Dr. Stephanie White, chief administrator of the Uptown Clinic, a community mental health agency, worries about the dilemma of meeting tight budgets next year and into the foreseeable future but growing demand for services. To plan for budget reductions, you must first identify where costs can be cut or reduced and still keep the agency operating. Below is some data from last year. You need to reduce costs by $94,000. Prioritize cuts that can be made without compromising the organization's operation or quality of care. Program Area Current Costs Proposed Cuts New Budget Administration Salaries: Administrator $60,000.00 $(20,000.00) $40,000.00 Assistant $35,000.00 $(35,000.00) $ -Two Secretaries $42,000.00 $- $42,000.00 Supplies $35,000.00 $(12,000.00) $23,000.00 Advertising and Promotion $9,000.00 $-$9,000.00 Professional Meetings/Fees $14,000.00 $(14,000.00) $ -Purchased Services : $ -Accounting and invoicing $15,000.00 $ - $15,000.00Custodial $ 13,000.
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