Operating Budget

Instructions for RD0442-0007

OPERATING BUDGET Schedule 1

A nonprofit organization or public body uses this form to prepare a budget for operation of a facility.  The organization�s representative develops the projections and completes the form.

 

Submit the original of the completed form in hard copy or facsimile to the appropriate Rural Development servicing office.

 

Features for transmitting the form electronically are available to those customers with access credentials only.  If you would like to establish online access credentials with USDA, follow the instructions provided at the USDA eForms web site.

 

The organization�s representative must complete all items defined in the following table.

Fld Name / Item No.	Instruction
Name	Enter Borrower Name.
Address, County, State	Enter Borrower Address including County and State.
Applicant Fiscal Year	Enter Fiscal Year for Operating Budget.
Lines 1-5	List types of income as appropriate.
Line 6	Allowances and Deductions (Pertains generally to Health Care Institutions, and represents the difference between Gross Income and Amounts Received or to be).
Lines 8-14	List type of expenses as appropriate.
Line 15	Interest RD (Interest expense incurred on RD note(s)).
Line 16	Depreciation (Total depreciation expense for the year).
Line 18	Net Operating (Loss) (This amount represents the net operating income or loss before adding income not related to operations in Lines 19 - 22).
Lines 19-20	Indicate items of income derived from sources other than regular activities (Example: interest earned).
Line 22	Net Income (Loss) (This amount is also transferred to Item A, Schedule 2, Projected Cash Flow Statement).

 

PROJECTED CASH FLOW, Schedule 2

Applicants use this form is used to Project the Flow of Cash for each year, from loan closing through the first full year of operation.  Use the same number of columns as used on the Operating Budget, Schedule 1.  These Cash Flow Projections are important in determining the adequacy of cash to cover operating expenses, transfers to debt payment, reserve accounts, etc.

The organization�s representative must complete all items defined in the following table.  (Note: Applicants who maintain their records strictly on the cash basis of accounting and have no Accounts Receivable and Accounts Payable, may only need to complete the following line items: A, B-1, C-1, E-1 and E-3, F and G.)

Fld Name / Item No.	Instruction
Line A	Bring Forward the income or loss as entered on line 22, Operating Budget, Schedule 1.
Line B	Add back any depreciation or other non cash items included on Schedule 1, Operating Budget.
Line C	Complete items C-1 through C-6 as appropriate, for item changes which provide for increase in cash balances.
Line D	Enter the Net Total of all Line A, Line B and Line C items.
Line E	Complete items E-1 through E-6 as appropriate for items for which cash was expected.
Line F	Enter the beginning Cash Balance(s) for the period.
Line G	The total of Line D less item E-6 plus Line F will be the Ending Cash Balance(s).  The total will be reconciled by balances in the various accounts, i.e., construction, revenue, debt, etc.