Question

Assignment 1.

Nonpersonnel expenses: you have been tasked with computing baseline budget targets for the upcoming budget cycle. Using table 12.2 as your starting point, make the following adjustments.

TABLE 12.2

Expense Type	FY 2014
General Supplies	$69,532
Utilities	152,227
Leased Space	720,000
Fuel	50,571
Inspection Supplies	327,595
Inspection Start-up	125,000
Total Nonpersonnel	$1444,925

1. Solar panels have been installed with an expected 5% decrease in utility cost, for a savings of about $7,611.

2. The inspection program was started in FY 2014 and had funding for three fourths of the year. All of the start-up costs were incurred in FY 2014. The annualized value of the inspection supplies for the remaining one fourth of the year is $81,899.

3. Inflation is expected to be 2% expect for utilities, which will see no increase, and for leased space, which contract will have a 3% inflationary increase.

4. The number of service unites will not change

5. All departments are expected to achieve a 1% improvement in efficiency on all lines of cost and in all programs.

6. Budget baselines are not given out with cents, so round to the nearest dollar.

Answer 1

Below is adjustment made in expense as mentioned -
TABLE 12.2 NON PERSONNEL EXPENSES
Expense Type	FY14	Inflation	Decrease in Cost	Others	Total
General Supplies	$69,532	$70,923.00			$70,923.00
Utilities	$152,227		$144,616.00		$144,616.00
Leased Space	$720,000	$741,600.00			$741,600.00
Food	$50,571	$51,582.00			$51,582.00
Inspection Supplies	$327,595			$81,899.00	$81,899.00
Inspection Startup	$125,000				$0.00
Total Non-personnel	$1,444,925				$1,090,620.00
As given in  Part e - To achieve improvement of 1% in all department, We will have to multiply the total non-personnel expense by 99% and it will be the maximum expense to incur.
So, 1444925*99% = $1430476