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SUFFOLK UNIVERSITY SAWYER SCHOOL OF MANAGEMENT ACCT415/871: NOT-FOR-PROFIT ACCOUNTING AND CONTROL CASE ANALYSIS #3: HARBOR CITY CHILDREN'S CENTER) For Question #1 - UNDERGRADUATE AND GRADUATE STUDENTS: Question #1: I. II. Prepare a step-down analysis by completing all \"tabs\" in the attached template: A. Exhibit A: Step-down with Training and Education Treated as a Service Center B. Exhibit B: Step-down Computations (For Exhibit A) Can this step-down analysis assist in ensuring a more efficient and effective management control system? Question #3 - GRADUATE STUDENTS: Question #2: I. II. III. Management Control is the process by which managers influence other members of the organization to implement the organization's strategies. Strategy Formulation is the process of deciding on the goals of the organization and the strategies for attaining these goals. Task Control is the process of assuring that specific tasks are carried out effectively and efficiently. Briefly discuss each of the above areas as they relate to Harbor City Children's Center. It is important to utilize the facts from the case in your response. DUE DATE: MONDAY 8/22/2016 HARBOR CITY CHILDREN'S CENTER Exhibit A: Stepdown with Training and Education Treated as a Service Center STEPDOWN ANALYSIS ORIGINAL Total Direct Costs Parents Alcohol REVISED Total Advocacy Rehab. Direct Reassign (1) Reassign (2) Costs Rent, Utilities & Cleaning (3) Admin. (4) Service Centers Rent, Utilities, Cleaning Administration Record Keeping Training and Education Mission Centers Homemaker Service Family Planning Counseling Parents Advocacy Mental Health Alcohol Rehabilitation Community Outreach Referral and Placement TOTAL 18,000 18,000 36,000 (72,000) 13,333 13,333 13,333 13,333 13,333 (80,000) 13,333 $0 $0 (1). Only salaries reassigned. Other expenses assumed to be dept. related. $108,000/3 = $36,000 x 2 = $72,000. (2). $96,000 x 0.5 = $48,000 + $32,000 = $80,000 to be reassigned. $80,000 / 6 = $13,333 per department. Other costs not reassigned. Record Training and keeping (5) Number of Education (6) Full Cost Visits Cost per Visit HARBOR CITY CHILDREN'S CENTER Exhibit B: Stepdown Computations (Exhibit A) Rent, Utilities and Cleaning Alloc. Base Service Centers Rent, Utilities, Cleaning Administration Record Keeping Training and Education Mission Centers Homemaker Service Family Planning Counseling Parents Advocacy Mental Health Alcohol Rehabilitation Community Outreach Referral and Placement TOTALS Stepdown Allocation Rate Base: $ Allocation Administration Alloc. Base $ Allocation Record Keeping Alloc. Base $ Allocation Training & Education Alloc. Base $ Allocation