Annual Operating Budget Clause Samples
The Annual Operating Budget clause establishes the requirement for preparing and approving a detailed financial plan for the upcoming year. Typically, this clause outlines the process by which the budget is drafted, reviewed, and finalized, often specifying deadlines, responsible parties, and the scope of expenses and revenues to be included. Its core function is to ensure financial transparency and accountability, providing a structured framework for managing and monitoring the organization's or project's finances throughout the year.
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Annual Operating Budget. No later than October 1 of each Operating Year, Operator shall submit for Owner's review and approval, a proposed budget on a monthly basis for the Operational Phase Services to be performed in the next succeeding Operating Year, substantially in the form of Exhibit C (the "Annual Operating Budget"). The proposed Annual Operating Budget shall be based on Operator's assessment of such services for such Operating Year and shall reflect the most economical and reasonable means of performing such activities in accordance with the Standards of Performance. The proposed Annual Operating Budget shall include:
(i) the proposed amount to be spent annually for Reimbursable Costs and the Management Fee then in effect;
(ii) the proposed amounts to be spent for the purchase of Materials and Services in accordance with Section 3.8, identifying the items to be purchased; and
(iii) a proposed inventory plan. Each proposed Annual Operating Budget shall identify and list separately capital items. Within thirty (30) Days after Owner receives Operator's proposal for such Annual Operating Budget, Owner shall notify Operator in writing of Owner's approval or any proposed changes to the Annual Operating Budget, and projections reflected therein as Owner may deem necessary or appropriate. Within fifteen (15) Days following receipt of any such notice of proposed changes from Owner, Operator shall either confirm to Owner its ability to perform the Work during such period in accordance with Owner's proposed changes, or object to Owner's proposed changes, stating in detail the reasons for such objection. Owner and Operator shall use their best efforts to agree upon an Annual Operating Budget, which shall be approved in writing by both Parties, which approval shall not be unreasonably withheld. If Owner and Operator are unable to agree upon an Annual Operating Budget, Owner and Operator shall present the dispute for dispute resolution in accordance with Article VIII. Each Annual Operating Budget shall remain in effect throughout the applicable Operating Year, subject to updating, revision and amendment as may be proposed by either Party and consented to in writing by the other Party, which consent may not be unreasonably withheld. If, during any Operating Year, Operator determines that any category within an Annual Operating Budget will vary for such Operating Year by more than ten percent (10%) or twenty thousand dollars ($20,000), whichever is greater, Operator shall immediately not...
Annual Operating Budget. The Annual Facility Budget and Annual Facility Plan for the calendar year in which the P1 Train Facilities have reached the respective Start Dates have been developed and approved pursuant to the CFAA.
Annual Operating Budget a. For the Initial Operating Year, Borrower shall operate the Development and expend Operating Income in accordance with the initial operating budget approved by and on file with the Department. Such budget shall show all anticipated Operating Income, debt service, Operating Expenses and amount payable to reserves for the Initial Operating Year.
b. No later than sixty (60) days prior to the beginning of each subsequent Fiscal Year of the Development, the Borrower shall submit to the Department a proposed annual operating budget on a form provided by the Department. The proposed annual operating budget shall set forth the Borrower's estimate of Operating Income, Operating Expenses and debt service for the upcoming year, amounts payable to reserves, and proposed Rent adjustments.
c. If the Development contains either non-Assisted Units or Commercial Space, or both, each annual operating budget shall show amounts, sources and uses of income allocated between Assisted Units, Restricted Units, non‑Restricted Units, and Commercial Space. The allocation method used for each budget line item shall be subject to Department approval, and shall apportion income and expenses in a manner that accurately reflects the particular physical, operational and economic characteristics of the Development.
Annual Operating Budget. At the beginning of each year of the Term, Borrower shall provide to the County an annual budget for the operation of the Development. Unless rejected by the County in writing within fifteen (15) days after receipt of the budget, the budget will be deemed accepted. If rejected by the County in whole or in part, Borrower shall submit a new or corrected budget within thirty (30) calendar days of notification of the County's rejection and the reasons therefor. The provisions of this Section relating to time periods for resubmission of new or corrected budgets will continue to apply until such budget has been approved by the County.
Annual Operating Budget. Not less than forty-five (45) days prior to the beginning of each Fiscal Year, Manager shall submit to Lessee for each Hotel, a budget (the “Annual Operating Budget”) setting forth in detail an estimated profit and loss statement for the next twelve (12) Accounting Periods, or for the balance of the Fiscal Year in the event of a partial first Fiscal Year, including a schedule of hotel room rentals and other rentals and a marketing and business plan for each Hotel, such budget to be substantially in the format of Exhibit “D” attached to the Addendum for such Hotel.
Annual Operating Budget. As soon as available, but no later than 60 days after the last day of each Fiscal Year, commencing with the Fiscal Year ending December 31, 2020, an annual operating plan for the Borrower and its Subsidiaries for the following Fiscal Year, which includes a monthly budget for the following year (it being understood and agreed that the Loan Parties shall not be required to comply with this clause (e) from and after the consummation of an IPO);
Annual Operating Budget. The annual operating budget of the Company which has been approved by the Members, from time to time pursuant to Section 5.5 hereof.
Annual Operating Budget. As soon as available, but in any event within sixty (60) days after the end of each fiscal year of the Borrower, a copy of a detailed annual operating budget of the Borrower and its Subsidiaries for the next four fiscal quarter period prepared on a quarterly basis, in form and substance reasonably satisfactory to the Administrative Agent, together with a summary of the material assumptions made in the preparation of such annual budget. The annual operating budget delivered pursuant to this Section 6.1(c) shall be accompanied by a schedule providing, in form and substance reasonably satisfactory to the Administrative Agent, a break-out of the Borrower and the Guarantors taken as a whole. All such financial statements shall be complete and correct in all material respects (subject, in the case of interim statements, to normal recurring year-end audit adjustments) and shall be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein and further accompanied by a description of, and an estimation of the effect on the financial statements on account of, a change in the application of accounting principles as provided in Section 1.4.
Annual Operating Budget. As soon as available, but in any event within sixty (60) days after the end of each fiscal year of the Borrower, a copy of a detailed annual operating budget of the Borrower and its Subsidiaries for the next four (4) fiscal quarter period prepared on a quarterly basis, in form and substance reasonably satisfactory to the Administrative Agent, together with a summary of the material assumptions made in the preparation of such annual budget.
Annual Operating Budget a. For the Initial Operating Year, Borrower shall operate the Development in accordance with the initial operating budget and Schedule of Rental Income (SRI), which were approved by the Department prior to loan closing. Such budget shall show all anticipated Operating Income, debt service, Operating Expenses and amount payable to reserves for the Initial Operating Year. Such SRI shall set forth the rent roll, which will identify each tenant household (by name, unit number or other method of household identification that is acceptable to the Department), as well as the following information in connection with each tenant household: size, income, current rent, and proposed rent adjustments (including utility allowances, if applicable). Such SRI shall provide estimated income for Assisted Units, non-Assisted Units, and Commercial Space or use.
b. No later than sixty (60) days prior to the beginning of each subsequent Fiscal Year of the Development, the Borrower shall submit to the Department a proposed annual operating budget and SRI on forms provided by the Department. The proposed annual operating budget and SRI, together, shall set forth the Borrower's estimates for the upcoming year of Operating Income, Operating Expenses and debt service, amounts payable to reserves, and proposed Rent adjustments. Annual operating budgets and rent adjustments are subject to approval by the Department. No rent adjustments may be implemented without the Department’s advance written approval.
c. If the Development contains either non-Assisted Units or Commercial Space, or both, each annual operating budget shall show amounts, sources and uses of income allocated among Assisted Units, Restricted Units, non‑Restricted Units, and Commercial Space. The allocation method used for each budget line item shall be subject to Department approval and shall apportion income and expenses in a manner that accurately reflects the particular physical, operational and economic characteristics of the Development.