Budget Revisions

Unit 7: Capital Project Budget & Financing

PP610: Balancing the Budget – Budgetary Process

Unit 7: Capital Project Budget & Financing

By: Tashia Mayo

Professor Lisa Saye

Budget Spreadsheet Overview

Actual Revenue sources for each month

January $4,279,490.00

February $3,227,965.00

March $4,357,856.00

April $4,051,240.00

May $3,619,230.00

June $3,592,330.00

July $3,642,800.00

August $3,174,173.00

September $3,760,640.00

October $3,168,635.00

November $4,275,656.00

December $4,331,920.00

Total actual revenues for the whole year $45,481,935.00

Funding request summary for each month

January $4,279,490.00

February $3,227,965.00

March $4,357,856.00

April $4,051,240.00

May $3,619,230.00

June $3,592,330.00

July $3,642,800.00

August $3,174,173.00

September $3,760,640.00

October $3,168,635.00

November $4,275,656.00

December $4,331,920.00

Total actual expenditures for the whole year $45,481,935.00 Total net cost = $0.00 *The project is balanced with expenditures equal to revenues.

Narrative

a) Human resource costs

Salaries and benefits make up the largest expenditure of about 27%. The benefits are offered at 30% of the total salaries. January salaries were at $924,000.

Benefits = 30% x $924,000=$277,200. The taxes will fund $925,339 which will cover the salaries.

b) Administrative costs

These are the costs needed for daily running of business. They include management and general costs that cover less than 2% of the total costs.

Audit costs is maintained at around 0.5% of the total costs like for November

$3760640x 0.54%=$20307

Office supplies and printing are relatively at around less than 1% for each month’s costs.

c) Revenue sources

Taxes will bring in about 20% of the total revenues to cover costs.

The prior year’s balance of $602,566 makes about 14% of the total revenues that supports the expenditures.

Licenses, permits, money and property contribute about 26 % of the total revenue.

The total revenue is $45,481,935.

The program is set to be successful making of all the available revenues. Taxes are expected to be maintained at high values of over $700,000 for the upcoming years. Charges of services are expected to rise in the upcoming years with a variety of services being introduced. This will ensure budget’s expenditures are met. Capital assets are maintained lower than fixed assets so as to reduce risk and manage more cash. Prices of services are expected to be reduced as a measure to meet budget requirements.

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