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Final ProjectMatt HendrenMGMT 515- Managerial Accounting8/17/2014Professor ReynoldsSouthwestern College Professional StudiesIntroductionThe Unified Government of Wyandotte County and Kansas City Kansas Parks and Recreation Department were formed in 1997 when Wyandotte County and Kansas City Kansas merged. Prior to the merger, all county parks were operated separately from city parks and the recreation division of the city. The Parks and Recreation Department consists of fifty-two parks, of which four are regional parks, thirty-two are community parks, and sixteen are neighborhood parks. In the parks there are thirty shelters that are available to rent. The department also operates a swimming pool and two golf courses. The department also has five community centers, and five recreation centers. In addition to parks, community centers, and recreation centers, the recreation division offers twenty-three programs for all ages. Current StateSince 1997 Wyandotte County has experienced significant changes in the diversity of its population by way of an aging population which drastically influences the program enrollment within the recreation division. Low program enrollment is an issue within the recreation division of the department. The lack of enrollment is a major cause for concern due to the lack of earned-income dollars the department and division relies on to supplement an ever shrinking budget while trying to meet the county resident’s needs. Of the twenty-three programs offered, only one recovers all of its operating costs and requires no subsidy of department funds. The total cost of service for all programs per year is $1,922,989 with only $944,055 of that cost being recovered, which leaves the department responsible for covering the remaining cost of service, which is $978,984. It is imperative that enrollment be increased to help alleviate the financial burden that the programs currently place on the department. The table below is a breakdown of services provided along with cost of service, total revenue, percent of cost recovery, and current subsidy. TOTAL COSTTOTAL% OF COSTCURRENTFEE SERVICEOF SERVICEREVENUERECOVERYSUBSIDYGOLF FEES$895,461$826,61892.31%$68,843WEIGHT ROOM MBR$15,363$5,79537.72%$9,568ADULT BASKETBALL$3,780$1,40037.04%$2,380CO-ED SOFTBALL$33,477$2,7008.07%$30,777MENS SOFTBALL$73,225$5,7007.78%$67,525MENS FAST PITCH$93,768$7,2257.71%$86,543ADULT VOLLEYBALL$8,279$2,98035.99%$5,299ADULT SOCCER$249,390$34,95014.01%$214,440YOUTH SOCCER$41,323$5,67513.73%$35,648YTH FLG FTBALL$9,338$2,76029.56%$6,578YTH BASKETBALL$35,196$19,66555.87%$15,531MAY B TOURNEY$6,470$1,50023.18%$4,970YTH VOLLEYBALL$4,070$97523.96%$3,095YTH KICKBALL$33,112$2,2806.89%$30,832YTH SOFTBALL$41,277$2,6706.47%$38,607YOUNG CHAMPIONS$7,269$12,843176.68%($5,574)SWIMMING POOL$361,112$4,9891.38%$356,123DMB DANCE$4,891$86217.62%$4,029LINE DANCE$2,138$1,87287.56%$266AEROBICS$1,274$18414.44%$1,090OKINAWAN KARATE$1,981$422.12%$1,939BELLY DANCING$325$18456.62%$141TAI CHI$252$12047.62%$132BEADING$218$167.34%$202TOTAL$1,922,989$944,00549%$978,984Future StateThe vision of the Wyandotte County Parks Department as it relates to program enrollment is to provide a variety of parks, recreation facilities, and program experiences equitable throughout the community. Parks, programs, and facilities will be developed and maintained to the highest quality, ensuring a safe environment with exceptional services. Services provided will demonstrate a positive economic investment through partnerships with other service providers, both public and private, ensuring a high quality of life for Wyandotte County residents. It may be possible that current programs offered may not be utilized due to the citizens not being interested in the current programs offered. It is imperative that the county has input in what programs are wanted. Input could be communicated by way of focus group, public forum, and citizen survey. It is highly likely that if programs are offered that the community requested that enrollment in those programs would be greater than in programs that are being offered that have no community interest. Assuming it is known what programs are desired by county citizens with no input from the community is not a successful model. Moving beyond just measuring customer satisfaction, to actually understanding it and learning from it, should be a new approach to crafting a sophisticated learning program (Whitler, 2012). Creating partnerships with other community service providers to maximize resources and strengthen the overall programs, and reducing the duplication of services in the department’s service area is another vital tool that needs to be addressed in order to maximize the department’s budget and decrease the amount of funds needed to subsidize failing programs. Establishing equitable partnerships with other service providers, businesses, not-for-profit groups and volunteers is key in leveraging resources while building advocacy and support for the services provided. Creating partnerships has become an increasingly important resource to expand capabilities, and develop new services (Kaplan, Hurd, 2002). A key to increasing enrollment in existing or future programs is providing a safe atmosphere where people of all ages feel safe while utilizing any of our programs, parks, or rental facilities. Due to the fact that the majority of our facilities and programs offered are located in the urban core of Kansas City, safety is always a concern. Parents rank safety as the most important factor in deciding whether to let their children participate in an activity at a given location (Parley, Meriwether, Baker, Watkins, Johnson, Webber, 2007). Partnering with the police department to increase patrols and visibility as well as the use of off duty police officers to monitor buildings will help ensure the safety of all citizens. Providing exceptional services is another area that needs to be addressed that will effect program enrollment. Creating trendy, new programs that the citizens of the county are interested in will keep programs fresh and well attended which will translate to increased program enrollment and generate revenue. Many programs need to be dropped or outsources to agencies that have a budget high enough to continue programs will low enrollment. In order to accomplish the future state, or vision, of increasing program enrollment within the recreation division of the department it is important to employ a management accounting and control system. Employing a management accounting and control system will allow the department head to use information that will allow him to asses if our department is achieving its objective of increasing program enrollment. The four stages of keeping the department in control of all procedures, tools, and performance measures needed to achieve the objective of increasing program enrollment include plan, do, check, and act (Atkinson, Kaplan, Matsumura, Young, 2012). The first process, plan, will include the plan of how the department will achieve its vision including measures to determine how well the objectives were met. Gathering community input, creating community partnerships, providing a safe atmosphere, and providing exceptional, trendy services will all help the department accomplish its objective of increasing program enrollment. Measurement used to determine how well objectives are met should include the percentage that program enrollment has increased, the number of new partnerships the department has entered into, the number of new programs that are financially self-sufficient, and the number of safety issues dealt with during programs. The second process, do, is just that, implementing the plan to achieve the determined objectives to increase program enrollment. The third process, check, is evaluating how the plan to increase program enrollment is working. It is necessary to determine how many programs are financially self-sufficient, how many are not, and create a corrective plan to either ensure all programs are financially self-sufficient, or eliminate programs that cannot become financially-self-sufficient. The fourth process, act, is following the first three steps in order to ensure the vision is successful. After a management and control system is in place, and the four stages of keeping the department in control of all procedures, tools, and performance measures is being utilized cost management will be utilized which will help the department reach its goal of increasing program enrollment and alleviating programs that are not financially self-sufficient. Utilizing the four stages of keeping the department in control will generate key, timely, and accurate information to be used as an aid for deciding which current programs will remain and which new programs recommended by the community will be introduced. Management System RecommendationIn order to reach the target goal of increasing program enrollment within the recreation division of the department and eliminate all current programs that are not financially self-sufficient while introducing new programs that will draw more community interest it will be necessary to employ cost-volume-profit analysis. The use of cost-volume-profit analysis will allow the department to make decisions on continuing a program based on the probability of breaking even or earning a target profit as a measure of a programs risk. Due to the fact that programs have a specific cost associated with providing a specific program, it will be possible to know how many participants of a specific program will be required to at least break even. Another key management system recommendation is the use of activity-based costing. This would be used in conjunction with cost-volume-profit analysis to determine the cost of each program, which would allow the department director to decide if department resources are be used as efficiently as possible. This would involve estimating two parameters. The first parameter has two steps; first, it is necessary to identify all costs incurred to supply any given program. Second, identify the capacity supplied by that resource. The capacity would be hours of work provided by program coordinator as well as time department facilities are being used for any given program. The second parameter is an estimate of how much of each resource’s capacity is used by each given program.Another management system that is recommended is job order costing. It is imperative that the department knows exactly what each program offered is costing the department in order to make an informed decision on whether to keep an existing program or offer a new program. Job order costing will allow the costs from each program to be accumulated, which will vary from program to program. Each program will have a cost that is computed by adding the direct costs and indirect costs of each program that is necessary to operate the program. The measures needed to successfully complete the management systems recommended in order to allow the department head to make informed decisions include, cost of each program, number of enrolled participants in each program, input from the community on programs that are wanted, as well as programs that are outdated, direct and indirect costs for each program, and number of successful partnerships. Due to the fact that most programs are based on seasonal activities, the frequency of reporting should start out on a quarterly basis. This will allow the department head to interoperate the information gathered on each program offered and decide whether the program will continue, be eliminated, or replaced with a new program. All reports will be given to the department head. It is recommended that the department head rely on his staff and county administration to make decisions on what programs will be eliminated or replaced. The information gathered will be vital in the decision of what programs to eliminate or replace. Information communicated will include the cost of each program, total revenue of each program, percent of program cost recovered, and subsidy amount required for each program. It is also imperative that the department staff’s perception of each program is relayed to the director. The department staff handles the day-to-day operation of each program. The department staff would have a much better grasp on the validity of each offered program than the department head of county administration. It is imperative that the management systems being used are tied to the input of the department staff. More times than not, more information is needed to make a decision that what a report will produce. ConclusionIn conclusion, program enrollment is an issue that needs addressed within the parks and recreation department of Wyandotte County. A back ground of the department was provided to bring some perspective to this issue at hand, as well as how the lack of program enrollment is an ongoing problem. A table was provided to illustrate how a lack of enrollment directly affects the budget of the department, as well as the vision of the department as it relates to program enrollment. Several ideas were introduced that will help with enrollment, as well as alleviate the financial burden of failing programs including, introducing new programs, creating partnerships, providing a safe atmosphere, and providing exceptional service to the citizens of Wyandotte County. In order to solve the problem of low program enrollment within the recreation division several management accounting systems were recommended including, a management accounting and control system, cost-volume-profit analysis, activity based costing, and job order costing. While there is no immediate solution to Wyandotte County’s low recreation program enrollment, implementing management accounting practices in order to gather accurate information will help the department head as well as the county administrator make an informed decision as how to best increase program enrollment and eliminate the financial burden they place on the department and county. References Atkinson, A., Kaplan, R., Matsumura, E., & Young, S. M. (2012). Management Accounting. (6th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.Kaplan, N. J., & Hurd, J. (2002). Realizing the Promise of Partnerships. The Journal of Business Strategy, 22.3(3), 38-42.Parley, T. A., Meriwether, R. A., Baker, E. T., Watkins, L. T., Johnson, C. C., & Webber, L. S. (2007). Safe Play Spaces to Promote Physical Activity in Inner-City Children: Results form a Pilot Study of an Environmental Intervention. American Journal of Public Health, 97(9), 1625-1631.Whitler, K. A. (2012). Stop Measuring Customer Satisfaction and Start Understanding It. Chief Marketer. Retrieved from //ezprox.sckans.edu/login?url=http;//search.docview/1038416890?accountid=13979. ................
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