Paper #4

Running head: INTERNAL MEMO 1

Running head: INTERNAL MEMO 3

Internal Memo

Mark S. Lasky

American Public University

STAMFORD PROPERTY MANAGEMENT LIMITED

INTEROFFICE MEMORANDUM

To: The Property Managers

From: The General Manager

Subject: Budget Estimates

Date: 12/02/2016

Cc: All Staff Members

PURPOSE

The purpose of this memo is to request the property managers to present the general manager with the budget estimates for the coming year.

REQUIREMENTS FOR THE PROJECT ESTIMATES

As you are aware, every year our company prepares a budget estimate to help in proper planning and ensure a smooth running of the company’s activities. The estimates should also include the incomes the company expects to generate during that year. As a result, I am directing that you prepare the budget estimates for the coming year, and they should be ready on or before twenty-sixth of February 2016 (26/02/2016). However, I would like to see the rough draft of the budget estimate one week from today. This move will enable me to review it and give my thoughts before proceeding to come up with the final estimates.

While preparing the final budget estimate, it should be presented in the form of a formal report. The report should have a title, abstract, introduction, and the budget estimates including explanations where necessary. The final presentation should be in PowerPoint submission that will capture all the relevant details. Also, you should ensure that the information on the budget estimates is broken down quarterly. You should also compile the estimates for each quarter year, half year, and full year.

Ensure that the budget is simple and easy for everyone to understand, you should provide explanations for every cost and income. The explanations should include the type of activity or the item the company will acquire the relevance or the use of that item, and the projected cost of the item. They should also include, where necessary, the company or service providers who will be tasked with giving certain services to this company. The budget estimates should also include explanations for all the sources of income for the company. For instance, if it is an insurance company you should state the company or companies that will provide the services.

Some of the expenses that I want you to address include the administrative expenses, the property taxes expenses, the utilities such as gas and electricity expenses, the insurance expenses, the contract expenses, the repair and maintenance expenses, and the cleaning expenses (Kyle Et Al., 2000). Under each expense, there are smaller sub-sections and the budget estimate should include the cost of each. For instance, under repair and maintenance, there are payroll and elevators among others (Kyle Et Al., 2000).

Under the incomes, the budget estimate should include rental incomes, incomes from selling some of the property, earnings from exporting skilled labor to other companies, earnings and from managing properties for other people. It should also include earnings from selling any asset such as an old vehicle. The budget estimate should have an incomes and expenses sections analyzed differently. It should also have a balance sheet that will give a rough estimate of the gross and net profits that the company expects to make this year.

Finally, in both the expenses and incomes sections, you should include the accurate prices of all the items and services the company wishes to purchase or sell. I hope this information is helpful. If you need further information, please contact me via my email.

Thank you.

References

Kyle, R. C., Baird, F. M., &Spodek, M. S. (2000). Property management. Dearborn Real Estate.

Mainzer, B. W. (2004). FUTURE OF REVENUE MANAGEMENT Fast forward for hospitality revenue management: After lagging behind other travel industries, hotels now seek advanced revenue management methods. Management, 3(3), 000-000.