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Budget Assumptions Explain your approach ( and / or ) show calculations Revenues Government Funding will not increase by more than 2 % I factored

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.
Sunshines 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 organizations 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 23.5% of wages. I increased it to 23.5% because if it does not get increased also to 23.5% 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 13.3% 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 13.3% in the year 2023-24. As a result, any increase in this expense below 13.3% 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 11.43% increase. Therefore, I applied the similar 11.43% increase this year as well.
Please check the reasoning

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