Group homes for the elderly or children need basic operating expenses included in their budget for the house to function daily. Taking care of those with special physical or mental health needs entails a sizable budget for a comfortable living. That means determining expenses and where to allocate them are two of the essential parts of building a budget.<\/span>
\nAn attorney or a financial professional should review the budget to guarantee that it covers all basic operating expenses. In addition, the budget must indicate the expected income sources used to pay for the expenses. An attorney will review to see it covers both legal and operational costs.\u00a0<\/span><\/p>\n

Operating Expenses Inclusions<\/b><\/h2>\n

The operating expenses for a group home cover all the daily and monthly costs. It comprises the staff\u2019s salaries, wages, benefits, and building expenses such as rent, housekeeping, maintenance, repair, and utilities.\u00a0<\/span>
\nOf course, the home\u2019s operational expenses also indicate monthly expenses for food, supplies, clothing, materials, and other fees for permits and licenses. It could also include expenses for travel, medical services, and recreation, depending on what has been stated on the budget.\u00a0<\/span>
\nIn addition, the employees\u2019 salary covers operational tasks, transportation, financial services, and payroll management. Part of the budget may also be set aside for other indirect or administrative costs. Basically, a group home\u2019s operating expenses cover everything spent maintaining it providing housing to its residents every month.<\/span><\/p>\n

Building the Budget<\/b><\/h2>\n

When building your budget, you can utilize existing financial records or an existing budget from another group home to get an idea about the size of your operational expenses. Your last year\u2019s budget may also help you identify projections and allocation for all items in the budget.\u00a0<\/span>
\nFirst, you need to list all the income sources and amounts you will need for a total operational budget. That may include government contracts, resident fees, investment income, grants, and donations.\u00a0<\/span><\/p>\n

Allocating and Adjusting the Budget<\/b><\/h2>\n

If your donors set a specific allocation for the funds they donated, you need to honor that. For example, if a foundation restricts its grant solely for mental health services, you need to allocate their funds for that only. Other donors may also want you to limit their donations to recreation or allowances, etc. You get the idea.<\/span>
\nIf so, you need to adjust allocations, such as decreasing inessential expenses to increase funds for the important stuff. You should avoid including uncertain income sources to fill gaps in funding and keep expected costs lower than the projected income. It\u2019s better to set specific parts of the budget for salaries and indirect expenses.<\/span>
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