Uptown Clinic Budget Review

Introduction

The Uptown Clinic is a community mental health agency that is preparing for potential cutbacks in funding. Like most businesses in the current economy, there is a high demand for services with a lack of funds. By assessing the current budget, the following recommendations are made to keep the agency as productive as possible, while cutting back on overhead expenditures. Please review this narrative report with the attached excel spreadsheet. This narration will provide a description on why the proposed budget cuts were advised.

Review

Suggested Cuts

By reviewing the current cost on the attached excel document, the following suggestions have been made.

The Administration is top heavy and utilizes 43% of the budget.

* Secretary - Assistant and administrator can help with administrative duties. Having one secretary or part time position will alleviate the extra duties administrative duties and will not impact the operation of the clinic.

Best case: Make one secretary position part time. Savings of $11,000.

Worst case: Eliminate one secretary position and make the other part time. Savings of $31,500.

$94,000 cut: Eliminate one secretary position. Savings of $22,000.

* Supplies - $35,000 in supplies is rather excessive for a mental health clinic. A thorough review on supplies needed is recommended. By being more conservative with shopping for supplies, big savings can be accomplished. In the interim, the following suggestions are made as supplies are extras and not what makes this organization function.

Best case: 29% was trimmed at $10,000.

Worst case: 57% was cut in the amount of $20,000.

$94,000 budget: 43% was cut in the amount of $15,000.

* Advertising can also afford to be trimmed back. Review marketing strategies and initiate smarter yet cost efficient ways of promoting available services. Word of mouth through local doctor offices, insurance companies and hospitals, along with fliers gets the information out to potential clients in need of service.

Best case: Deducting $1000 will help cut the extra fat off but leave a large amount to work with in promoting the clinic.

Worst case: The budget would be cut by 56%. $4000 can be utilized wisely to help advertise clinic services.

$94,000 budget: $2000 was cut.

* Professional meetings/dues - In the field of psychiatry, social work and counseling, there are a certain amount of hours of training a year that must be met to maintain licensing renewal. (ABPN). As fees and requirements vary from state to state, funding is needed to cover these. However, meetings and travel can be cut back. Video or tele-conferences are recommended as well as the following cuts listed on the excel spreadsheet.

Purchased Services are outsourced contractors to assist in areas that are not the clinic's main focus of service. This is 11% of the clinic's current budget. Recommendation for cut backs are as follows.

* Accounting and billing. Due to the nature of importance, only in worst case scenario is it recommended to cut back on this service.

* Custodial - Recommended cutting back 1 cleaning per week in best case, having the service cut by half in worst case and by 37% in the $94,000 budget.

* Security - Security is important in the well being of the employees as well as clients. Reviewing location of clinic and hours in which security is most needed are requested. In best case, no cuts are made. In worst case, we recommend service be cut by half. For the $94,000 budget, it is recommended manning be cut back so budget can be cut by 20%.

* Consulting - More information is requested on what the consulting is for. In mental health, consulting is used for patient's guides and advice. The questions remain, is this for patients of for the firm itself? If consulting is for the firm, the company has been practicing for a while and should not need as much direction. The following cuts have been suggested.

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