GENERAL ASSUMPTIONS(This Year’s Budget Story)

REVENUE: It is very challenging to accurately project/forecast revenue. The best reliable way to come up
with the best estimates is to consider the revenue generated for the last 4 years. So, in projecting the
revenue for 2019, it is the average revenue from 2015 to 2019. The presence of competition and lower
occupancy for Korean nationals starting in 2017 was also taken into consideration.

EXPENSES:

Fixed Cost/Expenses – as the name implies, these expenses are fixed regardless of revenues
generated. Below are considered fixed cost:

1. Honorarium & Salaries – the amount of 678,000 represents the salaries of dorm
receptionist, on-call receptionist, bookkeeper and dorm utility for the year 2019. With
the assumption that there would be no increase in salaries for 2019.
2. Professional fees - represents the amount paid to external auditors which is fixed at
8,000.
3. Depreciation Expenses – represents the decline in value of our assets like furniture &
fixtures, television, refrigerators, among others.
4. Communication Expense – the amount in 2019 was based on the actual in 2018 and was
just rounded off.
5. Cable TV – the amount in 2019 was based on the actual in 2018 and was just rounded
off.
6. Repair & Maintenance – the amount in 2019 was based on the actual in 2018 and was
just rounded off. However, it was projected that there would be no major repair in
2019. Thus, it was further projected that repair & maintenance would lower by 50%.

Variable Expenses – these are expenses that respond directly to revenues generated by Alumni
Dormitory. For instance, light and power, if there would be fewer occupancy rates in 2019,
expect that light and power would be also be lower.

1. Light, Power and Water – for 2019, it is projected to be 29% of Lodging Income.
2. Dormitory Supplies – for 2019, it is projected to be 9% of Lodging Income.
3. Laundry – for 2019, it is projected to be 9% of Lodging Income.

Other Expenses – expenses not falling under fixed and variable expenses, which are difficult to
project and which can be reduced or eliminated.

1. Galak Luzon – change to Hugyaw Visayas with a budget of 100,000 as requested by

Executive Secretary.
2. Travel/Transportation – 150,000 as requested by Executive Secretary.
3. Meetings/Conventions – assumed to go up due to 4.433% average inflation.
4. Miscellaneous – assumed to go up due to 4.433% average inflation.

Measures to attain the budget:

1. Find surefire ways to increase revenue.

2. All spending decision must be based on actual revenue.
3. Identify then reduce or eliminate non-value adding activities. Without which, expenses will
be lower.
4. Budget should be monitored on a monthly basis.
GENERAL ASSUMPTIONS(This Year’s Budget Story)

REVENUE: SAAI will only recognize income upon withdrawal of the amount collectible from the
University. One Million is assumed to be withdrawn in 2019. Another source of revenue is ID
reproduction which is projected to be 374,000 and membership fees from walk-in alumni estimated to
be 500,000 based on the last 4 years.

EXPENSES:

Fixed Cost/Expenses – as the name implies, these expenses are fixed regardless of revenues
generated. Below are considered fixed cost:

1. Honorarium & Salaries – the amount of 412,000 represents the salaries of SAAI office
assistant, executive secretary and bookkeeper for the year 2019. With the assumption
that there would be no increase in salaries for 2019.
2. Professional fees - represents the amount paid to external auditors which is fixed at
8,000.
3. Depreciation Expenses – represents the decline in value of our assets like furniture &
fixtures, television, refrigerators, among others.
4. Communication Expense – the amount in 2019 was based on the actual in 2018 and was
just rounded off.
5. Repair & Maintenance – the amount in 2019 was based on the actual in 2018 and was
just rounded off.

Variable Expenses – these are expenses that respond directly to revenues generated by SAAI.

1. Office Supplies – for 2019, it is projected to be 50% of ID Reproduction.

Other Expenses – expenses not falling under fixed and variable expenses, which are difficult to
project and which can be reduced or eliminated.

5. SU Pins – 250,000 as requested by Executive Secretary

6. Travel/Transportation – 150,000 as requested by Executive Secretary
7. Meetings/Conventions – 200,000 as requested by Executive Secretary
8. Founder’s Day Expense – 75,000 as requested by Executive Secretary
9. Tipon Expense – 400,000 as requested by Executive Secretary
10. Alumni News Printing – 30,000 as requested by Executive Secretary
11. Condolence/donation – 70,000 as requested by Executive Secretary
12. Miscellaneous – assumed to go up due to 4.433% average inflation.

Measures to attain the budget:

1. Find surefire ways to increase revenue.

2. All spending decision must be based on actual revenue.
3. Identify then reduce or eliminate non-value adding activities. Without which,
expenses will be lower.
4. Budget should be monitored on a monthly basis.