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 (CFO) 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
$   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.