Need to plan for reduced budgets


Problem:

I need to plan for reduced budgets, I must first identify where costs can be cut or reduced and still keep the my agency functioning.

Below are some data from the past year.

Program Area Costs
Administration
Salaries:

Administrator $60,000
Assistant $35,000
Two Secretaries $42,000
Supplies $35,000
Advertising and promotion $9,000
Professional meetings/dues $14,000

Purchased Services:
Accounting and billing $15,000
Custodial $13,000
Security $12,000
Consulting $10,000

Community Mental Health Services
Salaries (two social workers) $46,000
Transportation $10,000

Outpatient mental health treatment
Salaries:
Psychiatrist $86,000
Two Social Workers $70,000

Give a dollar range of costs to reduce budgets (worst and best case analysis).

I need to cut $94,000 in cost. Help prioritize those cuts that can be made without impacting the operation or quality care of the organization.

What would you advise to prepare for reduced budgets? (Summary)

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Accounting Basics: Need to plan for reduced budgets
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