Chef de Service: Budget Management & Financial Planning

• The document relates to a professional certification for "Chef de Service des Établissements et Services Sociaux et Médico-Sociaux" (Head of Department for Social and Medico-Social Establishments and Services), specifically for Promotion 58M, Group 15.
• The core subject is budget management within a social or medico-social activity or service.
• Practical Case 1 focuses on financial planning for an IME.
• Practical Case 2 focuses on budget.
• Practical Case 3 focuses on financial planning for an IME.

Practical Case 1: Expansion Project Budget

• An individual is appointed as Head of Service at an IME ( medico-educational institute) that accommodates 50 children
• An expansion project is started to expand the internship by 10 places.
• The board asked for input to assess the feasibility of the project.
• The director asks to be in charge of the expansion project, due to being busy setting up a new establishment.
• Investments must be made by 01/01/2023
• The project includes amortized work and furniture amortized over 10 years.
• The structure’s provisional investment section is in surplus by €220,000 and current loan repayments are €80,000.
• There is a query on the amount of potential investments without applying for loan.

Practical Case 2: Budgeting and Management

• "La Plaine du Soleil" was established in 1970.
• It manages 8 structures at the end of 2021 which are 6 social and medico-social establishments, one approved headquarters; and one training center.
• Due to someone's absence, an individual is asked to attend an administrative council.
• An administrator asks to be reminded of the establishments managed by the association that are subject to the EPRD procedure.
• There is a query about the new name for the administrative account filed by these establishments.
• In the context of the 2023 budget procedure, the Director asks an individual to examine the provisional data of the Foyer Occupationnel (FO).
• The FO is under the standard Budget Prévisionnel (BP) procedure, but the Conseil départemental intends to transition it to an EPRD.
• The budget submitted to the funder has to be balanced.
• There are several notable developments from 2022 which must be taken into account.
• An email from the Director summarizes the circumstances impacting the 2023 budget

Information to consider for the 2023 Budget for case 2

• The FO occupational center's building extension is planned to be operational by January 1, 2023 increasing the capacity from 40 to 48 users.
• The construction includes the extension of the internal building (€500k), accessibility zones (€200k), redoing the facades (€150 k€), interior fittings (€100 k€), health and safety compliance (€100 k€), furniture (€100 k€), and individual sanitary facilities (€50 k€)
• According to the departmental council, they allowed a permanent increase of the budget envelope of €418k which will bring the total amount of tariff products to €2,430k for 2023.
• Three FO employees are retiring in January 2023, adding up to an amount of €30k (excluding charges, with a 40% average charge rate.
• The association's expert told you there were no provisions for retirement in the institution's accounts.
• Five employees are threatening legal actions and claiming moral damages which totals €160k.
• The director has told the establishment's accountant that one must oversee the establishment's projected budget.
• The accountant integrates information into the budget and the 2023 budget has been balanced.
• There is a need to examine the coherence of the group 1 charges.

Question 2 based on case 2

• Analysis on the changes to group 1 charges.
• Discover the budget lines which are inconsistent.
• There is a question on how to help the accountant secure the projected data for group 1 charges.
• Discover the risks the establishment might face.

Extracted values for case 2: "FOYER OCCUPATIONNEL"

• 5.1.1 Charges de la section d'exploitation en détail" include :
  • Water and sanitation
  • Energy and electricity
  • Heating, fuels and lubricants
  • Maintenance products
  • Administrative supplies
  • School, educational and recreational supplies
  • Food
  • Medical supplies
  • Other non-stocked purchases of materials and supplies
  • User transport
  • Travel
  • External laundry services
• Focus should be one whether the 20% increase in staff is consistent.
• Note any data that has been omitted.
• Identify consequences.
• Propose a way to remedy omissions.

Question 4

• Financial expenses are justified by an individual.
• The extension of the building needed contracting a loan of €900k.
• The arranged rate is 5.47% annual TEG.
• The reimbursement will start on January 1st, 2023.

Question 5

• Propose a budget.
• The budget included group 1, group 2 and group 3 charges.

Practical Case 3: Refurbishment Project

• A Head of Service is appointed for an IME.
• The association that manages the service has 20 establishments funded by the ARS.
• There is a need to engage in building renovation due to buildings being old and unhealthy
• An extension project will improve the financial sustainability of the establishment.
• The establishment switched to EPRD; the level of self-financing must be assessed.
• The Administrative Council is prioritizing investments by December 31, 2022.
• The main locations with health risks are the refectory, the kitchen, the rooms, and the insulation and waterproofing.
• The director has told the establishment's accountant that one must oversee the establishment's projected budget.

Investments planned include

• Construction of a basketball field.
• Landscaping.
• Additional parking for 10 cars.
• The structure is expected to generate €100,000 per year in self-financing capacity (CAF).
• Three TRAFIC vehicles will be decommissioned in 2024 costing €90,000.
• A villa is being sold for €180,000 in 2022.
• The villa is fully amortized.
• The board wants the long term investment for the CPOM.

Question 2-3 for practical case 3

• Analyse with the details the costs to be about €900k split between
  • €150k for refurbishing the refectory.
  • €100k for the kitchens.
  • €200k for the bathrooms.
  • €200k for the rooms.
  • €100k for a basketball field.
  • €120k for landscaping,
  • and €30k to add 10 parking spaces.
• Discover is the project financially feasible.
• Discover the solutions for the questions.