GOKUL GLOBAL UNIVERSITY,
SIDHPUR
FACULTY OF NURSING
LESSON PLAN
ON
BUDGETING
SUBJECT - Nursing Management
Nursing Management
BUDGETING
4th year B.SC Nursing
30 minutes
: Seminar, lecture cum discussion
powerpoint presentation
At the end of the class, the students will able to gain in depth knowledge on BUDGETING,
develop positive attitude and skill in immediate & routine factor affecting growth and
development and practice these care into hospital, community and home setting.
At the end of the class, students can able to
To define budgeting
Purpose of budgeting
To explain perquisites of budgeting
To explain characteristics of budgeting
To describe importance of budgeting
To describe principles of budgeting
To list out types of budgeting
To list out classification of budgeting
To explain budgeting process
Advantages of budgeting
Disadvantages of budgeting
1 2minut To Lecture Chalk What is
es define cum and black the
budgetin Budgeting is an operational plan, for a discussion board definition
g definite period usually a year. of
Expressed in financial terms and budgeting
based on the expected income and ?
expenditure. Or
Budgeting is a concrete precise picture
of the total operation of an enterprise
in monetary terms.
2.
2minut Lecture ppt
es Purpose Mechanism for translating fiscal cum
of objectives into projected monthly discussion What are
budgetin spending pattern. the
g purposes
Enhances fiscal planning of
and decision making. budgetin
Clearly recognizes controllable g?
and uncontrollable cost
areas.
Offers a useful format for
communicating fiscal objectives.
Allows feedback of utilization of
budget.
Helps to identify problem areas
3. 2 and facilitates effective solution.
minutes Provides means for measuring and Chalk
recording financial success with Lecture and
objectives of organization. cum board
To explain discussion And power
perquisites
of ORGANIZATIONAL STRUCTURE: Need a What are
budgeting
sound organizational structure point the
with clear line of authority and presentatio perquisite
responsibility. n s of
budgeting
NON-MONETARY STATISTICAL DATA:
?
Such as number of admissions,
average length of stay, percentage
of occupancy and number of
patient’s days. Used for planning
and budgetary process.
CHARTS OF ACCOUNTS: Designed to
be consistent with the
organizational plans. Revenues
and expenses are reported by
responsibilities areas, thus
providing historical data that are
valuable for planning and providing
budgetary control for evaluation as
performance can be compared to
plans.
MANAGERIAL SUPPORT: Essential for
the budgetary programme.
Budgeting is done at the
departmental level, it must be
valued by top administration.
Managers must be willing to
devote their time and energy to
the budgeting process.
FORMAL BUDGETING PROCESS AND
4. To explain PROCEDURES: Should be available
1minut characteristi in budget manual, in which Lecture
cs of objectives are clarified and cum Power To
e
budgeting instructions for budget discussion point explain
development are discussed. presentatio characteri
Calendar of budgeting activities st ics of
with the schedule for each stage of n budgetin
programme is presented. g
Should be flexible.
Should be synthesis of past,
present and future.
Should be product of joint venture
and cooperation of
executive/department head at
different level of management.
Should be in the form of statistical
standard laid down in the specific
numerical terms.
Should have support of top
management throughout the
4. 2 To describe period of its planning and Lecture Power To
minutes importance implementation. cum point describe
of discussion presentatio importan
budgeting n ce of
: budgetin
Needed for planning future course g
of action and control over all
activities in the organization.
Facilitates coordinating operation
5. of various departments and
10 To sectors. Lecture
minute describe Helps to weigh values and make cum Power
principles decision when necessary. discussion point To
of presentatio describe
budgeting n principles
of
Should provide sound financial budgetin
management by focusing on g
requirement of the organization.
Should focus on the objectives and
policies of the organization.
Should ensure the most effective
use of financial and non-financial
resources.
Programme activities should be
planned in
advance.
Requires consistent delegation for
framing and executive budget.
Should include coordinating efforts
of various departments establishing
a frame of reference for
managerial decision and evaluate
managerial performance.
Requires an adequate checks and
balance against adoption of too
high and too low estimates.
Must be appropriate to nature of
business, services and to the type
of budget.
Prepared under the direction and
supervision of administrator or
financial officer.
To be prepared and interpreted
throughout the organization.
Requires review of performance of
previous year and adequacy both
quantitatively and qualitatively.
Provision should be made for flexibility.
To listout Lecture Power To list
6. 3 types of cum point out types
minutes budgeting discussion presentatio of
n budgeting
OPERATING BUDGET (Revenues
and Expenses): Provides an overview
of agency function by projecting the
planned operation for upcoming
year. Deals with salaries, medical-
surgical supplies, office supplies,
laundry services, books
periodicals, recreation and
contractual services.
CAPITAL EXPENDITURE BUDGET: Related
to long range planning. Includes
physical changes (replacement
and expansion of plant, major
equipment’s and inventories). They
are major investment and reduce
flexibility in budgeting.
CASH BUDGET: Planned to make
adequate funds available and to use
extra funds profitably. Should not
have too much cash on hand during
budgetary period.
LABOR OR PERSONNEL BUDGET: Estimate
cost of direct labour necessary to
meet agency objectives.
Determine the recruitment, hiring,
assignment, layoff, discharge of
personnel. Nurse Manager has to
decide number of aids, orderlies
required during a shift months and
areas.
FLEXIBLE BUDGET: Some costs are
fixed, others changes with volume
of business. Some expenses are
unpredictable and can be
determined only after change has
begun. Periodic reviews required
7. To list out to compensate for changes. Lecture Power To list
10 min. classificati cum point out
on of STRATEGIC PLANNING BUDGET: Long discussion presentatio classifica
budgeting range budget for long range n ti on of
planning. Projected for 3-5 years. budgetin
Programme budget is a part of this g
budget.
:
INCREMENTAL: Based on
estimated changes in present
operation plus a
percentage increase for inflation,
all of which is added to previous
year budget.
OPEN ENDED: A financial plan in
which each operating manager
presents a single cost estimate for
what is considered optimal activity
level.
FIXED CEILING BUDGET: The
uppermost spending limit is set by
top executive before the unit and
divisional manager develop budget
proposal for the areas of
responsibility.
FLEXIBLE BUDGET: Several financial
plans each for different programme
activity.
ROLL OVER BUDGET: Forecast
programme, revenues and expenses for
a period greater than a year, to
accommodate programme larger
than annual budget cycle.
PERFORMANCE BUDGET: Allocates
functions not divisions (direct
nursing care, in service education,
nursing research, quality
improvement).
PROGRAM BUDGET: Where cost
are computed for a total program
(group total cost for each service
program). Example- MCH, FP, UIP.
ZERO BASE BUDGETS: Requires
nurse manager to examine, justify
each cost of every program both
old and new in every annual
budget preparation.
SUNSET BUDGET: Designed to
“self-
destruct” within a prescribed time
period to ensure the cessation of
spend in by a
predetermine date.
SALES BUDGET: Is starting in
budget program, since sales are a
basic activity which gives shapes
to other activities. Compiled in
terms of quantity and value.
PRODUCTION BUDGET: Aims at
securing the economical
manufacture of production and
maximizing the utilization of
production facilities.
REVENUE AND EXPENSE BUDGET:
Expressed in financial terms and
take the nature of Performa
income statement for future.
Shows the item of profits and loss.
CASH BUDGET: Prepared by way of
8. 5 min. To projecting the possible cash Lecture Power To
explain receipts and payments over cum point explain
budgeti budget period. discussion presentatio budgeti
ng n ng
process process
STEP 1: Establishment of operational
goals and objectives and policies.
STEP 2: Goals must be translated
into quantifiable management
objectives for organizational units.
Departmental goals are made.
STEP 3: Formal plan for budget
preparation and review including
assignment of responsibilities and
timetable is prepared.
STEP 4: Departmental budget are
revised and master budget is
prepared.
STEP5: Financial feasibility of
master
budget is tested and final
document is approved and
distributed to all parties involved.
STEP 6: Every head of the office
required to prepare budget
estimate in respect of salaries of
establishment, contingent
expenditure and others. Example-
Telephone, office expenses, rent of
building etc.
9. 5min. Advantages : Lecture Power Advantage
of Fixes accountability, cum point s of
budgeting assignment of discussion presentatio budgetin
responsibility and authority. n g
Encourages managers to make
careful analysis of operation.
Weakness is revealed, corrective
measures taken.
Financial matters can be handled in
10. 5min. orderly fashion. Activities are
Disadvantag balanced. Lecture
es of cum Power Disadvant
budgeting discussion point a ges of
presentatio budgetin
Converts all aspects of n g
organizational performance in
monetary values. Only easy aspects
can be considered and equally
important facts such as
organizational development may
be ignored.
Skills and experiences are
required for successful budgetary
control.
Time consuming and expensive.
