Department Budget Analysis – Voice Note

Department Budget Analysis – Voice Note

“Hello, and welcome to the presentation on assessment 4. We have come from far regarding the preparation of budgets, and now we have reached a point where I can handle a department budget. Notably, this presentation provides a presentation for the presented case scenario. In this presentation, three budgets are presented, which include the current year’s budget, a three-quarter progress on the expenditure projections, and a proposed budget for next year. More attention is accorded to the proposed budget for next year and various aspects surrounding its preparation will be explained in this presentation.

To start with, the proposed budget is taking a conservative approach whereby no deficit is expected to occur in the period for which the provisions are made. According to Garcelon et al. (2020), a conservative approach to budgeting leads to the preparation of budgets that can sustain the worst scenario cases in the period for which projections are made. For the case scenario proposed budget, several events are likely to disrupt the operations of the company. However, the company will sustain the changes because a conservative approach is taken. Specifically, three aspects are considered. First, the proposed budget takes into consideration a 3% adjustment for the cost of living, which is being rumored in the market. Even if this happens, the proposed budget intends to keep employees paid to their current standards, and thus, the compensation for salaried and nonsalaried employees will remain the same. However, their benefits will be cut a bit to support replacing computer equipment that is outdated which is an indirect way of making their work easier amidst a high cost of living.

The budget is also conservative in the sense that allocation is increased toward vehicles even though not much of them will be needed next year. Essentially, this means that the company will manage to make savings or respond to arising costs that may not have been predicted. Specifically, the proposed budget for next year is based on the considerations of the cost-of-living increase, planning for the replacement of outdated equipment, and vehicle considerations. In line with this, the budget for vehicle maintenance is adjusted to $700 because it is expected to be below, as the vehicles won’t be required much in the coming year. However, the budget for vehicles is increased by $2,400 to cover the increased expenses related to the vehicles due to the increase in cost of living. Further, the cost-of-living adjustment is reflected in the cost of utilities, liability insurance, and the cost of computers. It is worth noting that the cost of computer adjustment is relatively high due to the replacement of outdated equipment. To achieve this, miscellaneous expenses allocation will be reduced by $4,000, contracts by $2,000, benefits by $15,000, liability insurance by $7,250, and vehicle maintenance by $200. Notably, these adjustments are made in relation to the current year’s budget.

To better understand the numerical figures of the budget presented, the data for the three budgets is presented in visuals as given in the Excel prepared. To express the budget in visuals, I chose to use bar graphs and a pie chart. The selection of these graphs and a pie chart was influenced by the simplicity that they entail while preparing and presenting them. Essentially, Pie charts and bar graphs are simple but communicate significant information to the user of the information. Thus, they are easy to use by both parties in the communication circle. Individuals intending to understand the information from my personal financial analysis can use the graphs as supplementary support for the budget schedules. Notably, this will entail considering the scale used in the y-axis and x-axis to see which elements consume what portion of the income earned. The graphs used are considered better than other graphs because others, like line graphs, are unclear regarding understanding and presenting data that entails a comparison of various elements across different periods (Güngör Göksu, 2023). Additionally, the graphs utilized are better because they are less complex and use appealing format formats to the eyes of information users.

Overall, budgeting for the company’s next year’s operations is conservative and realistic. Even though the income will remain constant going into the next year, the approach ensures that the company will remain competitive and viable. Notably, this is achievable through adjustments based on the prevailing conditions that are predicted for the next year. However, budgets are not always as accurate as predicted, and adjustments may be required to ensure proper running of business errands. For instance, areas where overbudgeting may have been done will receive cuts, and the amounts directed to areas where underbudgeting may have been done. I wish to thank all of you for paying attention to the presentation and hope there is something that everyone got.

Thank you.”

References

Garcelon, E., Ghavamzadeh, M., Lazaric, A., & Pirotta, M. (2020, June). Conservative exploration in reinforcement learning. In International conference on artificial intelligence and statistics (pp. 1431-1441). PMLR.

Güngör Göksu, G. (2023). A retrospective overview of the Journal of Public Budgeting, Accounting and Financial Management using bibliometric analysis. Journal of Public Budgeting, Accounting & Financial Management, 35(2), 264-295.

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For this assessment, you will be drawing upon your problem-solving, agility, and technology skills to design and effectively communicate a budget that works.

Department Budget Analysis – Voice Note

Overview
As a departmental or organizational leader, you are likely to be required to prepare a proposed budget for each fiscal year. Budgets provide parameters for achieving goals. Spend too much and you’ll have a deficit. Spend too little and you could have a surplus, which may not be a good sign if organizational goals have not been met. Using technology can help you stay organized throughout your analysis, as well as help you visualize financial data. Displaying the data visually will allow you to observe general trends in your department finances and to communicate about them effectively to stakeholders.