Program Administration (Budget and Staffing)

Posted on March 10, 2022 by Cheapest Assignment

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Management and Organisations in a Global Environment Help

In any non-profit organization budgeting and staffing forms a core part of it and is a high determinant of its success. Shim et al. (2011) describe a budget as an organizational tool that is used in controlling and planning within the organization. A budget indicates how an organization sources funds and how these funds are spent across various activities within the organization. Staffing is also important in an organization since the staff are like the engine that runs the organization. They are responsible for the day to day activities in the organization and without them, the organization cannot fully function. 

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There are numerous benefits that accrue from having an organizational budgeting process and they include:

Coordination of activities within the organization- When it comes to budgeting, managers are encouraged to develop relationships with other parts of the operation and to understand how the various departments and teams interact with one another and how they all contribute to the overall success of the organization.

Communication of plan to various managers and stakeholders- Management communication is a critical social part of the process since it ensures that everyone has a clear idea of how they may best contribute to the organization’s success. Individual goals, strategies, and activities are encouraged to be communicated with one another so that they can all work together to support the growth of the company. Additionally, it guarantees that the right personnel are held accountable for the budget’s implementation.

Budgeting helps in the planning of the actual operations- The approach encourages managers to think about how situations can change and what steps they should take in response, while also providing managers with an understanding of how to deal with difficulties when they emerge.

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The budgeting process for the program will consist of 8 key crucial steps that will be integral to the budgeting process. 

The first step will be to calculate the existing revenue. It will involve the identification of all the revenue streams aligned to the non-profit. The second step of the budgeting process will involve the identification of all the fixed costs or rather the recurrent expenditures like salaries, rent payment, utilities among others. The third step will be to identify and lay out the program’s variable costs including projects, outreach programs, advertising among others. The fourth step will be to conduct a forecast on any additional spending that the program may incur during the financial year. The fifth step will be to scrutinize the cash flow. This will involve making a comparison between the revenues and the expenses as cash flow simply involves the relationship between money coming in and money going out. At this process, we will be looking for indicators that certain sections of the budget might need adjustments before coming up with the final decision. The sixth step will be to make the final decision on the budget after doing a scrutiny. Here all the expenses and incomes will be approved by the budget committee that will be headed by the Chief Finance Officer before an official communication is made to all the managers and relevant stakeholders. The final step of the process will be communication of the budget to the various teams and letting them know what is expected of them during the financial year.

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A majority of the organizational operational budget will be derived from private donations from individuals and corporations. The organisation also expect partial funding in form of grants from the different government parastatals like the department for homelessness. Some of the largest costs that the organization will be faced with include Operational costs. Operational costs are those expenses that must be met in order to carry out activities for a project or for an organization to be successful. Due to the fact that they have a direct influence on the beneficiary community, these are billed directly to the non-profit organization. Activities such as arranging a community meeting, conducting a training workshop, and launching an awareness campaign incur a certain amount of financial outlay. 

The detailed budget is explained hereby detailed:

ENDLESS BATTLE PROPOSED ONE YEAR BUDGET PLAN
INCOME
ITEM DESCRIPTION AMOUNT ($ 000)
1 GRANT 500
2 LOCAL INCOME DONATION 1500
3 INTERNATIONAL DONATION 2000
TOTAL INCOME 4000
EXPENDITURE
1 SALARIES 300
2 RENT 25
3 MAINTENANCE 20
4 EQUIPMENT AND SUPPLIES 100
5 OFFICE EXPENSES 20
6 MEDIA AND COMMUNICATION 30
7 PROJECT COSTS 1700
8 PROJECT-RELATED COSTS 500
9 COMMUNITY-RELATED EXPENCES 600
10 TRAVEL 100
11 MISCELLANEOUS EXPENCES 25
TOTAL EXPENSES 3420
INCOME/EXPENSES 580

 

It is clear that the budget/expenses of the program produce an excess of $580,000 which will be invested in banks to earn interest that can be used in the succeeding financial year. 

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Reference

Shim, J. K., Siegel, J. G., & Shim, A. I. (2011). Budgeting basics and beyond (Vol. 574). John Wiley & Sons.

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