Need help with how to start this assignment, as I am not sure how to begin making my budgets (ex: line-item, functional and program budgets). Any assistance would be most appreciated. This is due Oct 12th.
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.
I NEED HELP
I had problems too, but somehow figured it out. Take the first amount, such as the rent at $125,000. Multiply 60% times the 125,000 for the basic skills and multiply 40% times the 125,000 for the vocational. Therefore 75,000 for basic, and 50,000 for vocational. Do this for all the totals and write up on an excell spreadsheet and you'll be good to go. Good luck!!!
To begin creating the budgets, you will follow these steps:
1. Line-Item Budget:
- Create a table with two columns: "Expense" and "Cost".
- List all the operating expenses from the information provided (Rent, Utilities, Office supplies, Equipment/lease, Transportation and travel, Outside consultants, Overhead costs) in the "Expense" column.
- Write the corresponding cost for each expense in the "Cost" column according to the given values.
- Add up all the costs to get the total budget for the programs.
Example:
Expense | Cost
----------------------------------------------------------
Rent | $125,000
Utilities | $100,000
Office supplies | $25,000
Equipment/lease | $50,000
Transportation | $100,000
Outside consultants | $100,000
Overhead costs | $100,000
Total Budget: | $600,000
2. Functional and Program Budget:
- Create a table with three columns: "Expense", "Basic Skills Program", and "Vocational Program".
- List all the personnel expenses from the information provided (Executive director, Training supervisor, Trainers, Administrative coordinator, Administrative staff, Employee-related benefit expenses) in the "Expense" column.
- Allocate the personnel expenses to the basic skills program and the vocational program according to the given formula (60% to basic skills program, 40% to vocational program).
- Multiply the allocated personnel expenses by the number of full-time equivalents (FTEs) mentioned for each position.
- Calculate the total personnel expenses for each program by summing up the allocated expenses.
- Calculate the total budget per program by adding the total personnel expenses and the operating expenses listed in the line-item budget.
Example:
Expense | Basic Skills Program | Vocational Program
----------------------------------------------------------------------------
Executive director | $100,000 | $0
Training supervisor | $80,000 | $0
Trainers | $300,000 | $200,000
Administrative coordinator | $45,000 | $0
Administrative staff | $75,000 | $50,000
Employee-related benefit expenses | $120,000 | $80,000
Total Personnel Expenses | $720,000 | $330,000
Operating Expenses (from line-item budget) | $600,000 | $600,000
Total Budget per Program | $1,320,000 | $930,000
These two tables will provide you with the line-item budget and the functional and program budget for implementing the training programs. Make sure to review the specific requirements and guidelines given in your assignment and adjust accordingly.