Budget Assumptions Explain your approach $($and$/$or$)$ show calculations

Revenues

Government Funding will not increase by more than $2\%$ I factored in a $2\%$ increase in Government Funding, anticipating that we would receive it$.$ Also, given our previous deficit, I felt this adjustment is important to ensure our financial stability.

Sunshine$$s Senior Leadership would be open to increasing the rate per bed by a maximum of $$10$ per day for each bed type. However, they expect that for every $$5$ the price increases, the occupancy rate of the beds will decrease by $1\%$ If I was increasing it by $5$$ than I had to rely on grants, so I increased it by $10$$ and another reason to be factored in is that the budget would go in deficit if I dont increase it by $10$$$.$ Have increased it for Private, Semi$-$Private, and basic accomodation. For short stay accomodation, I did not increase the room rate as it has been same for the $2021-22$ and $2022-23$

Fundraising is inconsistent. Spending time on fundraising takes staff attention away from the patients, which can hurt the organization$$s reputation. Leadership does not want any extra time spent on fundraising efforts.$$ As per Leadership's directive of prioritizing patient care and avoid diverting staff attention from their responsibilities, no budget allocation was made for fundraising efforts. This decision was made recognizing that dedicating time to fundraising distract staff attention from patients and which can eventually impact the organization's reputation.

Community partners often donate to the organization. On average between $7$ and $10$ donors donate an average of $$25,000$ each per year.$$ I believe that only $7$ community partners will donate to the organization so$,$ that incase the community partner increase also the budget would be in profit. $7*25,000=1,75,000$

We should not rely on our grant application for $$50,000$ being approved We have submitted application for grants but we are not sure if it will be approved or not but with the currrent profit of $65,830$ after factoring in revenue and expenss, Sunshine Long Term care stands to maintain profitablitity even if the grants are not approved.

Expenses

Care team wages are expected to increase $3\%$ based on current negotiations. I increased Care Team wages to $3\%.$ I made this adjustment with the understanding that any increase below $3\%$ would allow us to remain in a profitable position.

Administrative wages are expected to increase by $2\%.$ I increased Adminstrative wages to $2\%.$ I made this adjustment with the understanding that any increase below $2\%$ would allow us to remain in a profitable position.

Care team benefits are expected decrease from $23\%$ of wages to $22\%$ of wages.$$ To avoid reliance on grants, I project a reduction in care team benefits from $23\%$ of wages to $22\%.$

Administrative benefits are expected to increase from $23\%$ of wages to $23\mathrm{.}5\%$ of wages.$$ I increased it to $23\mathrm{.}5\%$ because if it does not get increased also to $23\mathrm{.}5\%$ and remains at $23\%$ also, than also it will yield a positive outcome.

Resident Care expenses are expected to rise between $5-10\%$ due to inflation I increased Resident Care expenses to $10\%$ due to inflation. I made this adjustment with the understanding that any increase below $10\%$ would allow us to remain in a profitable position.

Insurance will increase $5\%$ and we are expecting a new deductible to paid which willl add another $$5,000$ after the increase I increased it to $5\%$ and also added the cost of new deductible $$5000.$ I made this adjustment with the understanding that any increase below $5\%$ and the cost of new deductible is also not added than we will be in profit.

Staff Training and Development continues to increase as the competition for qualified staff increases. We may want to consider increasing this line item without putting the organization in a deficit position.$$ In the financial year $2022-23,$ there was a decrease of approximately $13\mathrm{.}3\%$ in staff training and development expenses compared to the previous year $(2021-22).$ To counterbalance this decrease and maintain a surplus profit, I decided to increase the expense on staff training and development by the same percentage of $13\mathrm{.}3\%$ in the year $2023-24.$ As a result, any increase in this expense below $13\mathrm{.}3\%$ will contribute to our surplus profit.

Both snow removal and maintenance are expected to decrease by $10-15\%$ because of predictions of a mild winter.$$ I decreased both snow removal and maintenance by $10\%$ with the understanding that any decrease above $10\%$ would allow us to remain in profitable position.

Administrative Supplies As no information was provided, I followed the trend from the previous years $(2021-22$ to $2022-2023),$ which saw a $2\%$ increase. Therefore, I applied a similar $2\%$ increase this year as well.

Legal Expenses As no information was provided, I followed the trend from the previous years $(2021-22$ to $2022-2023),$ which saw a $11\mathrm{.}43\%$ increase. Therefore, I applied the similar $11\mathrm{.}43\%$ increase this year as well.

Please check the reasoning