The question : analyze the case and write the recommendations?

Cutting the Budget of the Harristown Family Service safety net. Sarah had been HFS was 60 years old now, a pillar of the community's social service at the helm of HFs for 20 years, after serving ten years with the organization as head of the social work department. During her tenure, HFs had grown from 10 to 60 employees. Income financing the S5 fee-for-service payments from clients, million annual operating budget came from a balanced mix of There had been some private donations, endowment interest, and government and foundation gr years in the past, but never had the agency experienced a perfect storm of a deteriorating economy that squeezed income and that increased demand for its services from otherwise eligible clients who were unable to afford to pay HFs enough for the agency to recover its costs. These two trends squeezing the organization were exacerbated by simple bad luck and a culture of corporate greed in the general Sarah had convened a staff meeting with everyone present, from the COO and CFO to the 8 year-old "retired" social worker who answered the telephones. Everyone was there, she intended to set for this brainstorming session. For today's meeting, her tolerance level for levity was as influenced by input low as it could get, as decisions made to increase income and cut expenses she felt an obligation to preserve the health ofthe organization that played important role in improving the quality of life for several thousand sick, impoverished, old, and distressed families and individuals, none of whom were ever turned away because of an inabilit At least, until a couple of weeks ago. With the economy in a free fall not seen since the Great Depression, this now described almost every client As you are aware, there have been rumors about the upcoming board meeting and what actions year. board has the board will take to approve a balanced budget for the next fiscal balance come up with a plan nded expense cuts and income enhancements to the budget. To this point, no firm decisions have been made, and everything is on the table. The purpose of this meeting is to get some ideas from all of you on can achieve what we which, at this point, appears to be a of a 25% This is not good news, and I am not going to sugar-coat what have to tell you. The trends for income are almost universally going south o and for everyone else who provides social services. Our creditors are hesitant to extend our credit of our shaky cash-flow position, not to mention their own problems with liquidity. Tho who us including agencies and the state, are delaying their We've tried reimbursement payments for expenditures we already incurred on their behalf. to loan at a rate we could but eral major donors reneged on their annual pledges, and you only have to read yesterday local section of the paper to read why. Our modest endowment, as with virtually every nonprofit organization endowment, has taken a major hit, losing about 40% of its value just in the last year. our are either unable to pay upfront for their services or are delaying payment so they can first pay food, fuel, and medicine." ..How about if we each agree to liberate rolls of toilet paper from public bathrooms, such as movie theaters or at the mall, and bring them here?" Sean offered with a straight face. Sarah simply ignored him Cutting the Budget of the Harristown Family Service safety net. Sarah had been HFS was 60 years old now, a pillar of the community's social service at the helm of HFs for 20 years, after serving ten years with the organization as head of the social work department. During her tenure, HFs had grown from 10 to 60 employees. Income financing the S5 fee-for-service payments from clients, million annual operating budget came from a balanced mix of There had been some private donations, endowment interest, and government and foundation gr years in the past, but never had the agency experienced a perfect storm of a deteriorating economy that squeezed income and that increased demand for its services from otherwise eligible clients who were unable to afford to pay HFs enough for the agency to recover its costs. These two trends squeezing the organization were exacerbated by simple bad luck and a culture of corporate greed in the general Sarah had convened a staff meeting with everyone present, from the COO and CFO to the 8 year-old "retired" social worker who answered the telephones. Everyone was there, she intended to set for this brainstorming session. For today's meeting, her tolerance level for levity was as influenced by input low as it could get, as decisions made to increase income and cut expenses she felt an obligation to preserve the health ofthe organization that played important role in improving the quality of life for several thousand sick, impoverished, old, and distressed families and individuals, none of whom were ever turned away because of an inabilit At least, until a couple of weeks ago. With the economy in a free fall not seen since the Great Depression, this now described almost every client As you are aware, there have been rumors about the upcoming board meeting and what actions year. board has the board will take to approve a balanced budget for the next fiscal balance come up with a plan nded expense cuts and income enhancements to the budget. To this point, no firm decisions have been made, and everything is on the table. The purpose of this meeting is to get some ideas from all of you on can achieve what we which, at this point, appears to be a of a 25% This is not good news, and I am not going to sugar-coat what have to tell you. The trends for income are almost universally going south o and for everyone else who provides social services. Our creditors are hesitant to extend our credit of our shaky cash-flow position, not to mention their own problems with liquidity. Tho who us including agencies and the state, are delaying their We've tried reimbursement payments for expenditures we already incurred on their behalf. to loan at a rate we could but eral major donors reneged on their annual pledges, and you only have to read yesterday local section of the paper to read why. Our modest endowment, as with virtually every nonprofit organization endowment, has taken a major hit, losing about 40% of its value just in the last year. our are either unable to pay upfront for their services or are delaying payment so they can first pay food, fuel, and medicine." ..How about if we each agree to liberate rolls of toilet paper from public bathrooms, such as movie theaters or at the mall, and bring them here?" Sean offered with a straight face. Sarah simply ignored him