EXERCISE: ADJUSTING THE BUDGET

Using the sample budget for the health information management service, adjust the budget to reflect the changes described below. Indicate the line item and the amount of the change, and make any note about the change $($e$.$g$.,$ that an item cannot be eliminated or further reduced$).$ Assume that it is possible to move funds from one line item to another.

What would be the dollar impact if the $5\%$ increase planned for January $1$ were reduced to $3\mathrm{.}5\%$ and postponed until April $1?$

As an alternative cost$-$saving strategy, determine the annual savings if all hourly staff were reduced from $40$ to $37\mathrm{.}5$ hours as their standard workweek. Consider the top three staffdirector, compliance specialist, and registries coordinator$-$as salaried and thus unaffected by the workweek change.

Determine the total dollar impact if both of the foregoing strategies were implemented together, Remember that the pay increase affects everyone, but the $37\mathrm{.}5-$hour week affects just the hourly staff.

Prepare a request for funding from an external vendor to cover the costs of the health information management regional meeting and health information management week outreach efforts.