Hey Finmaster81.

I have a part 2 to the part 1 you helped me with. Can you help me with part 2 please? Thanks

Chippewa Watershed Conservancy: Not-for-profit Budgeting Term Project II: Functional and Flexible Budgets Spring I, 2017 Term Project II is a continuation of Term Project I. In this Term Project you will convert the lineitem budget developed in Term Project I into a functional budget. Then you will employ further information to create a flexible budget. Refer to the Term Project I Solution at the end of this document for data. Assume that the CWC has adopted the proposed budget as developed in Term Project I even though it does not hit the 5% budget surplus target. Now they want you to allocate the budget into functional areas. Revenue is not allocated to functions. Just show each revenue item in the \"Total\" column. However, expenses are allocated to functions using the percentages shown in the following section. Part A: Functional Budget Program Functions Stewardship: Management of easements and preserves. Outreach: Publicity and Education. General Program: Activities directly related to project development. Support Functions Administration: Management of the organization and other activities not directly related to project development Fundraising: Grant-seeking, special events, and fund appeals P R O Stewardship G R Outreach A M S U P General Administration P O R T Fundraising Program Expense Travel 30% Special Events Conferences 20% 30% 10% 20% 20% 10% 80% 40% 20% Fundraising Insurance 10% 10% 100% 40% Newsletter 30% 30% 60% Postage 10% Professional Fees 30% Publicity 50% 40% 10% 10% 50% 20% 80% 20% 20% Salary 30% 10% 30% 20% 10% Supplies 20% 10% 20% 40% 10% Payroll Taxes 30% 10% 30% 20% 10% Telephone 20% 10% 30% 30% 10% Part A: Create a Functional Budget for the upcoming year. Use the revenue and expense allocations provided above and the Term Project 1 Solution for the next year as provided at the end of this document. (8 points) 1) What percent of the total expense budgeted by the CWC for the next year is spent in each of the five functional areas? (1 point) 2) What percent of the total expense budgeted by the CWC for the next year is Program expense (total of Stewardship, Outreach, and General Program) and what percent is for Support (total of Administration and Fundraising)? (1 point) Part B: Flexible Budget The CWC budgeted on the basis of the existing 55 projects (21 preserves and 34 conservation easements). \"New\" refers to additional preserves and/or easements (projects) beyond the existing 55 projects. \"X%\" refers to the percentage of the original budget. Add: Travel: 2% for each new project in Stewardship 4% for each new project in General Program Professional Fees: 6% for each new project in General Program Supplies: 1% for each new project in General Program Telephone: 1% for each new project in General Program Shift: 'Salary' and 'Payroll Taxes' Shift 2% from Administration to General Program for each new project Note: \"X%\" refers to the percent of the original budget. If the budget for a line-item (Space Travel) is $1,000 and 10% ($100) is assigned to a particular function (e.g. General Program), then if an additional 6% is added to General Program (due to 2 new projects with 3% per new project) the new budget for Space Travel General Program is [10% + (2 x 3%)] multiplied by the original budget for the line item. In this case, .16 x $1,000 = $160 while the budget for the entire line-item Space Travel is $1,000 x 1.06 = $1,060. Part B: Prepare a Flexible Budget for the five functional areas based on 2 new projects. (7 points) 1) Calculate the budget surplus/deficit based on your Flexible Budget both as a dollar amount and as a percent of total expense. Do not change revenue from the total column in the Term Project I Solution Cash Budget. (1 point) 2) What amount, and percent, of the new budget is Administration expense? (1 point) 3) Can the CWC handle the 2 new projects without an increase in revenue if they do not try to maintain a budget surplus? Why? Discuss any concerns. (1 point) Current Proposed Q1 Q2 Q3 Q4 Total Revenue Special Events Contributions Grants Endowment Interest Income Total Revenue 30,000 40,000 50,000 4,000 2,000 126,000 36,000 44,000 30,000 4,400 2,000 116,400 3,600 8,800 0 1,100 500 14,000 21,600 8,800 12,000 1,100 387 43,887 0 8,800 0 1,100 422 10,322 10,800 17,600 18,000 1,100 327 47,827 36,000 44,000 30,000 4,400 1,636 116,036 Expense Travel Special Events Conferences Fundraising Insurance Newsletter Postage Professional Fees Publicity Salary Supplies Payroll taxes Telephone Total Expense Surplus Surplus % 3,000 30,000 2,000 5,000 4,000 2,000 2,000 6,000 1,000 44,000 3,000 4,400 1,600 108,000 18,000 16.67% 3,090 36,000 2,060 5,500 4,120 2,200 2,200 6,180 1,030 44,000 3,090 4,400 1,648 115,518 882 0.76% 309 3,600 0 1,100 4,120 550 550 1,545 258 11,000 773 1,100 412 25,316 -11,316 927 21,600 0 1,650 0 550 550 1,545 258 11,000 773 1,100 412 40,364 3,523 1,545 0 2,060 0 0 550 550 1,545 258 11,000 773 1,100 412 19,792 -9,470 309 10,800 0 2,750 0 550 550 1,545 258 11,000 773 1,100 412 30,046 17,781 3,090 36,000 2,060 5,500 4,120 2,200 2,200 6,180 1,030 44,000 3,090 4,400 1,648 115,518 518 0.45% 50,000 -11,316 38,684 33.49% 38,684 3,523 42,207 36.54% 42,207 -9,470 32,737 28.34% 32,737 17,781 50,518 43.73% Target Surplus Beginning Cash Balance Change in Cash Balance Ending Cash Balance Cash / Annual Expense 5,776 Part A 1a 1b 1c 1d Part B 2a $ 18,000 16.67% Special events contribute nothing above cost. Re-examine. $ 882 0.76% $ No, need surplus of 5,776 $ 32,737 28.34% Interest Income is lower due to a lower annual surplus and deficits early in the year