Operating Budget Worksheet

HCR/405 Version 9


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


Annual rent


Annual insurance


Annual utilities


Annual overhead


Annual supplies


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.

Copyright © 2016 by University of Phoenix. All rights reserved.