Nursing Administration & Management

assignment
ON

Budget of ward

Submitted To: Submitted By Mrs.

Sadhana. Adhyapak Mrs. Monika Bagchi
Asst Prof 2nd year MSc N

Submitted On: 21/09/2015

INTRODUCTION

Every organization has predetermined set of goal and objective which are
attainable only with help of power planning and execution of plan economically. The
plan are in the form of statement are called budget. Every organization prepares the
budget for its functioning.

Budget expresses the plan of hospital in health organization to provide

optimum care at a reasonable cost in financial terms.
DEFINITION

A budget is a tool for planning, quantifying the plan and controlling cost.

Finkler, 1984

A budget is a plan that uses numerical data to predict the activities of an

organization over a period of time and it provide a mechanism for planning each unit’s
needs and contributes.

Carruth, Carruth and Notto, 2000

PURPOSES OF BUDGETING

The purposes of budgeting are:

1. Budget supplies the mechanism for translating fiscal 1-year objectives into
projected monthly spending pattern.
2. Budget enhances fiscal planning and decision making.
3. Budget clearly recognizes controllable and uncontrollable cost areas.
4. Budget allows feedback of utilization of budget.
5. Budget helps to identify problem areas and facilities for effective solution.

CHARACTERISTICS

 It is a plan or program, framed on the basis of past experience.

 Budget is a scheme for action
 Is should estimate the revenues and expenditure as accurately as possible.
 There is a generally annual plan.
 It is a comprehensive Plan of action.

IMPORTANCE OF BUDGET

1. Budget is needed for planning for future course of action and to have a control
over all activities in the organization.
2. Budget facilitates coordinating of various departmental and selection for realizing
organizational objectives
3. Budget serves as a guide for action in the organization.
4. The budget tells you how much money you need to carry out your activities.
5. The budget to monitor income and expenditure and identify any problem.
 PRINCIPLE OF BUDGET

 Budget should provide sound financial management by focusing on requirement of

the organization.
 Budget should focus on objectives and policies of the organization. It must flow from
objectives and give realistic expression to the way of realistic such objective.
 Budget requires that program activities planned in advance.
 Budgetary process requires consistent delegation for which fixed duties and
responsibilities are required to be allocated to managers at different level for framing
and executing budget.
 Budget should include co-coordinating efforts of various departments establishing a
frame of reference for managerial decision and providing certain criteria for evaluating
managerial performance.
 Budget period must be appropriate to the nature of business or service and to type of
budget.
 Budget is prepared under the direction on the supervision of the administration or
financial officer.
 Budget is to be prepared and interpreted consistently throughout the organization in
the communication in the planning process.
 While developing budget , provision must be made for its flexibility

TYPES OF BUDGET

1. Capital expenditure budget – this type of budget includes the purchase the land,
buildings, a major equipment’s of considerable expense and lifelong.

2. Operating budget - It includes the cost of supplies, minor equipment repairs, and
overhead expenses.

3. Fixed budget - This refers to those components of budgets that will not vary
regardless of change in patient census or number of procedures.

4. Flexible budget - It refers to those components of budgets that will determine

how the budget will fluctuate, based on those changes in the number of procedure
or unit of activity.

5. Open ended budget – It is financial plan in which each operating managers

presents a single cost estimate for which she consider the optimal activity level
for each program, without indicating how the plan should be scaled down if less
funding is available.
6. Historical budget - In historical budget, the previous year expenses are used as
basis for expenses for the next year.

7. Statistical budget or forecast budget - this type of budget is developed by

establishing a level of anticipated activity based on historical or other data such as
loss or gain of specific program.

8. Trended budget - Trended budget is one that is developed based on the previous
year expenditure pattern.

9. Zero based budget - it is one of the budget that do not utilize any historical data
to determine activity level or expenses anticipated .all the expenses are justified
based on expectation or desires for the upcoming year.

10. Revenue and expense budget - it is expressed in financial terms and take the
nature of the Performa income statement for the future. It shows items of profit
and loss under classified headings.

11. Cash budget - This is prepared by way projecting possible cash receipts and
payments over budget periods.

12. Program budget - It is one where cost are computed for a total program.

13. Performance budget - It is based on function such as direct nursing care,

supervision, in-service.

STEPS IN BUDGETING

While designing and implementing a planning program, the nurse

administrator/ manager should follow steps –

STEPS IN PREPARATION OF NURSING BUDGET

 Review the
Review the goals of Prepare a budget
objectives of the
the hospital proposal
existing programmes

Adopt the
Compute the Revise the existing
alternative approach
expense for each program with the
for realizing the
program revised proposal
proposed plan

Compare the
proposal to identify
the effective one
Prepare a budget
request which
Present the need of
details a fiscal plan
required staffs
for the preferred
program

Review the budget

Determine the appropriation and
Prepare a new
percentage of salaries actual expenditure
budget is to cover in
in various department for the current year
of nursing based on terms of nursing
conjunction with
the time allocated service required
current hospital
statistics

Prepare the
Estimate the Submit the report to
summary of new
requirement for the the head of the
needs to support the
coming year department
request

BUDGET PLAN OF OBSTETRIC AND GYANAECOLOGY WARD

(BED SIZE-28)

UNIT TOTAL
REQUIRED
S.N. DESCRIPTION OF ITEM COST COST
QUANTITY
(Rs.) (Rs.)
  EQUIPMENT      
 1. Stethoscope 2 400 800
2. B.P. Apparatus 2 1800 3600
3. weighing machine 1 1500 1500
4. Nebulizer machine 1 2500 2500
5. Oxygen cylinder (5 litre) 1 7300 7300
6. Suction apparatus(mobile) 1 15000 15000
7. Pulse oximetry 1 5000 5000
8. Glucometer 1 2220 2220
9. Ambu bag set 1 1000 1000
10. X ray view box 1 13000 13000
11. Needle cutter 1 3500 3500
12. Hammer 1 220 220
13. Tongue depressor 2 50 100
14. Cheatle forceps 1 250 250
15. Injection tray 2 150 300
16. Dressing tray 2 170 340
17. Sterile Drum 1 600 600
18. Tuning fork 1 170 170
19. Digital Thermometer 1 250 250
20. Scissors 1 120 120
21. Air way 5 30 150
22. Mackintosh 3 1000 3000
23. Tourniquet 2 50 100
24. Hot water bag 1 500 500
25. Kidney tray 3 70 210
FURNITURE      
26. Cot 30 13000 390000
27. Stool 30 1000 30000
28. Side locker 30 5200 156000
29. IV stand 30 2900 87000
30. Crash cart 1 15000 15000
31. Medicine trolley 1 14400 14400
32. Dressing trolley 1 14400 14400
33. Chair 3 500 1500
34. Table 1 3500 3500
35. Wheel chair 1 6000 6000
36. Bed side screen 1 5000 5000
37. Foot step 1 3000 3000
38. Cylinder trolley 1 3500 3500
  MISCELLENOUS      
1 Refrigerator 1 13000 13000
2 Fan 15 1200 18000
3 Tube light 35 220 7700
4 Telephone 1 3000 3000
5 Punching machine 2 70 140
6 Notice board 1 550 550
 7 Waste disposal containers 4 250 1000
Stationary items (Register, Paper,
8     10000
Forms, Files etc.)
  SALARY      
1 Sister In charge 1 30,000 30000
2 Staff Nurse 10 15,000 150000
3 Ward Aid 3 6000 18000
Total expenditure     1042420

Income and Expenditure Statement

Income and expenditure statement reflects the results of the hospitals

operation for a stated period. The income and expenditure of various departments
are worked out department wise. This is essential for the purpose of evaluating
financial performance of each department, and in determination of cost of providing
each service.

Income: It accrues from the following sources.

1. Routine medical care service

 Room, food, medical care, nursing care
 Outpatients consulting, injections, dressings, minor procedures
 Emergency and casualty services

2. Special departmental services

 Operation theaters
 Delivery room
 ICU
 Pathology
 Radiology
 Physiotherapy
 Pharmacy

3. Other income
 Fees for training programs
 Canteen, parking lot
 Ambulance

4. Non-operating income
 Donations
  Grants
 Property rentals
 Bank interest and investment returns

Expenditure: It is incurred from the following sources.

1. Operating expenditure
 Salaries, including contribution to employee provident fund and gratuity
 Supplies and materials
 Utilities (Electricity, water, telephones etc.)
 Maintenance
 Administrative expenses

2. Other expenses
 On training programs

3. Non-operating expenses
 Depreciation
 Interest on borrowed capital
 Upkeep of properties

BIBLIOGRAPHY

 Jogindra vati, Principles and practice of nursing management &

administration, first edition 2013, jaypee publication , page no 576-580

 Basavanthappa.BT, “Nursing Administration”, 1st edition, JAYPEE Publication,

2007, Pp:301-305.
 Bhaskara raj etall,Management of nursing service and education, 2 nd edition
2012, emmess medical publisher,pg no.94-99

 Gupta S& Kanth S. Hospital stores management, an integrated approach.

( First edn). New Delhi: Jaypee brothers; 2004, page no.152-158