Amended Budget Paper

Amended Budget

A budget is a quantitative expression of a plan for a defined period of time. It may include planning sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows (Budgets, 2013). Budgets cuts is the most common but difficult tasks in information technology today. While budget reduction has been always a part of an organization’s cycle of deficit and surplus, doing more with less in these economic times are in the interest of the organization’s health. The student is given the task of amending Riordan Manufacturing budget. The student will use the information technology budget to increase the IT support services by 4 percent and decrease the overall budget by 2 percent. The student will make sure that the budget cuts do not affect employee morale.

Mission Statement

Our Focus

“Six Sigma, leading edge R & D and exceeding ISO 9000 standard define the attitude and abilities of Riordan Manufacturing. We are industry leaders in using polymer materials to provide solutions to our customers’ challenges. Our R & D is, and will remain, the industry leader in identifying industry trends” (Virtual Organization, 2013).

Customer relationships

“We will strive to be a solution provider for our customers and not be a part of our customers’ challenges. Long-term relationships will be sought by maintaining rigorous quality controls, innovative solutions, a responsive business attitude and reasonable pricing”(Virtual Organization, 2013).

Employees

“We will maintain an innovative and team oriented working environment. By assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company” (Virtual Organization, 2013).

Our Focus

We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth.

Current Budget

Riordan’s current IT budget consists of $1,567,750 that includes wages and salaries, benefits, and bonuses. $333,500 is allocated to operating costs. The total IT budget is $1,901,300. If the IT department wants to meet the expected two percent reductions IT will have to cut $38,026 from the IT budget. The items relating to hardware, software, and outside IT support services has a total budget of $147,100. $5,884 is the total increased spending amount of four percent requested on all IT related items.

What items on the Budget to Cut

After increasing the items related to hardware, software, and outside IT support services requested by the executive board the IT department is