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Contingency planning will help you make informed budget and management decisions. This resource will help you think
through possible reductions in income and expenses, and then consider the impact on your programs and organziation.


USING THIS BUDGET SCENARIO PLANNING WORKSHEET

The worksheet was developed using income and expense line items frequently used by nonprofit organizations.
It will require modification to match your organization's financial situation.

GENERAL GUIDELINES
Before using the worksheet, decide what types of scenarios will be helpful for budget planning. One approach is to
develop scenarios that gradually change assumptions. For example, a 10% reduction in grants for Scenario 1, then
a 20% reduction in Scenario 2. Another approach is to try different kinds of changes, such as reducing grants and
individual contributions in Scenario 1 and Government funds in Scenario 2. The same is true for the Expense worksheet.
Expense changes can be cumulative or you can try different expense budgets. Any approach that is helpful will work.

Consider the goals for the scenario plans. Do you want expense reductions to match income reductions, or will you seek
to reduce expenses more to allow for unknowns, or reduce expenses less and operate with an intentional deficit?

STEP 1 - INCOME SCENARIOS (GREEN TAB COLOR)
There are three worksheets included in the workbook for income scenarios. These worksheets have commonly
used categories of income listed but should be modified to match the organization. List the most important income
types in as much detail as is helpful. Input the amounts from the original budget.

The yellow highlighted cells will fill based on information you enter and fomulas in the worksheets. You can
change the formulas, but we recommend that you save a blank worksheet before you make changes to formulas.

Note that you MUST enter the total income budget number at the bottom of column C.

STEP 2 - EXPENSE SCENARIOS (RED TAB COLOR)
The expense worksheet provides three columns for different scenarios. The expense categories and types listed
are commonly used line items but should be modified to match the organization. Use as much detail as will be
helpful.

The yellow highlighted cells will fill based on information you enter and fomulas in the worksheets. You can
change the formulas, but we recommend that you save a blank worksheet before you make changes to formulas.

Note that you MUST enter the total expense budget number at the bottom of column C.

STEP 3 - SUMMARY OF SCENARIOS (ORANGE TAB COLOR)

The top half of the summary worksheet (Budget Impact) will automatically fill using data from the income and
expense scenario worksheets. This section will help you verify that the income and expense assumptions
balance out for each scenario.

The bottom half (Programmatic and Organizational Impact) provides space for a brief narrative. This summary
enhances the value of these worksheets for reporting and discussion.



This worksheet has been made available as a convenience for nonprofit managers. Nonprofits Assistance Fund makes
no assurances or guarantees of the accuracy of the formulas or the information. Please review all input and calculations
carefully before relying on this worksheet for financial management.



   Developed by Nonprofits Assistance Fund, Minneapolis MN                                www.nonprofitsassistancefund.org
                                                  Scenario Planning Income Worksheet Scenario 1                                                                      2/23/2011




                         Source of income                                     Estimated                                Potential budet
  Income Type                                             Budget                              Scenario Budget                                      Comments and strategies
                      (by category or specific)                             likelihood %                                 reduction


                   Annual fund                                 30,000                  80%              24,000                            Review campaign plan in July
                   Board giving                                15,000                  85%              12,750                            Board chair takes lead
  Individual
                                                                                                               -
 contributions
                                                                                                               -
                                                                                                               -
Subtotal                                              $        45,000                          $        36,750     $             8,250
                   Grant from Foundation A                     50,000                 100%              50,000                            Committed
                   Grant from foundation B                     30,000                  75%              22,500                            8 year funder, had conversation
                   Unidentified foundations                    50,000                  25%              12,500
    General
                                                                                                               -
operating grants
                                                                                                               -
                                                                                                               -
                                                                                                               -
Subtotal                                              $       130,000                          $        85,000     $            45,000
                   Grant from Foundation C                     75,000                 100%              75,000                            Multi-year commitment
                   Grant from Foundation D                     50,000                  80%              40,000                            Announced cutbacks
                   Unidentified foundations                   100,000                  25%              25,000
Program grants                                                                                                 -
                                                                                                               -
                                                                                                               -
                                                                                                               -
Subtotal                                              $       225,000                          $       140,000     $            85,000
                   Dept of Corrections                         50,000                 100%              50,000                            Contract in place for 3 years
                   Dept Human Services                         80,000                 100%              80,000                            With no state cut
                   County Human Services                       35,000                    0%                    -                          May be eliminated
  Government
                   Federal HHS                                        -                                150,000                            Not in original budget (submit for $200,000)
    funding
                                                                                                               -
                                                                                                               -
                                                                                                               -
Subtotal                                              $       165,000                          $       280,000     $          (115,000)
                   Contract with Agency A                      25,000                 100%              25,000                            Fully funded for 2 years
                   Program fees for east side site             75,000                  70%              52,500                            Sliding scale increase
Program service Summer program                                 15,000                  25%                3,750                           More scholarship applications
     fees                                                                                                      -
                                                                                                               -
                                                                                                               -
Subtotal                                              $       115,000                          $        81,250     $            33,750
                   Special event                               25,000                  60%              15,000                            Expect fewer table sponsors
                   Interest income                               8,000                   0%                    -
                   Sublet rent & concessions                   12,000                  65%                7,800                           Need new tenant
  Other types                                                                                                  -
                                                                                                               -
                                                                                                               -
                                                                                                               -
Subtotal                                              $        45,000                          $        22,800     $            22,200

Total Income                                          $       725,000                          $       645,800                 $79,200


                                  Scenario reduction in total income                                                             10.9%




                                            Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations          www.nonprofitsassistancefund.org
                                                  Scenario Planning Income Worksheet Scenario 2                                                       2/23/2011




                         Source of income                                Estimated                      Potential budget
  Income Type                                            Budget                       Scenario Budget                               Comments and strategies
                      (by category or specific)                        likelihood %                        reduction


                   Annual fund                              30,000              80%          24,000                        Review campaign plan in July
                   Board giving                             15,000             100%          15,000                        Confident based on discussions
  Individual
                                                                                                   -
 contributions
                                                                                                   -
                                                                                                   -
Subtotal                                             $      45,000                    $      39,000     $         6,000
                   Grant from Foundation A                  50,000             100%          50,000                        Committed
                   Grant from foundation B                  30,000             100%          30,000                        8 year funder, had conversation
                   Unidentified foundations                 50,000              40%          20,000                        Increased applications, good conversations
    General
                                                                                                   -
operating grants
                                                                                                   -
                                                                                                   -
                                                                                                   -
Subtotal                                             $     130,000                    $     100,000     $        30,000
                   Grant from Foundation C                  75,000             100%          75,000                        Multi-year commitment
                   Grant from Foundation D                  50,000              80%          40,000                        Announced cutbacks
                   Unidentified foundations                100,000              65%          65,000                        Have had 2 site visits
Program grants                                                                                     -
                                                                                                   -
                                                                                                   -
                                                                                                   -
Subtotal                                             $     225,000                    $     180,000     $        45,000
                   Dept of Corrections                      50,000             100%          50,000                        Contract in place for 3 years
                   Dept Human Services                      80,000               0%                -                       Contingency - possible cuts
                   County Human Services                    35,000               0%                -                       May be eliminated
  Government
                   Federal HHS                                    -                          75,000                        Not in original budget (requested $200,000)
    funding
                                                                                                   -
                                                                                                   -
                                                                                                   -
Subtotal                                             $     165,000                    $     125,000     $        40,000
                   Contract with Agency A                   25,000             100%          25,000                        Fully funded for 2 years
                   Program fees for east side site          75,000              77%          57,750                        Sliding scale increase
Program service
                Summer program                              15,000              77%          11,550                        More scholarship applications
     fees
                                                                                                   -
                                                                                                   -
Subtotal                                             $     115,000                    $      94,300     $        20,700
                   Special event                            25,000              70%          17,500                        Expect fewer table sponsors
                   Interest income                           8,000               0%                -
                   Sublet rent & concessions                12,000              80%           9,600                        Need new tenant
  Other types                                                                                      -
                                                                                                   -
                                                                                                   -
                                                                                                   -
Subtotal                                             $      45,000                    $      27,100     $        17,900

Total Income                                         $     725,000                          $565,400           $159,600


                                  Scenario reduction in total income                                              22.0%
                                                   Scenario Planning Income Worksheet Scenario 3                                                                           2/23/2011




                          Source of income                                      Estimated                                Potential budet
  Income Type                                               Budget                              Scenario Budget                                          Comments and strategies
                       (by category or specific)                              likelihood %                                 reduction


                   Annual fund                                   30,000                  70%              21,000                                Review campaign plan in July
                   Board giving                                  15,000                  85%              12,750                                Board chair takes lead
  Individual
 contributions

                                                                                                                 -
Subtotal                                                $        45,000                          $        33,750     $            11,250
                   Grant from Foundation A                       50,000                 100%              50,000                                Committed
                   Grant from foundation B                       30,000                  75%              22,500                                8 year funder, had conversation
                   Unidentified foundations                      50,000                  15%                7,500                               Endowments are dropping
    General
operating grants
                                                                                                                 -
                                                                                                                 -
                                                                                                                 -
Subtotal                                                $       130,000                          $        80,000     $            50,000
                   Grant from Foundation C                       75,000                 100%              75,000                                Multi-year commitment
                   Grant from Foundation D                       50,000                  70%              35,000                                Announced cutbacks
                   Unidentified foundations                     100,000                  15%              15,000                                More fdtns are focused on basic needs
Program grants
                                                                                                                 -
                                                                                                                 -
                                                                                                                 -
Subtotal                                                $       225,000                          $       125,000     $          100,000
                   Dept of Corrections                           50,000                 100%              50,000                                Contract in place for 3 years
                   Dept Human Services                           80,000                  50%              40,000                                Depends on state budget
                   County Human Services                         35,000                    0%                    -                              May be eliminated
  Government
                   Federal HHS                                          -                                 75,000                                Not in original budget (requested $200,000)
    funding
                                                                                                                 -
                                                                                                                 -
                                                                                                                 -
Subtotal                                                $       165,000                          $       165,000     $                      -
                   Contract with Agency A                        25,000                 100%              25,000                                Fully funded for 2 years
                   Client fees at east site                      75,000                  60%              45,000                                Sliding scale increase
Program service
                Summer program                                   15,000                    0%                    -                              May eliminate program
     fees
                                                                                                                 -
                                                                                                                 -
Subtotal                                                $       115,000                          $        70,000     $            45,000
                   Special event                                 25,000                  60%              15,000                                Expect fewer table sponsors
                   Interest income                                 8,000                   0%                    -
                   Sublet rent & concessions                     12,000                  65%                7,800                               Need new tenant
  Other types                                                                                                    -
                                                                                                                 -
                                                                                                                 -
                                                                                                                 -
Subtotal                                                $        45,000                          $        22,800     $            22,200

Total Income                                            $       725,000                          $       496,550                $228,450


                                  Scenario reduction in total income                                                               31.5%




                                              Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations              www.nonprofitsassistancefund.org
                                                     Scenario Planning Expense Worksheet Scenarios                                                                         2/23/2011




                      Expense item (list only line                             Reduction -           Reduction -           Reduction -
  Expense type                                         Original Budget                                                                          Comments and potential impact
                      items subject to reduction)                                level 1               level 2               level 3


                 Senior team salaries                          190,000                 9,000                9,000                 9,000 Senior team agreed
                 Program lead salaries                           72,000                      0              4,000                 8,250 Possible backlash to consider
                 Health program staff                            72,000              10,000                16,000                25,000 Will reduce capacity & clients
                 Development assistant                           26,000                      0              5,000                10,000 Cut hours, risk to grant efforts
   Salaries &
                 Site program staff                              38,000                      0             10,000                30,000 Eliminate site staff and cut program hours
    wages
                                                                                                                                           May result in no viable summer program




Subtotal of reductions                                                               19,000               44,000                82,250
                 FICA & Medicare                                                       1,400                3,550                 6,200
                 Health insurance                                63,000                      0              5,000                10,000 change employee share or plan
  Benefits and   Staff training                                   3,000                1,500                2,000                 2,000 reduce or eliminate seminars/conferences
     other       Recognition and staff events                     3,000                2,500                3,000                 3,000 staff suggestion



Subtotal of reductions                                                                5,400      $        13,550       $        21,200
                 Rent                                           42,000                       0                     0              9,000 try to terminate east side lease (partial yr)
                 Janitorial                                     16,000                       0              8,000                 8,000    divide among staff (will be unpopular)
  Occupancy      Landscape & snow removal                         7,000               4,000                 4,000                 4,000    cut landscape, reduce snow contract




Subtotal of reductions                                                                4,000      $        12,000       $        21,000
                 Supplies                                       18,000                3,000                 5,000                 8,000
                 Meals and annual meeting                       22,000                5,000               10,000                15,000 Annual meeting helps raise $
                 Printing                                       16,000                8,000                 8,000                 8,000    Reduce or cut newsletter/annual report
 Consumables




Subtotal of reductions                                                               16,000      $        23,000       $        31,000
                 Contracted client assistance                   20,000               10,000               20,000                20,000 Assign back to program leads (stressed)
                 Program development                            20,000               10,000               20,000                20,000     Risk - will stop progress on new model
   Program       Evaluation                                     22,000                       0            10,000                10,000     Can't eliminate program evaluation
  contracts &
   services



Subtotal of reductions                                                               20,000      $        50,000       $        50,000
                 Accounting services                            14,000                       0                     0              3,000 Complete 990 in-house
                 Legal                                            3,000               2,800                 2,800                 3,000    Rely only on pro bono
                 Strategic planning                             12,000               12,000               12,000                12,000     delay consulting
  Professional
                 Marketing & PR                                   7,500                      0              2,250                 5,000    impact on fundraising
      fees




Subtotal of reductions                                                     $         14,800      $        17,050       $        23,000
Total of reductions                                                        $         79,200      $       159,600       $       228,450
Grand Total Expenses                                   $       725,000


Scenario reduction in total expenses                                                  10.9%                 22.0%                 31.5%




                                             Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations             www.nonprofitsassistancefund.org
                                                                       Scenario Planning Summary                                                            2/23/2011




                                                                                  Income Scenario 1           Income Scenario 2           Income Scenario 3


                                             If income is reduced by                               -10.9%                      -22.0%                      -31.5%


                                           The budget gap would be                                (79,200)                  (159,600)                   (228,450)


                                          Expense reductions Level 1
BUDGET IMPACT




                                             Reduces expenses by                                  (79,200)                    (79,200)                    (79,200)


                                         Would result in budget gap of                                   0                    (80,400)                  (149,250)


                                          Expense reductions Level 2
                                             Reduces expenses by                                                            (159,600)                   (159,600)


                                         Would result in budget gap of                                                               0                    (68,850)


                                          Expense reductions Level 3
                                             Reduces expenses by                                                                                        (228,450)


                                         Would result in budget gap of                                                                                           0


                                                                                        Scenario 1                  Scenario 2                  Scenario 3


                                         Proposed Expense Reductions                              (79,200)                  (159,600)                   (228,450)
PROGRAMMATIC AND ORGANIZATIONAL IMPACT




                                                                                                            Larger reduction in
                                                                                  Some disruption at the                               Eliminate summer
                                                                                                         youth clients (20%) and
                                                                                   site program, small                            program, stop program
                                                                                                         half of summer program,
                                                                                    reduction in youth                                development, 40%
                                                                                                         most case management
                                         Programmatic impact narrative                 clients, case                                   reduction in youth
                                                                                                           assigned to program
                                                                                  management assigned                               clients and close east
                                                                                                         leads will cause delays.
                                                                                  back to program leads                            side office (will need to
                                                                                                            Stop new program
                                                                                    may cause delays                              deal with transportation)
                                                                                                                development




                                                                                                              Risk of too much added
                                                                                                                                         Both senior team and
                                                                                                               to program leads and
                                                                                  Program leads will have                               program leads may be
                                                                                                                 senior team, staff
                                                                                  more work added, slow                                      over-stressed,
                                                                                                               response to increase
                                                                                       down program                                     development assigned
                                                                                                             health care contribution,
                                         Organizational impact narrative            development project,                                back to ED could slow
                                                                                                                defer both program
                                                                                  delay strategic planning                                 down fundraising
                                                                                                             development project and
                                                                                     for at least a year,                                  activities, all new
                                                                                                              strategic planning for at
                                                                                   newsletter on-line only                                      projects
                                                                                                              least a year, defer new
                                                                                                                                          eliminated/deferred
                                                                                                               ROI evaluation project



                                                                                                                                         www.nonprofitsassistancefund.org
                                                Developed by Nonprofits Assistance Fund, Minneapolis MN, for use by nonprofit organizations

				
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