Discuss steps in developing the unit or department budget. Who all is involved?
Standard definition of budget is “a financial plan that includes estimated expenses as well as income for a period of time.” Money management concerns that apply to running a business are same that apply to managing a health care organization. Most importantly, a specific time frame is given to entire budgeting process and target dates are assigned to each step.
Practically speaking it follows three stages of development:
1. Formulation
2. Review and enactment stage
3. Execution
In formulation stage, various objectives and management plans are developed on the basis of all financial, historical and statistical data. This data is deeply analyzed to set new plans. In review & enactment Stage unit wise budget is prepared and presented for further approval and ultimately it is combined into whole organizational budget. This is now presented to budget council and governing board respectively. Last stage that is Execution Stage is the most important one as it involves directing and evaluating activities.
There are many types but in top-down budgeting senior management team is the core which setup the budget and the budget goals. It involves various department heads, nursing administrators and financial officers.
Discuss steps in developing the unit or department budget. Who all is involved?
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