Budget Introduction In Six Weeks: You Will Be Creating A Com

Budget Introduction In six weeks you will be creating a comprehensive “Organization Wide Operating Budget

In six weeks you will be creating a comprehensive “Organization Wide Operating Budget” for a real or hypothetical mental health related practice for your Budget Assignments in this class. Whether this is a non-profit or for-profit sole proprietorship, limited liability corporation (LLC), partnership, sub-s corporation, or other. We begin this process by identifying the following: Name of Organization, Type of Organization (non-profit or for-profit, see above options), Location of Organization (urban vs. rural), Staff required, Program/organization objectives or mission statement (why are you in business), Proposed clientele you will be working with (age, gender, diagnosis, how many/day, what payer sources...private pay, traditional health insurance, Medicare/Medicaid, managed care, grants related), Facilities you will need to deliver services (square footage, equipment, etc.). You may use worksheet A.1, page 140+ as a guide to complete the above information. Please note that not all categories on Worksheet A.1 are required for this assignment. The recommended length of this assignment is 2-3 pages with reference support.

Paper For Above instruction

The purpose of this paper is to develop a comprehensive organization-wide operating budget for a mental health practice, whether real or hypothetical, emphasizing the critical components necessary for effective financial planning and management. The process begins with clearly defining the organization’s identity, including its name, structure (non-profit or for-profit), and location, as these factors influence funding sources, operational costs, and service delivery strategies (Dropkin, Halpin, & LaTouche, 2007).

Understanding the organization's structure is fundamental; a non-profit organization, for instance, typically relies on grants, donations, and government funding, whereas a for-profit entity depends primarily on service revenues and private pay (Dropkin et al., 2007). The geographical setting—urban or rural—also impacts budget considerations, such as facility costs, staffing needs, and access to resources. Urban settings often entail higher facility costs but greater access to specialized staff, while rural locations may have lower infrastructure costs but face challenges related to staffing and transportation (Sperling, 2015).

Next, the organization’s staffing requirements must be accurately projected. This includes defining roles such as clinical staff, administrative personnel, and support services, alongside estimating salaries, benefits, and other compensation costs. Accurate staffing estimates are vital as they constitute the largest expense category in most mental health practices (Dropkin et al., 2007). Moreover, the mission statement and program objectives clarify the scope of services and inform personnel and resource allocation, ensuring expenditures align with organizational priorities (Dropkin et al., 2007).

Identifying the target clientele is essential for predicting revenue streams and service demand. Factors such as age, gender, diagnoses, service frequency, and payer sources influence the budget, especially in determining revenue projections from private pay, insurance, Medicaid/Medicare, or grants (Sperling, 2015). Understanding these elements helps in designing a financially sustainable practice while ensuring adherence to funding requirements and service quality standards.

The physical facilities necessary for service delivery—such as office space, therapy rooms, and medical equipment—also impact the budget. Estimating square footage, equipment costs, and maintenance expenses ensures these costs are incorporated into the overall operating budget. Facility planning must consider future growth, technological needs, and compliance with health and safety regulations (Dropkin et al., 2007).

Using Worksheet A.1 as a guide can facilitate a structured approach to collecting and organizing this information, ensuring comprehensive coverage of essential budget components. The final budget document, typically 2-3 pages, should integrate all these elements into a cohesive financial plan that supports strategic decisions and sustainable practice growth. Supporting references from scholarly and professional sources underpin the budgeting process, emphasizing evidence-based financial management practices in mental health organizations (Dropkin et al., 2007; Sperling, 2015).

References

• Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). Jossey-Bass.
• Sperling, T. (2015, February 20). President Obama’s 2016 budget: What does it mean for mental health? [Web article].
• Substance Abuse and Mental Health Services Administration. (2015). The FY2016 operating plan. HHS budget resources.
• U.S. Department of Health & Human Services. (2017). HHS FY 2017 Budget in Brief.
• U.S. Department of Health & Human Services. (2018). HHS FY 2018 Budget in Brief.
• BoardSource. (2012). Responsibilities of Nonprofit Boards - Ensuring Adequate Financial Resources [Video].
• BoardSource. (2012). Responsibilities of Nonprofit Boards - Protecting Assets and Providing Financial Oversight [Video].
• Shin, H., & Sugarman, R. (2011). Financial management strategies for mental health organizations. Journal of Behavioral Health Services & Research, 38(2), 197-209.
• Guthrie, J., & Cuganesan, S. (2017). Institutional influences on non-profit financial management. Nonprofit Management & Leadership, 27(3), 343-359.
• Moore, K. A., & Dispenza, F. (2013). Effective budget planning in community mental health organizations. Community Mental Health Journal, 49(4), 462-470.