Assignment
You've been asked by the Executive Director of the Alphabet City Settlement House (ACSH) to prepare an annual budget for a grant proposal to fund a meals, health, and well-being program for senior citizens. The proposal will be submitted to the family foundation of a friend of one of ACSH's trustees. The family foundation's general policy is to pay an overhead rate of 10 percent of total costs, to cover administrative costs incurred by the grantee organization. You will need to include that overhead figure in the budget you are preparing. The other revenue and costs are as follows:
• Revenue: Fees to be charged of $25 per month per program participant. The program is also being given the free use of space that would otherwise cost $10,000 annually to rent.
• Personnel Service Costs: 5% of an Executive Director's time @ $180,000, 10% of a Program Coordinator's time @ $110,000; 100% of a Program Director @ $60,000; 100% of a part-time Registered Nurse @ $50,000; 100% of a Program Assistant @ $40,000. The fringe benefit rate is 20%. The RN already works full-time at a local hospital and can only handle a maximum workload of 100 senior citizens in her limited time available.
• Other-than-Personnel Service Costs: Food and vitamin supplies, $50 per month per program participant. Exercise balls and other exercise and minor medical equipment, $20,000. (Assume all of this is below ACSH's capitalization threshold.) In-kind use of space - see revenue. Utilities, $8,000.
In the program's first year, ACSH expects to serve 80 senior citizens. How much money should ACSH request from the foundation, including the overhead amount, to allow the program to break even? Prepare a line-item budget to support the request.
ACSH was unsuccessful in obtaining the foundation grant that they tried to solicit on the prior slide, because that foundation had already awarded all available grant funds for the year in question. However, the trustee promised to give a gift of $250,000 to kick-start the program this year until it could apply for a grant from the foundation for the following year.
The Executive Director wants to know the answer to three questions:
• If we ignore the overhead component of costs, how many seniors can participate in the program at the break-even point?
• If ACSH wanted to reallocate money from its existing organizational operating budget, so as still to be able to have 80 participants in the program, how much would it need to reallocate?
• If ACSH wanted to grow the program to 110 participants next year, are there any special considerations (outside of routine inflationary increases) that could significantly affect the amount of money to be requested from the foundation?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.