Operating Budget Worksheet
HCR/405 Version 9
1
University of Phoenix Material
Operating Budget Worksheet
Consider the following scenario:
Imagine you are a manager of a small health care facility and in charge of developing a projected annual operating budget.
Your budgetary figures are as follows:
For fiscal year 2015 and 2016 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 has provided you with the following annual expenses:
ABC Health Care Annual Expenses
Annual salaries
$1.5 million
Annual benefits
$240,000
Annual rent
$960,000
Annual insurance
$45,000
Annual utilities
$780,000
Annual overhead
$180,000
Annual supplies
$60,000
Using the ABC Health Care Operating Budget template, complete a 12-month operating budget in which you include the net profit (loss).
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.
Cite at least 2 sources, including your textbook.
Format your assignment according to APA guidelines.
Click the Assignment Files tab to submit your assignment.
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