Oxbridge's expenses are mainly tier, paid to Desmond Shang, and per class stipends paid to our instructors. Tier is 74,750 $L per 13-week quarter (91 days). Stipends are 250 $L per class taught, unless waived by the instructor. Roughly estimating 10 classes taught per week, stipends total to 32,500 $L per quarter. Incidental expenses, predominantly for landscaping and furniture, are minor, only occasional, and paid when invoiced.
Counting only tier and stipends, Oxbridge has a budgeted operating expense of 107,250 $L per quarter. My goal is to maintain a reserve of 225,000 $L; a little more than two-quarters operating expenses. This is consistent with non-profit best practices.
If I pay all instructor stipends owed, any invoiced incidental expenses, and then pay tier on, let's say, 1 April, then Oxbridge should have no remaining liabilities. Optimally, the 225k $L reserve should remain in our account. On 1 July, after a quarter has gone by, again with all owed stipends paid, incidentals paid, and tier paid, the target is again to have the 225k $L reserve remaining in the account. If there is less than that, we have incurred a deficit during the quarter; if more, then a surplus. The goal is to break even.
That's the basic quarter to quarter budget.
At the end of each week, Oxbridge incurs a liability of stipends owed for the number of classes taught during the week. If stipends owed and incidentals are paid up at some time during the quarter, then what should remain in the account are the 225k $L reserve and funds accruing to pay tier at the end of the quarter
Tier is 74,750 $L per 13 week (91 day) quarter or about 821.43 $L per day. In contrast, contributions to Oxbridge vary widely day-to-day. Still, with non-tier liabilities paid and NDST standing for the number of elapsed days since tier was last paid,
target = 225,000 $L + NDST × 821.43 $L
provides a snapshot of where we are. It doesn't say anything about what contributions will come in (or not) for the remainder of the quarter.
So that's a run-through of how I think about Oxbridge's finances; when we comfortably break even, when we have a little extra put away for the next quarter (surplus), and when I start developing a budgeting "twitch" (deficit).