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Based on the below table. Can you please clarify the below question based on the existing budget? Why is it important to prepare an IT

Based on the below table. Can you please clarify the below question based on the existing budget?

  • Why is it important to prepare an IT budget?
  • What are some key takeaways from this budget example?
  • What types of details seem to be missing from this budget?
  • What is the purpose of the internal charge-back and how would you communicate this to those receiving the charge?
  • If your leadership team asked you to cut your budget by 5%, what steps would you take?
  • What types of backup information you would need to support your budget process?

Topic 6
GOAL, Inc. IT Budget
Annual Budget 2021 Comments Actual Cost 2021 Variance
Committed Expenditures
Service Contracts 50,000 50,000
Repairs 5,000 5,000
Leases 15,000 15,000
Software 20,000 20,000
Internal Support 40,000 40,000
External Support 23,000 23,000
Depreciation 13,500 13,500
Supplies 400 400
Training 2,000 2,000
TOTAL COMMITED EXPENDITURES 168,900 - 168,900
Upgrades
CPU Upgrades 4,220 4,220
Memory Addition 5,000 5,000
TOTAL UPGRADES 9,220 - 9,220
Replacements
Depreciation 4,000 12 servers @ $1,000 each depreciated over 3 years - 4,000
Implementation Costs 3,200 3,200
Leases 3,000 3,000
TOTAL REPLACEMENTS 10,200 - 10,200
-
New Projects -
Capital Cost of New Hardware -
Depreciation 5,000 1 server @ $20,000 depreciated over 4 years - 5,000
Implementation Costs 3,200 3,200
Leases 3,000 3,000
Internal Support 20,000 20,000
TOTAL NEW PROJECTS 31,200 - 31,200
-
TOTAL COSTS 219,520 - 219,520
-
Internal charge-back -
Department A (25% utilization) (54,880) - (54,880)
Department A (25% utilization) (109,760) - (109,760)
Department A (50% utilization) (54,880) - (54,880)
(219,520) - (219,520)

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