seminar on budget

8/19/2019 Seminar on BUDGET

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SEMINAR ON

Budgeting for variousunits and levels

Application to nursing

service and education

SUBMITTED TO

Mrs.Soney M arg!ese

Associate "rofessor

MOS# #ON

$olenc!ery

SUBMITTED B%

&inu M "aul

'nd %ear MS# Nsg Student

MOS# #ON

$olenc!erry


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Budgeting for various units and levels (Application to nursing

service and education

#ENTRA) OB*E#TIE

By the end of the seminar,the group acquires knowledge regarding Budgeting for various

units and levels -Application to nursing service and education ,appreciate the role of nurse inmanagement of these in the clinical practice.

S"E#I&I# OB*E#TIE

By the end of the seminar the group will be able to,

1 Define Budgeting.! Describe types of Budgeting

" #$plain the steps of planning Budget fro nursing unit% &ist down the steps in preparation of nrsing budget' Detail steps in Budgeting for (ollege of nursing

) Discuss preparation of budget statement in nursing education

* Describe the nursing dministration in Budget

INTRODU#TION

+he term budget is derived from a rench word bougette means purse. Budget is generally a list

of all planned e$penses and revenues. t is a plan for saving and spending.. +he budget is a

powerful tool because it serves as a guide for nursing care activities and allocation of recourses,

supplies, support services and facilities.

DE&INITION

+. BUD,ET

According to &in-ler +/01

A budget is a tool for planning, quantifying the plans and controlling costs.

'. BUD,ETIN,

According to $oont2


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Budgeting is the formulation of plans for a given future period in numerical terms.

A. &OR 3OS"ITA)

BUD,ET(3OS"ITA)

Different types of approaches are used in preparing the budget for a hospital. +he basic reason

for preparing a budget is to enable the hospital to effectively meet its financial requirements. An

effective budget is a summary of the carefully conceived financial plans of all departments.

+herefore, it should be clear to the administration as to what the hospitals financial requirements

are going to be.

&INAN#IA) RE4UIREMENTS O& 3OS"ITA)S

or any hospital, funds are required for the following/

1. #apital funding

or preservation, upgrading, and replacement of physical facilities and equipment

or new technology

or e$pansion

!. Operating needs

or working capital and operating e$penses 0salaries, materials and supplies, maintenance,

utilities etc.

5. Reserves

or emergency needs

T%"ES O& BUD,ET IN 3OS"ITA)

+he budgetary plan results from the accounting plan, and includes/


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+he capital budget

+he cash budget

+he operating budget

T!e capital 6udget

(apital budget is the estimated fund requirement for capital items needed for growth, for

providing new facilities, and for replacement of worn out equipment, machinery, and furniture.

+he decision on capital budgeting is primarily based on/

i. eeds of patients and e$isting alternatives available

ii. 2pgradation of technology

iii. #ffects of additional equipment on income and e$penditure

iv. Availability of funds

T!e cas! 6udget

A prediction of future cash receipts and e$penditures for a particular time period. t usually

covers a period in the short-term future. +he cash flow budget helps the business determine when

income will be sufficient to cover e$penses and when the company will need to seek outside

financing.

. (ash budget is the budget that records the forecasted cash inflows from various sources and

also records the forecasted demands for cash. t translates the e$pense and revenue budget into

statement of cash inflow and outflow. 3teady inflow of cash comes from settling the patients

accounts at the time of discharge. 4owever, f hospital is unable to collect cash for service


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rendered at the time of discharge, accounts receivable are to be created. +he cash budget is

usually broken down by monthly or quarterly periods.

T!e operating 6udget

Daily e$penses as the cost of electricity,repairs and maintenance and medical5surgical supplies.

MA$E A 3OS"ITA) BUD,ET

6aking a hospital budget is only second to medical delivery systems in for a hospital. n fact, if a

budget is not properly written, the hospital may be unable to deliver medical services at all. 3o

many e$penses and sources of revenue must be taken into consideration, so the budget process

takes an e$pert to get through it successfully.

Instructions

Determine hospital revenue. 7evenue can come from patient payments, ta$ dollars, donations,

insurance credits.

igure out e$penses. 3tart with the physical facility. 4ow much does it cost to keep up the

building. 8hat is the maintenance cost of each department, engineering, air-conditioning, heat,

water, other utilities. 9now what equipment costs, how much must be replaced per patient day,

and if any can be recycled. nclude the non-medical cost of each bed in the hospital. nclude

advertising.

9now the cost of personnel, all employees and ancillary staff, including consultants,

outsourced contracts, perhaps laundry or nurse staffing services.

9now the medical costs of each bed. 4ow many staff hours are spent on each bed, occupied

or not. 2se this figure as an average to get a cost per patient year. Add to that the non medical

costs per bed.


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parking garages, lots, landscaping, groundskeeping or window washing.

nclude all insurance for the facility and personnel.

8rite in an emergency e$pense fund. Disasters occur and the hospital must be prepared for

them when they arrive.

T!e steps of planning 6udget for nursing unit

+.Assistance of !er7 !is su6ordinates

ursing administrator requires the assistance of nursing superintendents and nursing supervisors

to present the needs of the coming year within the specified data and confer with those who

presented such need.

'.Revie8 of t!e 6udget ursing administrator should review the budget appropriation and

actual e$penditure of the current year.

5."reparing re9uire:ents 4e5 she should prepare requirements with the assistance of their

subordinate officials for the coming year from the supplied information by them.

1.Su::ary of ne8 needs 4e5 she should prepare a summary of new needs and requirements

both personnel and material with the proper data supports of the requirements.

;.Su6:itting to institutional ad:inistrator Budget should be submitted to the administrator of

the institute5 hospital for review, decision and to incorporate into the master budget required for

the hospital. n any change made by either the administrator or the committee on budget, report

should be furnished to her to be used in the control of e$penditure.

A copy of the nursing department appropriation is sent to the director after adaptation of the

budget these statements generally proved the budget for the period and difference between the

budget appropriation and actual e$penditure. +hese reports should be kept reviewed by the


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director and her associates and if e$penditure e$ceeds the appropriation, the cause should be

determined.

STE"S IN "RE"ARATION O& NURSIN, BUD,ET

7eview the goals of the hospital

7eview the ob:ectives of the e$isting programmes

;repare a budget proposal

7evise the e$isting programme with the revised proposal

(ompute the e$pense for each programme

Adopt the alternative approach for reali


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;resent the need of required staffs 7eview the budget appropriation and actual e$penditure for

the current year con:unction with current hospital statistics

;repare a new budget is to cover in terms of nursing service required

Determine the percentage of salaries in various department of nursing based on the time

allocated

#stimate the requirement for the coming year

;repare the summary of new needs to support the request

3ubmit the report to the head of the department

BUD,ET #OMMITTEE

+he budget committee generally consists of a representative cross section of the ma:or functional

areas or divisions within the institution, with the designated budget director usually serving as

the chairperson. Budget committees frequently include, among others those who hold the

following positions/

Director of ursing

Director of 4uman 7esources

Director of 6aterial 6anagement

Director of #ngineering and ;lant =perations


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(hief of 6edical 3taff

(hief #$ecutive =fficer, (hief =perating =fficer, and5or chief inancial =fficer

Director of Nursing: +his position is responsible for the ma:or function of the most health care

institution and also accounts for one of the largest, proportion of the institutions and revenues.

Director of Human Resources: +his position is responsible for administering the institutions

salary and wage program, including its hiring and firing policies. 3ince in most health care

institutions salaries and wages constitute well over '>? of the organi


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technology and therapy, can assist in identifying new procedures, treatments, and other related

services that can benefit the institution and the community it serves.

Chief Executive Officer Chief Operating Officer and!or chief "inancial Officer:

All three frequently serves as e$ officio members of the budget committee. +heir attendance at

meeting and active interest in the budget committees activities add credibility to the budget

process and help to keep top management aware of the budget process, its direction, and the

anticipated results.

NURSE ADMINISTRATOS RO)E IN BUD,ETTIN,

1. Budget required for the nursing department should be co-operative activity of the nursing

superintendent and her associates including the supervisors

!. ;articipation in planning budget

". t is prepared under the direction and supervision of the administrator or financial officer

designated by him

%. +he administrator supplies special forms to guide the budget.

'. (onsult and take assistance of her5his subordinates in determining the needs of the unit for

ensuring year on the basis of information received.

). 7equest sufficient funds to suggest a sound programme such as to provide for developing

programme provision, e$pansion of programme, to attract and hold qualified staff to provide for

e$pansion of physical facilities, supplies, equipment, for improving instruction and also to carry

out adequate functions of the institution.

*. 3ubmit budget request with :ustification with proposed e$penditure. +he administrator defines

her5 his budget so that nursing unit will have enough money to conduct programme effectively.

6oney must be available to allow e$perimentation also.


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.8hen the budget is allotted, the administrator should support the budget. 4e5 she should

interpret the subordinates, any changes that may affect instruction services for the adopted

budget. 3he5 he secures for the adapted budget. =nce the budget is adapted, it is the

responsibility of the administrator to see that e$penditure should not e$ceed the appropriation

made

. 3ince the nurse administrator also is responsible for budget, she5 he should cover the routine

budget control.

1>. +he budget request may be broken down to the different units e.g. 3alaries, supplies,

equipments and other purchase requirements.

"RE"RATION O& BUD,ET STATEMENT IN NURSIN, EDU#ATION

+he nurse Administrator or head of a budgetary unit is responsible for the preparation of the

annual budget of the school of nursing. n conference with the president and other budgetary unit

heads. +he administration gets on over all view of the budget. 3o that is requirements are

reviewed and activates submitted in time for inclusions. n the proposal for the ne$t financial

year, when the budget allotted the amount should be made known the staff. 3o that they may

establish priorities among items on which of is proposed to be spent purchases should be made,

accounts maintained in accordance with the financial practices of the institution.

STE"S IN BUD,ETIN, &OR #O))E,E O& NURSIN,<

1. 7equest the professors of various departments and librarian 1> present their needs for the

coining year by a specified dale, and confer with these who have presented such need.


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!. 7eview the budget appropriation and actual e$penditure for the current year in con:unction

with statical data.

". Ascertain whether any changes are contemplated.

%. ;repare the programme which the new budget

'. Determine the percentage of salaries of personnel. eg. ;rincipal. Cice ;rincipal. ;rofessors,

&ecturers, &ibrarian, (lerk, ;eon, etc.

). #stimate the requirement for the coming year from the information supplied as the e$penditure

for supplies, equipments and repairs to date.

*. ;repare a summary of new needs, both personal and material with data to support the request.

T3E RES"ONSIBI)ITIES O& "RIN#I"A) 7 NURSIN, ADMINISTRATION IN

BUD,ET IN#)UDES T3E &O))O=IN, -

1. ;articipation in planning budget.

!. (onsult and take assistance of his 5 her subordinates in determining the needs of the unit for

ensuing year on the basis of information received.

". 7equest sufficient funds to suggest a sound ;rogramme such as to provide for developing

programme provision, e$pansion of programme, to attract and hold qualified staff to provide for

e$pansion of physical facilities, supplies, equipment, or improving instruction 3chool and

(ollegeE and also to carry out adequate functions of the institution.

%. 3ubmit budget request with :ustification with proposed e$penditure. +he administrator defines

her 5 his budget so that nursing unit will have enough money to conduct programme effectively.

6oney must be available to allow e$perimentation also


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'. 8hen the budget is allotted, the administrator should support the budget. 4e 5 she should

interpret the subordinates, any changes that may affect instruction services for the adopted

budget. 3he 5 he secures for the adopted budget. =nce the budget is adapted, f is the

responsibility of the administrator to see that e$penditure should not e$ceed the appropriate

made

). 3ince the urse Administrator who is responsible for budget, she 5 he should cover the routine

budget control

SUMMAR%

3o far we discussed about,

• Definition of Budget

• +ypes of Budget

• 3teps of planning Budget for nursing unit

• 3teps in Budgeting for college of nursing

•

;reparation of Budget statement in nursing education

• ursing administration in Budget

#ON#)USION

Budget is quantitative statement usually in monetary terms, of the e$pectations of a defined area

of the organi


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BIB)IO,RA"3%

BOO$ RE&EREN#E

1. #leanor F 3ullivan, ;hilip F Decker. #ffective leadership and management in nursing. %th

edition published by Addison wesely. ;age no.1-1>%.

!. B + Basavanthappa. ursing administration. Faypee publications. 1st edition. ;age no.1'!-

1)1.

". Catti F ;rinciples and practice of nursing management and administration for B3c G 63c

nursing.ist edition.ewdelhi,Faypee Brothers 6edical ;ublishers,!>1"

%. H.7 9ulkarni, inancial 6anagement for 4ospital Administration, Faypee Brothers

;ublication,ew Delhi, ;age o-/%1-1

NET RE&EREN#E

'. Hoogle .com

). Budget planning guidelines. (om ). ;ubmed.com

*. http/55www.ehow.com5howI%%*1"1Imake-hospital-budget.htmlJi$

seminar on budget

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