ASSIGNMENT:

Use the traditional line-item budget to create a program budget for the Adams County Library system using this budget:

https://docs.google.com/spreadsheets/d/1pnsyUOFDWVqgFMoyJDRF6JMwO9fY1J4TdDcwEe9pG2o/edit?usp=sharing

The library system has 5 programs:acquisitions, cataloging, circulation, reference, and special programs. General administration of the library, maintenance, and other general functions are not "programs." These expenses must be divided among the programs.

Following the instructions below to create a program budget for your FIVE programs. This means you will rearrange the budget using the spreadsheet that you have been given. This is your FY1 PROGRAM BUDGET.

1. Total staff levels will remain the same between FY 1 and FY 2. No changes to staff.
2. Allocate salaries to programs based on the time study data below.
   1. Branch librarians spend 35 percent of their time on general administration, 25 percent on reference, 20 percent on special programs, 15 percent on acquisitions, and 5 percent on circulation.
   2. Assistant librarians devote 30 percent of their time to cataloguing, 25 percent to reference, 25 percent to circulation, and 20 percent to special programs.
   3. Director of county libraries spends all of her time on general administration, as do the director's secretary and the administrative assistants.
   4. Circulation clerks spend 100 percent of their time on circulation.
   5. Pages spend 100 percent of their time on cataloguing.
   6. Reference librarians spend 100 percent of their time on reference.

1. Add up the General Administration salaries (100 percent of Director, 100 percent of Admin Assistants, 100 percent of Secretary, and 35 percent of Branch Librarians' salaries). Add the total, then divide by 5 and add 1/5 to each program's salaries.
2. Allocate maintenance, computer supply, tech, and utility costs to each program in proportion to their share of staff salary costs. After adding the General Administration salaries to each of the five program salaries (#5 above), determine the proportion of the total salaries that corresponds to each program. For example if Reference salaries are 1/3 of the total, 1/3 of the Maintenance, etc. costs in #6 will be allocated to the Reference program.
3. Add other line items to each program as needed. For example, children's programs would go in the Special Programs budget.
4. Now you have created the program budget for FY1. Next, make another column for the FY2 PROGRAM BUDGET based on creating metrics using the LIBRARY DATA below.You will use the data to estimate the growth for the following year for each program and develop a program budget for FY2 for each of the 5 programs. For example, in FY1, 421,000 patrons used the library system and it is expected that 423,000 will visit in FY2. There are two ways to estimate the budget for FY2.
5. Let's say the performance metric that you created based on FY1 was program cost / library visits = $5/visit. Then FY2 cost would be $5 x 423,000 = $2,115,000. OR, Percent change = (Year 2 - Year 1) / Year 1 x 100.(423,000 - 421,000)/421,000 x 100 = 0.475% or 0.00475. Then Year 2 cost could be estimated as:

Year 2 = Year 1 x 1.00475.