Unite for Youth will build funding support from businesses and private donors in the community at an aggressive rate of growth. Yet it will take five years before funding from these sources becomes strong enough to expand the program. The primary expenditures for the program are for the training and managing of mentors and the program activities for youth and mentors. Therefore it is essential that due diligence is applied to fund allocation for these critical program responsibilities. An effective communication system will be established to report fiscal data to the Board of Directors so adjustment can be made quickly to assure the health of the program.
We are also assuming beginning cash reserves on October 1st of $71,500 according to the treasurer.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are:
- We assume a slow-growth economy, without major recession.
- We assume that there are no unforeseen changes in federal grant funding availability.
- We assume a continued need for services by at-risk youths.
- We assume broad community support for mentoring.
7.2 Projected Surplus or Deficit
Unite for Youth's projected surplus or deficit is shown on the following table, with revenue increasing from more than $267,396 the first year to more than $350,000 the third. Surplus may be applied to program activities, marketing activities, or held for contingencies. The detailed monthly projections are included in the appendix.
SURPLUS & DEFICIT
TOTAL DIRECT COSTS
7.3 Projected Cash Flow
The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly cash balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.
PRO FORMA CASH FLOW
SUBTOTAL CASH FROM OPERATIONS
SUBTOTAL CASH RECEIVED
SUBTOTAL SPENT ON OPERATIONS
SUBTOTAL CASH SPENT
7.4 Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financial position. The monthly estimates are included in the appendix.
FULL BALANCE SHEET
7.5 Standard Ratios
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8322 or NAICS 624110, Child and Youth Services, are shown for comparison.
FULL ANNUAL RATIO SHEET
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