budget proposal..final..14.3.11

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DEVELOPING BUDGET PROPOSAL

INTRODUCTION

Budgeting though primarily recognised as a device for controlling,

becomes a major part of the planning process in any organisation. Budget is

the heart of administrative management. It served as a powerful tool of co-

ordination and negatively an effective device of eliminating duplicating and

wastage. Nowadays, the nursing budget can account for up to 90 % of the

organisations total expenses , therefore , participation in fiscal planning is

viewed as a fundamental and powerful tool for nursing.

DEFINITION :

1. Budget is defined as an estimation ofcosts, revenues, and resources over

a specified period, reflecting a management's reading offuturefinancial

conditions.

2. Budget is asumofmoney allocated foraparticular purpose.

3. Planning the financial operations of a business is called budgeting. A

budget is a written financial plan of a business for a specific period of

time.

IMPORTANCE OF BUDGET:

Budget is one of the most important administrativetool, which is

important in the following categories.

(1) Plan ofaction for achieving quantified objectives

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(2) Standard for measuring performance

(3) Device for coping with foreseeable adverse situations.

PURPOSES OF BUDGET

A budget serves five main purposescommunication, coordination,

planning, control, and evaluation.

Communication

Coordination

Planning

Control

Evaluation

Other purposes like:

Emergency Fund

Achieve Goals

Organization

Spending Habits

PREPARING A BUDGET FOR A UNIT

I. BUDGET WORKSHEET

Budget worksheet that explains budget adjustments. The work sheet

depicts information by the account number and sub code of each centre and

lists prior - year expenses, original budget and annualised expense. This

form usually is provided during the new budget formulation stage and the

annualised expense is the projected total expense if current rates continue

to the end of the fiscal year.

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OPERATING EXPENSES

Subcode

Description Prior yearexpense

Originalbudget

Annualisedexpense

Budgetadjustments

Approved budget

6000 Total supplies

6100 Forms

6200 Books

6434 Brochures6660 Film rental

Total supplies

8000 Total repairs & maintenance

8200 Main & repair

8310 Minor equipments

8524 Telephone

Total repairs & maintenance

9000 Total - OCE

9200 Travel9300 Airfare

9600 Entertainment

Total other controllable

Account Total

Total

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II. BUDGET FOR A HEALTH CARE ORGANISATION

Every hospital prepares the hospital health care complex cost

report certification and settlement summary, commonly known as the

Centre for Medicare Medicaid ( CMS ) cost report.

For preparing budget to a unit , note that ICUs are grouped as adults

and paediatrics .

To separate these units for revenue and expenditure, make the

following calculations.

1. Select a client care unit of a hospital

2. Determine the number of client days of occupancy for this unit.

3. From the Medicare cost report determine

3.1.Total direct & indirect costs ------------------

3.2. Total client days ------------------

3.3. Divide the total direct and indirect costs -------------------- by

Total client days ---------------- = cost/client day.

Client days for unit ( from 3.2 ) -------------- x 3 cost /client day

( from 3.3 ) -----------------= ------------------ or approximate expenses

for the nursing unit for this year.

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HOW TO DEVELOP A PROPOSAL BUDGET

Proposals can be costly

Proposals are not cheap; they can cost thousands of dollars. The real

danger lies in the fact that proposal costs are usually hidden, buried in

overhead. The proposal coordinators, graphics specialists and technical

staff often do not charge to a specific job number, and their efforts can

get lost in the blizzard of numbers that go along with running a business.

But the money is real. You are going to spend actual bucks preparing a

proposal, even if you dont really see the bucks being spent. proposals

cost anywhere from thousand to lakh or more, especially if a follow-on

interview is involved. If you dont track these dollars, youll never have a

good measurement of how well you are doing in your proposal efforts,

other than your win-loss record.

And this doesnt really tell the tale, either. With no proposal budget, its

often easy to spend the same amount of money on a winning proposal

with a small return (low value) as you would on a losing proposal with a

high value. If you dont track proposals costsand make smart business

decisions about where you ought to be spending your moneyyou could

end up with a terrific win rate but with projects that dont quite pay the

bills.

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How much should you budget for a proposal?

Thats a hard question to answer; it really depends on how

important the project is to the firm. As a general rule proposal costs

usually run between 3% and 5% of the value of the contract. But we can

only discover what it takes to write proposals at your firm by

scrupulously tracking the costs of each proposal you write.

The amount of time it takes to write a proposal varies widely. If you are

prime on a project, your time commitment is naturally going to be much

higher than if you are subbing. If the proposed project is complex, then

your proposal will likely require specialists from a variety of fields; this

drives up the total number of hours (and thus the cost) it takes to

prepare.

Chief Factors In High Proposal Preparation Costs

Regardless of the type of proposal or its size or whether youre the

prime or the sub, proposal costs rise when the following conditions are

in force.

Pre-proposal conferences.

No page limit specified in the solicitation.

No page limit given to the writers.

Principals deeply involved in the writing process.

No clearly defined project approach before the solicitation arrives.

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No project team assembled before the solicitation arrives.

Lack of a proposal development schedule.

Sitting on the solicitation for too long.

No clearly defined-and enforced-deadlines for proposal drafts.

No pre-defined limits for art developed, including the cover.

Each of these are discussed in greater detail here.

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Example For Budget Proposal

Estimated Budget for Male surgical concession General Ward for the year 2011-12

Bed strength : 60

Average patient stay : 05 days

Average bed occupancy: 20 patients

Bed charges per patient per day: Rs. 150

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11

Itemno

Charges Income Expenditure

1. Bed charges

Doctors charges

Nurses charge

15025365 = 13,68,750

2. Man power

Ward in-charge

Staff nurses ( > 2 years)

Trainees ( newly appointed)

Group D workers

- Permanent

- Contract basis

18,0001 12= 2,16,000

130001212= 18,72,000

5,000312 =1,80,000

10,000312=3,60,000

3,000612= 2,16,000

3. Inventory items 9000 12 =1,08,000

Total Rs.13,68,750 Rs.28,44,000


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CONCLUSIO N:

A Budget is a quantitative statement and a complete financial

forecast based on available data about the financial condition of the

agency or hospital during the forthcoming year. However, in a view of

changing circumstances in India are required to evolve a flexible plan to

suit different circumstances instead of relying on rigid plan of budget.

BIBILIOGRAPHY

1. BT BAsavanthappa. Nursing Education.1st edition. New Delhi: Jaypee

Brothers publishers:2003. p. 306 15 ,486

2. http ://www.mohfw.nic.in

3. http ://www.tpub.com.

4. http ://www.ericdigests.org/pre-9219/higher.htm

5. www.pingpong-online .de/osc/

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budget proposal..final..14.3.11

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