Financial Planning: Case Study on Zero Based Budgeting Techniques

This case study delves into the application of zero-based budgeting within an athletic group, highlighting a budget deficit of $15,000 against an allocated budget of $100,000. The analysis covers the budgeting process for various sports activities across two seasons, detailing expenses such as training equipment, coaches' fees, ground rentals, travel, registration fees, uniforms, association dues, and refreshments. Recommendations are provided to address the deficit, including strategies such as having students arrange their own uniforms, networking with friends and families to purchase game tickets, and seeking sponsors to cover refreshment expenses. The study references relevant literature on budgeting and financial management to support the proposed solutions.

Running head: BUDGETING
BUDGETING
Name of the Student
Name of the University
Author Note

1BUDGETING
Zero Based Budgeting
Particulars Price Qty
Amoun
t ($) Comments
Season 1
Girls
Volleyball A team of 8 girls
Training
equipment’s 350 8 2800
Coaches 2000 2 4000
Ground rentals 2000 1 2000
Travel 500 10 5000
Registration Fees 500 2 1000
Uniform 50 8 400
Association dues 1 200 200
Refreshments 40 8 320
Total 15720
Hockey A team of 7 girls
Training
equipment’s 250 7 1750
Coaches 2000 2 4000
Ground rentals 1000 1 1000
Travel 2000 4 8000
Registration Fees 250 1 250
Uniform 30 7 210
Association dues 300 1 300
Refreshments 45 7 315
Total 15825
Badminton A team of 6 girls
Training
equipment’s 250 6 1500
Coaches 1500 2 3000
Ground rentals 3000 2 6000
Travel 500 1 500
Registration Fees 250 2 500
Uniform 40 6 240
Association dues 100 1 100
Refreshments 30 6 180
Total 12020

2BUDGETING
Boys
Cricket A team of 10 boys
Training
equipment’s 200 10 2000
Coaches 1000 2 2000
Ground rentals 2000 4 8000
Travel 150 4 600
Registration Fees 100 2 200
Uniform 50 10 500
Association dues 300 1 300
Refreshments 40 10 400
Total 14000
Basketball
A team of 6
members
Training
equipment’s 200 6 1200
Coaches 1000 1 1000
Ground rentals 3000 2 6000
Travel 200 2 400
Registration Fees 150 2 300
Uniform 40 6 240
Association dues 100 2 200
Refreshments 40 6 240
Total 9580
Football
A team of 8
members
Training
equipment’s 150 8 1200
Coaches 500 2 1000
Ground rentals 4000 1 4000
Travel 250 2 500
Registration Fees 500 1 500
Uniform 25 8 200
Association dues 300 1 300
Refreshments 30 8 240
Total 7940
Season 2
Girls

3BUDGETING
Cricket
A team of 8
members
Training
equipment’s 200 8 1600
Coaches 1200 2 2400
Ground rentals 1500 2 3000
Travel 200 2 400
Registration Fees 2500 1 2500
Uniform 50 8 400
Association dues 300 1 300
Refreshments 20 8 160
Total 10760
Basketball
A team of 6
members
Training
equipment’s 300 6 1800
Coaches 500 2 1000
Ground rentals 450 2 900
Travel 300 2 600
Registration Fees 150 2 300
Uniform 60 6 360
Association dues 300 2 600
Refreshments 50 6 300
Total 5860
Swimming
A team of 5
members
Training
equipment’s 200 5 1000
Coaches 1200 1 1200
Ground rentals 400 2 800
Travel 150 2 300
Registration Fees 300 1 300
Uniform 50 5 250
Association dues 200 1 200
Refreshments 50 5 250
Total 4300
Boys
a team of 6
members
Swimming
Training 200 6 1200

4BUDGETING
equipment’s
Coaches 1200 1 1200
Ground rentals 400 2 800
Travel+B87 150 2 300
Registration Fees 300 2 600
Uniform 50 5 250
Association dues 300 1 300
Refreshments 50 6 300
Total 4950
Hockey
A team of 8
members
Training
equipment’s 300 8 2400
Coaches 1000 2 2000
Ground rentals 300 4 1200
Travel 200 2 400
Registration Fees 300 1 300
Uniform 50 8 400
Association dues 300 1 300
Refreshments 30 8 240
Total 7240
Rugby
A team of 8
members
Training
equipment’s 250 8 2000
Coaches 500 4 2000
Ground rentals 200 2 400
Travel 200 2 400
Registration Fees 300 2 600
Uniform 100 8 800
Association dues 205 1 205
Refreshments 50 8 400
Total 6805
Total $115000
Recommendations to raise the money

5BUDGETING
The following recommendations are being made to help the athletic group director to
raise money for the deficit which exists in the actual funding. It is known that the total budget
which has been provided can be stated to be $100000 however, the budget which has been
formed for the athletics can be understood to be $115000. For this reason, the department has to
look out for new and better ways which can be largely adopted so as to ensure that the deficit can
be met with. Some of the methods are as follows:
 Firstly, the different students can be asked to arrange their own uniforms. In this manner
the school will be saving considerable funds (Barco, 1994). In addition to this, if the
school feels that it will be required to raise a considerable amount of money, then in such
a case, it will be required to get into a deal with the suppliers of the uniform and then
make it important for the students to consider that they purchase the uniform from them.
This will help them in earning some amount of revenue as available.
 Secondly, the different team members can ensure that they assist the school by
networking their friends and families to purchase the tickets to their games and the
earnings as made by these games can be then used by the teams to fund their overall
expenses. In this way, the deficit can be met with easily (Miller, 2018).
 Lastly, the refreshments expenses of the different students can be managed by sponsors
(Pyhrr, 2012). The teams need to look out for the different sponsors so as to ensure that
these sponsors are being able to fulfill the refreshment requirements of the students and in
return these sponsors may be allowed to set up the stall during the different games
(Wetherbe & Montanari, 1981).

6BUDGETING
References
Barco, A.L., (1994). Budgeting for facility repair and maintenance. Journal of Management in
Engineering, 10(4), pp.28-34.
Miller, G., (2018). Performance based budgeting. Routledge.
Pyhrr, P. A. (2012). Zero‐Based Budgeting. Handbook of Budgeting, 677-696.
Wetherbe, J. C., & Montanari, J. R. (1981). Zero based budgeting in the planning
process. Strategic Management Journal, 2(1), 1-14.