A federal government in a developing country has decided to open a number of job training centers. The centers will provide intensive training in basic jobs skills for unemployed citizens in the larger cities across the country. Given many existing claims on the government's budget, its Ministry of Education is seeking to make this program as affordable as possible. They have decided to begin this effort with a demonstration project that will help to refine their financial plan. Future program expansion will follow variations on this original model:

1. The center will be open 20 days every month, for 8 hours per day. The current plan calls for a January 1, 2021 opening with 120 trainees.
2. Space has been located in the start-up city and the building owner has agreed to rent it to the program for US $450 per month. The Ministry must renovate the building and get it equipped; the estimated cost is $12,000.
3. The Ministry has hired an administrator for the program who will be paid US $3,500 per month. An assistant to the administrator will be also hired at US $2,500 per month.
4. Each training staff member will earn $14.50 per hour; the program will pay an additional 7 percent of staff salaries for health benefits. Assume that the health benefits will be paid only to the training staff - administrator and assistant will not receive health benefits.
5. Each trainee will take one year to complete the training program. The center would like to have a student-to staff ratio of no more than 6 to 1 in order to provide an intensive learning environment. Projections indicate that the number of trainees will grow by 10 percent per month through December of 2021.
6. Finally, training staff will have the option of accepting housing in an apartment building near the training center. The program will contribute $75 toward the monthly rent cost for the staff members choosing this option. The program will not pay any housing costs for staff choosing to live elsewhere. Housing will not be available for administrators and assume that half of the training staff members will avail this option.
7. Each trainee (student) will be provided with lunch during the day at the cost of $2.00 per trainee per day, and the cost of the supplies used by each trainee (student) averages $2.50 per day.
8. The Ministry has negotiated a grant from a donor agency that will subsidize the program at a rate of $375 per month per trainee. The only stipulation is that the center must maintain a student-to-staff ratio of no more than 8 trainees for each staff member.
9. The center will also charge a nominal fee of $2.50 per day to those students who can afford it. Estimates indicate that 50 percent of the trainees will be able to pay the fee.
10. The President of the government has authorized a start-up grant of $160,000 for the first year of operation. However, he cannot guarantee that any funding from the government treasury will be available in subsequent years.
11. This is just a one-year budget across 12 months, so you do not have to consider the time value of money in calculations. Also, assume zero inflation.
12. Amortize the one-time revenues and expenses equally across 12 months (for example, start-up grant and renovation costs).

Deliverable One

1. You are a budget analyst in this country's Ministry of Finance. Budget for the training program in an Excel spreadsheet is based on the model developed by the Minister of Education that is presented above. The budget should use parameters and formulas to produce a well-designed and flexible spreadsheet.
2. You can assume a calendar year, January to December. Determine the revenues, expenditures and any surplus or deficit for each month, given the program parameters recommended by the Ministry.
3. Deliverable one should be a complete spreadsheet analysis for the calendar year 2021 (12 months).

Deliverable Two

This is a demonstration project, and the Minister is aware their original plan may be overly ambitious. Part of your job is to find ways to make this program work. Here are some possible changes that could be considered (you may suggest other proposals):

• What happens if you change the trainee-staff ratio to the maximum allowed by the grant?
• What happens if you cap enrollment growth to 5 percent per month for the entire year?
• Is it feasible to open the center for less time or reduce per day work hours?

Remember that the goal is a sustainable program (beyond the first year) - most likely without a start-up grant in future years. Present your plan for this project. As a last option, you can ask for an increase in the Ministry's per trainee subsidy from the current amount of $375. Deliverable two should be a complete revision of deliverable one that applies your recommendations. Be innovative in your recommendations and show the numbers behind your proposal. Also need help explanation in the form of a cover letter that makes a case for your recommendations. You can place your cover letter in a text box on the first tab of the spreadsheet. You will submit your explanations, analysis, and assumptions in textboxes and several tabs within one excel file.