Budgeting
5.a Budgeting and expenditures

The Board approves the budget prepared by the Finance Committee for each fiscal year, authorizes expenditures as specified therein and approves amendments to the budget as they occur throughout the fiscal year. The fiscal year begins July 1 and ends the following June 30 (Handbook, II.A.5.c.3). The Board also approves requests for extraordinary disbursements. Financial matters
brought to the Board’s attention are usually referred to the Finance Committee before official action is taken. No money beyond that which is budgeted is spent in the name of the Music Library Association without prior, formal approval by the Board. In consultation with the Fiscal Officer, emergency budget action/revision may be taken between Board meetings, if preceded by a unanimous vote of the President, Vice-President/Past President and Recording Secretary. (Finance Committee minutes, 05/2010, replacing language that was not consistent with Handbook) Such action is ratified at the following Board meeting. IF during the course of a fiscal year the Board approves unbudgeted expenditures, it amends the budget and identifies the source of income which is to cover the expenditures. Depletion of the association’s reserves is to be avoided. (Handbook, II.A.5.c.3)

5.b Budget requests

At least 2 months before the spring Board meeting, the Fiscal Officer will announce a call for budget requests for the next fiscal year budget. Budget requests will be submitted by all Board members, Special Officers, Editors and Committee Chairs. Budget requests may also be submitted as needed by Roundtable Coordinators, Joint Committee Chairs and Representatives to other organizations.

5.c Budget preparation

As chair of the Finance Committee, the Fiscal Officer assembles the budget requests for the new fiscal year and requests accounts of actual income and expenditures for the current fiscal year to date from the Administrative Officer. A budget template should be requested from the Administrative Officer approximately 6 weeks before the spring Board meeting so that budget requests coming from members may be entered.

The proposed budget should include five columns for each budget line:

1. Actual income and expenditures to date
2. Projected income and expenditures for current fiscal year
3. Projected income and expenditures for the new fiscal year
4. Percentage difference between project figures for the new and current fiscal years
5. Percentage difference between the actual (corrected for twelve months) and projected income and expenditures for the current fiscal year.

The purpose of such a report is to allow the Board to understand quickly how accurate its budget
and expenditures projections have been and where significant changes in income or expenditures are being recommended or anticipated by the Finance Committee.
The Fiscal Officer sends this material to the Finance Committee so that it will arrive no later than
two weeks before the spring Board meeting. The meeting of the Finance Committee is scheduled the day before the full Board meeting.

The Finance Committee considers the budget requests, compares them to actual income and expenditures for the fiscal year to date and prepares a projected budget for the new fiscal year.
After the Finance Committee has made its decisions, the chair presents the recommendations of the
Finance Committee to the Board for approval.

The Finance Committee should budget the convention, publications other than Notes, and other sources of revenue to cover costs or generate a surplus. (Handbook, II.e.12.f)

5.d Budget approval

Following the Board meeting at which the budget for the next fiscal year is approved (normally in May or June) and before the beginning of the new fiscal year, the Fiscal Officer notifies all who have requested funding whether they have received an appropriation and if so, its amount. (Handbook, V.E.2)

5.e Budget review

The Administrative Officer alerts the Fiscal Officer when on any given budget line more money is being asked for or spent than was budgeted. The Fiscal Officer will bring the discussion to the Finance Committee for possible action if a discrepancy of .1% of the total operating budget develops on any budget line at the level of 2 decimal points (e.g., 6.02, Assistant Administrative Officer). This policy supersedes all previous policies. (Minutes, 09/2012, 09.g)

The Fiscal Officer alerts budget recipients to the possibility of budget freezes should the association experience a shortfall of income. (Handbook, II.E.12.f.)

5.f Budget Lines Summary

Ordinary Income

1.0. Dues
2.0. Sales
3.0. Meetings
4.0. Education Committee Workshops (EOP programs)
5.0. Other income (Development campaigns, interest income)

Expenses

10.0 Meeting
11.0. Miscellaneous (Investment advisory fees, chapter support, bank and credit card fees)
12.0. Awards issued
6.0. Management services (including Business Office, Board expenses)
7.0. Program expenses (including committees, MLA subsidies)

8.0. Other member services (Publicity, Placement, organization dues)
9.0. Publications

Other income

5.0 Investment income
E7.0. Endowments
S6.0 Contributions to award funds and unrestricted contributions

Notes on budget lines:

Unaltered reprints of existing brochures shall be charged to the administrative budget rather than to committee operating budgets. (Minutes, 02/2004, X.C)
Contact

Music Library Association 1600 Aspen Commons Suite 100 Middleton, WI 53562

608-836-5825
608-831-8200 FAX

mla@areditions.com
About MLA

The Music Library Association is the professional association for music libraries and librarianship in the United States. Founded in 1931, it has an international membership of librarians, musicians, scholars, educators, and members of the book and music trades. Complementing the Association’s national and international activities are eleven regional chapters that carry out its programs on the local level.