Write a 2 pages 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

Assignment instructions
                                  Healthcare Operating Budget

 

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

Your budgetary figures are as follows:

For fiscal year 2017 and 2018, 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:

Health Care Annual Expenses:
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
Using the Health Care Operating Budget template, complete a 12-month operating budget in which you include the net profit (loss)- See attached Template

Write a 2 pages 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.

 

 

 

DETAILS

  • 2 pages of executive summary
  • APA 7th style with references within the last 5 years
  • Complete attached Template for 12 months operating budget