O&A budgeting

why must athletic trainers be cost effective healthcare providers?

they must use available resources efficiently while supporting the organization’s goal and objectives

what is a budget?

an estimate of expected income and expenses for a future period and plan for operating based on those estimates

what is the first step in the budgeting process?

planning

what should budgets be aligned with?

problems, goals and objectives

what is usually the largest expense in a budget?

personnel costs?

what percentage of a budget is often spent on personnel?

50-75%

what is an FTE?

full time equivalent employee position

what occurs during 2nd step of budgeting?

gathering data and analyzing feedback

why should staff provide budget input?

it improves budget accuracy and creates ownership in the process

what is the purpose of step 3: building consesus?

to gain staff agreement on budget priorities before presentation

who usually has final authorities over budget approval?

higher-level administrators

what is the goal of budget implementation?

responsible spending without exceeding budget limits

what is the purpose of budget evaluation?

to determine if goals were met and improve future budgets

what is a budgeting cycle?

the time period during which a budget is developed

what is a fiscal year?

the time period during which the budget is implemented

what is a short term budget?

an annual budget covering daily operating expenses

what are operational expenses?

salaries, office expenses, administrative costs, and similar daily expenses

what are expendable supplies?

items that cannot be reused, such as tape and first aid supplies

what are non-expendable supplies?

reusable items that have a replacement lifespan

• elastic wraps, orthopedic appliances, and hand weights

what are fixed expenses?

costs that fluctuate and require estimates

what is a long-term budget?

a budget for expenses extending beyond one fiscal year

what are capital expenses (capital outlays)?

large purchases such as building projects, or major equipment

what is a limited budget?

a budget where unused funds return to the organization at year’s end

what is a rollover budget?

a budget where unused funds carry forward to the next fiscal year

what is a line-item budget?

a budget that separates expenses into categories

what is advantage of line-item budgeting?

easy tracking of ependitures

what is a program budget?

a line-item budget with more specific categories linked to goals

what is incrimental budgeting?

adjusting the previous year’s budget by a set percentage

what is zero-based budgeting?

a budget system requiring every expense to be justified each year

what is a disadvantage of zero-based budgeting?

very time consuming

what does PPBS stand for?

planning programing budgeting system

what is a fixed budget?

a budget established for a set period with no adjustments

what is a variable (flexible) budget?

a budget that adjusts regularly based on revenue changes

what is a revenue center?

a department or program that generates income

ex: radiology, physician clinics, peds fitness program

what is a cost center?

a department that does not directly generate profit

ex: AT outreach programs, and rehab services

what should guides session suring budget cuts?

the institution’s mission, goals, and priorities

what is a bid?

a vendor’s proposal for goods or services?

what are competitive bids?

usually 3 or more vendor bids use to determine best value

what is a requisition?

a written request to purchase good or services?

what is an internal requisition?

a request for goods or services from another department within the organization

what is a purchase order (PO)?

formal authorization to purchase requested items

what are IFB’s and RFPs

formal requests for vendors to submit bids or proposals

what is a blanket order (open account)?

an open purchase oder uses repeatedly over time

what does FOB mean?

freight/ free on board; determines shipping responsibility and transfer of ownership

what is receiving?

taking possession of purchased items

what is an invoice?

a vendor’s request for payment

what are purchasing terms?

the timeframe allowed before payment is due

what is purchasing delegate?

a person authorized to make purchases on behalf of a department

what are specification (specs)?

detailed descriptions of products required during bidding

what are substitutions?

alternative products supplied instead of requested items

name 3 ways vendors can help organizations

demonstrate products, provide specifications, and assist with ordering

why should gifts from vendors be avoided?

they may create conflict of interest and can be illegal

what is inventory management?

tracking and controlling supplies and equipment

why are spreadsheets useful for inventory tracking?

they help monitor supply usage and ordering patterns

why is monitoring expiration dates important?

to ensure supplies are safe and usable

why should inventory storage be secured?

to prevent theft, loss and unauthorized access

what are the 7 steps of hte budget process

planning → data gathering→ build consensus→ present budget → obtain approval→ implement budget→ evaluate budget