Bshs 373 – Magnolia Therapeutic Solutions Case Study
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Magnolia Therapeutic Solutions Case Study
Nanette Chambers
BSHS/373
September 1, 2013
Magnolia Therapeutic Solutions Case Study
Magnolia Therapeutic is a nonprofit organization that specializes in psychotherapy for patients that are treated for Post Traumatic Syndrome Disorder (PTSD). These are individuals that have suffered from disturbing experience when 9/11 hit New York; Magnolia Therapeutic was offer services to the victims that suffered with the catastrophe in the city of New York. A grant was offered to treat these clients for one year with this huge grant being given to the organization to treat PTSD. However, at the same time the organization was working on the 2002 budget for renewing its funding for 2002. Mary is hoping for the grant to be renewed for the department and raise even more money before the prior years. Mary also did not expect to be short 500,000 for 2002 budget which meant the organization had to make cut backs and layoffs with the staff. Magnolia Therapeutic eventually was at a standstill for the next several years because of the grant funding and the dismissing a third of its staff.

The decision I made is not to approve Board of Directors decision in approving the grant budget. The decision that the board made was establish by the previous budget in 2001 and other years. By not having to approve this budget was because Mary was including grant money, which was not certain or agreed in getting it the next year. Mary should have reevaluated and thought it through that she had previously employed additional counselors and extra management services. Mary should have waited and been sure if the city was going to renew the organizations grant which was needed in her budget. In the position being an Executive Director, Mary needed to think through that if the grant was not included and if the city was not going to renew the funding then she could not keep paying the new workers. Mary goal and objective was to maintain and help the people that were suffering from 9/11. What Mary should have done was to have other plans with budgets that were not from the city but from other resources as a backup.

The main cause was the budget not going through which made a short fall of $500,000 that was money she did not have in the beginning. Mary was counting on grant for 2002 which was based on 2001budget. When it comes to a proposal it is significant to simply take in money or funds that have been endorse or received. The organizations financial plan should be only money that has been received.

“Responsibility centers deal with financial accountability. Different types of responsibility centers are concerned with differing types of financial accountability. A program can be designated as an expense center, a revenue center, a profit center, an investment center, or any combination thereof. From a financial management perspective, all programs should be treated as responsibility centers” (Martin, 2001).

“Being designated as an expense center means that programs and, by extension, program managers are responsible for managing their own expenses. The practical implications of programs being designated as expense centers means that budgets are developed for each individual program. Once budgets are developed, it becomes the responsibility of the program managers to oversee and monitor them and sometimes to even approve program expenses in order to ensure that the budgets are not exceeded” (Martin, 2001).

“Being designated as a revenue center means that programs and program managers are responsible for helping to generate either a portion, or all, of the revenue

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