Managerial Accounting

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

Budget Cut Recommendation

This table represents all the areas that our funds are allocated. In an effort to “trim-the-fat”, I classified the expenses in two categories: 1. Committed Costs and 2. Discretionary Costs.

You can clearly see on the table where our expenses lie. I classified the following as Committed Costs that are ongoing and are necessary to the running of the Clinic. They are as follows:

1. Psychiatrist

2. Social Workers

a. One in Out-Patient

b. One in In-Patient

3. Security

4. Secretaries

5. Supplies

6. Custodial (At least 50%)

For the Second Group, Discretionary, I divided it into two subcategories:

• 100% Cut

1. Assistant

2. Secretary

3. Professional Dues