Projected Expenses Add to Parts 1 and 2 of your Organization Wide Operating Budget by identifying the Projected Expenses for Year 1

Subject:BusinessPrice: Bought3

Share With

Projected Expenses

Add to Parts 1 and 2 of your Organization Wide Operating Budget by identifying the Projected Expenses for Year 1. Personnel costs are often the most expensive portion of a budget for service based provision like mental health services. Typically a standard 15% can be added to an annual salary for a benefits package. However, facility related expenses may well exceed personnel expenses. Based on your proposed facility and staffing, determine what your annual expenses will be for your proposed practice. Make sure to use Worksheet B.6-8 page 151+ as a guide. Also make sure to prioritize your expenses from most to least important so you will know what can be cut from the expense column if needed. Make sure to provide rationale for your expense categories and amounts. The article by Chevarley et al. (2006) can help with some projections of expenses (see ProQuest). The recommended length of this assignment is 2-3 pages with reference support.

Grading Criteria

Content Criteria	5 Points
Content must be appropriately analyzed, summarized, compared/contrasted, and evaluated as applicable per the assignment directions including worksheets identified in the required text/CD.
Budget assignments are 2-3 pages in length and result in a cumulative budget project of 12-18 pages total.
Writing and Organization Criteria	2 Points
The central theme/purpose of the paper is clear.
The structure is clear, logical, and easy to follow.
The tone is appropriate to the content and assignment.
The thoughts are clear and include appropriate beginning, development, and conclusion.
Paragraph transitions are present, logical, and maintain the flow throughout the paper.
Sentences are complete, clear, and concise.
Sentences are well constructed, with consistently strong, varied sentences.
Sentence transitions are present and maintain the flow of thought.
Rules of grammar, usage, and punctuation are followed.
The paper uses words and language that are inclusive, clear, and unambiguous.
Spelling is correct.
Research Criteria	2 Points
The paper includes a summary and analysis of research materials that are relevant to the assignment, e.g. scholarly journals, professional articles, legal documents, government documents, legal decisions, media clips, software, measurement instruments websites, personal communication, etc.
Professional/scholarly journals are peer reviewed and focus on the profession/application of psychology (located on Proquest, EBSCOHost, PsycNET, etc.). Non-scholarly articles include newspapers, periodicals, secular magazines, etc, and are not peer reviewed. Websites not approved include wilkipedia.com and about.com.
Research focuses on the most current information (past five to ten years) except when citing seminal works (e.g. Freud, Erickson, etc.).
Paper includes the appropriate number of references required by the assignment.
When appropriate, the paper addresses ethical considerations in research.
Style Criteria	1 Point
The paper is in the appropriate APA format used by the institution/program (e.g. the 6th edition).
The paper is double-spaced and in the appropriate length required by the assignment
The paper includes an APA style cover page.
The paper includes an Abstract that is formatted to support the appropriate version of APA Publication Manual (e.g. 6th edition).
The paper properly uses headings, font styles, and white space as outlined in the appropriate version of APA Publication Manual (e.g. 6th edition).
The paper includes an introductory paragraph with a succinct thesis statement.
The paper addresses the topic of the paper with critical thought.
The paper concludes with a restatement of the thesis and a conclusion paragraph.
Citations of original works within the body of the paper follow the appropriate version of APA Publication Manual (e.g. 6th edition) guidelines.
The paper includes a References Page that is completed according to the appropriate version of APA Publication Manual (e.g. 6th edition).
Total Possible Points	10

 

Components of Operating Budgets

In your readings this week, Dropkin, Halpin, and LaTouche (2007) describe the major components of operating budgets. The authors provide an easy-to-use blueprint for accomplishing this task. While Chapter 14 is the only chapter required for you to read in the textbook this week, please note that this very short chapter also references both the previous chapter and the chapter that follows. I encourage you to incorporate those chapters into your readings as well. Doing this will help you best understand the concepts! Combined, these are short chapters, but they have a great deal of very important information- especially for those new to the process of budgeting. I won’t repeat the information in your text here, but trust that you will attend to the materials thoroughly this week. Both of your discussion questions are based on these readings. 

You have one article to read this week, which relates to disparities in pediatric healthcare. Chevarley, Owens, Zodet, Simpson, et al. (2006) present interesting findings from their data analysis. This is the type of research article that helps to provide justification for budget items. For example, this article could be referenced to support health education in urban areas or culturally-specific healthcare materials to low-income urban families. As you prepare your own budgets and corresponding justifications, consider similar articles that support your cause. There are many databases out there and many research articles that can be used to lend support for why your nonprofit’s issue is important to fund. Adding a study or including statistics helps to show that your cause is viewed as important by others as well!

You have two videos to view this week. Both of these will help with your discussion questions and should provide you with additional information regarding budgeting concepts. You may need to watch the second video several times as the information is very technical. Please make use of the extra time you’ve gained with less reading this week to understand the information in this video! I’ve added one website for review this week (which was already included in my weekly announcements). The link below supplements your text in my opinion. I also encourage you to explore other areas of the Nonprofit Central’s website. For anyone in the human services, there is a great deal of relevant information on Nonprofit Central’s website.

· Budget making for nonprofit organization (Links to an external site.)

QUESTIONS TO PONDER THIS WEEK:

1. Am I taking care of myself this week? (Yes, folks- that is the question of the week! I am a social worker by nature.) As you conclude the halfway point of the course this week, please remember to make time for yourself!

2. How can I take better care of myself despite the multiple demands I have with school, work, and life in general?

3. What’s one thing I can do this week for myself?

As you can see by the information above, successful budgeting and financial management is not an easy task. (Does this sound familiar?) As you read the materials, please ask any questions that you have- your opinions and thoughts are always important! Finally, as you read the course materials this week consider your Week 3 learning objectives.  At the end of the week, you should be able to:

1. Compare and contrast fixed versus flexible/variable expenses on an organization wide operating annual budget.

2. Justify and prioritize a budget’s fixed and flexible expenses based on evaluative criteria.

If for any reason the above objectives are not clear, please let me know. My goal is to help all of you be successful in the course. Have another great week!

References

Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L. et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64. 

Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). San Francisco: Jossey-Bass.

Nonprofit Central. (n.d.). Budget making for nonprofit organization. Retrieved from http://www.startnonprofitorganization.com/

Required Textbook

Dropkin, M., Halpin, J., & LaTouche, B. (2007).  The budget-building book for nonprofits  (2nd ed.). Jossey-Bass. 

Required Resources

In order to view the closed captioning of any video in this course, simply click on the cc link on the bottom right of the video (in red), click on transcribe video and then OK and the closed captioning will appear throughout your video.

American Counseling Association, (n.d.). 2014 ACA Code of Ethics Resources. American Counseling Association. Retrieved from  https://www.counseling.org/knowledge-center/ethics/code-of-ethics-resources (Links to an external site.) . This site is the American Counseling Association (ACA) Code of Ethics Website related to Course Learning Outcome 4 “Apply ethics to the successful implementation of financial management and fundraising efforts of mental health care systems.”

American Psychological Association. (2017). Ethical Principles of Psychologists and Code of Conduct: Including 2010 and 2016 Amendments. American Psychological Association. Retrieved from  http://www.apa.org/ethics/code2002.html (Links to an external site.) . This site is the American Psychological Association (APA) Code of Ethics. Section 6 relates to record keeping and fees.

BlueCross BlueShield of Tennessee. (n.d.) Behavioral Health Specific Billing Guidelines. Retrieved from  http://www.bcbst.com/providers/behavioral_health/billing_guidelines.pdf. (Links to an external site.)  This site will be used for part of budget (profit) related assignments.

BoardSource, [BoardSource]. (2012, April 3). Responsibilities of Nonprofit Boards - 6 of 10 - Ensure Adequate Financial Resources [Video File]. Retrieved from  https://youtu.be/9w9myx-5xok (Links to an external site.)

BoardSource, [BoardSource]. (2012, April 5). Responsibilities of Nonprofit Boards - 7 of 10 - Protect Assets and Provide Financial Oversight [Video File]. Retrieved from  https://youtu.be/7NhRLNo6AEU (Links to an external site.)

BPMSG, [BPMSG]. (2010, February 23). 06 Operating Expenses Fixed and Variable (Business Performance Management) [Video File]. Retrieved from  https://youtu.be/Xc6F5rMCM40 (Links to an external site.)

Calley, N. (2009). Comprehensive program development in mental health counseling: Design, implementation, and evaluation. Journal of Mental Health Counseling, 31(1), 9-21.

Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L., & et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64.

Final budget for fiscal year 2006 changes Medicaid and Medicare rules, cuts funds for mental health programs. (2006). Psychiatric Services, 57(3), 432-3.

financevideos, [financevideos]. (2008, October 2). What is the income statement? [Video File]. Retrieved from  https://youtu.be/tDc3KulcE9Q (Links to an external site.)

Hornor, J, [eHow]. (2009, May 26). Small Business Basics : How to Understand a Profit-Loss Statement [Video File]. Retrieved from  https://youtu.be/1gI25MuIXkw (Links to an external site.)

McCarthy, J., [goldstarjimmccarthy]. (2010, September 1). Difference Between Fixed and Variable Costs - Quick Draw with Jim McCarthy, Goldstar CEO [Video File]. Retrieved from  https://youtu.be/wBBfA9q8FSQ (Links to an external site.)

Murphy, D., [Abila]. (2017, January 4). 2017 Predictions: Biggest Trends Impacting Nonprofit Finance and Accounting [Video File]. Retrieved from  https://youtu.be/gN3mkq83TXg (Links to an external site.)

National Institute of Health (NIH). (2015). Grants and funding: NIH's centra resource for grants and funding information. National Institute of Health (NIH). Retrieved from  http://grants.nih.gov/grants/oer.htm (Links to an external site.) . This site will assist with the Budget Creation assignments. Part of budget (profit) related assignments to Course Learning Outcome 3 “Demonstrate an understanding of fundraising and grant application processes.”

Office of Budget (OB), (2017). HHS FY 2017 Budget in Brief. U.S. Department of Health & Human Services. Retrieved from  https://www.hhs.gov/about/budget/fy2017/budget-in-brief/index.html (Links to an external site.)

Office of Budget (OB), (2017). HHS FY 2018 Budget in Brief. U.S. Department of Health & Human Services. Retrieved from  https://www.hhs.gov/about/budget/fy2018/budget-in-brief/index.html (Links to an external site.)

Rae, W, [ehowfinance]. (2009, February 6). Making a Budget : How to Create a 0-Based Budget [Video File]. Retrieved from  https://youtu.be/4HNFnNrSNjA (Links to an external site.)

Roberts, P, [eHow]. (2008, November 1). Business Advice : How to Determine Profit [Video File]. Retrieved from  https://youtu.be/4Z4HK2uctQE (Links to an external site.)

Sperling (2015, February 20). President Obama’s 2016 budget: What does it mean for mental health?  https://www.nami.org/About-NAMI/NAMI-News/2015/President-Obama-s-2016-Budget-What-Does-It-Mean-f (Links to an external site.)

The Substance Abuse and Mental Health Services Administration (2015). The Substance Abuse and Mental Health Services Administration operating plan for FY2016.  https://www.samhsa.gov/sites/default/files/fy2016-samhsa-operating-plan.pdf (Links to an external site.)

Tuck, A., (2011, February 9). Succeeding Through Tough Times. The Bridgespan Group. Retrieved from  http://www.bridgespan.org/Publications-and-Tools/Strategy-Development/Managing-in-Tough-Times/Succeeding-Through-Tough-Times.aspx#.UTZphNZOTmd