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Supplies Budget

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					Budget & Inventory

Can you appropriately manage
the money & have enough
supplies to last the year?
Relationship of Financial Activities


                     Budget




         Inventory            Purchasing
         Control
Components that Express Objectives
of Business Operations
   Sales: gross money coming in

   Cost: expenses of doing business

   Profit: amount of money remaining after the
    expenses have been paid

   Revenue: all incoming receipts & investments

   Return on Investment: ratio between capital outlay &
    revenue generated

   Growth Earnings: relates the growth in earnings over
    time by comparing progress from year to year
Budget
   Financial plan of operation –
    – Commits resources for projects, programs,
      or activities
    – Specifies the services to be provided & the
      resources that must be spent to achieve
      these service deliveries

   Certain AT settings may be
    appropriated monies from a supervising
    or controlling organization
     Budgetary Concerns
   Managing budget & equipment/supplies is
    critically important!
   Size of budget??
   Different settings = different size budgets &
    space allocations
   Equipment needs & supplies vary depending on
    the setting
   Continuous planning & prioritizing is necessary
    to effectively manage monetary allocations to
    meet programmatic goals
   Do you need to justify hours of operation?
    (clinic setting)
Budget Types
   Operating budget: Allocates money for
    the daily conduct of the program
    – Costs of supplies & equipment (maintenance
      & repair)
    – In clinic, revenues may be generated in
      patient fees
   Equipment budget: Used for items that
    will be used more than once
    – Hydrocollator packs
    – Various rehabilitation equipment
   Capital equipment outlay: Used for long-
    term equipment (Cybex)
Budget Systems
   Limited Budget: budget managed throughout
    year
    – If monies left at end of year, then it reverts back to
      organization
       • Government, education
    – May spend money on things not needed just to
      keep the money
   Rollover Budget: monies not spent in one
    year may be carried over & may be spent in
    next year
Budget Types

   Spending-ceiling model: requires
    justification only for those expenses that
    exceed those of previous budget cycle

   Spending-reduction model: used during
    periods of financial problems and
    requires reallocation of funds
Budget Types
   1) Zero-based budget: Requires
    justification for EVERY budget line item
    without reference to previous spending
    patterns
    – Based on assumption that cost estimates
      are based on a fresh assessment of
      monies available to deliver services
    – All programs must justify their existence
      annually or can be eliminated
    – Time consuming
Budget Types
   2) Fixed budget: method in which
    expenditures & revenues are projected
    on a monthly basis
    – Provides an estimate of cash flow
    – Most appropriate for large, well-established
      sports medicine clinics
    – Rarely used in schools
Budget Types
   3) Variable budget: requires adjustment
    of monthly expenditures so that they do
    not exceed revenues
    – Requires that expenditures for any given
      time period be adjusted according to
      revenues for same period
    – Rarely used in schools
    – Example: $30,000 expenses for January;
      $40,000 revenues
       • If received revenues of $50,000 – greater profit
       • If received revenues of $35,000 – less profit
Budget Types
   4) Line-item budget: all expenditures are
    itemized by categories
    – Each category can have subcategories
    – Concentrates on the here & now, doesn’t look at
      long-term planning
    – Expendable supplies, professional expenses,
      operations, & capital outlay
    – Does not allow for transfer of monies between
      accounts to cover shortfalls
    – Often seen in AT rooms in colleges, universities &
      high schools
    – Strong on control, but weak because of overcontrol
Budget Types
   5) Lump-sum budget: fixed sum of
    money given to athletic trainer
    – Can spend the money without having to
      specifying how the money will be spent
    – Gives freedom to spend money where you
      think it is most needed
    – People in charge of the money are to be
      held accountable for their actions
Budget Systems
   6) Program budget: functional categories
    within an overall budget that include all of the
    costs of the particular program
    – Often seen in clinics
    – Each area of operations (rehab, prevention,
      education) is evaluated for total costs
    – Must consider long-term objectives
    – Details program costs & can examine the extent to
      which services are actually delivered
    – Strong budget because of ability to relate costs to
      goals & objectives
The Budget Process
   Inventory – must know what you have &
    what you have been using throughout
    the past year
    – May want to do this semiannually or
      quarterly
    – Economic order quantity – a fixed # of items
      on hand, more ordered once level falls
      below predetermined point (e.g. stock & bill)
    – Re-order when item is gone (e.g. cough
      drops)
      • Make sure you have money in budget
Purchase Plans
 When ordering make sure you write down
  EXACTLY what you want
 Open Accounts or Direct Buy: purchase
  supplies in smaller quantities (under certain $$
    amount)
   Competitive Bid Procedure or Competitive
    Bidding: send out a bid request sheet to
    prospective bidders who respond with prices
    for specific items
    – At UI if an item is over $5000 it must go out for bid
      unless there is a sole vendor
   Lease Alternative:
Supplies
   Expendable – supplies that cannot be
    reused
    – Tape, First aid, antiseptics,
      pharmaceuticals, and injury prevention
      supplies
   Non-expendable – reusable supplies
    – Ace wraps, scissors

   Yearly inventory & records must be
    maintained in both areas
Equipment
 Permanent equipment: items that can
  be used for a number of years
 Capital (fixed, non-expendable) –
  remain in the athletic training room
    – Expensive, durable equipment
    – Ice machine, tables, modalities, chairs,
      rehab equipment – big ticket items
   Non-fixed (expendable) –
    – Crutches, coolers, kits
Additional Budget Considerations
   Telephone, postage & printing expenses
    – Paperwork, Bulk mailing to parents
   Contracts for outside services
    – Modality calibration
 Insurance
 Medical Expenses
    – Doctor visits, Dental molds, Orthotics
   Salaries & benefits
    – ATC staff, GA, Student, Doctor, Transcriptionist
   Professional development
    – Travel, Dues
   Miscellaneous expenses
    – Gatorade, Post-game beverages, clothing, awards
Date:           June 2, 2003

To:             Printing and Design

From:           Jackie Williams, Assistant Athletic Trainer      885-0225
                Athletic Training Room, 124 Kibbie Dome          jwilli@uidaho.edu

Subject:        Copy Information

                               ITEM                                DESCRIPTION         #                          SPECIAL INSTRUCTIONS

1. Medical History and Physical Examination                   white paper              200   collate and staple

2. Awareness of Risk                                          white paper              100

3. Emergency Information and Consent for Medical Care         NCR form style           400   punch left border for 3 ring border

4. Medical Services                                           white paper              100   copy front & back

5. Medical Considerations - Football                          white paper              50

6. Training Room - Student Name - Doctor's Signature          white paper              600   punch top border for 2 hole punch

7. Initial Evaluation Report                                  light green paper        200   copy front & back; punch top border for 2 hole punch

8. Daily Treatment Record Card                                white card stock         600   copy front & back, cut to exact size of copy, punch top border
                                                              *see sample                    for 3 ring binder
                                                              *8”w x 5¼”h



9. Daily Treatment Record                                     white paper              300   copy front & back

10. Daily Treatment Rehabilitation                            white paper              150   copy front & back

11. Physician Visit Report                                    NCR form style           200   punch left border for 3 ring binder

12. Insurance Claim Notification                              blue paper, legal size   450   perforated at line
Supplies & Equipment Inventory

 Managing budget & equipment/supplies
  is critically important
 Set up a spreadsheet to maintain
  supplies numbers for the last several
  years
Differences by Setting

 Clinic vs. High School vs. College/Univ.
 College/Univ. sizes

				
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Description: Supplies Budget document sample