Reference no: EM134006287
Assignment:
Imagine you are a clinical manager of UMGC 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:
UMGC 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 UMGC Health Care Operating Budget template, do a 12-month operating budget in which you include the net profit (loss).
Write a word executive summary that explains to the board of directors how you developed the budget and its importance. Provide references and in-text citations.
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.