budget

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 including revenue, 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 certification exam, your and the certified coders AHIMA professional dues, and to reimburse any person who successfully passes the certification examination. You know that two of your coders are not certified and plan to take the CCS exam next year. (Check AHIMA.org or other professional organization for these costs)($ 399)

You need to budget to attend the AHIMA or other convention (use 2013 or 2012 date and conference location to calculate costs if preferred). Be sure to estimate airfare, hotel, food, and registration fees for a 4 day convention. Attach appropriate document that details estimated expenses. (Yes, check actual airfare from the airport closest to your home to the site of the convention and include that).

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 $25.00 per person. Also, for at least one hosted lunch, you typically invite the CEO to attend as well.

You need to budget for continuing education. You know that you must provide education for your coders to include, at a minimum, FY coding updates (both ICD-9 and CPT). Additionally, all employees need a minimum of 10 CE’s a year to maintain their certification, etc. 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 for all 12 employees and the coding education for the 3 coders.

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. Capital purchases are usually high dollar (>$5000) and have a relatively long useful life (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 2014. Justify all of your calculations and recommendations.

2. Create an excel spreadsheet for your budget. Create supporting documentation in word.

You will turn in 3 excel spreadsheet for your proposed budget for 2014 (NOTE this can be one file with 3 worksheets as the example you downloaded/2013 Budget:

1) One that lists salaries,

2) One that is broken down by month, and

3) One that is an annual budget.

You will turn in a Word Document that justifies fully your expenses for every category in your budget.

You will turn in a Word Document that identifies the capital equipment you would like to purchase and a full justification for that equipment.

Your presentation must be organized and well thought out.