If I may put my 2 cents in... I truely thank you for posting this topic.. Our P.T.O. just put in a playground for our school. Today is our first meeting and I can to this site specifically for this question. Also I would want to add that if your playground equipment cost $30,000 you are gonna add at least 6 thousand more dollars to your goal. And if you are gone have someone install it for you, add $15,000. The key to saving money is to have a community build! Ask for donations of services from local companies in your area. You will be suprized how many companies are looking for projects in their community.

Good luck in your efforts! It's well worth it!

Sheri

Thanks,,, I'm forwarding to our Treasure!

First, let me be clear that I'm offering up my own opinion (and I've been known to create answers/solutions as I go along...)

mum24kids is right, in our group, it's our practice to have our expenses and revenues equal on the BUDGET as it's our intention to spend or allocate everything we make in a given year. (We start with a cash reserve and that same amount is carried forward the next year, so this only represents the net In's and Out's for the year.)

So I meant in THIS example they should equal. Your budget could theoretically have a profit or loss. And while it's perfectly acceptable for a PTO to have a "profit", sometimes groups prefer other words like "difference" or "excess funds".

So you could also handle it that way because your GOAL might be to have excess funds for various long-term purposes and you could lay those out the way mum24kids suggested as a separate section.

When/if you get to the actual financial statements, you'd want to be more particular about true accounting formats/words. But this is an internal document for planning - so I think you have some leeway on the format.

I think JHBs proposal is great. (And, I might add, very impressive use of "code"! I never knew what that was....) You wouldn't want to show the whole $30k as an expense item until the year in which you are actually going to buy the playground.

Your revenues and expenses don't have to agree. If you're afraid that the above presentation might bury the playground appropriation too much, an alternative might be:

</font><blockquote>code:</font><hr /><pre style="font-size:x-small; font-family: monospace;">
Total projected revenue $43,800
(with all the details JHB has)

Total expenses:
(everything JHB has, except the
playground) $33,800

Total amount to be carried over: $10,000


Note: The amount to be carried over is
designated to be put towards the purchase
of a new playground. The total estimated
cost of the playground is $30,000, and
expected to be raised over a ?? year period.

</pre>[/QUOTE]This makes the amount set aside a little more obvious.

Also, I would not suggest that you advertise that your fundraiser is being held specifically to build a new playground. There are legal issues (and the accounting gets a little more complicated) if you set up the fundraiser specifically for that, and then decide not to build the playground. Better to make a general board resolution that you intend to put aside XX number of dollars for a playground and leave it at that. Then, if plans change, the board can make a resolution to reallocate the funds as they believe appropriate.

[ 09-23-2004, 12:18 AM: Message edited by: mum24kids ]

I think on your budget you'd only want to show the $10,000 set aside. But you might want notes that the ultimate goal is $30,000.

It's been a long time since college accounting - so you accountants on the Forum feel free to correct me.

Remember, this is a BUDGET, not strictly speaking an Income Statement. So I'd stick with something simple my group could understand.

I'll list a sample idea below with that type of entry.

(I think I can make it line up using the CODE command. If not - imagine the numbers are aligned in a column. The Revenue and Expenses are supposed to equal - so if they don't I've just erred in my example.)

</font><blockquote>code:</font><hr /><pre style="font-size:x-small; font-family: monospace;">
REVENUE
Fall Fundraiser 30,000
Spring Fling 8,000
T-Shirts (Break-even activity) 2,500
School Directory (Advertising) 1,000
Membership Dues ($3 per family) 800
Breakfast w Santa (Break-even activity) 500
Miscellaneous 1,000

---

Total Projected Revenue 43,800


EXPENSES &amp; ENCUMBERED FUNDS
Fall Fundraiser Cost of Goods Sold 20,000
Spring Fling 1,000
T-Shirts 2,500
School Directory Printing 500
Breakfast with Santa Supplies 500
Hospitality (Teacher Appr.&amp; Misc Hosp. 1,000
Track &amp; Field Supplies 800
Bank Fees (Primarily NSF Fees) 200
Administrative &amp; Operational Supplies 1,000
Donations and Memorials 700
Field Trips 1,500
Teacher Grants 1,600
Science Suppies &amp; Equip 2,000
Arts Programs 1,000
Playground Fund (LT Goal $30,000) 10,000

---

Total Projected Expenses/Encumbrances 43,800

</pre>[/QUOTE]

[ 09-23-2004, 09:30 AM: Message edited by: JHB ]

We are still working thur our budget for this year.

One of our goals is to build a playground. We would like to ear-mark our biggest fund raiser, Catalog Sales, for this purpose.

How do we show this in our budget?
we estimate the Playground to cost $30,000
and we estimate the fundraiser to bring in $10,000 profit.

Which would make it appear to be a lost of $20,000 or that we failed in our efforts.

How do we add this playground into our budget OR do we not included it until the year when we will have the funds to build it?

Confused in St. Louis, Missouri!
Pattyk