Allocation of movement budgets

Movement budgets are usually for regular VLE, not for rebellions. They are agreed at times when fundraising from rebellions and actions are at their most predictable, usually in the month following a major rebellion. The present movement budget is for July-Dec 2021. It is expected that the next will be for Jan - June 2022.

Each movement’s budget is usually for a 6 monthly period based on the previous 6 month period and is finalised early in the first month of the new period. Reps from all circles seeking a budget submit requests for VLE, goods or services and a brief justification, to be evaluated alongside their previous budget and actual expenditure.

Nations/Regions are given equal amounts which they can use autonomously. They may decide between themselves to redistribute some of these funds where some need more than others. In the (unlikely) event that a 6 month budget for nations/regions or for Operations or for Sys & Cul is underspent, it is returned.

Sunny, Cloudy and Rainy Day scenarios

These scenarios are a way to model optimistic and pessimistic versions of the cash flow to determine available budgets. Normally, IBG uses the moderate (Cloudy day) estimates of income and expenditure as the most likely 12 month projection.

When the Cloudy Day version has been agreed, create from it an optimistic (Sunny Day) version and pessimistic (Rainy Day) version based on optimistic and pessimistic estimates of costs and fundraising income for the next major rebellion only, followed by subsequent cloudy day estimates.

Principles to be used when allocating increased budgets from a Sunny Day scenario from the cash flow are applied in the following order :

  1. Increase Nation and Region Allocation
  2. Increase XR Youth
  3. Increase to Non Critical Teams, a single amount which they decide between themselves how to allocate
  4. Increase Inclusivity Fund
  5. Increase Allocation to Global Support
  6. Increase 6 critical circles by x VLE positions per team.

The principles are applied in the reverse order for a Rainy Day.

When movement budgets are agreed, BHs are advised and Finance pays VLE as requests are made and approved by the BHs. BHs must ensure approved VLE and other costs will not exceed their budget. The 6 shared services circles and Relationships manage their budgets separately and independently. Operations and Sys & Cul may decide from month to month how they wish to distribute their budget between the other sub-circles.

At this point, those rows in the cash flow projection which have been agreed are frozen somehow, e.g. the cells are given a grey background. Anyone modelling the cahs flow should make a copy to protect the agreed budgets.

Requests for ad hoc funding

There will be a ‘Reactive Pot’ which is £500 / month reserve to be used to support one-off projects (including supporting Movement of Movement actions, see below) which are in line with XR UK Strategy.

Requests for funding of other movements

There are many different movements with varying degrees by which they echo our principles and values, some are offshoots from XR. The Relationships circle should always advise whether they should be funded and for how much. In general, a movement may only get an initial donation to start up or to fund an action and then are expected to self fund.

Review of Movement Budgets

Run a basic review to take place after 3 months of a movement budget period. Run a more comprehensive review after the end of the 6 month period.

Appoint a WG from IBG including a rep from Finance.

Purpose of WG is : seek feedback from all circles, not just those getting budget, and from Finance to get views on the process and size of budgets and take appropriate actions.

Finance presents a report of spend broken down by circle for the period under review.

Compare actual spend against allocated budget, by circle.

Survey all BHs (list from Finance) to ask :

  1. Was the process easy to use?
  2. Did you under spend? (compare with report from Finance)
  3. Do you need more?
  4. Anything else?

Get the position from Finance of unrestricted funds as at end of the 3 monthly period.

Decide if any circle gets more budget or less for next 3 months.

Underspend - check this out because these rules are in conflict

All unspent CI6 costs at end of a movement budget period are returned to be re-used in unrestricted reserves. Petty cash and all other funding can be accumulated, we don’t take it back (set it to 0).

We allow circles to accumulate underspend unless it is consistent and is not petty cash - rules TBA for next budget round in July.

Otherwise all underspend funding can be accumulated.