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While Steve Sarro was superintendent of Pinehurst Country Club in Denver, Colorado, Jason Murphy, then the general manager, taught him how to create a zero-based budget.
“When I was in my 20s and early 30s, it wasn’t at the top of mind,” he adds. “It was more about soil, grass, water, so the budget aspect was great to be able to come from a general manager, where obviously general managers are always dealing with budgets.”
Now with a year and a half of experience as a superintendent at Kelly Plantation Country Club in Destin, Florida, Sarro continues to turn to others when planning the next fiscal year. Seeking advice from his peers has taught him how to present his budget and reasoning to others.
“Not everything happens that you wrote down on paper, so it’s really important to be able to communicate on why you did or didn’t spend the money that was allocated for that budget,” he says. “Usually nine times out of 10, Mother Nature or labor issues have an impact.”
When it comes to accounting for uncertainties, Sarro recalls advice from former Pinehurst Country Club GM Alex Raimondi about providing detailed explanations, offering further context, if they need to deviate.
“Whether it’s face-to-face conversations, I do like having some kind of text along with the budget that kind of goes into detail of some of those … gray matters.”
Having a breakdown also allows ownership and members to make changes to the semi-private club’s budget.
“If they want to go and save $10,000 or x amount of dollars, then they can easily go through, look and say, ‘Well, if we’re going to save money, where? What do we want to sacrifice?’ or the reverse.’”
Sarro also makes notes throughout the year, referring to them when it’s time to create a budget. Viewing the formation of a budget as an ongoing process, he carves out two to three hours a week to work on it undisturbed.
“It’s accounting for expenses, which I’ll do the most of, but then making notes or changes for the upcoming budget season,” he says. “So, I’m prepared by the time I’m asked for the budget for the next coming year.”
Being able to create the following year’s budget is how he measures the success of the previous one.
“The winning budget can’t be won,” he says, “until that year is done.”
Adriana Gasiewski is Golf Course Industry’s editorial assistant.
