Week Four Midterm Project-Budgeting Budget Preparation You have been assigned the task of completing the proposed budget for the next fiscal year for your Department. The fiscal year is from January – December. As a tool, you have the budget from the previous year, the salary worksheet and the monthly expenses report. You will be using the historical data provided as well as considering your projections for future costs. You have been told to project a maximum 5% salary increase. You have been told to project an increase in supplies of 7%. You have been told to project a 5% increase in all other areas, except those discussed below. You must also evaluate travel expenses, membership and dues. It is the policy of your facility to pay for the coder CCS certification annual maintenance, your AHIMA or other professional dues, and to reimburse any person who successfully passes the certification examination. You know that two of your people plan to take the CCS exam next year. (Check AHIMA.org or other professional organization for these costs) You need to budget to attend the AHIMA or other convention (use current cost date). Be sure to estimate airfare, hotels, food, and registration fees for a 4 day convention. Attach appropriate document that details estimated expenses. (Yes, check actual airfare from your home to the site of the current convention and include that. Estimate $160.00 a night for hotel and $35.00 a day for food). You typically host lunch for your staff during HIM week in November. You have 12 employees in your department and you usually plan to spend $10.00 per person. You need to budget for education. You know that you must provide education for your employees to include, at a minimum, FY coding updates (both ICD and CPT). Additionally, your employees need a minimum of 10 CE’s a year to maintain their certification and the hospital provides that education. (check AHIMA’s or other professional website web site, go to the book store, and check the price of audio seminars. Budget enough to cover the cost for approximately 10 hours) You have also been advised to make any capital requests at this time. You need a new piece of equipment, you pick what you want, but must qualify as capital. (check the internet, choose a model, see if you can find multiple sites with the same product and compare pricing, attach info to your budget.) Based on 2080 hours working a year, what is your department’s average hourly rate? What is the total average monthly expense for your Department each month? (total budget / 365 * days in month) 1. Create a budget for the current year. Justify all of your calculations and recommendations. 2. Create an excel spreadsheet for your budget. Create supporting documentation in Word and answer the questions given related to budgeting. You will turn in 3 excel spreadsheet tab for your proposed budget for the current year. One that lists salaries, one that is broken down by month and one that is an annual budget. You will turn in a Word Document that identifies the equipment you would like to purchase and a justification for that equipment. (Can be combined with your justification and budget overview document just make sure you include enough detail.) You will turn in a Word Document that justifies your expenses for every category in your budget that is outside of the standard 5% increase and answer the following questions relate to the Excellence System: Ø Discuss why budgets are used in healthcare organizations? What potential problems are being addressed by having a solid budget at the beginning of the years? (ES 1 & 2) Ø Create a problem statement that addresses why we have budgets in an organization. (ES 1) Ø How will you implement this budget in your organization? How will you as the CFO ensure it is followed throughout the year? (ES 3 & 4) Ø How can a budget’s effectiveness be evaluated throughout the year in order to create a more effective budget the next year? (ES 5) This assignment meets the DU Excellence System Competency of Analysis and Problem Solving. Your presentation must be organized and well thought out.
