Health insurance for Veterans Affairs 1. In this assignment, as a group, you will select the change management model and justification you want to use for your project based on the submission from th

Prepare a one-page budget detailing the expenses and revenues needed to make the changes.

The VA project budget for the Chittenden group with a Contingency plan

expenses of $7,250

income of $25,000

resulting in a balance of $17,750

This means that the project will generate a profit of $17,750 after accounting for all the expenses.

When planning a project budget, there are several financial considerations to keep in mind:

Cash Flow: Ensure enough cash is available to cover the project’s expenses as they occur. This includes both the initial costs and ongoing operational costs.

Return on Investment (ROI): Consider the expected return on investment. This is the benefit to the investor from investing some resources. A high ROI means the investment gains compare favorably to its cost.

Cost-Benefit Analysis: Conduct a cost-benefit analysis to compare the project's costs against the expected benefits. The goal is to ensure that the project will provide value and that the benefits outweigh the costs.

Indirect Costs: Don’t forget to account for indirect costs. These costs are not directly accountable to a cost object (such as a particular project, facility, function, or product). Indirect costs may be either fixed or variable. Indirect costs include administration, personnel, and security costs.

Time Value of Money (TVM): The time value of money (TVM) is the concept that money available at present is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest; any amount is worth more the sooner it is received.

Tax Implications: Depending on the nature of the project and your organization, tax implications may be associated with the project’s expenses or revenues. Understanding these implications and planning for them in your budget is important.

Financial Risk Management: Identify potential financial risks and develop strategies to manage them. This could include market fluctuations, regulatory changes, or other factors impacting your project’s financials.

Remember, financial planning is a critical aspect of project management and can significantly contribute to success. It’s always a good idea to consult a financial advisor or someone with financial expertise when planning your project budget.

Determining the appropriate size for a contingency fund often depends on the nature and complexity of the project.

Here are some factors to consider:

Risk Assessment: Conduct a thorough risk assessment of your project. Identify potential risks and their likelihood. The higher the risk, the larger your contingency fund may need to be.

Project Complexity: More complex projects typically require a larger contingency fund due to the increased likelihood of unexpected events or costs.

Experience: Use data and experiences from similar projects from the past. If previous projects often encountered unexpected costs, setting aside a larger contingency fund might be wise.

Industry Standards: Some industries or companies have standard percentages that they add to budgets for contingency funds. This is often between 10% and 20% of the total project cost.

Remember, the goal of a contingency fund is to ensure that your project can continue smoothly, even when unexpected costs arise. It’s better to overestimate your contingency fund and have funds left over than to underestimate it and run out of funds before your project is complete.

To create a detailed budget for the Chittenden Group's VA project, identifying all expenses and revenues to determine the final balance.

Available Data

• Total Expenses: $7,250

• Total Income: $25,000

Approach

1. Identify and List Total Income

• Determine all sources of income.

• Sum up the total income.

2. Identify and List Total Expenses

• Determine all types of expenses.

• Sum up the total expenses.

3. Calculate Balance (Profit)

• Subtract total expenses from total income to find the balance.

Calculations:

• Step 1: Calculate Total Income:

• (Total Income= $25,000)

• Step 2: Calculate Total Expenses:

  • (Total Expense= 7,250)

• Step 3: Calculate Balance (Profit):

  • (Total Income- Total Expense =$25,000-$7,250 = $17,750)

Budget Summary

1st step:

The Chittenden Group's VA project budget involves determining the total income and expenses to find the project's net profit. The total revenue for the project is $25,000, while the total expenses amount to $7,250. The resulting balance or profit is $17,750 by subtracting the expenses from the income. This calculation shows that after covering all costs, the project will generate a profit of $17,750, indicating a successful financial outcome for the Chittenden Group.

Final Answer

After accounting for all expenses, the Chittenden Group's VA project budget results in a profit of $17,750.

Chittenden Group VA Project Budget

## Revenues

| Source | Amount |

|--------|-------:|

| Income | $25,000|

## Expenses

| Item | Cost |

|------|-----:|

| Project Expenses | $7,250 |

## Summary

| | Amount |

|--------|-------:|

| Total Revenues | $25,000 |

| Total Expenses | $7,250 |

| Balance (Revenues - Expenses) | $17,750 |

This budget indicates that after accounting for all the expenses, the project will generate a profit of **$17,750**.

Please note that this is a simplified budget and may need to be adjusted based on additional details or changes in the project scope. Reviewing and updating the budget regularly as the project progresses is always a good idea.

Can you add a section for contingency funds?

Including a contingency fund in your budget for unexpected costs is always a good idea.

Chittenden Group VA Project Budget

## Revenues

| Source | Amount |

|--------|-------:|

| Income | $25,000|

## Expenses

| Item | Cost |

|------|-----:|

| Project Expenses | $7,250 |

| Contingency Fund | TBD |

## Summary

| | Amount |

|--------|-------:|

| Total Revenues | $25,000 |

| Total Expenses (including Contingency) | TBD |

| Balance (Revenues - Expenses) | TBD |

This budget indicates that the project will generate a profit after accounting for all the expenses, including a contingency fund. The exact profit will be determined once the contingency fund is specified.

Please note that the contingency fund is typically a percentage of the total project cost. The exact percentage can vary, but a common approach is to set aside 10% to 20% of the total project expenses for contingencies. Once you decide on the amount for the contingency fund, you can update the budget accordingly.