CLC summary

Review of Memorandum

Ilse Quezada

Grand Canyon University: ADM 626

Summary of Memorandum

The Hadleyville Department of Finance has provided us with an interdepartmental memorandum which outlines the town’s financial crisis. The start of the town’s financial crisis has to do with the automobile plant shutting down and the national financial crisis hitting Hadleyville hard. Due to these two reasons the residents have had no luck finding work and have had to leave the town. However, Hadleyville does still have some residents that are tied to the town for whatever reasons and so the town manager, Jack Sprague, has requested proposals from budget and finance teams. The proposals need to help the town recover in a time frame of 3-5 years.

In order to generate a proposal that will aid the town in recovering from the financial crisis the right data and information will be needed. For this reason the Jack has allowed the teams to have access to the budget briefing books. The books are meant to assist the teams in defining two of the most troubling departments that need immediate revision to their budget. Although, it is important that the teams not only help balance the two most troubling departments, but analyze all departments to reach an overall balance in the budget with the current town’s needs.

In order to accomplish this the teams need to apply their knowledge of budgets and own experiences in order to provide the best way to achieve balance between the needs of the town with the budget. The teams are also advised to analyze the town’s direct and entitlement obligations in the budget proposal. The proposal needs to include recommendations to reduce spending, reduction of the town’s budget by 13% overall immediately, and ways to eliminate deficit spending in 3 years.

Challenges and Opportunities

Producing a budget proposal for Hadleyville will prove to have challenges, as well as opportunities. An opportunity the teams will be presented with are being able to experience a realistic process that will require them to use all knowledge they have acquired regarding budget. The opportunities the teams will be able to provide to the town will include financial opportunities they have not had due to the situation they are currently in. Another major opportunity the team may present to the town will be a plan to set in place in order to avoid another financial crisis like this.

As expected with any project there will be challenges. One challenge, I see coming up is, deciding what budget format to use in order to get the optimal solution for the town. The reason this will be a challenge is because not all departments require the same budget format. Another challenge will be appealing all decisions being made to the public. Not all decisions made will be favorable with the public, but the decisions will be necessary in order to achieve the ultimate goal of harmony between the budget and the town’s needs. Even though Jack mentions that the final decision will be made with the political leadership of the town, it is the team who is presenting the proposals for the final decision.

Overall, it is up to the team to meet the requirements that have been asked of by the town manager, Jack, and it is in the long run the teams doing as to how the town will find balance and move forward. The teams proposal will have a great impact on the town of Hadleyville so much work must go into the proposal in order to accomplish the goal of getting the town out of financial crisis. With the towns cooperation and the data being readily available I anticipate this proposal to be able to meet the requirements and that any challenges, which arise, will be handled as they come.