Case 9- Budget Expenses

Gabe Richards a dialysis unit supervisor, reviewed his previous two years of budgeting for the center. He noted budged and acutal expenses. Then he substracted the diference. In some areas he budgeted more that he had spent. In other areas, he had budgets less. Look at Gabes notes in exhibit 11.5 As he prepares the budget for the upcoming fiscal year.

1. Gabe had anticipated being able to operate fully staffed for the current year, however the dialysis center was understaffed. How is this reflected in the budget?

2. Create an incremental budget for the projected year. Fill in the budget numbers for salaries, professional development, material and supplies and equipment for the project year.

3. Create a zero based budget for the projected year. And Fill in the budget numbers for salaries and professional development, material and supplies and equipment for the project year.

4. What are the major differences between an incremental budget and zero based budget?

5. What increase or decreases did you propose for the center?

6. Why did you propose what your proposed?

7. Write a short defense of your budget.

Previous Year Salaries Total EXHIBIT 11.5 Budget Expenses for Dialysis Unit Staff Operations (Physicians Not Included)Gabe's Notes Spent Professional Development $34,446.10 $ 66,528.00 $(32,081.90) Equipment Expensed $21,246.66 Materials and Supplies $241,001.66 $235,000.00 $6,001.66 $1,529.7 $1,233,041.57 $1,246,870.00 $ (13,828.43) $1,529,735.99 Budgeted $21,000.00 $1,569,398,00 Difference $ 246.66 $ (39,66 Salaries Total Current Year Professional Materials and Development Supplies $58,800.00 $250,000.00 $68,400.00 $248,000.00 $(9,600.00) $2,000.00 Spent $1,425,052.20 $1,534,548.00 $(109,495.80) Equipment Expensed $23,000.00 $22,500.00 $ 500.00 Budgeted Difference $1,756,852.20 $1,873,448.00 $ (116,595.80) Salaries Projected Year Professional Materials and Development Supplies Total Equipment Expensed Spent Budgeted