Budgeting

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					   Budgeting

      Financial
Resources Management
 Resources vs. Expenditures

 Needs   to be a continuous process
  Planning

  Prioritizing

  Documenting

  Constant  evaluation b/c of
   evolving nature of AT
Types of Budgets
     Spending Ceiling Model
     (incremental)
 Only have to justify increases in previous
  years
 Often linked to inflation (4%), but medical
  costs often increase faster than inflation
 Doesn’t implement good planning
 Will be forced into a “spending reduction
  model” in lean financial times that has not
  been anticipated or planned.
        Zero Based Budget

 Must justify every expense
 Requires documentation of needs
 Requires much more effort and detail
 Helps with prioritizing
            Fixed Budget

 Predict month to month income and
  expenditures
 Used in clinical situations, rare in school
  settings
 Helps identify profitable practices
 If not predicted accurately, could be dipping
  into “savings”
         Variable Budget

 Tough to predict month to month
  expenditures
 Budget is adjusted according to the actual
  revenues
 20% drop = 20% cut on expenditures
       Lump Sum Budget
 Provided with a fixed amount of money and
  can spend any way the ATC sees fit
 Very definite limits and easy to use
 Gives ATC freedom to spend as he/she sees
  fit
 Must plan for unknowns or will be
  accountable after the fact
            Line Item Budget
   List of expenditures are categorized based on
    program sub-function
       Expendable Supplies, equipment repair, team physician
        services, insurance, ect
   Money in one line may not be transferable to
    another so parent organization has some control
   Easy to understand and prepare
   ATC has limited flexibility in financial crises
        Performance Budget

   Breaks budget into functions and
    appropriates funds necessary to achieve
    those activities
       (ex) rehab, emergency, administration, etc
   Similar to line item budgeting but much
    more detailed and requires analyzing
    expenditures and returns (tough in athletic
    training)
Steps in Budgeting
   Needs assessment
   Make funding source decisions
   Use past records
   Plan on changes that occur as a result of policies,
    rules
   Consult with vendors
   Plan capital improvements / purchases far in
    advance
   Keep close eye on accounting reports
Terms to know

   Capital expenses – large item, one time purchase
       (ex) e stim unit
   Medium-Priced Annual Rebuys – often are
    services that must be negotiated yearly
       (ex) athletic program’s health insurance
   Lower-cost Consumable Supplies – small items
    that have a limited number of uses
       tape
    Purchasing Goods

1.Quotations      4. Purchase orders
2. Negotiation    5. Receiving
3. Requisitions   6. Accounts payable
     Request Quotations
 List that goes out to a variety of vendors
 Vendors list is compiled by organization
  /agency
 Bidding process can be on individual items
 MUST BE SPECIFIC!!!
 Include S&H
 Most effective way to control costs
Negotiations

 Price
 Supply
 Quality
 Shipping
 Technical Support
Requisition /
Purchase Order

           is the request from the
 Requisition
 ATC to expend funds

 Purchase  order is the form approved by
 the institution that goes to vendor
   Receiving


 Match  packing slip
 Inspect goods
 Report ASAP
          Accounts Payable


 Confirmreceipt with business office /
 person by approving invoice

 Wait   to pay if problems
Other Funding Sources


  Pooled buying consortiums
  Alumni / booster organizations
  External funding
Inventory

 Keep plenty, but not too much
 Should be performed regularly
 Develop a check out system, especially
  important in situations w/ multiple ATC’s
 Central Supply?
 Automated?
 Restrict Access?

				
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posted:9/27/2011
language:English
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