Business Finance - Accounting Exercise two Assignment

FORM 78

October 14, 20___ TO: A. C. Andrews

Deputy Budget Director FROM: Sarah T. Johnson

Budget Director RE: Library Budget As you know, the supervisors voted last night to approve the consolidation plan for the county library system. I’d like you to take charge of putting together a preliminary first-year budget for the board’s review. Your budget should take the following points into consideration:

1. All existing public libraries in the county, including the branches in the city of Waynesfield, are to remain open.

2. The county’s cost-sharing agreement with the municipalities assumes that there will be an overall savings of three percent (3%) from the aggregate of the existing library budgets.

3. Cuts—defined either as elimination or reduction in hours—to full-time library employee positions are limited to five at the professional level and eight among support staff. There are no restrictions on cuts in other expenditure categories.

4. As per the county’s agreement with the public employee unions, salary scales within job classifications are to be standardized at the highest levels currently paid by any of the newly consolidated units. This policy is to be applied to all positions.

5. All township and village librarians previously designated “head librarians” (full- or part-time) are to be redesignated “branch librarians” and are to be compensated accordingly. 6. A new position, director of county libraries, is to be created, budgeted at $90,000. As the start-up date for the new system is July 1, we’ll include this in our regular budget cycle. Please have all documentation completed by December 15.