BPCB - Budgeting Professional Credentialing Board

The Budgeting Professionals Credentialing Board (BPCB) was established to provide an environment for those involved in the budgeting process to increase and showcase their skills and for those that employ budgeting professionals to have confidence in those they employ.

BPCB has established a framework for budgeting professionals that provides for:

• Training in the skills needed for various aspects of the budgeting process
• Testing of those skills
• Issuance of a credential that acknowledges the professional status of those individuals
• Continuing education requirements to maintain skills
• Practice in accordance with internationally recognized standards for budgeting

The budgeting process is more complex than many realize and knowledge and training is necessary in each of the separate disciplines that compose the budgeting process. While many focus on the “accounting” and financial modeling aspects of the budget process, that too often simply represents an expression of the conclusions reached in the budgeting process.

The budgeting process is based on a series of assumptions about future events where, very often, not a single one of those estimates will prove to be exactly right. Budgeting is not an exact science but requires the application of professional judgment to known and unknown but assumed facts. The budget process can be greatly enhanced by having a thorough understanding of the underlying processes for which the budget is to be established, examining historical information that may affect future assumptions, and inquiring of those for whom the budget is being prepared regarding their future plans regarding operational activities upon which the budget is being prepared.

BPCB anticipates issuing a minimum of two different credentials at this time; a credential for operational budgeting processes and a second credential for capital or long-term budgeting processes. By their very nature regarding the very long time frames and projection periods involved these two budgeting processes are very different.

The conceptual framework for the operational budgeting process is still being developed and the credential name has yet to be established. The conceptual framework for the capital or long-term budgeting process has been developed and the credential name for this type of budgeting professional is the “Registered Reserve Consultant” or “RRC.” This name was selected to represent the nature of the underlying process. Long term budgets can range anywhere from a low of a 10 year projection period to as much as 100 year projection period depending on the nature of the underlying physical components and related activities necessary to support the budget process. Within the community association industry, the typical projection period is 30 years, which encompasses virtually all physical components that are considered for budget purposes. The concept is that the organization for whom the budget is prepared may not make expenditures on a regular basis but must “reserve” monies for future expenditures in order to provide necessary cash flow for significant expenditures.