Urban Arts Institute: Problems With the Budget Process and Recommendations

Urban Arts Institute Case Analysis
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Urban Arts Institute Case Analysis
Urban Art Institute was set up in 1911 as a private organization to provide art skills for business enterprises. The institute depended mainly on fees collected from tuition. There needed to be more contribution of funds from other channels for expenses.
1 What are the problems with the budget process at UAI?
# The problem with the budget process at UAI was how it was tracked. The budget report was collected from only 14 accounts, while the other hand, expense records were visible from 140 accounts, whereby the most significant expense record was personnel expenses (Fedorowicz,2020). The process used in preparing the budget in UAI was less effective due to poor communication from all the individuals involved. There were unrealistic goals and objectives since there needed to be written plans. Lastly, the institution depended on tuition fees for all day-to-day expenses.
2 What measures should Mr. Stanley put in place to assure Himself of a balanced budget in the upcoming fiscal year (FY, 1993)?
# Mr Stanley should implement the following measures to ensure a balanced budget in the upcoming fiscal year 1993. First, helpful information like a financial report should be recorded, stored safely, and share...