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					                   Manager Training Resource Manual

   Financial Manager Training – Master Budget and Weekly
                         Tracking
Synopsis: General instructions on how to track and report your budgets. .

Who: FMs - The information contained within this document is provided as a policy
guideline for all houses on the Row. Updates and supporting documents for this policy
guideline including blank board bills, sample budgets, financial aid support letters, and
meal plan exemption policies can be found at the Student Organized Services website:
www.studentorganizedservices.com A manager‟s failure to comply with the guidelines
stated herein could result in the termination of a employment and loss of housing
privileges.

Policies - In 2004-05 Student Organized Services and Residential Education developed
the “House Master Budget” and “House Weekly Grids” as standardized Microsoft Excel
workbooks for all houses to set, track, and report their budgets.

Part of Residential Education‟s goals in teaching student managers to budget properly is
to recognize that budgets can and do change with time. These spreadsheets are designed
to be timely and flexible. By requiring you to develop your budgets and send them in on
a weekly basis we are hoping to offer proactive and practical business learning
experiences, such as financial reporting, budgeting, and account
reconciliation/accountability.

NOTE: You may absolutely come up with other spreadsheets for your own houses
special budgeting needs - Greek budgets, damage deposits, etc, etc. Feel free to add these
to the excel workbooks we give out and collect, as we will pass the info along to next
years managers. This document describes how to report your budget to SOS/Residential
Education in a standardized format that allows us to advise and intercede if we detect
problems, as well as audit houses randomly and or respond to resident complaints.

                         General Guidelines and Requirements

All house budget information is public record. Any Stanford Student is entitled to view
all Row House budget information with the exception of the specifics of compensation
packages for professional employees. For example: salary and benefits for chefs &
hashers should be presented in summary format when it is shared with residents.

All Row Financial Managers are required to post the budget for the house every quarter
according to the following criteria:

-The quarterly board bill derivations for all row houses must be posted in a public place.
(For example: outside the Financial Manager‟s room or a visible area in the dining room.)
-The budget information must be posted by the first Friday of every quarter after classes
start.


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-Weekly grid information must be made available to any student or University/SOS
official upon request.

                                         Banking

- Houses should have dual signature checking from their bank so that both the KM and
FM have signature authority on the account. Should the bank not recognize dual
signature checking then the FM should have signature authority.

- Checking accounts and checks should be set up for a six-month stale date (checks
become void after six months) to help prevent unforeseen debts from previous years from
affecting the current year account.

- The Row Office provides Stanford‟s Federal Tax ID number (941156365) for acquiring
vendor credit lines and for setting up business checking/savings accounts. Mangers
should never use their own social security numbers for this purpose.

- Houses may not apply for or obtain a house credit card. Any debit card acquired in
conjunction with the house bank account should not be used to make house purchases.
Student managers are encouraged to apply for and obtain personal credit cards to finance
authorized house related purchases and then to submit receipts to the Financial Manager
for reimbursement. The Financial Manager must issue a reimbursement within one week
of receiving the request.

-It is highly recommended that the house use check books with carbon copies to easily
facilitate remittance of check registers to SOS or the Row office. (If the house already
possesses a large quantity of unused checks without carbon copies the Financial Manager
may wish to insert a note within the supply of checks to remind the current or subsequent
FM to reorder checks with carbon copies.)

                         Quarterly Due Dates/Data Collection

The following documents will be collected according to the following schedule:

• Beginning the first Friday of every quarter Row House Master Budgets and Weekly
Tracking Grids will be submitted to SOS (please cc the Assistant Director for Student
Management on the Row) on a weekly basis. (A reminder will be emailed during week
three of every quarter.) Failure to submit on time will result in a $15 fine.

• After the end of each quarter, all relevant weekly envelopes will be collected, with
receipts and bank statements inside and weekly tracking history attached to the outside.
Be aware that random audits will be conducted throughout the quarter. Failure to hand in
your quarterly reconciliation at the designated due date will result in a $60 fine. We will
work with houses to find an appropriate due date (usually the end of the next month back,
except in Spring/June).



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• Houses will need to submit proof of dual signature checking to the SOS Box in the Row
Office by the 3rd week of Academic Year. Failure to do so will result in a $6 fine per
week late. SOS will crosscheck this proof with the Assistant Director for Student
Management on the Row.
                                 House Master Budget

At the beginning of the year (and each quarter) the Financial Manager(s) must meet with
house staff to set up and discuss the house budget for the upcoming quarter. Use the file
“House_Master_Bdgt_07-08.xls” to finalize your budget (Document has been provided
to Financial Mangers via email).

• To begin, open the Microsoft Excel spreadsheet “House_Master_Bdgt_07-08.xls”.
Your first step should be to save the file replacing the word “House” with your house
name, for example: “Bob_Master_Bdgt_07-08.xls”. If you must abbreviate, make sure
we can identify the document by your house name and that it is a master budget for the
current academic year. Keep this document secure, and make sure you maintain only one
working copy.

•••Note: We have created blank master budgets for each quarter of the year. Navigate on
the tabs at the bottom of the Microsoft Excel spreadsheet to make sure that you are on the
correct quarter (ie. Fall 07, Winter 08, Spring 08.)

By changing certain key values (such as board bill totals) you will be able to adjust your
budget to meet your house‟s/kitchen‟s needs. On this spreadsheet you may only enter
values in the cells that are highlighted in light yellow. (All other cells are locked).

Assets

• Board Bills (Item #1) – enter the entire amount generally expected to be collected this
quarter and update the amount as this number changes throughout the quarter (due to
residents leaving, etc). Feel free to use a formula in this cell. For example, a house with
55 paying students and a board bill of $1000.00 might enter “=55*1000” which shows up
as $55,000.00.

• Eating Associate (EA) revenue/Misc. Income (Item #2) – Enter total as collected,
varies according to house. Many houses use this total in chef bonus calculations.

• Resident Social Dues (Item #3) – Social budgets are tracked separately from board
budgets within Weekly Tracking (more later). You do yourself and your KM a favor by
keeping the two separate.

• Damage Deposit (Item #4) – Damage deposits collected are tracked here as they are not
part of normal operating budget. Expenditures on this budget item are tracked as suits the
house, and need not reported in Weekly Tracking. All Row Houses must set aside
$100.00 per resident per quarter as a damage deposit. All greek houses must set aside
$250.00 per resident per quarter.

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• Greek Dues (Item #5) – Just as in Social dues and damage deposits, Greek Houses may
operate their own budget independent of normal operations. Again, expenditures on this
budget item are tracked as suits the house, and need not reported in Weekly Tracking.
They may of course be subject to scrutiny by Residential Education or the Greek Board.

• Capital Reserve (Item #6) – Houses are asked to ser aside $1000/quarter as a cushion
for unforeseen expenses and repairs as well capital upgrades mandated by the county.
(see manager training materials on Capital Reserve Fund policies and uses - CRF)

• Rent (if applicable) (Item #7) – enter the entire amount owed. This applies only to
fraternities and sororities.

• Misc Income (Item #8) – This line item allows you to track reimbursements or other
forms of cash assets and income that are not related to any of the above. It is added to
your normal operating budget.

• Bank Account Balance (Item #9) – you should have received a number from your prior
FM. If not, use the amount sitting in your bank account at the start of the year (i.e.
9/30/20XX). For subsequent quarters you will use the amount from this Master Budget
to enter the surplus from the prior quarter. Please note: if your bank account statement
does not show an end date on the last day of every month, please call your bank and
request that they change your statement issuance to reflect that date. Also note these
numbers do not necessarily match your bank statement as the year progressed because of
un-reconciled checks, income, etc.


                         Assets
                                  Revenue                                                         Cell
                                               Resident Board Bill Revenue        $       55,0000    1
                                                  Eating Associate Revenue        $      3,000.00    2
                                                       Resident Social Dues       $      4,425.00    3
                                                           Damage Deposit         $      5,900.00    4
                                                 Greek Dues (if applicable)       $            --    5
                                                            Capital Reserve       $      1000.00-    6
                                                        Rent (if applicable)      $     45,000.00    7
                                                               Misc Income        $        424.23    8
                                             Bank Balance (all prior surplus)     $     10,000.00    9
                                                                                   $   124,749.33


Liabilities

After Revenue is entered, all Overhead costs must be calculated and their values entered
into the budget.

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• Rent (Item #10)– automatically fills in any rent assessment entered above

• SOS Payroll Expenses (Item #11) - contact SOS (if applicable) to set meeting and
determine specific amounts. (Quarterly Deposit Worksheets). If you have no employee
enter „0‟ in all categories.

• Damage Deposits (Item #12) – automatically fills in the damage deposit assessment
entered above.

• Damage Deposit Spending (Item #13) – FMs use line this to summarize spending for
University damage bills and other activity within this account. Please use the
comments/notes section on the right hand margin to explain activity.

• Damage Deposit Carryover (Item #14) – simply subtracts deposit form activity to give
carryover amount to roll forward next quarter (to add to #12)

• Greek Dues budget (Item #15) – automatically fills in the dues assessment entered
above. Overages or shortages are for the house to track.

• Capital Reserve (Item #16) – automatically fills in the assessment entered above, please
leave notes if and when this is used and put those expenses in 18 below.

• Refunds (Item #17) – add the total amount of refunds paid out to prior quarter‟s
residents. Enter only the total amount paid, not any board bill offsets. Please refer to
training sheet on Refunds.

• Miscellaneous Activity (Item #18) – Any unusual, non-CRF, non-social, non-board
related expenditures may be tracked here with notes to administrators and future FMs
placed in right hand section. Please make sure the house has well documented purchase
records, receipts, and explanations.

• Actual Surplus (Item #19) - this is the amount of money your have on hand for
emergencies that will not be refunded and may be used over the years to make large
purchases and improvements to the kitchen not covered by the University. Again, please
make sure you clear all purchase of kitchen equipment with the Row Office (The
Assistant Director for Student Management on the Row) and receive consensus vote from
the house.

• Beginning of quarter bank balance (Item #20) – automatically fills in the balance
entered above.

• Social Budget (Item #21) – Social Budget is based only on social dues collected for
normal (non Greek activities).




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• Kitchen Budget (Item #22) – This number is quite simply your revenue minus all other
overhead/liabilities.

Work with Sms, SOS, and house residents to find an acceptable average weekly social
budget (Item #24). Work with KM(s), SOS, (and chef) to find an acceptable average
weekly budget (Item #25) and make adjustments to board bill amount as necessary.
(Again, when doing these calculations don‟t forget student manager board bill reductions
etc.)

NOTE: a 10% increase per week will usually give a safe buffer in Fall Quarter. Always
start high and do your cost reductions in Winter/Spring when consumption habits of
house are better known.

••• Don‟t worry yet about entering the Actual Spending (Item #27 & 28) in the dark
boxes on this spreadsheet yet. You‟ll be generating those totals on the next grid (Weekly
Grids).


                                   House Weekly Grids

Financial Managers will be required to track and hand in house expenses on a weekly
basis using this standardized format.

During Training, Financial Managers will receive 35 manila envelopes, one for every
working week in the academic year. You will use these envelopes to collect receipts as
they arrive. Furthermore, the grids will be used to track specific expenses as they are
incurred and their status as they are paid. The grids SHOULD BE PRINTED AND
ATTACHED to the front of these grids when the week and/or quarter is done.

•••Note: Each of the 35 weeks of the academic year has its own tab at the bottom of the
spreadsheet. You should familiarize yourself with navigating in this format.

As your weekly receipts are collected, you will be able to track them by writing in the
vendor names in their appropriate row on the left hand side of the grid and entering the
amount in the appropriately dated column. Remember to place your receipt in the
envelope once it has been recorded. If expenses are incurred prior to the beginning of a
quarter, enter them into Week 0 or 1 as appropriate to the quarter.

•••Note: We suggest that you limit access to these envelopes to the Kitchen Manager.
Financial Manager and chef. Anyone of these three who places a receipt inside the
envelope must remember to write in the receipt amount on the hard copy of the grid
attached to the front of the envelope for that day and week.

You will be collecting two different types of receipts. The first, vendor invoices, are
initially entered by hand, and the invoice is placed in envelope for future reference in
case of a billing dispute, whatever. The second type, in the form of personal receipts

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from the chef, staff members, whomever has authority, are entered by hand and circled.
Again, the receipts are placed in the envelope. (***See Sample Handout on last page of
these instructions).

These two designations will come into play later when you enter the transactions into the
soft copy of the spreadsheet. They will help you (and us) identify a transaction when a
dispute over a payment arises. Meanwhile, for timely budget tracking, the Financial
Manager can enter these transactions electronically to help get a real time feel for the
week‟s spending using the automated totals.
• When entering invoices and receipts electronically into the grid, use the following
protocols to designate vendors vs. personal purchases. Vendor receipts are entered as
straight dollar amounts. Later when the invoice is paid, designate payment completion
by using the underline function - i.e. $50.00 vs. $200.00 vs $267.23 (on sample).
Personal receipts are entered as straight dollar amounts, which are italicized (instead of
handwritten circle) to distinguish them from vendor payments. This will help you sort
through billing/payment disputes and help us conduct our audits. For personal purchases,
again designate reimbursement (payment completion) by underlining the amount – i.e.
$75.00     vs. $45.00 vs. $164.56.

The spreadsheet will automatically run your totals for you.

•••Note: you may even enter credit received from vendors as a negative expense on the
day the credit is received – i.e. ($120.00). For instance, if Pacific Juice, in our example,
invoiced last week for 6 cases of juice but gave us credit for 4 cases this week, we‟d enter
the credit when the credit notice was given by the vendor.

• Make sure to keep all past hard copies of the grids attached to the envelope. Simply
keep the most current printout on top by using the clips to hold all iterations. Again, this
will assist us and you in case of billing dispute, error, or our audits.

• As you receive statements from vendors and continually update your totals, you will
want to make sure that you are accurately tracking those totals by entering them in the
Row House Master Budget spreadsheet and entering updated weekly subtotals as you
resolve your accounts (Item #27 and 28).

IMPORTANT NOTE for (Item #27 and 28): Don‟t use weekly grand total, use Kitchen
and Social Subtotals respectively, otherwise, you are double counting!

This system should allow you to get an up to date and accurate feel for your house‟s
financial performance, namely by checking your projected surplus for the week****. By
keeping all week‟s and quarter‟s up to date you should have an extremely accurate
picture of your house‟s finances.

****EXTREMELY IMPORTANT: Note, the only relevant predictor number in your
projected surpluses column on your master budget is the one that lines up with the most



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up to date weekly total, as in the ($7280.74) in the sample master budget outlined in
bright yellow.

Variance Analysis:

Many businesses utilize variance analysis to look at budget performance. You may of
course compare your actual spending to the budgeted amount and will want to examine
(along with SOS) your budget surpluses and deficiencies and reasons before planning the
next quarter‟s activity.

Board Bills:
Once the board bill derivation has been double checked and posted/announced and the
master budget entered and checked FMs are to issue board bills to residents as they pay.
Board bills are available through SOS in carbon copy format. The house keeps the
original (white) and gives the yellow copy to residents as a receipt once the bill has been
paid in full. Enter all payments in to the AR grid.

-The due date for board bill collection for all Row Houses is the 2nd Friday of each
academic quarter at 7:00 pm.

Accounts Receivable – the Financial Manager must break out student ID, Board amount,
damage deposit, and any late fees on the Accounts Receivable Document (look within
master budget for blank already set up).

It is a great idea to photocopy all checks that are deposited along with a deposit summary
sheet and then staple the receipt from the bank on the summary on top of the photocopies.
This procedure can alleviate questions when bounced checks occur and also provide a
clear record of payment history to future investigators.

We hope this system will assist you this year. This is our second year implementing it on
the Row (it has been in use at the Toyon Eating Clubs for decades). If you have
comments or suggestions for improving the system please email them to Nick Peters at
nick.peters@stanfordalumni.org. We have tried to streamline the system as best we can
to address both house staff concerns, resident concerns, and our own needs to ensure that
student monies are being handled properly. We appreciate your timely reporting and
assistance - such efforts help keep the student management program alive and strong.
With your feedback, please help us improve our system for years to come.



This document researched and written by:
Nick Peters




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