Appendix N: Expense Budget

Operating Budget

 

Item

2001 Costs

2002 Costs

2003 Costs

Labor and Benefits

15,293,070

18,504,600

20,540,100

Rent

480,000

495,000

510,000

Utilities

426,500

439,300

452,500

Supplies

190,000

218,500

229,500

Travel

100,000

100,000

100,000

Postage

24,000

24,000

24,000

Internet Access

600,000

630,000

660,000

Banking Fees

2,500

2,500

2,500

Credit Card Processing

2,300,000

640,000

380,000

Decorating

25,000

25,000

25,000

Break Rooms

25,000

25,000

25,000

Telephones

100,000

115,000

130,000

Furniture

601,100

50,000

50,000

Wiring

500,000

25,000

25,000

Routers and Switches

170,000

5,000

5,000

Computers

1,320,000

200,000

200,000

Security

250,000

15,000

15,000

Internet Marketing

120,000

120,000

120,000

Other Marketing

2,000,000

2,500,000

2,500,000

UPS Systems (uninterruptible power supply)

150,000

5,000

5,000

Software

900,000

50,000

50,000

 

Total Annual Expense Budget

 

$25,577,170

 

$24,188,900

 

$26,048,600

 


Expense Detail Report

        Labor and Benefits: Wages, Insurance/SS taxes, etc. = estimated 35% of wages.

        Rent: WA site= 20,000 sq/ft. x $12/ft annually; UT site=10,000 sq/ft x $24/ft annually.

        Utilities: Includes electric power ($98,500) and telephone ($328,000) charges.

        Supplies: General office supplies, note pads, staplers, pens, etc.

        Travel: Estimated costs of key personnel business travel expenses.

        Postage: Estimated combined cost for UT and WA offices postage and shipping.

        Internet Access: UT=4 x T3 lines at $5,000/mo. WA=2 x T3 at $5,000/mo and 2 x OC3 at $10,000/mo. Quoted by Qwest.

        Banking Fees: Estimated $.10 per transaction. Negotiating with US Bank.

        Credit Card Processing: Based on 2% per transaction.

        Decorating: Work environment enhancements.

         Break Rooms: Refrigerator, microwave, coffee maker, table/chairs, etc.

        Telephones: Purchasing two ACD Systems from Lucent Technologies.

        Furniture: Workstations, chairs, etc. WA site=$369,300, UT site=$231,800 Quoted by Clone Systems, Inc.

        Wiring: On-site communications wiring.

        Routers and Switches: Quoted by Cisco.

        Computers: Servers=$850,000/year leased from Dell Computers; Workstations=$470,000 purchased from Dell Computers.

        Security: Hardware and equipment, fire alarm and security monitoring.

        Internet Marketing: Cost through end of 2nd Quarter 2001.

        Other Marketing: Advertising via other media through end of 2nd Quarter 2001.

        UPS Systems: Battery backup for all servers for 1 1/2 hours from APC.

        Software: All basic operating software for networks, workstations and credit card processing.