Creating a Budget
Various budget approaches play an important role in resource allocation in human service organizations. You are the executive director for a local government workforce agency that focuses on providing career- and work-related skills. The Department of Education has awarded your agency with grant funding of $1.6 million to provide training programs to high school dropouts. The funded programs are a basic work skills training program and a vocational program. You are preparing a budget matrix to present to the awarding agency. The matrix budget consists of line-item, functional, and program budgets.
Operating Expenses: Per Year
Rent
$125,000
Utilities
$100,000
Office supplies
$25,000
Equipment/lease
$50,000
Transportation and travel
$100,000
Outside consultants
$100,000
Overhead costs
$100,000
Personnel expenses: Annual Salary Number of FTEs
Executive director
$100,000
1
Training supervisor
$80,000
1
Trainers
$50,000 10
Administrative coordinator
$45,000 1
Administrative staff
$25,000 3
Employee-related benefit expenses @ 25%
$200,000
All costs excluding the salary of the executive director and training supervisor will be allocated according to this formula:
60% to basic skills program
40% to vocational program
Number of eligible students: 1,000
Use the information above to create each of the following:
1. A line-item budget table showing all associated costs implementing the training programs.
2. A combined functional and program budget to calculate all costs per enrolled student.
