Workstation Services Branch Financial Forecasting Project

Financial Forecasting and Analysis
(Assessing forecasting abilities and analysis summary preparation)
Scenario to forecast: Due to staffing shortages the Workstation Services Branch had previously submitted their
Q1 forecast to budget with no additional details. You have asked to develop their July branch forecast
submission for presentation to Branch.
Branch Details
Workstation Services branch provides workstations (e.g. laptops, desktops, etc.) and peripherals (e.g. monitors,
keyboards, etc.) to Core Government and some clients within the Broader Public Sector.
Requirements
Using the attached document develop the Workstation Services Branch forecast. Use additional tabs for any
backup calculations you require and use formulas wherever possible. For each line, note any assumptions
you’ve made, and any issues or risks to the branch budget that you’ve identified.
Please draft a brief forecast summary to your Supervisor outlining the fiscal position of the branch and any risks
or concerns.
Additional Information to Support Development
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Workstations are capital expenses, while peripherals are mostly expensed.
All Capital is amortized over 3 years, the branch is expected to purchase workstations in December but
received and in service January – Total cost of $1,200,000
The YTD amortization charge is for current info-systems with a useful life that end April 1, 2024
There are 12 positions within the branch (all budgeted for the entire year), including 2 vacancies that
have just been approved to fill (which have been vacant since the beginning of the fiscal). 2 Staff also
decided to retire at the beginning of the fiscal year – they came off payroll at the end of June.
Starting July 1st, all salaries will go up by 1%. The branch has been asked to absorb this within their
current approved budget.
Approval for travel has now been delegated from the Assistant Deputy Minister to the Workstations’
Executive Director.
No additional Professional Advisory services are expected, current contracts are set to expire March
31st.
One additional Professional Services $120,000 contract is expected to start in January and is one year in
length. The current contracts in place are all set to expire September 31st 2023.
No additional minor
Annual
Budget
YTD June
30th Actuals
EXPENSES
SALARIES
OVERTIME
SUPPLMENTARY SALARY COSTS
EMPLOYEE BENEFITS
TOTAL SALARIES AND BENEFITS
TRAVEL
PROFESSIONAL SERVICES
PROFESSIONAL SERVICES ADVISORY
MINOR PURCHASES
SOFTWARE LEASE/MAINTENANCE COSTS
ONE-TIME INSTALLATION CHARGES
OTHER INFO. SYSTEMS COSTS
SUB-TOTAL OPERATING
$1,200,000
$120,000
$60,000
$288,000
$1,668,000
$12,000
$60,000
$60,000
$600,000
$120,000
$120,000
$480,000
$1,452,000
$250,000
$50,000
$15,000
$60,000
$375,000
$0
$25,000
$25,000
$60,000
$30,000
$0
$100,000
$240,000
TRAINING – BOOKS, SUPPLIES & FEES
OTHER OFFICE & BUSINESS
SUB-TOTAL OFFICE & BUS. EXP
AMORTIZATION – INFO SYSTEMS
TOTAL EXPENSES
$12,000
$12,000
$24,000
$2,220,000
$5,364,000
$0
$3,000
$3,000
$525,000
$1,143,000
(LESS) RECOVERIES
-$3,500,000
-$800,000
GRAND TOTAL (NET)
$1,864,000
$343,000
Current Forecast
Total
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Variance to
% Variance
Budget
to Budget
Over (Under)
$0
0%
$0
0%
$0
0%
$0
0%
$0
0%
Assumptions/Comments
0