College Of Nursing

BUDGETING

The allocation of scarce resources on the basis of forecasted needs for the proposed activities over a

specified period of time

Primary purpose
To ensure the most effective use of scarce financial and non- financial resources. Other purposes
Coordinating efforts of various departments Establishing a frame of reference for the managerial decision- making. Providing a criterion for evaluating managerial performance

Determine the requirement

Develop plan

Analyze and control the operation

Review the plan

CONTEN T

Salaries for professional, clerical and domestic staff and drivers Stipends for students New equipments and repairs Linen and other household supplies Maintenance of vehicle and cost of petrol and diesel Maintenance /purchasing books, furnitures and other items of library. Office supplies including stationary and postage Contingency fund

 The library purchase of books, journals and daily newspapers, for binding of journals, for stationary, such as index card, label etc. Incidental teaching equipment charts, films, slides, transparencies, pen, chalk etc. Office supplies- stationary items External lecturers- for payment in accordance with the policy of the controlling authority Contingencies

Done by the principal Assisted by office staff and school staff

BUDGET PROPOSAL Budget approved in the previous year, the actual expenditure and projected budget will be enclosed.
Then the letter with all these enclosures will be forwarded to the Finance director.

1) Identification and clear understanding of the financial and service goals. 2) They help fix accountability by assignment of responsibility and authority. 3) They state goals for all units, offer a standard of performance and stress the continuous nature of planning and control process.

 Budget encourages managers to make a careful analysis of operations and to base decisions on careful considerations. Weakness in the organization can be revealed and corrective measures taken. Staffing, equipment and supply needs can be projected and waste minimized. Financial matters can be handled in an orderly fashion and agency activities can be coordinated and balanced

DISADVANTAGES OF BUDGETING 1) Budget converts all aspects of organizational performance into monetary values for a single comparable unit of measurement. 2) Budgetary goals can deal to gain autocratic control of the organization 3) There is danger of over budgeting 4) Forecasting is required but uncertain 5) Skill and experience are required for successful budgetary control. 6) Budget planning is time- consuming and expensive.

JOURNAL REFERENCE
FAAN Patricia L. Starck and EdD, RN Barbara Bailes All administrators are expected to be competent in budget and financial management. Novice administrators of schools of nursing are expected to know about the budgetary process, budgeting techniques, and the various types of budgets that can be used, such as the open-ended budget, incremental budget, alternate-level budget, quota budget, formula budget, intramural budget, zerobased budget, and cost center budget. In addition, administrators are expected to know what key questions need to be asked about how the budget is structured and revenue sources and how to manage and evaluate their budgets.

REFERENCE
Basavanthappa B T. Nursing Administration. 2nd edition . New delhi ;Jaypee brothers medical publications:2009 Samson Rebecca.Leadership and management in nursing practice and education.1st edition. New delhi ;Jaypee brothers medical publications:2009 Tomy Ann Mariner. Guide to nursing management and leadership.8th edition. St.louis;mosby:2009 Patricia L. Starck and EdD, RNBarbara Bailes . Journal of Professional Nursing Volume 12, Issue 2, March-April 1996, Pages 6975 http://www.pubmed.com