Amended Budget
Introduction
A budget is the financial expression of the project or organization. The budget should accurately reflect the costs of the proposed project plan and should align with the organization’s long-term goals and objectives. Budget justification provides the sponsors and leadership team with information such as why costs are necessary. Budget for IT is no different than any other departmental budget and should align with the long-term objectives of the organization.
At Riordan Manufacturing Inc., the budget was proposed for the year 2004 with a vision to support a project that can help the organization with its growing needs and to keep up with the technology for next five years. In addition, an amount of $150,000 was allocated for the proposed project that included but not limited to:
• Document current environment
• Forecast of business technology needs for the next five years
• Recommendations on systems integration, acquisitions and consolidations (Apollo Group, Inc, 2013).
Existing Budget
Current budget at Riordan Manufacturing has following components included
Wages and Salaries, Benefits, Bonuses, Conferences, Contracts, Hardware, Software licenses, Leased lines, Maintenance, Office supplies, Postages, Shipping, Special Projects, Subscriptions, Telephone, Trainings, Travel, and Entertainment. There is a capital threshold of $2000, any amount less than $1,999 or less to include hardware needs to be expensed as shown in figure – 1. Benefits were calculated for the employees at the rate of 23 percent of the salary, and an amount of $50,000 has been allocated towards the quarterly bonuses (Apollo Group, Inc, 2013).
Figure-1
New Budget
New budget for Riordan Manufacturing will include all components listed in the previous budget except there is a major reduction in the special project section. Management initiated the Special project in order to but not limited to Document current environment, forecast of business