Valley Connecticut Case
Connecticut Valley School
By Benjamin Plummer, Scott Donnellan, Ly Do
FIN 320, 11/3/2014
THE CONNECTICUT VALLEY SCHOOL BUDGET
BUDGET DECISIONS
In the past year the Board of Trustees have allocated capital funds on the recommendation of Headmaster John Loring to the athletic programs of the school. The faculty and staff have expressed their concern about the spending decisions of the headmaster to support athletic programs over the needs of the students and faculty. This year the trustees have included the faculty in the decision process in order to objectively create a capital budget which will be in the long-run interest of the school.
This year the Board of Trustees have been presented with eight different capital investment options ranging from the women’s locker room to a new wood chip heating system for the school. Each of these capital investment decisions have been carefully considered and ranked in order of priority by the trustees before meeting with the headmaster and faculty. The trustee’s objective is to come to agreement on the capital budget which will promote the long-run interest of the school.
This year the board of trustees will focus on investments that aim at cutting costs, increasing profitability, and satisfying the faculty and students. This will be accomplished by balancing the needs of all departments. There will be additional focus on the programs that have received very little support in the past. Capital expenditures that promote student health and welfare will be given additional weight. The trustees believe that by focusing on projects that promote the wellbeing of the student body serves the primary mission of the school.
BUDGETARY PROCESS
The trustees will use the profitability index method in order to obtain the optimal allocation of limited capital funds. The projects with the highest profitability index will be selected until all available capital funds are exhausted. The school currently uses a 12% annual discount
By Benjamin Plummer, Scott Donnellan, Ly Do
FIN 320, 11/3/2014
THE CONNECTICUT VALLEY SCHOOL BUDGET
BUDGET DECISIONS
In the past year the Board of Trustees have allocated capital funds on the recommendation of Headmaster John Loring to the athletic programs of the school. The faculty and staff have expressed their concern about the spending decisions of the headmaster to support athletic programs over the needs of the students and faculty. This year the trustees have included the faculty in the decision process in order to objectively create a capital budget which will be in the long-run interest of the school.
This year the Board of Trustees have been presented with eight different capital investment options ranging from the women’s locker room to a new wood chip heating system for the school. Each of these capital investment decisions have been carefully considered and ranked in order of priority by the trustees before meeting with the headmaster and faculty. The trustee’s objective is to come to agreement on the capital budget which will promote the long-run interest of the school.
This year the board of trustees will focus on investments that aim at cutting costs, increasing profitability, and satisfying the faculty and students. This will be accomplished by balancing the needs of all departments. There will be additional focus on the programs that have received very little support in the past. Capital expenditures that promote student health and welfare will be given additional weight. The trustees believe that by focusing on projects that promote the wellbeing of the student body serves the primary mission of the school.
BUDGETARY PROCESS
The trustees will use the profitability index method in order to obtain the optimal allocation of limited capital funds. The projects with the highest profitability index will be selected until all available capital funds are exhausted. The school currently uses a 12% annual discount