RUNNING HEAD: Alliant Credit Union and its Budgeting
CAPITAL BUDGETING
Introduction
Budgeting is somewhat deciding or rather rationing the capital receipts and payments, be it for
any organization or an individual. Capital receipts, generally the loans generated by the
government from the Reserve Bank of India, sale of the other treasury bills, bad debts recovery,
and others, while the payments includes the capital expenditures made for the fixed assets and
current assets, or be any other investments. A budget is nothing but a summarised form of the
expected expenses and incomes over any specific time period. Credit Union is a kind of
financial co-operative which facilitates the customers with the traditional banking services. Such
companies ranged from small, and large entities, formed by the even larger corporations for their
employee members. The credit union companies enjoys the benefit of tax exemption, as it is a
basic business model in which the inhouse members are pooling investments for buying shares
in order to provide loans and other financial products("Manage Finances | Alliant Credit Union",
2019)
Description of My Role
I am currently working in the Human Resources department of Alliant Credit Union. The
company is a high rated credit union and ranked to be on the 5th position in the United States on
account of its assets. The company has its headquarters in Chicago and is operative in California,
including the other states too. The budgeting and planning tool of the credit union exhibits the
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area specifications that requires the most of the spendings and also analyses the cash flows, also
including the net worth of the company. Being an HR employee of the company, I have to
generally, correlate all the capital development plans which also favours the employee’s work
experiences and and also the workplace ethics. According to my role, I was to take care of all the
employer-employee relationships and the budgeting evaluations, designing, education and the
adoption of other plans which includes hiring new candidates, the floor events, succession
planning, team leadership, and many others("Financial Advice & Budgeting - Letterkenny Credit
Union Ltd.", 2019)
Being on a crucial position in the company, I was required to follow a regime of duties to
perform my task. Outlining the core duties below:
● Manage the perfect engagement and also leveraging the diverse inclusions of the talent at
each level of the work done by the organization in order to understand the business
targets, its strengths, weakness , opportunities and threats.
● It was primary for me to take the lead in the strategic workforce sessions involving all the
planning and also recommended the target operating model that shall enhance the
effectiveness of the workforce.
● Associating with the other team leaders and creating or updating the already formed job
descriptions for hiring the new employees/ trainees so that the correct set of job duties are
reflected, to rationalize the budgeting of the plans such as employee hiring and training
incurs huge costs. Also, if an employee is hired, trained and then leaves the company
only because of the non-materialistic job description, then the company will have to bear
large losses, which none will bear
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● I was obliged as under my job profile to associate with the human capital leadership, in
their management and also to facilitate the employees with their tasks and the other
cultural introduction to Alliant Credit Union.
● I was thought to be particular enough in educating, designing and also in adopting the
competitive workforce efficiencies to deliver the best results also fit as per the budgeting
controls of the company.
● To enable the learning, seminars and other soft skill training for my team members and
the other enterprise leaders so that the costs of hiring external trainers to impart the
training can be rationalized ("Budgeting & Planning", 2019)
Generally, a budget is nothing but a formal financial projection of one’s spendings and earnings
expected over a specific time period. Budgeting is to provide a milestone against which the
human resource managers are asked to evaluate the company’s performance and prepare a
comparative study for the same.
My Budgeting Experience
Sharing an example from my personal job experience in the Human Resources Department.
At the end of the financial year, I was given the job of preparing the total quality management
statement, with all the formal financial projections. The Total Quality Management( TQM ) is a
management approach led by the organization.
I was asked to prepare the TQM considering all the budgeting aspects in order to keep a constant
vigil over the costs of selecting and exit processes. Below are the key areas which I had tried to
focus to report in the TQM:
RUNNING HEAD: Alliant Credit Union and its Budgeting
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● I had set the priority to improve everytime in the hiring process, which is to indulge in
less numbers of walkin drives, which shall also help in selecting the best instead of
entertaining the mass. I had made it a point to invite applications for the interview after
complete analysis, which in turn shall help in saving the management costs and time.
● I also made sure to follow the basis of incremental budgeting, where I was expected to
essentially allocate both the increased and decreased budgeting options referencing the
last budgeted period to derive on the current budget report for including in the TQM.
● For preparing the report, it is necessary to include the budgeting reports on several basis,
such as:
1. Fixed Budgets: I had allocated the resources of the scheduled interviews and the
exit options to avoid any certain expenses or losses to be incurred.
2. Variable Budgets: I had tried to ration all the rounds of selection and the
expenses associated with it proportionately according to each round to adjust it over
the time period and avoid meeting contingent liabilities falling out of the pre-decided
budget.
All the other elements of the TQM had to be considered along with the budgeting decisions for
presenting a well prepared and focussed report.
The benefits I could avail of preparing the budget report of Alliant credit union is:
● Eligibility requirements were not that firm
● Interest rates on the deposits were not very high
● Credit Unions performs in the same way that a bank would do
RUNNING HEAD: Alliant Credit Union and its Budgeting
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Budgeting decisions in Credit Union was all about considering the various company growth
factors such as:
● Net Revenue
● Asset Growth
● Expense Growth
● Capital Growth
● Credit Losses
As per my evaluation, the company ought to be consistent its earnings and expenses as we had
taken up no new financial projections. To decide on the final budgeting decisions, once I had
calculated on the net revenues, losses and other growth factors, the return on equity and return
on assets were also derived to exactly assess in the budgeting decisions. To prepare a detailed
budget report, annual percentage yield for the HR department was also estimated, considering
all the company’s loan approvals, the down payments required, the term loans company's
creditworthiness alongwith the collaterals.
Conclusion
It gave me immense pleasure to decide upon the Management and Budgeting carried out in
Alliant Credit Union as it involves the in-depth analysis of all regulatory and financial
management. A balanced budget is somewhat to have your income and expenses at par. It is
nothing but writing down a plan for the proper management of your income and expenses to
avoid unforeseen debt obligations.
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References
The Economic Times: Business News, Personal Finance, Financial News, India Stock Market
Investing, Economy News, SENSEX, NIFTY, NSE, BSE Live, IPO News. (2019). Retrieved 4
October 2019, from
https://economictimes.indiatimes.com/configspace/etmain_static/content/defaultinterstitial.html
Financial Advice & Budgeting - Letterkenny Credit Union Ltd. (2019). Retrieved 4 October
2019, from https://www.letterkennycu.ie/other-services/financial-advice-budgeting/
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Credit Union Definition. (2019). Retrieved 4 October 2019, from
https://www.investopedia.com/terms/c/creditunion.asp
Budgeting & Planning. (2019). Retrieved 4 October 2019, from
https://www.alliantcreditunion.org/help/budgeting-and-planning
Success Planning. Retrieved 4 October 2019, from
https://www.mhaplanningforsuccess.com/uploads/4/1/4/0/41403935/246_higgins_strategic_grow
th_budgeting.pdf
Manage Finances | Alliant Credit Union. (2019). Retrieved 4 October 2019, from
https://www.alliantcreditunion.org/help/manage-finances
