Assignment Detail

The text for this course is Budgeting & Financial Management for Nonprofit Organizations by Weikart, Chen and Sermier.

Each student will submit the assignment using excel document and/or word or .pdf document.

Question 1. ASSESSING FIXED AND VARIABLE COSTS

Hope For All has recently received a contract from the state government to expand its job training program. The program will last for at least one year and will likely continue in the future. The expanded program will need an assistant director to manage the extra work flow; this employee’s salary will be $70,000 per year. The estimated rent for a facility to house the program will be approximately $20,000 for the next twelve months. The utilities, insurance, and custodial services are estimated to be $10,000 yearly. The facility can accommodate up to one hundred people. The expanded program will also hire extra teachers/trainers, each of whom can teach up to twenty trainees. The salary for the teachers is $50,000 per year. Each of the program participants will receive a set of textbooks and other teaching materials, estimated at $1,000 dollars per person. For simplicity, other potential costs are not considered for this case.

What are the program’s fixed costs, variable costs, and step costs?

What will the total cost of the program be if the program enrolls fifty students?

Question 2. IDENTIFYING TYPES OF COSTS

A settlement house is sending in a grant proposal to a foundation to establish a computer lab for its after-school program. Identify each of the following costs by type: direct, indirect, fixed, variable, start-up, and/or in-kind.

1. Costs of printer ink

2. Salary of grant writer

3. Costs of computers

4. Costs of using the space

5. Costs of renovating the space 6. Costs of utilities

7. Salary of computer specialist

Question 3. CALCULATING FUTURE VALUE

Your nonprofit organization has received a temporarily restricted fund of $100,000 to be used in five years. You can deposit it in a bank to earn 6 percent interest compounding yearly. How much will you have in five years?

Question 4. APPLYING INTERNAL CONTROL POLICIES TO GUARD AGAINST THEFT

A small nonprofit organization, a junior football league, discovered that its treasurer had stolen more than $50,000 from the league over a two-year period. The treasurer had sole responsibility for writing and depositing checks. What internal control policies should have been in place to prevent such theft?