W8A
Running Head: FUNDING PLAN 1
FUNDING PLAN 3
Funding Plan
Funding Plan
Current Income Statement
In accounting the library income statement is an important tool that works well in planning where dreams are made a reality. The income statement carries important information that is critical in checking if the money allocated to perform a given task is used in achieving the existing goals and that is what makes library program essential. The income statement tool is the only resource that would help in monitoring the expenditure of resources towards the library programs. Funding is channeled to the program trustees because they also have the responsibility to receive and use the funds (Stiglitz, 2017). The county existing public library services and those available nationally are requested to consider supporting several activities that require finances to make sure that it operates well.
The government has the responsibility of supporting libraries through funding like the county, state and local governments considering allocating funds in the budget for the initiative. The support funds from different sources are required by 1st July for planning purposes and also because the fiscal year starts on the stated date. There is a request to the municipal government to consider excepting taxation from the library facility to give it an opportunity to grow and become independently running. The small revenue collected would help for renovation services and also allow bringing in new resources and infrastructure.
There is the need to put policies and regulation in the library that their violations results to fines and this venture makes it possible to collect additional revenue for the facility and also increases the protection of the facility resources from damage. The enforcement of the policies and regulations ensure that people adheres to them at any given time. A small amount collected from the fines can make a significant change.
Future Funding Requirements over the Next 5 Years
There are several expected uses for the current requested funding for the next five years. The sourcing of new and advanced equipment is the leading role of the funding. There is a possibility that the library would be designed and purposely developed to serve primary school level in the community. There is the need to have new equipments that would serve the current kids and many more generations. The purchasing of new and advanced equipment is the preparation for current and future needs.
Advanced and new equipments is important because they are essential purposely in increasing efficiency in productivity and also offering best services. A place with advanced technology will attract clients where they receive all the resources they need and they will be seeking the services in regular terms. The outcome of having new equipment includes increase in productivity and also the number of customers. The new equipment creates a good working environment where work is made easier and effective and the employees are assured of their safety. Employees’ working efficiently in an environment that has new equipments is working in an optimum level and they will be satisfied with their job.
Secondly, the requested funding for the five years period is utilized primarily as the working capital where it ensures that the day-to-day activities in the facility are catered for. There are multiple benefits that come with the working capital and this includes the flexibility in operations and business and this will result to customer satisfaction. In addition, working capital also acts as emergency fund because running a business is not a smooth operation where at times a deficit is experienced for the payment of employees’ salaries and rental charges. Working capital is there to cushion operations when business revenue declines.
The presence of working capital have benefits that include cushioning but there is a disadvantage when excess capital is allocated and that include hindering growth where the business fails to take advantage of the available opportunities putting more trust on the working capital in case a challenge arise. Lack of capital in an organization poses a lot of pressure to consider taking advantage of the available opportunities to generate revenue and also expand to optimum (Stiglitz, 2017).
Lastly, the requested funding is for facilitating the acquisition of new business that includes tutoring school in addition to the existing library business. There is the need for acquisition in order to broaden the business portfolio where customers gets a variety and increases the chances of business growth. Students who are ready to learn will take advantage of the library and also the tutoring institution. There are resources that needed to be acquired also to make sure that the library is well equipped.
Strategic Financial Plan for the Future
The process in which a given company gains interest in other business or firm in gradual terms is considered as a buyout plan. A business can acquire a given firm through an outright purchase or controlling equity interest through an outright purchase. The acquirer puts into consideration on some issues before choosing a company to acquire that include assets that are undervalued and this is an important opportunity in making acquisition decision. The capital used in buyout is sourced from a person, company or pension. A buyout is essential in a scenario where the management fails to solve the existing crisis at hand and the resources that are there are limited. The decision to buyout is the best because it increases the service delivery and also reduces competition in the market from those offering similar products/services. The negative outcome of buyout is debt that comes with borrowing finances to achieve a successful buyout. The other outcome is that employees lay off is done with the intention of minimizing the day-to-day operation costs and expenses and make sure the business continue making profits. The other business portions are sold to pay the outstanding debts brought by buyout (Tutuncu, 2021). There is the need of financial concern before any buyout.
The revenue the business will generate will play an important role in paying debts that already exists. The further business expansion will be funded after all other debts and expenses are paid in order to streamline operations. The repayment of loans makes a company eligible again to borrow other loans for expansion and other activities and that is the reason repayment is critical.
References
Stiglitz, J. E. (2017). The dynamics of social inequalities in the present world. Retrieved from
https://academiccommons.columbia.edu/doi/10.7916/d8-w6gj-ks87
Tutuncu, L. (2021). Owner Managers, Family Business, and Earnings Management Preceding Management Buyouts. In Comparative Research on Earnings Management, Corporate Governance, and Economic Value (pp. 46-65). IGI Global. Retrieved from https://www.igi-global.com/chapter/owner-managers-family-business-and-earnings-management-preceding-management-buyouts/272605