Creating a Budget

Various budget approaches play an important role in resource allocation in human service organizations. You are the executive director for a local government workforce agency that focuses on providing career- and work-related skills. The Department of Education has awarded your agency with grant funding of $1.6 million to provide training programs to high school dropouts. The funded programs are a basic work skills training program and a vocational program. You are preparing a budget matrix to present to the awarding agency. The matrix budget consists of line-item, functional, and program budgets.

Operating Expenses: Per Year
Rent
$125,000

Utilities
$100,000

Office supplies
$25,000

Equipment/lease
$50,000

Transportation and travel
$100,000

Outside consultants
$100,000

Overhead costs
$100,000

Personnel expenses: Annual Salary Number of FTEs
Executive director
$100,000
1
Training supervisor
$80,000
1
Trainers
$50,000 10
Administrative coordinator
$45,000 1
Administrative staff
$25,000 3
Employee-related benefit expenses @ 25%
$200,000

All costs excluding the salary of the executive director and training supervisor will be allocated according to this formula:

60% to basic skills program
40% to vocational program

Number of eligible students: 1,000

Use the information above to create each of the following:

1. A line-item budget table showing all associated costs implementing the training programs.
2. A combined functional and program budget to calculate all costs per enrolled student.

To create the line-item budget table, you need to list all the associated costs for implementing the training programs. Here is a breakdown of the costs:

Line-Item Budget Table:
---------------------------------------------------------
Operating Expenses Per Year
---------------------------------------------------------
Rent $125,000
Utilities $100,000
Office supplies $25,000
Equipment/lease $50,000
Transportation and travel $100,000
Outside consultants $100,000
Overhead costs $100,000

---------------------------------------------------------
Personnel Expenses Annual Salary Number of FTEs
---------------------------------------------------------
Executive director $100,000 1
Training supervisor $80,000 1
Trainers $50,000 10
Administrative coordinator $45,000 1
Administrative staff $25,000 3
Employee-related benefit expenses @ 25% $200,000

To calculate the combined functional and program budget per enrolled student, you will need to follow these steps:

1. Calculate the total program budget for each training program:
- Basic Skills Program Budget: 60% of all allocated costs
- Vocational Program Budget: 40% of all allocated costs

2. Calculate the costs per enrolled student:
- Divide the program budget by the number of eligible students (1,000 in this case).

Combined Functional and Program Budget:
-----------------------------------------------------------------------------------
Functional Area | Basic Skills Program | Vocational Program
-----------------------------------------------------------------------------------
Operating Expenses | (60% of total operating expenses) | (40% of total operating expenses)
Personnel Expenses | (60% of total personnel expenses) | (40% of total personnel expenses)
-----------------------------------------------------------------------------------
Costs per Enrolled Student | (Basic Skills Program budget / Number of eligible students)
| (Vocational Program budget / Number of eligible students)
-----------------------------------------------------------------------------------

Please note that the specific percentages for the allocation of costs to each training program will depend on your organization's guidelines and objectives. Additionally, this is just a simplified example based on the provided information. The actual budgetary calculations and allocations may vary.