budget planning

2. TOPIC
ON
“Budget Planning in nursing administration”
Presented by:
Mr. Manjunath. Beth
Associate professor
&
HOD OF MSN DEPARTMENT

3. Budget Planning in nursing
administration
Nursing Division
Budgeting
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

4. What is Budgeting??
Managerial
planning
Strategic/operational
planning
Day to day Operational
plans
Delivery of services
Budgeting
Strategic/financial plans
Budgeting

5. How to
define?
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

6. • A series of activities designed to allocate
resources and plan for the efficient
operation of the organization.
FINANCIAL MANAGEMENT
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

7. Budgeting
“The planning function of financial
management”.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg
Budget
“written financial plan aimed at controlling
the allocation of resources”.
• Translates operational plans into monetary terms

8. OR
“Statement of expected expenses and revenues
over a specific period of time”.
• Expenses:
“ Costs or prices of activities undertaken in
the organization's operations”.
• Revenues:
“Income or amounts owed for purchased
services or goods”.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

9. Importance of budget
Important to be used to:
1. Manage programs.
2. Plan for goal accomplishment.
3. Control costs
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

10. Factors influencing Budget planning
1. Internal and external economic
environment.
2. Changing demands of the clients and/or
providers.
3. availability of human resources.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

11. 4. Capacity of the organization.
5. Service costs/market price.
6. Organizational goals and strategic directions.
7. Plans and objectives of departments /
organizations.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

12. Budgeting Process
How nurse
executive can prepare
A nursing division
Budget???
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

13. Budgeting Process
•Step one: Review past performance.
•Step two: Review the organization's goals and
projections.
•Step three: Review of the variances with higher
levels.
•Step four: Actual preparation of the budget.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

14. Step one: Review past performance
1. Prior financial records.
2. Present activities of the nursing division.
3. Activities that the division plans to institute
during the projected financial period.
4. Activities the division plans to delete during the
projected period.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

15. Step two: Review the organization's goals and
projections.
• Items in the major budgetary report that
affect the nursing department should be
determined
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

16. • (Example)“….This division is going to lose 4 beds
from February to November and then gain 12
additional beds after that. A gerontologist and
clinical specialist in gerontology have been added
to the staff. This division will then admit older and
sicker patients. If the shortage of nurses continues,
nursing service will have to consider alternative
staffing pattern to deal with this situation….”.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

17. Step three: Review of the variances
with higher levels.
Here consider
• Proposed Departmental Goals.
• Variances, their causes,
• Proposed corrective actions.
Then
• The new budgeting process can begin
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

18. Step four: Actual preparation of the budget
• HERE, a budget worksheet is essential.
• Worksheet is "a tool used by managers to
prepare their budget". It includes a number of
columns for information about:
Historic information with old budget.
Actual numbers with comments explaining the
variances.
Revenue and costs.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

19. Types of budget
1. Personnel budget.
2. Operating budget.
3. Capital budget.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

20. Personnel budget
It Includes
•Productive time and Non-productive time.
•Non-productive time includes the cost of
benefits, new employee orientation, employee
turnover, sick and holiday time, and education
time.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

21. Operating budget
It includes:
• Daily expenses as the cost of electricity,
repairs and maintenance, and medical/surgical
supplies…etc.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg

22. Capital budget Includes
• Plan for the purchase of buildings or major
equipment (of long-life equal or greater than 5
to 7 years) not used in daily operations, and is
more expensive than operating supplies.
Presented By: Mr. Manjunath. M. Beth (Lecturer) Dept: Med-Sur-Nsg