Budget Analysis
Samwel Rorya
Southwestern college professional studies
NURS330: Nursing Leadership and Management
Instructor: Pat Howell
February 7, 2016 Budget Analysis
This budget is for Meridian Nursing and Rehabilitation center (MNRC) .The calendar year is 2014 .According to the central supply personnel this budget was calculated at the end of year. This budget explained how MNRC cover all expenses and where the company get its revenue from. Income -Revenue Categories
MNRC has one hundred and six beds. The total revenue for the year 2014 for the average of 83 residents was $5,235,449. The company is getting most of its revenue from the residents who are covered by Medicaid mix and from those residents
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In order to run this facility and as the same be able to give the best care to their patients the company large team of employees.38 percent of the facility employees is nursing department ,this department cover all three shifts thus why it covers almost half of employees. The nursing department spending budgeted for year the 2014 was expected to be $2, 149, 14; this includes nurses, certified medication aides and certified nursing assistants. The actual nursing department spending was $1,541,322. Dietary was 12% of the expense, Maintenance and Utilities at 7%, housekeeping and activities were at 4% each and laundry at 1%. The other expenses include Property Insurance/taxes at 1%, Ancillary expenses which were 22%, general and administration, which was 9% and social servises was budgeted at …show more content…
According to the net income formula and the data we have above:
Net income = total net revenue –total expense
Total net revenue = $5,235,449
Total Expenses = $4,073,757
Net income ($5,235,449- $4,073,757 = $1,161,692
The company expenses were reviewed and added up and subtracted from the operating income which showed that the company had net income of $1,161,692. What this mean, this means that the company had a net profit of $1,161,692 the year ending 2014. According to Meridian administrator there was no charitable organization involved in helping pay for any patient in the year 2014.
Nursing Department Valance Analysis
The company budget spending for the nursing department expenses for the year 2014 was expected to be $2,149,141 and the actual nursing spending expenses for year the 2014 were $1,541,322.According to above figure the organization spent less than the budgeted spending on the nursing department.
Nursing department Valance Analysis
A variance is found by subtracting actual Expenditures from budgeted expenditures
(Actual Expenditures – Budgeted Expenditures)
$1,541,322- $2,149,141 = -607,819
A Variances in percentage is equal to variance/budget expenditures x100
(-607819/2149141) *100% =