Pajero 4WD Club of Victoria Inc.
Budget Principles
At the strategy meeting in February the Committee agreed to the following principles that
would guide the budget preparation:
1. The Club should live within its means and stop making a loss each year. To achieve this
the budget would aim to make a profit of 3% of expenses.
2. All activities within the club should either be revenue neutral (i.e. income equals
expenses, such as the Muster) or provide a profit to the Club (e.g. monthly meeting
raffles, DTU courses) unless specifically identified as a subsidised activity (e.g. Christmas
Party).
3. As a long term approach we should maintain financial reserves equal to twice our annual
expenses to ensure we can manage financial shocks. (We currently have approximately
$115,000 or about 1.5 times annual expenses of about $75,000).
Pre-Covid-19 Budget
A budget was prepared for the Committee to consider at the March Committee meeting.
This provided for a profit of just under $3,000 with expenses of approximately $75,000 This
set annual fees set at $150.
The Committee approved this budget on the basis of review of ongoing (and at that time
rapidly changing) Club activities and impact of Covid-19 on income and expenses.