Developing a Budget

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Budgeting is done annually based on an organization’s fiscal year.  Most nurse managers will be involved in the preparation of operational budgets and some will be involved in the preparation of capital budgets.

 

Activity #1

Read the chapter on budget development for nurse managers from the Nurse Managers Guide to Budgeting and Finance (Rundio, 2016): Budget development for nurse managers

 

Activity #2

Read the following articles to further understand the development of staffing plans as part of the budget process:

 

Activity #3

Watch this overview on the development of an operating budget.

Video: Developing an Operating Budget (30:46)

Slides:  Developing an Operating Budget

 

Activity #4

Watch this video on creating a capital budget.

Video: Creating a Capital Budget (9:54)

Slides: Creating a Capital Budget

 

Check Your Understanding

You are the nurse manager for a 10-bed acute care unit and need to develop and cost the staffing plan for the unit.  Full-time staff work a 40-hour week (2160 hours per year) and benefits are 35% on top of salary. The staff which is part of your budget, including yourself, are: 

Staffing Budget table
p.a. = per annum (yearly)

 

You also anticipate that 2 RNs and 2 RPNs will be leaving in the coming fiscal year and you will need to replace them.  Each new person will receive three full days of orientation.  Using this information, complete the two tables in the linked document and arrive at the final cost for staffing this unit in the next fiscal year.  

 

Note: Do not ‘Request edit access’ to the google doc worksheet below. Please either ‘Make a copy’ or ‘Download’ and print a copy for yourself. 

 

License

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Leadership for Nurses in Clinical Settings by Dr. Kirsten Woodend, Dr. Catherine Thibeault, Dr. Manon Lemonde, Dr. Janet McCabe is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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