Financial diss and assnt7

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Assignment 3 budget

 

Instructions

                                                       

Imagine you are a clinical manager of UMGC Health Care primary care services and in charge of developing a projected annual operating budget.

Your budgetary figures are as follows:

For fiscal year 2021, your clinic received $3 million from the government as fee-for-services reimbursements, as well as $1.1 million from private payers. The clinic has an annual fund-raiser that historically brings in $180,000 and a grants department that brings in $1.2 million annually.

Your chief financial officer (CFO) has provided you with the following annual expenses:

UMGC Annual Expenses	Dollars
Annual salaries	$1.5 million
Annual benefits	$ 240,000
Annual rent	$ 960,000
Annual insurance	$ 45,000
Annual depreciation	$ 780,000
Annual overhead	$ 180,000
Annual supplies	$60,000

 

Deliverables:

1. Using the UMGC Health Care Operating Budget template, complete a 12-month operating budget in which you include the net profit (loss).

2. Write a 350- to 700-word executive summary that explains to the board of directors how you developed the budget and its importance. Include the following in your summary:

· Explain the process for creating an operating budget and its importance.

· Explain how revenues and expenses are grouped for planning and control in the financial statements.

· Explain the differences between cash and accrual financial systems.

· Make sure you are relating the information and incorporating your results from the budget into your discussion as well.  

 Cite at least 2 sources

Format your assignment according to APA guidelines. 

Attachments

Operating Budget.xlsx

(10.99 KB)