What is an appropriate starting point for preparing a budget of expenses for the next fiscal year?

• A. The institution's total budget
• B. The amount of money spent during the previous fiscal year
• C. The percentage of the total budget directly related to animal care
• D. The amount spent by a comparable facility in the same region

Answer: (B)

Starting with last year’s actual expenses gives you a concrete baseline that reflects real operating needs and spending patterns. It shows what was actually required to run things, so your forecast for the next year starts from a realistic, proven point rather than a guess.

From that baseline you can adjust for known changes: expected salary and supply cost increases, any new programs or closures, capital expenditures, and one-time versus ongoing costs. This approach helps prevent underestimating or overestimating needs and keeps the budget aligned with what has historically driven spending.

Other options don’t fit as well as a starting point. Using the institution’s total budget lacks the granular detail you need for department-level planning. Relying on the percentage of the budget allocated to animal care doesn’t provide dollar amounts to plan against. Benchmarking the expense of a similar facility can inform targets, but it doesn’t reflect your own facility’s specific cost structure and requirements as a starting point.