Budget Proposal Memo
You are the financial manager for a small outpatient clinic. Due to the passage of the Affordable Care Act, your organization was required to change insurance companies to meet the guidelines and expectations within the ACA. Salaries increased in FY 2017 due to hiring new personnel. Utilizing the attached balance sheet, create a memo to the Board of Directors regarding the budget proposal for next fiscal year.
- Using the provided balance sheet, identify three areas of budgetary concern.
- Create a memo that identifies the three major areas of concern over the past year. For each of the three areas of concern:
- Use the memo template in Microsoft Word (or another template) to format the memo.
- Summarize the current status in 75 words or less.
- Recommend one possible solution for improvement or sustainability for the Board to consider when voting to approve next year’s budget.
Unit 3 Assignment 1: Budget Proposal Memo – Balance Sheet
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Order Paper NowASSETS 2016 2017 Current Assets: Cash and cash equivalents $125,000 $200000 Short-term investments $575 $600 Accounts receivable $1500 $1700 Inventories $135 $150 Total Current Assets $127210 $202450 Investments: $800 $850 Property & Equipment: Medical equipment $600 $650 Office equipment $250 $800 Total $850 $1450 Accumulated depreciation ($126) ($135) Total Assets: $128734 $204615 LIABILITIES & EQUITY Current Liabilities: Salaries $175000 $225000 Benefits $1750 $2500 Accrued expenses $1100 $1200 Bad debt $375 $1500 Total current liabilities $178225 $230200 Long-Term Debt $1500 $1500 Total Liabilities & Equity $179725 $231700
