4 Interpreting budgets

Now you will practise interpreting a budget using an example of a community association. First, you will look at income: on the budget this appears as a list of all the money the organisation has coming in or has in the bank as reserves or surplus. If the organisation is not intending to spend the reserves, they might not be mentioned, although the budget would usually refer to the expected interest to be earned for that year.

Activity 4 A community centre’s predicted income

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