1. As the budget officer for Alexander State Prison you have to prepare the FY 2021 Operating Budget projections for the Security Division based on the FY 2020 budget estimates. Below you will find one portion of the budget history for the prison. Here are a few facts that you should know about the prison when preparing the operating budget. First, there are thirty staff members in the divi- sion. Twenty-seven of the staff persons are equal in rank (guards). The warden, budget officer and secretary are the last three staff members. Other than what is stated, why do think these changes occurred (see Exhibit 3.5)? Be rational and creative in your responses and justify the changes. Use bullet points to relay your justifications. Round all of your projections to the nearest dollar amount. Hint: You can round numbers in Excel using the round function as well as the Decrease Decimal function in the Home tool bar.

1. Ten of the guards need training. Thus, training cost will in- crease by 34%.
2. Energy costs are expected to rise 25% due to changes in global oil and gas prices.
3. The cost of printing, pens, and pencils decreases by 2% from FY 2020.
4. The cost of paper will increase by 5%.
5. Telephone costs are expected to increase 4%.
6. No new adding machine, but we need a new printer which will cost $500.00.
7. Miscellaneous supplies will increase 25%.

Operating Budget

Object Code	Item	FY 2019 (act.)	FY 2020 (est.)	FY 2021 (proj.)
2004	Training	$32,000.00	$36,800.00
2005	Utilities	15,550.50	17,176.56
2006	Printing	11,500.00	13,225.00
2007	Misc. Supplies	960.00	1,200.00
2008	Pens and Pencils	150.50	155.02
2009	Paper	3,800.00	4,999.00
2010	Adding Machine	376.00	189.50
2011	Telephone	4,200.50	4,347.52
2012	Printer	0.00	0.00

\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{1 5. Roan State Priso } \\ \hline \multicolumn{6}{|c|}{2 Operating Budget } \\ \hline 3 & & & & & \\ \hline 4 & Object Code & Item & FY 2019 (act) & FY 2020 (est) & FY 2021 rounded \\ \hline 5 & 2004 & Training & $30,000.00 & $34,500.00 & \\ \hline 6 & 2005 & Utilities & 13,550.50 & 15,176.56 & \\ \hline 7 & 2006 & Printing & 9,500.00 & 10,925.00 & \\ \hline 8 & 2007 & Misc. Supplies & 960.00 & 1,200.00 & \\ \hline 9 & 2008 & Pens and Pencils & 150.50 & 155.02 & \\ \hline 0 & 2009 & Paper & 3,800.00 & 4,999.00 & \\ \hline 1 & 2010 & Adding Machine & 376.00 & 189.50 & \\ \hline 2 & 2011 & Telephone & 4,200.50 & 4,347.52 & \\ \hline 3 & 2012 & Printer & 0.00 & 0.00 & \\ \hline 14 & TOTAL & & $62,537.50 & $71,492.60 & \\ \hline \end{tabular}