Budget: Difference between revisions
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'''''Always budget pre-tax for expenses and post-tax for revenues.''''' This is not because the government is necessarily giving the tax back to the EUS, but because we must track tax separately in a tax account, since we need to remit money to the government if we collected more sales tax than we spent. So in effect we are subsidizing all our groups for the sake of making accounting easier. | '''''Always budget pre-tax for expenses and post-tax for revenues.''''' This is not because the government is necessarily giving the tax back to the EUS, but because we must track tax separately in a tax account, since we need to remit money to the government if we collected more sales tax than we spent. So in effect we are subsidizing all our groups for the sake of making accounting easier. | ||
<tab name="Budgeting for Tax Example" collapsed=""> | <tab name="Budgeting for Tax Example" collapsed=""> | ||
:''You’re collecting money for your department’s clothing sale. You get the invoice for pre-tax amount of $1,000. Since the EUS budgets | :''You’re collecting money for your department’s clothing sale. You get the invoice for pre-tax amount of $1,000. Since the EUS budgets expenses pre-tax, $1,000 will be the amount the department is charged. The [[financial officer]] collects $1,000 and deposits it. The $1,000 deposited includes sales tax (your Gross Revenue). Tax, i.e. 14.975% (5% GST + 9.975% QST), is deducted from all Revenues. '' | ||
:*$43.49 is taken off and put into the GST tax, $86.76 is taken off and put into the QST tax account, for a total of $130.25 being remitted. | :*$43.49 is taken off and put into the GST tax, $86.76 is taken off and put into the QST tax account, for a total of $130.25 being remitted. | ||
:*What’s left is the | :*What’s left is the post-tax revenue amount of $869.75 (your Net Revenue) to be deposited into your EUS account. | ||
:'''''The department just lost $130.25 because they budgeted their taxes wrong on the collected revenue.''''' | :'''''The department just lost $130.25 because they budgeted their taxes wrong on the collected revenue.''''' | ||
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:In order for the department to break-even, it would have needed to collect 14.975% more. Therefore, the VP Finance should have collected $1,149.75 because a GST amount of $50 and QST amount of $99.75 would be taken off the deposit and a total of $1,000 would be left to break-even. | :In order for the department to break-even, it would have needed to collect 14.975% more. Therefore, the VP Finance should have collected $1,149.75 because a GST amount of $50 and QST amount of $99.75 would be taken off the deposit and a total of $1,000 would be left to break-even. | ||
</tab> | </tab> | ||
===Food and Entertainment Exception (50% tax rule)<span id="50% Tax Rule"></span><span id="Food and Entertainment Exception"></span>=== | ===Food and Entertainment Exception (50% tax rule)<span id="50% Tax Rule"></span><span id="Food and Entertainment Exception"></span>=== | ||
When [[EUS Groups|a group]] is providing '''''free''''' food / entertainment (restaurants, hotels, beer, pizza, etc.), there is an exception to the pre-tax rule ([[Budget#Revenues and Expenses|see above]]. In these cases, ''50% of the total tax amount will be charged as well''. You still fill out the [[cheque req]] normally, with the pre-tax amount written, but the amount you will see in your accounts will be the average between the pre- and post-tax amounts. | When [[EUS Groups|a group]] is providing '''''free''''' food / entertainment (restaurants, hotels, beer, pizza, etc.), there is an exception to the pre-tax rule ([[Budget#Revenues and Expenses|see above]]. In these cases, ''50% of the total tax amount will be charged as well''. You still fill out the [[cheque req]] normally, with the pre-tax amount written, but the amount you will see in your accounts will be the average between the pre- and post-tax amounts. | ||
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::*''It is possible that expenditures and revenues varied from what was budgeted last year'' | ::*''It is possible that expenditures and revenues varied from what was budgeted last year'' | ||
:*Talk to the VP Finance well in advance if you believe that total revenues or expenses will be significantly different. | :*Talk to the VP Finance well in advance if you believe that total revenues or expenses will be significantly different. | ||
:*Follow the [[Committee_Member_Spending_Guidelines|member spending guidelines]] when budgeting | |||
For some committees, it is acceptable to run a budget deficit. The EUS is not-for-profit, and providing student services through committees and other means is how we give back to students. That being said, we are not overflowing with money, and it is expected that every committee does as much as possible to keep expenses reasonable and to seek revenues. | For some committees, it is acceptable to run a budget deficit. The EUS is not-for-profit, and providing student services through committees and other means is how we give back to students. That being said, we are not overflowing with money, and it is expected that every committee does as much as possible to keep expenses reasonable and to seek revenues. | ||
===[[Clubs]] and [[Design Teams]]=== | ===[[Clubs]] and [[Design Teams]]=== | ||