Case problem of project chains-2-gains

Question

Problem:

Chains-2-Gains hires people just released from prison and put them into temp-to-perm jobs with their client employers. This helps ex-offenders to gain experience and skills and overcomes significant barriers to employment. The case manager conducts the initial interview and assessments.

Job Readiness Training & Job Placement Services:

Each employee attends readiness classes and network opportunities. Eligible workers who complete a required job readiness program are initially placed in a trial (transitional) job for 90 days. Upon completion of the probationary period, many employers hire the ex-offenders. Once long-term employment is secured, a case manager will continue to follow-up through visits to the job site or brief conference calls with clients and employers, but the intervals between follow-ups will lengthen.

In order to serve 35 clients, the program director needs to apply for funding for a grant. Grants require a project and operating budget. In order to get the program started, the program director must work as the case manager until other staff can be hired. However, the program manager has decided to add a part-time case manager until the program grows. The program manager has decided to ask a potential funder for $45,000 to cover direct costs.

REQUIRED TO DO:

Problem 1. Which amounts would you pull from the spreadsheet to cover only the project costs? Explain why and show breakdown on a spreadsheet.

Problem 2. Display total project costs including Executive Director's salary and part-time case manager.

Problem 3. Compute total operating costs.

Problem 4. Justify the need for $45,000.

Problem 5. Explain how these costs have been calculated and justify why each are needed to run the project.

(See attached spreadsheet for initial budget)

Project Chains-2-Gains           
Annual (12 Month)  Line Item Budget

		Expense Descriptions					Budget Amount
	Direct Staff Salaries and Benefits
	Direct Staff Salaries						$        204,697
	Direct Staff Benefits @ 21%						26,611
	Subtotal: Direct Staff and Benefits						$        231,308
	Direct Supplies and Services
	Office Supply						1,224
	Telephone, Internet & Cable						3,900
	Postage						502
	Rent						19,196
	Utilities						6,752
	Printing/Publication						3,000
	Janitorial Supplies						2,000
	Equipment Rental						3,150
	Subtotal: Direct Supplies and Services						$          40,944
	Subtotal: Direct Cost						$        272,252
	Indirect Admin (not to exceed 50% of Direct Cost)			% of direct costs			$        125,216	45.99%
	Total Ongoing Budget						$        397,468
	One Time Start Up Costs
	Furniture						$13,900
	Computer Hardware						$10,170
	Facility Renovation						$5,000
	Subtotal: One Time Start Up Costs						$29,070
	Contract Total Costs						$426,538
	Leverage Funds or In Kind Services &Supports						$50,000
	Grand Total						$476,538