Monitoring and Analysing a Budget
Your budget is submitted and the new fiscal year has begun; the budget work is not over. The budget now needs to be managed and this includes budget monitoring, investigation of variances and control of variances.
Activity #1
Watch this video about these three functions.
Video: Budget Monitoring (15:03)
Slides: Budget Monitoring
Activity #2
Variance Analysis
You are the manager of the outpatient department at a relatively small rural hospital. The size of the community has been growing and provincial funding has included only inflation for the past few years. Because the community has been growing and you have a large number of summer visitors in your area you have been seeing more cases in the outpatient clinic in the past months. You’ve just received your financial statement for August and you see that you’re significantly over budget in a number of areas. You’ll be meeting with your Director in a couple of days and need to prepare.
- What information do you need in order to analyse these variances? List the information.
- Identify the possible causes of these variances.
- Suggest some possible actions that could be taken to approach the variances.
Click the questions below to reveal possible responses.
