Caresafe Foster System Budget

Only available on StudyMode
  • Download(s) : 165
  • Published : October 30, 2011
Open Document
Text Preview
CareSafe Foster Systems Budget
Teresa Akers, Tara Bryant-Lowe, Charlene Carter,
BSHS/373
October 10, 2011
O. Biu

CareSafe Foster Systems Budget
The team reviewed the CareSafe Foster Systems Budget to see if changes needed to be completed. We asked questions that would assist in the company’s future budget to show stability and contribution gain. The company is learning what a workable budget is and the importance of it. We will give them four suggestions of how they can increase their surplus, and we will explain the pros and cons of each suggested method. We will give the company insight into issues that could occur if they do not put some programs into place. CareSafe is obtaining an education on how to structure their budget in the future for future growth. Importance of a Workable Budget

Dr. Drexel should know a workable budget should be a plan for the accomplishment of programs related to objectives and goals within a period or a fiscal year (Martin, 2001). A workable budget should indicate how much is being spent and when should the money be spent. The budget when allocated should indicate if the budget is unrestricted or restricted. Moreover, we would explain the three major budgeting systems: line-item budgeting systems, performance budgeting system, and program budgeting (Martin, 2001). These functions help explain the budget and how CareSafe money is being spent in detail with more of an explanation in many cases the budget we prepare provided information; however, information could have been explained in more detail with the various expense from the agency. At the end of the year the budgets are audited for compliance to ensure money was spent as it should and the organization accounted for funds being spent from the budget within the agency. Problems foreseen in CareSafe’s Financial Future

Caresafe’s future looks good. The contributions to the agency are steady as of the operating budget for the fiscal year. However, we believe the agency should work toward a surplus for the agency just in case there is an emergency. The expense doesn’t show too many discrepancies or anything that would be a problem in the future. The agency has done a good job with documenting expenses within the CareSafe Foster Systems Furthermore, the company should set up finance control to protect the finances of the organization to prevent any problems in the future. When preparing the budget, we did not see these options available within the budget. The agency should incorporate risk management in budget within the agency for financial protection. If CareSafe prepares line item budget to show additional inputs and outputs when the agency is being audited this will help the auditors with the agencies budget and will show details that are needed to ensure the budget is balanced. Caresafe’s budget looks good minor improvement should take place. CareSafe Foster Systems Budget |

Overall Budget |
| | | | | | | | | |
| | | | | Individual Counseling | Group Therapy | Parent Consultation | Home Assessment | Total| | | | | | | | | | |
| Number of Visits| | 4000| 5000| 7000| 7000| |
| Price per Visit| | 160| 100| 90| 55| |
| Total Revenue| | $ 640,000 | $ 500,000 | $ 630,000 | $ 385,000 | $ 2,155,000 | | | | | | | | | | |
| Variable Expenses per Visit| | | | | | |
| | Social Worker | | | | | | |
| | | minutes per visit| | 55| 50| 25| 10| |
| | | wage per minute| | $ 1.40 | $ 1.40 | $ 1.40 | $ 1.40 | | | | | total expense per visit| | $ 77.00 | $ 70.00 | $ 35.00 | $ 14.00 | | | | Administrative Assistant | | | | | | |

| | | minutes per visit| | 10| 15| 15| 10| |
| | | wage per minute| | $ 1.00 | $ 1.00 | $...
tracking img