INLS 131
Management of Information Agencies
Fall 1999
Getting Ready for Class of Nov. 29, 1999
BUDGETING
There was no assigned reading for today. We will spend the period discussing how best to tackle the final assignment for the class -- the budget exercise.To help your thinking about it, below are some notes on budgeting that may be helpful to you.
Budgets -- NotesOne way to tackle the exercise is to do a simpler budget in a group. Here's an easier one that we may be able to do in class:
Assume you are responsible for setting up and managing an information support service. You will have two employees, both on salary for $35,000 per year. Both employees will require work-stations at a cost of $2500 each. Maintenance cost is expected to be 25% of the original cost (assumes a 4 year life). Your employees will be provided with office furniture and space. For the use of these and your use of utilities, you will be charged 20% of your operational budget. Supplies are estimated at $300 per year per employee (don't forget to include yourself). Estimated telephone charges are $60 per month. Additional operational expenses will include $3000 for training and development, $1000 for travel, $300 for memberships in professional associations, $500 for online charges and licensing agreements, $500 for books and journals, $300 for miscellaneous expenses. Calculate the budget and present it in a standard columnar format. In a second column, show how you would reduce your expenses if you were asked to take a 10% cut in the budget. Add a few comments to explain how you decided what and where to cut.Note: this in-class exercise is mostly to give you a few clues about types of operational expenses and some practice in putting the numbers in a standard form. We'll do the exercise in groups and put it up on poster sheets around the room so you can see how others handled it.BRING YOUR CALCULATOR TO CLASS! (unless you're an exceptional whiz at juggling numbers in your head)