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 depreciation
|
$1 million
|
|
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.
Attachment:- operating_budget_template.xlsx