7th Annual National Transitional Jobs Conference

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• 7th Annual National Transitional Jobs Conference
• Building Opportunities for Workers, Employers,
  and Communities
• BREAKOUT SESSION Ensuring Structural Success
  Building Effective TJ Program Budgets and Staff
  Structures

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General Budgeting
Budget Relates to Strategy
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Mission

• What is it you DO and are good at
• Measure, measure, measure
• Cant manage what you cant measure
  Importance of knowing your numbers
• Dashboard (make sure staff understand)

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What is your budget ?

• What is your revenue? What is it made up of?
• Grants?
• State, Federal Local, Foundation
• Contracts?
• Revenue generating venture?
• Interest Income?
• Miscellaneous Income?

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Budget vs. Current Year Actuals

• Revenues from funding sources
• Expenditures for Salaries, Benefits, Client
  Costs, Wages,
• Operating Expenses for Rent, Travel, Consultants,
  Supplies, Equipment, Admin.
• Balance, your net income (loss)

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Cash Flow

• Program, Strategic, and Budget Staff Understand
  Each other!!!!
• Write your budget first for the responses to RFPs

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Cash Flow

• Review Monthly Operating Expenses
• How much you have budgeted (this is your
  strategy)?
• How much are you spending?
• What is the variance?
• Review Monthly Participant Expenses
• Wages and incentives spent?
• Program Participation costs?

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Cash Flow

• Compare Monthly Expenses to Monthly
  Reimbursements
• Operating Cost Reimbursements
• Participant Cost Reimbursements
• Performance Based Income
• Other Income

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Cash on Hand/ Costing Out

• Monthly Projections of Expenses (last month)
• Monthly Actuals (last month)
• Monthly Surplus/Deficit (this month)
• Monthly Projections of Expenses (next month and
  beyond)

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Staff Salary Ranges

• COO(k) 85-100
• Team Director 45 52.5 62
• Sale Director 50 57.5 62 incentives
• Programs Line Staff - salary range (k)
• Sales 32 36 50
• RCA 32 50
• Facilitator salary range (k) 30 40
• Administration (k) 26 40
• Data (k) 25 28

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• CFO 80-100
• Finance 62.1 68 79 (potentially 84k non
  profit times)
• MIS 67 78 88
• HR 57 63 72
• LAN Manager 50 62 77
• Ombudsperson 31 35 41
• MIS Specialists 28 35 39
• Finance (Payroll Clerk Act. Payable/Receivable
  27 - 36
• Data Entry) 25 28
• Receptionists 23 - 26
• Custodians 22 24
• Intake 22 30
• Safety and Security 30 - 42
• Managing Director of Community, Marketing, Public
  Relations - salary range (k) 50 63 77
• Managing Director of Development - salary range
  (k) 54 67 81
• Grant Writer - salary range (k) 45 - 58

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Budget Revenue

• State/PWDC - Main budget 8-10 million
• Foundations - 400,000 - 600,000
• Grants, contracts, fees 15k

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Expenses

• Participants Wages and Incentives
• Staff Costs Salaries etc..
• Operating Expenses Rent, Travel, etc..

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TJ Costs

• Wages and Incentives Over 50 percent of TWCs
  contract(s) were participant wages, associated
  taxes and other funds paid directly to and/or on
  behalf of participants.
• Timing A large portion of TWCs program
  expenditures occur in the early phases of the
  program, prior to an individuals placement in
  unsubsidized employment,
• Retention Incentives
• Participant Workers Compensation
• Participant Payroll Taxes
• Other Client Costs
• Transportation
• Background Checks and Physicals
• Microsoft Certifications
• Medical Certifications
• Hospitality Certifications

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Costing out - Breakdown of the amount spent per
client per month.

• Intake and Assessment - 46
• Soft Skills Job Readiness - 41
• Hard-Skills Training - 41
• Full-Time Job Placement - 184
• Post-Placement Job Retention Services - 81
• Outreach and Recruitment - 12
• Administration - 103
• Wages and Incentives - 658
• Total Cost per Client per month 1,166

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Staffing

• I750 participants at a time, TWC must maintain
• Training Department staff of 12 trainers, one
  scheduler, and two administrative staff.
• Career Advisement staff of 30 Career Advisors
  with two administrative staff.
• Additional Employer Services staff, Finance
  staff, Administrative and Support staff, and
  Executive Management staff are also employed in
  services to participants.

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Sample Past Budget
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Facility and Program Capacity

• Short term contracts - challenge to capacity
• Maintain 750 active participants at a time,
• working off-site 25 hours per week and training
  on-site 10 hours per week.
• Enroll up to 2700 total participants
• Only 350 participants can be on-site at any time
  (250 in Professional Development and 100 in
  Orientation).
• Participants are scheduled three full days at the
  work site and 1.5 days on-site at TWC for
  training

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Common Concerns

• Strategy is not grounded in real budget costs
• Taking a contract or grant that you have not
  costed out
• When is the payment Does it work with your
  budget?
• What are the costs to run the program
• Are the goals realistic (compare to your real
  previous performance performance mgt.
  interlude)

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Peformance Based Contracting

• Good if it helps hold organizations accountable
• Caveats
• Have to anticipate cash flow based on experience
• Have to be realistic performance goals
• Funders cant change the rules during the year
• Cash flow are you getting paid for TJ or only
  placement retention?
• How does the payment structure work carryovers,
  exceeding performance

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The Funder

• Your strategy factors in funders
• However, funders dont often factor in providers
  capacity
• Providers are lap dogs and take what they can
  get even if it does not match with strategy or
  budget
• Agreeing to bad terms impacts your cash flow
  limits your ability to fulfill your strategy

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Reporting

• Communication is key Importance of reporting
• External reports for funders, legislature, etc.
  How these are defined by outside entities and may
  differ vastly both in content and purpose?
• Internal reports these are yours to define and
  should change over time danger of information
  silos

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Audit Committee Eight Guiding Principles

• Create Right Tone from Top
• Be Independent
• Reflect a Balanced Skill Set
• Make a Time Commitment
• Develop a Clear Charter
• Develop Specific Committee Duties
• Plan The Years Agenda
• Document the Committees Work

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