Nursing Budget Analysis

Nursing Division Budgeting
Key concepts and Definitions:
 Financial management: is defined as "a series of activities designed to allocate resources and plan for the efficient operation of the organization". The overall goal of financial management is to meet the total financial needs of the organization.  Budgeting: is the planning function of financial management. The budget translates operational plans into monetary terms.  Budget: is defined as "a written financial plan aimed at controlling the allocation of resources"

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Or "a statement of expected expenses and revenues over a specific period of time".

 Expenses: are defined as "the costs or prices of activities undertaken in the organization's operations".  Revenues: are defined as "income or amounts owed for purchased services or goods".

Strategic/
A gerontologist and clinical specialist in gerontology have been added to the staff. This division will then admit older and sicker patients. If the shortage of nurses continues, nursing service will have to consider alternative staffing pattern to deal with this situation".

 Step three: Review of the variances with higher levels of management :

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Once the goal statement is finished, it, (together with the actual versus budget analysis done earlier), should be reviewed with higher level management. The departmental goals proposed should be carefully considered; as well as the variances, their causes, and proposed corrective actions should be reviewed. Once the final statement for the department is in place, the new budgeting process can begin in earnest.

Step four: Actual preparation of the budget:

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The actual preparation of a new budget can be done based on a previous budgetary plan, or newly proposed plan (if a newly developed or modified service).