DEVELOPING BUDGET PROPOSAL

INTRODUCTION Budgeting though primarily recognised as a device for controlling, becomes a major part of the planning process in any organisation. Budget is the heart of administrative management. It served as a powerful tool of coordination and negatively an effective device of eliminating duplicating and wastage. Nowadays, the nursing budget can account for up to 90 % of the organisations total expenses , therefore , participation in fiscal planning is viewed as a fundamental and powerful tool for nursing. DEFINITION : 1. Budget is defined as an estimation of costs, revenues, and resources over a specified period, reflecting a management's reading of future financial conditions. 2. Budget is a sum of money allocated for a particular purpose. 3. Planning the financial operations of a business is called budgeting. A budget is a written financial plan of a business for a specific period of time. IMPORTANCE OF BUDGET: Budget is one of the most important administrative tool, which is important in the following categories. (1) Plan of action for achieving quantified objectives
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(2) Standard for measuring performance (3) Device for coping with foreseeable adverse situations. PURPOSES OF BUDGET A budget serves five main purposescommunication, coordination, planning, control, and evaluation. Communication Coordination Planning Control Evaluation Other purposes like: Emergency Fund Achieve Goals Organization Spending Habits PREPARING A BUDGET FOR A UNIT I. BUDGET WORKSHEET Budget worksheet that explains budget adjustments. The work sheet depicts information by the account number and sub code of each centre and lists prior - year expenses, original budget and annualised expense. This form usually is provided during the new budget formulation stage and the annualised expense is the projected total expense if current rates continue to the end of the fiscal year.

OPERATING EXPENSES
Sub cod e 6000 6100 6200 6434 6660 8000 8200 8310 8524 9000 9200 9300 9600 Description Total supplies Forms Books Brochures Film rental Total supplies Total repairs & maintenance Main & repair Minor equipments Telephone Total repairs & maintenance Total - OCE Travel Airfare Entertainment Total other controllable Account Total Total Prior year expense Original budget Annualised expense Budget adjustments Approved budget

II. BUDGET FOR A HEALTH CARE ORGANISATION Every hospital prepares the hospital health care complex cost report certification and settlement summary, commonly known as the Centre for Medicare Medicaid ( CMS ) cost report.
For preparing budget to a unit , note that ICUs are grouped as adults

and paediatrics .
To separate these units for revenue and expenditure, make the

following calculations. 1. Select a client care unit of a hospital 2. Determine the number of client days of occupancy for this unit. 3. From the Medicare cost report determine 3.1.Total direct & indirect costs -----------------3.2. Total client days ------------------

3.3. Divide the total direct and indirect costs -------------------- by Total client days ---------------- = cost/client day. Client days for unit ( from 3.2 ) -------------- x 3 cost /client day ( from 3.3 ) -----------------= ------------------ or approximate expenses for the nursing unit for this year.

HOW TO DEVELOP A PROPOSAL BUDGET Proposals can be costly Proposals are not cheap; they can cost thousands of dollars. The real danger lies in the fact that proposal costs are usually hidden, buried in overhead. The proposal coordinators, graphics specialists and technical staff often do not charge to a specific job number, and their efforts can get lost in the blizzard of numbers that go along with running a business. But the money is real. You are going to spend actual bucks preparing a proposal, even if you dont really see the bucks being spent. proposals cost anywhere from thousand to lakh or more, especially if a follow-on interview is involved. If you dont track these dollars, youll never have a good measurement of how well you are doing in your proposal efforts, other than your win-loss record. And this doesnt really tell the tale, either. With no proposal budget, its often easy to spend the same amount of money on a winning proposal with a small return (low value) as you would on a losing proposal with a high value. If you dont track proposals costsand make smart business decisions about where you ought to be spending your moneyyou could end up with a terrific win rate but with projects that dont quite pay the bills.

How much should you budget for a proposal? Thats a hard question to answer; it really depends on how important the project is to the firm. As a general rule proposal costs usually run between 3% and 5% of the value of the contract. But we can only discover what it takes to write proposals at your firm by scrupulously tracking the costs of each proposal you write. The amount of time it takes to write a proposal varies widely. If you are prime on a project, your time commitment is naturally going to be much higher than if you are subbing. If the proposed project is complex, then your proposal will likely require specialists from a variety of fields; this drives up the total number of hours (and thus the cost) it takes to prepare. Chief Factors In High Proposal Preparation Costs Regardless of the type of proposal or its size or whether youre the prime or the sub, proposal costs rise when the following conditions are in force.

Pre-proposal conferences. No page limit specified in the solicitation. No page limit given to the writers. Principals deeply involved in the writing process. No clearly defined project approach before the solicitation arrives.
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No project team assembled before the solicitation arrives. Lack of a proposal development schedule. Sitting on the solicitation for too long. No clearly defined-and enforced-deadlines for proposal drafts. No pre-defined limits for art developed, including the cover. Each of these are discussed in greater detail here.

Example For Budget Proposal Estimated Budget for Male surgical concession General Ward for the year 2011-12 Bed strength : 60

Average patient stay : 05 days Average bed occupancy : 20 patients Bed charges per patient per day: Rs. 150

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Ite m Charges no 1. Bed charges Doctors charges Nurses charge 2. Man power Ward in-charge Staff nurses ( > 2 years) Trainees ( newly appointed) Group D workers - Permanent - Contract basis 3. Inventory items Total

Income

Expenditure

15025365 = 13,68,750

18,0001 12= 2,16,000 130001212= 18,72,000 5,000312 =1,80,000

10,000312=3,60,000 3,000612= 2,16,000 9000 12 =1,08,000 Rs.13,68,750 Rs.28,44,000

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CONCLUSION: A Budget is a quantitative statement and a complete financial forecast based on available data about the financial condition of the agency or hospital during the forthcoming year. However, in a view of changing circumstances in India are required to evolve a flexible plan to suit different circumstances instead of relying on rigid plan of budget. BIBILIOGRAPHY
1. BT BAsavanthappa. Nursing Education.1st edition. New Delhi: Jaypee

Brothers publishers:2003. p. 306 15 ,486 2. http ://www.mohfw.nic.in 3. http ://www.tpub.com. 4. http ://www.ericdigests.org/pre-9219/higher.htm 5. www.pingpong-online .de/osc/

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