You are the manager of an intensive care unit. Today is April 1st, and the fiscal year began on July 1st. You work with a variable budget and have the opportunity to make changes to the current budget based on variance. You cannot go over the total budgeted amount assigned to you. Your budget is presented below.
|
|
Annual Budget
|
Expended in March
|
Expended Year to Date
|
Amount Remaining
|
|
Personnel
|
300,000
|
25,000
|
175,000
|
125,000
|
|
Overtime
|
50,000
|
0
|
50,000
|
0
|
|
Supplies
|
18,000
|
1,800
|
16,500
|
1,500
|
|
Travel
|
1,000
|
0
|
300
|
700
|
|
Equipment
|
5,000
|
0
|
5,000
|
0
|
|
Staff education
|
1,000
|
200
|
600
|
400
|
Several factors that you must consider include:
1. A changing staffing pattern as a result of high acuity on your unit. Your care managers have requested permanent staff lines.
2. The risk manager wants you to purchase new "smart pumps." These are IV pumps that calculate and manage high risk medications in order to meet JCAHO safety standards. Right now there is a special price of $3, 000.00/per pump. The risk manager thinks 3 pumps is a good start.
3. Your prevalence rate of pressure ulcers is rising on the unit, wound care supplies are part of the unit supplies budget.
4. Three of your best nurses want to attend a conference on high risk medications out of state in September. The registration fee is $300.00, and if you register now, the three can attend for $200.00 each. Projected travel costs are $500.00 each.
Case Study Questions:
In a paper format determine the following:
1. How you will address these requests based on the budget print out.
2. What expenses can be deferred to the new fiscal year.
- What budgeting area was your previous projections most accurate.
- What budgeting area was your previous projections most inaccurate.
- Year to date variance for each category.
- Factors that may have contributed to situations of being over budget as determined by variance. Steps that could be taken in the 4th quarter to adjust the budget.