Read the scenario below and respond to the three questions that follow.

Mike is executive director of a nonprofit organization that provides services to ex-offenders after release. Families of those currently incarcerated are served. Some of the services provided are outreach, counseling, job placement, and housing. The organization is county-wide, consisting of an administrative and two other offices, 23 paid employees, and 36 volunteers. The organization has outreach, counseling, housing assistance, and job placement services departments.

The organization is currently funding the departments and administration at the following levels.

The administrative employees are currently given this compensation (salary + benefits in USD).

Executive Director

100,000

Assistant Director

70,000

Secretary

40,000

Accounting Clerk

28,000

Accounting Clerk

28,000

Human Resources Clerk

31,000

Supervisor of Marketing and Donor Relations

65,000

Marketing and Donor Relations Clerk

25,000

Outreach

Office 1

Outreach Officer

30,000

Clerk

24,000

Office 2

Outreach Officer

28,000

Clerk

28,000

Counseling

Office 1

Counselor

45,000

Clerk 1

21,000

Office 2

Counselor

42,000

Clerk 1

26,000

Job Placement

Office 1

Placement Officer

33,000

Clerk 1

24,000

Office 2

Placement Officer

45,000

Clerk 1

29,000

Housing Assistance

Office 1

Housing Officer

41,000

Clerk 1

26,000

Office 2

Housing Officer

38,000

Clerk 1

23,000

Other Expenses (annual)

Rent of Buildings

21,000

Office Supplies

3,000

Utilities (telephone, electricity, garbage, water, etc.)

9,000

Computer Maintenance

2,400

Integrated Accounting and Human Resources Software Rental

12,000

Miscellaneous Expenses

6,000

 

Assignment (70 points)

1. Complete the sections of the following charts marked with question marks (?s). For your calculations, assume Other Expenses divided equally among Offices. Employee compensation is salary plus benefits. (20 points)

Administrative Office
Employee Compensation	Other Expenses	Total	Current Budget	Deviant
?	?	?	390,000	?

 

Office 1
Employee Compensation	Other Expenses	Total	Current Budget	Deviant
?	?	?	265,000	?

 

Office 2
Employee Compensation	Other Expenses	Total	Current Budget	Deviant
?	?	?	265,000	?

 

Organization Total
Employee Compensation	Other Expenses	Total	Current Budget	Deviant
?	?	?	?	?

1. Assume a 5% salary increase for each employee for next year. Holding everything else constant, how much will the budget increase? (20 points)
2. Assume that the donations and other revenue is predicted to be $930,000 in the next year. What recommendations will you as executive director make to the board when presenting a proposed balanced budget? Explain your rationale. (30 points)