NCJ Number
80368
Journal
Security World Volume: 18 Issue: 12 Dated: (December 1981) Pages: 20-26
Date Published
1981
Length
7 pages
Annotation
Aspects of preparing and presenting a security budget for a business or enterprise are discussed.
Abstract
The basic budget approaches are operating on a zero-based budget, operating as a standard revenue consuming department, or operating as a profit center. The vast majority of security departments operate as simple straightforward revenue-using internal service departments. In this framework, the need for and the existence of the department are accepted without the requirement for continuing justification, as in zero-based budgeting. A development in the past few years has been to outline a security budget by viewing the security department as a profit center. This is done by calculating the security department's contributions to profit by reducing losses due to thefts, vandalism, and accidents. Regardless of the budgeting approach, certain elements must be considered in planning security department costs. These elements are capital improvement costs, salaries, and operating expenses. Capital improvement costs are the dollars spent to acquire or replace security equipment and systems as needs or plans dictate. Salary expenses are fairly easy to figure, and operating expenses can be determined from the previous year's expenses, adjusting for inflation. Provision should be made for unpredictable operating costs. Each budget preparation should be preceded by at least one security audit, which involves checking and evaluating existing security equipment and procedures, as well as interviewing appropriate personnel, to determine what changes or improvements may be needed to maintain and improve security.