Question

Assignment 2.

Personnel Expenses: you have been tasked with computing baseline budget targets for the upcoming budget cycle. Using table 12.2 as your starting point, make the following adjustments.

Personnel Expenses

Expenses Type	FY 2014
Salaries	$1,500,257
Fixed Benefits	534,240
Variable Benefits	262,545
Total Nonpersonnel	$2,297,042
FTE	50

1. All employees are expected to receive a 3% cost-of-living increase in the next year.

2. The fixed benefit rate will increase by $12.50 per full-time equivalent (FTE) employee. There are 50 FTEs.

3. The variable benefit rate will increase by 1.25% for all employees in the next year.

4. Budget baselines are not given out with cents, so round to the nearest dollar.

Answer 1

Budget for Personnel Expenses
Expenses Type	FY 2015	Calculation
Salaries	$      1,545,265	$ 1,500,257*103%
Fixed Benefits	$         534,865	$ 5,34,240 +(12.5*50)
Variable Benefits	$         265,827	$ 262,545*101.25%
Total personnel expenses	$      2,345,957

In case of any doubt, please comment.