Part 1 – Last page ofSpreadsheet

1.Read thecase study description found on page 175 of your text.

2.Using thedata provided in the spreadsheet above to complete your budget tab (8.5).Round all numbers to the nearest $1,000, dropping the zeros (i.e., all numbersexpressed should be in thousands of dollars. $123,115 would be rounded down andentered as $123).

3.You areencouraged to seek entrepreneurial solutions in your budget.

Part 2 – Analysis andRecommendations

You will complete a narrativedocument that describes the current financial situation of the organization,and a written line-item justification for your budget recommendations.This should include:

1.Asindicated on tab “YM 8.3 Template”, calculate all ratios relevant to thisorganization.

2.Describethe health of the organization financially, including discussion of ratiosrelative to benchmarks as appropriate.

3.Anexplanation of how you arrived at each line item in your budget proposal, andany assumptions you have made.

4.Anyadditional recommendations you may wish to make (long-term strategies, ethicalconsiderations, proposed policies, etc.).

Submityour Excel spreadsheet and Analysis/Recommendation Word document.

Case Study description from page 175of text below:

CASESTUDY: CREATING A BALANCED BUDGET FOR MANAGEMENT DECISION MAKING It isSeptember 1, 2011. The executive director of the nonprofit organization YouthMovement has just resigned to accept a position with another youth-servingorganization. You are the director of programs for Youth Movement and have beennamed interim acting executive director. In June 2011, the prior executivedirector did not present a FY 2011/12 (July 1, 2011–June 30, 2012) proposedbud- get for approval by the board of directors because he had recently becomeaware of the following financial problems for FY 2011/12:

■■ The federal grant for the HOPE program wasgoing to be reduced by 50 percent.

■■ The corporate grant for general support(unrestricted) was going to be eliminated.

■■ The individual contribution for generalsupport (unrestricted) was going to be eliminated.

Given these large financial problems, theboard of directors told the executive director that he could take “a fewmonths” to determine how he would propose a balanced budget with costreductions and/or revenue increases. He never completed the task. The board ofdirectors has now instructed you to present a FY 2011/12 balanced budget forapproval by the board no later than September 30, 2011. Using Tables 8.12through 8.15 for reference, follow the steps outlined below to build a balancedbudget proposal. The data you will need include Youth Movement’s currentstatement of financial position, statements of activities with comparativedata, a trial balance sheet, and details of temporarily restricted net assets.