You have been tasked with computing baseline budget targets for the upcoming budget cycle. Using Table as
Question:
You have been tasked with computing baseline budget targets for the upcoming budget cycle. Using Table as your starting point, make the following adjustments:
(a) Solar panels have been installed with an expected 5% decrease in utility cost, for a savings of about $7,611.
(b) The inspection program was started in FY 2014 and had funding for three-fourths of the year. All of the start-up costs were incurred in FY 2014. The annualized value of the inspection supplies for the remaining one-fourth of the year is $81,899.
(c) Inflation is expected to be 2% except for utilities, which will see no increase, and for leased space, which by the contract will have a 3% inflationary increase.
(d) The number of service units will not change.
(e) All departments are expected to achieve a 1% improvement in efficiency on all lines of cost and in all programs.
(f) Budget baselines are not given out with cents, so round to the nearest dollar.
Expense Type | FY14 |
General Supplies | 60,532 |
Utilities | 152,227 |
Leased Space | 720,000 |
Food | 50,571 |
Inspection Supplies | 327,595 |
Inspection Startup | 125,000 |
Total Nonpersonnel | 1,144,925 |
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala