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Allocation of movement budgets

Intro

Movement budgets are for regular costs, not for rebellions or actions. There is a separate process for making requests for a rebellion or action. The movement budget will mainly be VLE but also funds regular costs such as building rent and rates, software licences, accountancy, training, permanent equipment that will be used for rebellions etc. Movement budgets are agreed at times when fundraising from rebellions and actions are at their most predictable, usually in the month following a major rebellion or action.

Each movement’s budget is usually for a 6 monthly period and is based on the previous 6 month period and on cash flow forecasts. It 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 with a brief justification, to be evaluated by IBG alongside the requester's previous budget and actual expenditure.

Summary

  1. For a new movement budget, each circle meets to review and agree each VLE claimant's request.
  2. A circle's BH prepares their budget.
  3. The circle's parent circle reviews and agrees the budget.
    4. budget,
  4. Actionsalong circlewith reviews the budgets(?)Actions.
  5. Each BH sends the request to 1 of their IBG reps.
  6. Their IBG rep reviews the budget and when ok, brings it to IBG.
  7. IBG reviews all requests together and decides how much each circle gets based on the funding available and priorities.priorities, in consultation with the Strategy team.
  8. IBG advises all BHs their recommended funding.
  9. For a 3 month review of an existing budget, circles follow the same process except that they only need request budget changes, not their complete budget.

How to request a movement budget for your group

This request should be made by the budget holder responsible for the group's budget or someone acting for them.

Movement budget request form Finance will send a request form to each Budget Holder when the next cycle of movement budgets is soon to start. The form is a spreadsheet in 2 sections, 1 for extending any existing budget and 1 for a new / changed budget. The BH must make it clear which circle or team is making the request. There is a section where you enter the amount of existing budget for each month and another section where you enter the requested increase/decrease for each existing item and and any new budget requested. The values in the 2 sections will then add up to the total amount being requested. If a cost is not claimed monthly, e.g. an annual subscription or licence renewal, add the cost to the month when it is due. Each section is split into 2 further sections, for VLE and other expenses.

Describe in outline what an expense is for, which will be either the role of a VLE recipient or a description of goods or services. The IBG may need to seek clarification from the Budget Holder during the evaluation process.

VLE Do not try to give a personal reference for anyone receiving VLE but do describe how essential is the role.

The IBG must not evaluate VLE based on named individuals as some may be known to them. The VLE recipient's circle must have already agreed they are eligible and roughly how much VLE is needed using the Integrated Decision Making process described in XR's constitution. They are eligible if they could not work for XR otherwise and would have to instead seek paid work or are unable to work because of e.g. child care or disability. In effect, they are claiming living expenses, not a reward for hours worked or expertise and the definition used is "Payees have been given money according to their need, not according to the time spent doing things with us and not according to the value of the things they did." If this definition is not followed, then HMRC may regard VLE recipients as employed, whereupon XR would be subject to employment law.

State if the VLE is being offered for a role not yet filled and why, i.e. it is speculative in that the status of the role filler is unknown. If VLE is for a linked or EC role, the team which they rep makes the claim. State if a VLE recipient is also claiming VLE from another group and how the total VLE was calculated.

The maximum suggested by IBG for 1 month's VLE is £1,600 / person. If VLE is for an unfilled role, the maximum requested should be an average amount and it is assumed that roles remaining unfilled will fund those that become filled and need more than the amount requested.

Claiming VLE

Here are detailed VLE claim procedures issued by Finance. The following is a summary.

There are 2 forms of VLE - payroll VLE and CCFB (Capped Charges For Business). Anyone receiving payroll VLE is placed on XR's payroll, their tax and NI are deducted and they are paid monthly.

CCFB can be claimed if a person is self employed, whereupon they must agree to make their own arrangement to pay tax and NI. HMRC has rules you must follow to ensure you and XR remain compliant. To be eligible for CCFB you must fit 1 of these 2 criteria :

  1. you are registered as self employed with HMRC and any exisitng self employed activities outside of XR are similar to those provided to XR

or :

  1. all of the following apply :

a. you have the right to provide a substitute worker to complete the work specified in the service agreement and

b. you agree to make good any errors or defective work without additional payment and

c. you are insured in respect of potential liabilities arising from the services you provide.

In either case 1 or 2, you must be happy to sign a service agreement

The claimant completes a Jotform and their BH reviews and approves the claim. Payroll VLE claims must be submitted monthly by a deadline so as to be included in the current month's payroll run but CCFB can be clamed at any time by attaching an invoice to the Jotform.

Ad hoc movement budget requests

People's VLE needs may change or further goods or services may be needed during a movement budget peiod. The BH seeks approval by their parent circle and the makes the request to IBG through their IBG rep. Wherever possible, the request is considered during the 3 month review along with all others. IBG makes a decision based on levels of available funding, any other requests and whether any roles previously funded by VLE may become unfilled.

Distribution of budgets

Nations and regions are given a "pot of money" divided into equal amounts initially which they can use for VLE, goods or services without further justfication to IBG. They may decide between themselves to redistribute some of these funds from the pot where some nations or regions need more than others.

If a budget is not used by the end of the movement budget period, the underspend is returned, not carried forward.

Evaluation of budget requests For each budget item requested, whether VLE or non-VLE, the principles are based on XR's strategy and are, but not limited to, the following :

  1. does it support a disruptive NVDA?
  2. does it indirectly support the above, e.g. a Digital application, Fundraising or arrestee support?
  3. does it help XR to grow the movement?
  4. does it help XR to mobilise?
  5. is it for a sister movement or relationship building with an external group and if so has Relationships approved it?
  6. does it support youth and students?
  7. does it support ISN?
  8. is it not part of a specific rebellion's funding?

Principles to be used when the total budget available has changed

IBG reviews XR's financial status based on advice from Finance and the likely future costs of rebellions and actions, to see if the total budget has changed. If it has changed from the previous budget, then the following candidates for extra or less funding need to be considered and in what order :

  • Nations and Regions
  • Affinity Youth Network (AYN)
  • Inclusivity Fund
  • Global Support
  • Central cirlces or teams.

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.

At the time when the movement budget is approved, 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 cash flow should make a copy to protect the approved budget data.

Requests for ad hoc funding

There is a ‘Reactive Pot’ which is a £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 being offshoots from XR. The Relationships circle should always advise whether they should be funded and for how much. The principle is that a movement only gets an initial donation to start up or to fund an action and then are expected to self fund.

Review of Movement Budgets

Circles receiving a movement budget or now wishing to receive one should in liaison with IBG run a basic review, to take place after 3 months of a movement budget period. The IBG will decide if any request for more budget can be approved. A more comprehensive review is run after the end of the 6 month period.

Appoint a WG from IBG to conduct reviews including a rep from Finance and optionally from any other relevant circle or team.

Purpose of WG is : seek feedback from all circles, not just those getting budget, and from Finance, to collect views on the process and size of budgets and take appropriate actions, e.g. if fundraising revenue differs from expectations.

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 or less? Check if a VLE recipient's circumstances have changed and they are fulfilling their role's mandate.
  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.

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