Reduced Budget Allotment of Uptown Clinic
The total program area cost for the past year of Uptown clinic is $457,000. This is then needed to be slashed to $363,000 saving Uptown clinic $94,000 to cope with the reduced budget for the following year without sacrificing the quality of operations and quality care of the organization. How to cut $94,000? First of, Dr. White needs to lay off one of the administrations secretaries since one secretary is enough to answer phone calls, type papers, file documents and etc. Dr. White will save $21,000 in doing so.
Dr White may also want to lessen the salary of her personal assistant or even make do without it if she can. That should save her $35,000 of a fortune. Assistants are luxury. Dr White should sacrifice some considering the tight economic struggles. Second is lessening of budget for advertising for the fact that Uptown clinic does not sell products, they offer services. Word of mouth from satisfied patients is enough for promoting the clinic. Dr White should cut advertising to $2,000 saving the organization $7,000. Next is Dr. White should reconsider the hiring of consultants.
Consultants only advise you on how you should run the organization. If you know how and are familiar with how the organization works, then why hire a consultant? Also, for such a short term of planning, which is only one year, hiring consultants are really unnecessary. Making that move saves the clinic $10,000. Uptown clinic 3 Does the clinic really need that big of a budget for supplies? Cutting off $15,000 from the supplies budget would not hurt that much since most of the time we see employees wasting paper, losing pens, markers and etc.
organized handling of materials would solve the sky-high budget for supplies. Lastly, the organization should cut at least $1,000 on salaries of Psychiatrist, Two social workers, administrator, and the two social workers of the Community Mental Health Services saving them $6,000 or more. All in all, the organization would save $94,000 – $95,000 in executing the plan.
http://www. teachmefinance. com/capitalbudgeting. html (2010) http://www. studyfinance. com/lessons/capbudget/index. mv (2010)