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Happy Valley University ( HVU ) needs to establish a budget for the upcoming calendar year. The current Budget Director has retired so you and
Happy Valley University HVU needs to establish a budget for the upcoming calendar year.
The current Budget Director has retired so you and your Team have been brought in establish a budget for the coming year.
You are being tasked to develop a balanced budget meaning No Profit, since HVU is a nonprofit and a tuition rate per credit hour for students to pay in the coming year.
FACTS:
REVENUES:
HVU has three semesters during a calendar year. There are students during the Fall and Winter semesters and students during the Summer semester. Class size averages students per class and students take an average of credit hours per semester. As such, professors are employed during the Fall and Winter semesters and professors are employed during the Summer semester. Tuition is currently set at $ per credit hour.
Sports generate a total of $ through gate receipts and concessions during the calendar year.
HVU receives from State appropriations, $ per calendar year divide equally to semesters
HVU receives from annual Endowments, $ per calendar year divide between Fall and Winter semesters
EXPENSES:
Faculty teach credits classes at credits each per semester.
The average Faculty salary is $ academic year, plus benefits that run at of salaries. Faculty receive as additional of their salary for teaching Summer classes, if they choose to do so no additional benefits
There are four colleges within HVU: College of Business, College of Technology, College of Arts and Science, and College of Health Science. Each college has a Dean, and Associate Dean and each has their own Admin Assistant. Each college is allowed to spend $ per calendar year on supplies, travel, telephone, and miscellaneous expenses. You will need to establish your own salaries for the Dean, Assoc. Dean, plus benefits at
The Executive Office has a President and two Vice Presidents and each has their own Admin Assistant. The President and Vice Presidents each spend $ per calendar year for supplies, travel, telephone, and miscellaneous expenses. You will need to establish your own salaries for the President, VPs and Admins plus benefits at
HVU also has the following extra curricula activities that need to be funded:
Football $ during the Fall semester
Hockey $ during Fall semester, Winter semester
W Basketball $ during the Winter semester
M Basketball $ during the Winter semester
W Volleyball $ during the Winter semester
W Softball $ during the Winter semester
Maintenance will cost of tuition
Utilities will cost of tuition
Business office expenses are $ per year divide equally to semesters
Financial Aid office expenses are $ per year divide equally to semesters
ADDITIONAL COMENTS:
Because HVU is a nonprofit organization, the goal is to budget for net income that is as close to zero as possible. An acceptable range for your final results will be plusminus $
Wherever specific information is not given regarding the amount of an expense, you will need to decide how much it should be You may not change any given numbers, except for the rate of tuition per hour.
Spreadsheets need to be Excel based worksheets.
REQUIRED:
Develop a total REVENUE BUDGET including all sources listed above by semester and in total for the year.
Develop a total LABOR BUDGET including benefits by semester and in total for the year. Include all employees. Faculty may be lumped into one line item.
Develop a total EXPENSE BUDGET for all expenses which includes labor by semester and in total for the year.
Develop an INCOME STATEMENT that includes all revenues and expenses by semester and in total for the year.
Prepare a NOTES and ASSUMPTIONS page giving information about any decisionsassumptions you made such as how much you decided to pay each employee including what you did to ensure a balanced budget.
FINAL SUBMISSION should be an EXCEL workbook File, Emailed to me and presented as if being submitted to your client for review. It should include:
Title Page, with your Name, Date, Class, etc.
Revenue Budget page
Labor Budget page
Expense Budget page
Budgeted Income Statement page
Assumptions page
HAPPY VALLEY UNIVERSITY
EXPENSE BUDGET
FISCAL YEAR XXXHAPPY VALLEY UNIVERSITY
BUDGET INCOME STATEMENT
FISCAL YEAR XXX
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