HSM 2602007CURRENT RATIO= Current Assets/Current Liabilities 104, 296/139, 017= 0. 75LONG TERM SOLVENCY RATIO= Total Assets/Total Liabilities 573, 948/171, 229= 3. 35CONTRIBUTION RATIO= Largest Revenue/Total Revenue 547, 896/1, 095, 792= 0. 5PROGRAM/EXPENSE RATIO= Total Program Expense/Total Expense 614, 105/1, 069, 590= 0. 57GENERAL and MANAGEMENT & EXPENSE RATIO= Total General and Management/Total Expense 351, 000/1, 069, 590= 0.
33REVENUE/EXPENSE RATIO= Total Revenue/Total Expense 1, 095, 792/1, 069, 590= 1. 022008CURRENT RATIO= Current Assets/Current Liabilities 82, 058/93, 975= 0. 87LONG TERM SOLVENCY RATIO= Total Assets/Total Liabilities 555, 610/166, 004= 3. 34CONTRIBUTION RATIO= Largest Revenue/Total Revenue 912, 560/1, 525, 346= 0. 6PROGRAM/EXPENSE RATIO= Total Program Expense/Total Expense 983, 541/1, 464, 541= 0. 67GENERAL and MANAGEMENT & EXPENSE RATIO= Total General and Management/Total Expense 351, 000/1, 069, 590= 0. 33 REVENUE/EXPENSE RATIO= Total Revenue/Total Expense 1, 525, 346/1, 464, 541= 1.
04All ratios are extremely significant to a human service organization. The ratios alleviate the willpower of the organization in manufacturing the capital or losing funds. The intentions for current ratio are to evaluate the human service organization??™s assets and liabilities.
The objective of the long-term solvency ratio is to review the resources of a human service organization of their earnings as they may be anticipated. The intentions for the contribution ratio are to evaluate the human service organization confidence within the organization??™s largest revenue resources. The objective of the programs/expense ratio is utilized by contributors and supporters to formulate the assessment about any funds and/or resources that have been offered or permitted. The principle for general and management/expense ratio is to establish the quantity of a human service organization??™s outflows that will lead towards the direction of the organization??™s goals and objectives.
The intentions of revenue/expense ratio will be to resolve an organization on handling the finances. The XYZ Non-Profit Corporation has been advancing with figures from the ratios of the individuals utilizing the expenses for case management, housing, and any other program or services made available. The ratios give the impression that the corporation seems keep doing better year after year. The finances have increased over the years. The cash net increase over the years. By the last year that was reported XYZ Non-Profit Corporation was increased to $219, 112 and the more individuals that has been service the revenue over expenses will steady increase.
The steady increase from the ratios that have been examined the corporation will enhance the community year after year. XYZ Non-Profit Corporation will continue to prosper and become triumphant, yet profitable human service organization. 2007XYZ Non-Profit CorporationFixed Cost: Rent and Utilities (48, 000) + Telephone (24, 000) + Other (104, 485) + General and Management (351, 000) = 527, 485Variable Cost: Payroll and Benefits (417, 004) + Supplies (125, 101) = 542, 105/5962= 90.
93Break-even Point (PX= A + BX)P= 1, 095, 792/5962= 183. 80183. 80X= 527485 + 90. 93X183. 80X (-90. 93x) = 527485 + 90.
93x (-90. 93x)92. 87X= 52748592. 87X/92. 85= 527485/92. 85X= 5681.
042008XYZ Non-Profit CorporationFixed Cost: Rent and Utilities (52, 000) + Telephone (30, 000) + Other (130, 000) + General and Management (351, 000) = 563, 000Variable Cost: Payroll and Benefits (736, 541) + Supplies (165, 000) = 901, 541/6821= 132. 17Break-even Point (PX= A + BX)P= 1, 464, 541/6821= 214. 71214.
71X= 563000 + 132. 17X214. 71X (-132.
17X) = 563000 + 132. 17X (-132. 17X)82. 54X= 56300082. 54X /82. 54= 563000/82. 54X= 6820. 94Line item budgets are helpful to a human service organization because it systematize expenses and profits.
The line item budgeting system is the commonly most utilized budgeting system in human service organizations. The objective of line item budgeting is to manage the monetary as an organizational tool to impact their expenditures. The human service organizations financial plan will be annually to compare each year of service. This permits the program administrators, sponsors, donors as well as the human service workers and volunteers to establish the quantity of supplies and other sources to allocate and make limits for several programs. The two areas within the line item budget those individuals that the organization should focus on are the expenses and revenues. The biggest drawbacks of a line item budget are the unbalanced budget being balanced incorrectly. A human service organization wants to help every participant than the resources must be accurate to evade any ruptures within the human service organization. A line item budget is designed to simplify an organizations opt for the right budgeting system.
Performance budgeting system narrates the expenses of programs and services which expose the output performance, program expenses, and the cost per output. Budgeting system is designed to attain the expenses of each level within the organization. The advantage of the performance budgeting system is to enlighten the staff a great deal with inputs and outputs of the organization involving the expenses. Performance budgeting will concentrate on goals, objectives, and missions of the human service organization. The imperative thing about the budgeting systems is the production and connecting of the participants with the human service organization. The disadvantage of performance budgeting system is harder to calculate.
Most employees will be unable to calculate the expenses and cost per output in order for the organization to flow effortlessly. The nerve-racking, demanding part of it all is that each and every program will have a calculated budget that must be precise in order to be efficient. A program budgeting system will communicate the human service organization??™s expenses per program. The program budgeting system evaluates the program outcomes. The cost of the program will be conquering through the results of the organization??™s outcomes.
To figure out the human service organization has to obtain the entirety of the financial year which will separate the funding for the programs. This offers the organization a chance to display the cost per outcome. The advantages of the program budgeting systems are the specification of analysis on the outcomes completed by the organization??™s attendance and expenses. This advantage will consent to elevate the level of service within the organization and proficient concerns for the community while establishing longevity. A disadvantage of the program budgeting system is hard to cultivate a good outcome.
A human service organization programs will have no universal appraisal recognition since the existence of conformity between the stakeholders and organizations is absent. The human service organization will acquire the expenses for each year and segregate or break up the coverage of programs that is required by the quantity of finances needed to administrate. The financial support is essential for a human service organization to exist in this society. Without financial support the organization will be in turmoil with no grants and loans. The human service will need support through funding support via grants. Grants come in two forms: (1) Public and (2) Private. Public grants have the most extremist rules and regulations in order to be awarded.
Well as private grants can alleviate a human service organization to become more tranquil and stress free. The funding options can be through raffle tickets, car washes, or grants and loans. The ideas, regardless of how grand or diminutive it may be, is to increase productive ways to acquire funding quickly to apathetic incidents. Fundraisers are measured to be the majority of obtaining resources in a nontraditional fashion.
The human service organization needs to rise by submission of services, food, or discounted price services within the community of the XYZ Non-Profit Corporation. These profits are going to the organization??™s longevity. The other funding option would be fundraising. Donators, sponsors, and/or vendors would request to seize fragments within fundraising community would be the midpoint of the human service organization. The human service organization fundraiser would advertise booths, stands, or tables for a price that will help with financial backing. The XYZ Non-Profit Corporation will also have grants and loans that they can apply for in order to receive a substantial amount of finances.
There are plenty of grants and loans that may apply for, but the human service organization will have to do the research and find the right grants that relate to their goals, objections, and missions. The grants will also have rules and regulations that the XYZ Non-Profit Organization will have to abide by in order to be rewarded. XYZ Non-Profit Corporation can maintain to assist more individuals each and every year and however still formulate an extensive profit.
