Project Budget
Fixed Costs
The first line of the financial plan is devoted to the description of fixed costs. The latter concept represents the expenditures that are constant throughout the analyzed period of time (Datar & Rajan, 2018). Firstly, telephone services include the mobile phone fees for two managers, which equal $200 each month. As such, it seeks to cover the phone calls that administrators would need to make to communicate with suppliers, clients, staff, and other people. Secondly, it is assumed that internet service fees will be paid by the building or facility administration where the mental health service will operate. In this regard, it is planned to pay $25 as a proportion of overall internet expenses. The internet is crucial for the project’s operations as it is assumed that part of the consultations with clients will be conducted online.
Next, the offices rental is also assumed to be constant throughout the year. In total, it is planned to rent five offices for managers and personal consultants and two group consultation rooms for group mental health service providers. It may seem first that the rental space does not fit the necessity of all workers, especially considering that private consultants should occupy one office. However, calculations were made based on the assumption that employees will work in shifts and, thus, use the same office during different days. Moreover, the corporate plan of the TherapyNotes program will be purchased every month for $59 (TherapyNotes, n.d.). Finally, office and equipment maintenance is also regarded as a fixed cost, but it is less predictable than other expenses in this category (Zhang et al., 2017). It is assumed that equipment and space sustenance would require around 10% of the total investments in laptops and mobile phones and rental expenditures accordingly.
Personnel Costs
Personnel expenditures can be both variable and fixed costs depending on the form of payment for labor. In the case of the current project, all the expenditures are predefined, and employees will receive fixed salaries. The latter was determined as an average wage in the region, but small corrections will be made during the process of employment as the experience and qualification of the workers will be considered. As for the number of professionals, the number of six personal consultants and four group consultants was determined to effectively satisfy the yearly demand for mental health services which approximately assumed to be 1800 patients. Additionally, certain amount of money was budgeted to conduct initial personnel training. In particular, the two managers will be taught about specifics concerning the work in the sphere of mental health service and some techniques on how to manage employees and relations with clients and suppliers effectively. Furthermore, both administrators and common workers will have the training concerning the usage of the TherapyNotes program.
Supplies and Investments
Medical and administrative supplies are variable costs as they depend on the demand. However, for the former, the budget assumes the approximate cost of $125 every month, whereas, for the latter, the biggest expenditures will incur during the first month and be equal to $210. Moreover, every three months, $100 would be spent to ensure that there are sufficient supplies, including pencils, papers, and notebooks, all the time. During the other months, supply costs are budgeted to be $10, considering some unforeseen expenses may occur.
Reference
Datar, S. M., & Rajan, M. V. (2018). Horngren’s cost accounting: A managerial emphasis. Pearson.
Principles of financial management. (n.d.). UCLA. Web.
TherapyNotes. (n.d.). TherapyNote pricing. Web.
Zhang, C., Gao, W., Guo, S., Li, Y., & Yang, T. (2017). Opportunistic maintenance for wind turbines considering imperfect, reliability-based maintenance. Renewable Energy, 103, 606-612. Web.