Budgeting and Allocation The Business Programs department at Santa Fe College has six programs: Accounting, Economics, Health Information Management, Legal Assisting, Organizational Management, and Office Systems Technology. Each program has a different number of students, a different number of faculty, and different technology requirements. The department's budget must pay for Faculty Salaries, Administrative Salaries, Student Advisors, Equipment, Office Supplies, and other miscellaneous expenses such as travel costs, journal subscriptions, and coffee. Dr. Gary Boulware, Director, Business Programs, must develop a method for allocating the total Business Program funds available next semester to each of the six programs. I want you to suggest a method that would be acceptable to most members of the Faculty. (For example, I lead the Accounting Program. I probably want as many funds allocated to the Accounting Program as possible. I don't care what funding the Health Information Management Program gets, as long as it doesn't deprive my program of funds.) Some allocations are obvious: Faculty salaries should probably be allocated to the program in which each of the Faculty members are employed, e.g. economics instructors' salaries should be charged to the economics program. But how should the cost of administrators be allocated? And what about the advisors? Can their activities be separately associated with each program? Is the number of students more relevant than the number of faculty members? Office Systems Technology is an equipment intensive program. Should they get allocated a bigger budget for equipment use? How much of the cost of running the Business Computer Lab should each program pay? (I don't think my students use it very much.) Should equipment be charged to a program, if the equipment is available to that program, but the instructors don't use it? What about Office Supplies used by Administrators? Send me a memo suggesting how Dr Boulware should allocate Business Program costs to each program in the department. After I've graded them, I'll forward them to him. The following data may be useful: Some allocations are obvious: Faculty salaries should probably be allocated to the program in which each of the Faculty members are employed, e.g. economics instructors salaries should be charged to the economics program. But how should the cost of administrators be allocated? And what about the advisors? Can their activities be separately associated with each program? Is the number of students more relevant than the number of faculty members? Office Systems Technology is an equipment-intensive program. Should they get allocated a bigger budget for equipment use? How much of the cost of running the Business Computer Lab should each program pay? (I don't think my students use it very much.) Should equipment be charged to a program, if the equipment is available to that program, but the instructors don't use it? What about Office Supplies used by Administrators? Send me a memo suggesting how Dr Boulware should allocate Business Program costs to each program in the department. After I've graded them, I'll forward them to him. The following data may be useful: Item % of Budget Faculty Salaries 52 Administrative Salaries 8 Advisor Salaries 6 Equipment Depreciation Office Supplies 4 Travel & Professional Development 11 Computer Lab 14 Total 100 Aa00 Programs Faculty - Full time Faculty - Part time Administrators Advisors Students Eqpt. Depreciation total Classroom Eqpt Dern Office Eqpt Depn Faculty Eqpt Depn 6 (see above) 15 12 2 2 700 $15,000 per yr $10,000 $2.000 $3,000 Budgeting and Allocation The Business Programs department at Santa Fe College has six programs: Accounting, Economics, Health Information Management, Legal Assisting, Organizational Management, and Office Systems Technology. Each program has a different number of students, a different number of faculty, and different technology requirements. The department's budget must pay for Faculty Salaries, Administrative Salaries, Student Advisors, Equipment, Office Supplies, and other miscellaneous expenses such as travel costs, journal subscriptions, and coffee. Dr. Gary Boulware, Director, Business Programs, must develop a method for allocating the total Business Program funds available next semester to each of the six programs. I want you to suggest a method that would be acceptable to most members of the Faculty. (For example, I lead the Accounting Program. I probably want as many funds allocated to the Accounting Program as possible. I don't care what funding the Health Information Management Program gets, as long as it doesn't deprive my program of funds.) Some allocations are obvious: Faculty salaries should probably be allocated to the program in which each of the Faculty members are employed, e.g. economics instructors' salaries should be charged to the economics program. But how should the cost of administrators be allocated? And what about the advisors? Can their activities be separately associated with each program? Is the number of students more relevant than the number of faculty members? Office Systems Technology is an equipment intensive program. Should they get allocated a bigger budget for equipment use? How much of the cost of running the Business Computer Lab should each program pay? (I don't think my students use it very much.) Should equipment be charged to a program, if the equipment is available to that program, but the instructors don't use it? What about Office Supplies used by Administrators? Send me a memo suggesting how Dr Boulware should allocate Business Program costs to each program in the department. After I've graded them, I'll forward them to him. The following data may be useful: Some allocations are obvious: Faculty salaries should probably be allocated to the program in which each of the Faculty members are employed, e.g. economics instructors salaries should be charged to the economics program. But how should the cost of administrators be allocated? And what about the advisors? Can their activities be separately associated with each program? Is the number of students more relevant than the number of faculty members? Office Systems Technology is an equipment-intensive program. Should they get allocated a bigger budget for equipment use? How much of the cost of running the Business Computer Lab should each program pay? (I don't think my students use it very much.) Should equipment be charged to a program, if the equipment is available to that program, but the instructors don't use it? What about Office Supplies used by Administrators? Send me a memo suggesting how Dr Boulware should allocate Business Program costs to each program in the department. After I've graded them, I'll forward them to him. The following data may be useful: Item % of Budget Faculty Salaries 52 Administrative Salaries 8 Advisor Salaries 6 Equipment Depreciation Office Supplies 4 Travel & Professional Development 11 Computer Lab 14 Total 100 Aa00 Programs Faculty - Full time Faculty - Part time Administrators Advisors Students Eqpt. Depreciation total Classroom Eqpt Dern Office Eqpt Depn Faculty Eqpt Depn 6 (see above) 15 12 2 2 700 $15,000 per yr $10,000 $2.000 $3,000