Calculate the cost of the activities of the trust over the forthcoming year. For salaries, do not forget to include on costs such as employer's NI and pension contributions, as well as the overhead charge.
Review the amounts of permanent and spendable capital held and estimate the income that these are likely to generate in the form of distributions and interest.
Compare the income available to planned expenditure to ensure funds available are sufficient. Produce budget and expenditure plans accordingly. Any shortfall will need to be met from departmental funds.