See below table and fix actual cost based on the information provided. The purpose of this assignment is to understand the IT budgeting process, analyze the result and explain the variance between the budget and the actual results.

 

Review the "IT Budget 

 

Part 1: Existing IT Budget

Review the existing IT budget presented on the "IT Budget" spreadsheet and answer the following questions in an outline:

• Why is it important to do an IT budget?
• What are some key takeaways from this budget example?
• What types of details seem to be missing from this budget?
• What is the purpose of the internal charge-back and how would you communicate this to those receiving the charge?
• If your leadership team asked you to cut your budget by 5%, what steps would you take?
• What types of backup information you would need to support your budget process?

Part 2: Actual IT Cost

Using the following assumptions, complete the Actual Cost 2021 results (the highlighted portion of the "IT Budget" spreadsheet).

• Your new project was $5k over plan, but it was started midyear instead of starting January 1st.
• Your existing staff was required to do unplanned regulatory training costing $2,000.
• You were only able to replace 10 servers instead of 12.
• You had a 10% overrun on your implementation costs for new projects.

Part 3: Summary of Actual vs. Budget

In your outline document, summarize the actual vs. budget comparison, including comments about considerations for your IT budget for the next year, given this years' results.

General Requirements

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are not required to submit this assignment to LopesWrite.

Benchmark Information:

This benchmark assignment assesses the following programmatic competencies:

MS Information Technology Management

4.2: Interpret financial and accounting information to manage information technology budgeting processes.

Attachments

Topic 6
2	GOAL, Inc. IT Budget
3		Annual Budget 2021	Comments		Actual Cost 2021	Variance
4	Committed Expenditures
5	Service Contracts	50,000				50,000
6	Repairs	5,000				5,000
7	Leases	15,000				15,000
8	Software	20,000				20,000
9	Internal Support	40,000				40,000
10	External Support	23,000				23,000
11	Depreciation	13,500				13,500
12	Supplies	400				400
13	Training	2,000				2,000
14	TOTAL COMMITED EXPENDITURES	168,900			-	168,900
15
16	Upgrades
17	CPU Upgrades	4,220				4,220
18	Memory Addition	5,000				5,000
19	TOTAL UPGRADES	9,220			-	9,220
20
21	Replacements
22	Depreciation	4,000	12 servers @ $1,000 each depreciated over 3 years		-	4,000
23	Implementation Costs	3,200				3,200
24	Leases	3,000				3,000
25	TOTAL REPLACEMENTS	10,200			-	10,200
26						-
27	New Projects					-
28	Capital Cost of New Hardware					-
29	Depreciation	5,000	1 server @ $20,000 depreciated over 4 years		-	5,000
30	Implementation Costs	3,200				3,200
31	Leases	3,000				3,000
32	Internal Support	20,000				20,000
33	TOTAL NEW PROJECTS	31,200			-	31,200
34						-
35	TOTAL COSTS	219,520			-	219,520
36						-
37	Internal charge-back					-
38	Department A (25% utilization)	-54,880			-	-54,880
39	Department A (25% utilization)	-109,760			-	-109,760
40	Department A (50% utilization)	-54,880			-	-54,880
41		-219,520			-	-219,520
42

Answer rating: 100% (QA)

To complete the Actual Cost 2021 results lets adjust the figures based on the provided assumptions N... View the full answer