The administration allocation cost relates to rent, CEO oversight and general operating expenses. When allocated to this program using the same method of allocation used for the budget, the actual costs are 25% higher than the budget. Bill included the budgeted amount in the statement. Exhibit B is the statement of operations prepared for the donor after the completion of the first year (203(5). The donor requested that the full amount of the donation be shown as revenue in the period because all funds had been paid during the year. The training began in January; however, there were a number of mid- training delays as the only training manager accepted another job on 1 August, 20KB. The training assistant agreed to spend all of her time with these four puppies from August 1, 20KB onwards until a new training manager could be found. Specialized guide dog trainers are hard to nd and given GDA's need to quicklyr hire someone to meet the donation requirements. GDA contracted a recruiter to source a new trainer. If EDA had not received this donation and the related obligations to train the four dogs and provide them to recipients within 24 months, SBA would not have used a recruiter for this hiring. A new training manager was hired effective 1 April, mm with a salary 10% higher than that of the prior training manager. The recruiter's fee was 11% of the new training manager's salary. To catch up, the new training manager will spend 20% of his time with each dog to meet the 24month training period. In December 20KB, the donor agreed to attend a presentation at the SBA offices in honour of the puppies in training he has sponsored. The fundraising manager approved a cost of $5,tltlt] for the event because the presentation audience included other possible donors. Canaprs were served at the conclusion of the presentation. At the presentation, the donor was informed that only three of the dogs would graduate and be able to become guide dogs. Even though all of the dogs received all the required training, one of the dogs is afraid of elevators, so cannot graduate. This dog was sold to a caring home for 1132,1300. It is now January aXT. Bill has prepared the draft annual statement of operations (year ended 20x6] for the donor and has submitted it to the nance manager for her review (Exhibit C]. She has noted that any unused funds must be returned to the donor. She has requested that the following changes he made to the report: - Include the costs for the presentation ceremony against the donation. These are costs to celebrate the program and the employees involved, and the celebration gives GDA a chance to showcase its activities to possible future donors. - Bill tracked all costs for the donation and prepared the annual report. This took up 15% of his time in each of the two years. His salary and benefits are STSDDU per year. Include his time against this donation because the terms of the donation could not have been met without him. Because the full amount of the administration allocation has already been spent, include his salary and benefits as a direct cost of the program. o Remove the sale price for the failed puppy. Those are revenues to the organization and are not related to the donation; only the expenses relating to the training of the puppy should be included. . Include the recruiter's fee as a salary cost because this is a direct cost of obtaining the required training staff