Understanding budgeting data The director of personnel services for a large university has been preparing a budget for the next fiscal year. The university administration has provided department heads with a budget policy statement indicating that the maximum budget increase for any department will be 4 percent, and all increases will be carefully evaluated because of a shortage of funds. The director of personnel services, with the help of staff, has developed the following budget that, in the department head's opinion, satisfies the university's guidelines. The director is very pleased with the budget proposal, because it continues the policy of upgrading computer equipment and allows for the hiring of qualified personnel to operate the new equip- ment. All of this can be accomplished with the new budget without violating the university's tight budget guidelines.

Transcribed Image Text:

REQUIRED As the coordinator of departmental budgets, you are required to evaluate each budget to see that it satisfies university guidelines. Evaluate the personnel department budget and comment on its acceptability.