Developing An Operating Budget

You are the administrator of the Adult Education Department at Blooming Park University, the largest university in the Twin Cities metro area. You will be creating the budget for your department. To prepare, you have to go to a budget meeting for the overall university, where you'll hear about the current fiscal year — and how reality is corresponding to the assumptions in the budget. QUESTION: What Can You Do? Now that you understand the financial position facing the university, try your hand at making budget adjustments. Not every field is something you can change, of course – state appropriations, for example, are beyond your control. Typically, salaries and tuition are also fixed, or at least subject to either legislative (if a public university) or Board of Directors (in a private university) approval. You cannot count on that. Modify what you can after considering the impact such a modification will have on operations and other fields. Remember, decreasing spending on sports, for example, will likely affect sport scholarships and, thus, possibly enrollment. Keep track of your reasoning for each change and, when finished, draft a memo outlining your recommended changes and the affects you envision.

Sample Solution

To: President of Blooming Park University From: Administrator, Adult Education Department Date: 2023-10-23 Subject: Budget Adjustments for Adult Education Department

In light of the current financial position facing the university, I have made the following budget adjustments for the Adult Education Department:

Reduce professional development expenses by 10%. This will save the department $5,000 per year. Professional development is important for our staff, but we can make do with slightly less funding in this area.

Full Answer Section

Reduce marketing and advertising expenses by 15%. This will save the department $3,000 per year. We can still reach our target audience through more cost-effective means, such as social media and word-of-mouth.
Reduce travel expenses by 20%. This will save the department $2,000 per year. We can still attend conferences and other events by using video conferencing and other technologies.
Reduce office supplies expenses by 5%. This will save the department $500 per year. We can be more mindful of our use of office supplies and find ways to reuse and recycle materials.
Increase tuition by 2%. This will generate an additional $10,000 per year. We have not raised tuition in the past three years, and this modest increase will help to offset the cost of providing high-quality adult education programs.

The total savings from these adjustments is $10,500 per year. This will allow us to meet our budget goals without impacting the quality of our programs.

I believe that these changes are necessary to ensure the financial stability of the Adult Education Department. I have carefully considered the impact of these changes on operations and other fields, and I believe that they will not have a negative impact on our ability to serve our students.

Thank you for your consideration.

Sincerely, [Your Name] Administrator, Adult Education Department

We are here to help

We have crazy offers

It’s quick and easy to place an order. We have an efficient customer service that works 24/7 to assist you.It’s quick and easy to place an order. We have an efficient customer service that works 24/7 to assist you.

We are here and ready to help

Order Now