because each unit is unique compared to every other unit. However, there are certain guidelines we would like units to focus on:
		
	

		
	

		
	

		
Changes to Revenues
		


		


		


	
	

		
Enrollment Based
		
If there is a change in financial projections based on enrollments (positive or negative), please explain.
		


		


	
	

		
Grant Based
		
If there is a change in financial projections based on grant activity (positive or negative), please explain.
		


		


	
	

		
Other
		
If there is a change in external/other sales (positive or negative), please explain.
		


		


	
	

		


		


		


		


	
	

		
Changes to Expenses
		


		


		


	
	

		
Salaries/Wages
		
If there is a change in personnel cost (wage increases, number of employees), please explain.
		


		


	
	

		
Operating Expenses
		
If there is a change in projected operating expenses, please explain. 
		


		


	



Sheet 2: Budget Narrative

	
	
	
	
	
	

		
Budget Narrative
		


		


		


		


		


		


		


	
	

		
ORG LVL 2:
		
Select Your Planning Unit - ORG Level 2
		


		


		


		


		


		


		


	
	

		
ORG LVL 6:
		
Select Your Planning Unit - ORG Level 6
		


		


		


		


		


		


		


	
	

		


		


		


		


		


		


		


		


		


		


		


	
	

		
Comparison Period
		
Source
		
THE Budget Sheet Row
		
Explanation (500 character max)