Vice Principal Westfort College of Nursing, Thrissur Types of budgets Major: Open Ended • Line – item Flexible • Fixed ceiling Sunset • Performance Sales • Program Production • Flexible Revenue& • Roll over expenditure • Zero - base Capital expenditure • Incremental Cash Budgeting tools 1. Trend analysis 2. Cost benefit ratio 3. Marginal analysis 4. Work sampling 5. System analysis Budget monitoring tools 1. Capital inventory 2. Supply inventory 3. Position control 4. Monthly account reports 5. Cost accounting 6. Variance analysis Non productive FTE ( full time equivalent) Is based on 2080 hours per year FTE average is used for personnel budget. Eg: ________________________________________ Average vacation FTE 12. days Average Holiday FTE 7.0 days Average sick days 3.5 days Average training & Education FTE 3.0 days Average other leave FTE 1.5 days Total 27.5 days( 220hours) Total actual work time is 2080-220 hours= 1860 hours Nursing personnel budget Based on patient acuity system Acuity Nursing hours per patient needed during 24 hour period 0.5 0-2 hours 1.0 2-4 hours 2.5 4-10 hours 5.0 10-24 hour (University of South Alabama Medical Centre) Staffing formula Average daily census X nursing hoursX1.4X 1.14 7.5 Eg. 3rd floor : Average daily census= 31.8 Nursing hours=4 (per 24 hours) 1.4 is a constant representing 7 days in a week with a full time worker working 5 days in a week:7+5=1.4 1.14 is a constant representing an allowance of 0.14 FTE for vacation, illness etc. for each 1.0 FTE 7.5 represents one work day Staffing formula Contd 3rd floor 27 FTEs calculated by 14 RNs, 9 LPNs, 4 NAs So applying it in the formula 31.8x4x1.4x1.14 =27 FTEs Nursing personnel budget Calculation For MCH Unit unit ADC Acuity Nsg/hrs RN LPN NA other Total 3rd 31.6 0.9 4 14 9 4 5 32 ped 22 1.3 4.5 16 5 0 4 25 picu 4.4 3.4 12 11 0 0 2 13 nbn 19.7 1.0 4 9 6 1 3 19 Del - - - 20 3 1 4 28 play - - - - - - 1 1 total 70 23 6 21 128 ADC= Average Daily Census Steps in preparation of an operating budget i. Collect past data ii. Examine previous year objectives – achieved or exceeded iii. Set objectives for forecast year iv. State objectives in terms of production/service/activities v. Consider salary and wage adjustments vi. Prepare report of expense eg. Tax, supplies Steps in preparation of an operating budget contd vii. Prepare budget report Budget summary Budget statement& supporting schedules Budget information- activities viii. Review of budget by administrator ix. Evaluation of budget x. Modifications by finance committee xi. Final approval by the board Estimate of budget Item No Income/ Actual Current Expendi Last Year Budget Next Year ture Year Budget