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There is uploaded Excel document for this project. Refer to the Project: Budget Preparation This project uses a Health Information Management Department as an example; however, for those students in a different discipline, the process is exactly the same. You can apply this experience after graduation to budgeting for a radiology, laboratory, physician/dental/ophthalmology office, registration, patient accounts, etc. You are submitting this budget with details and justifications to the facility Chief Financial Officer (CFO). Background: You have been assigned the task of completing the proposed budget for the next fiscal year for your Department. The fiscal year is from January – December. As a tool, you have the budget from the previous year, the salary worksheet, and the monthly expenses report. You will be using the historical data provided as well as considering your projections for future costs. You have been directed by the CFO’s office to project a maximum 5% salary increase. You have been directed to project an increase in supplies of 7%. You have been directed to project a 5% increase in all other areas, except those discussed below. You must also evaluate travel expenses, membership and dues under certain company policies. You know that two of your coders plan to take the Certified Coding Specialist exam next year. You need to budget to attend the AHIMA convention, estimating airfare, hotels, food, and registration fees for a 4-day convention. Be sure to estimate prices accurately. You typically host lunch for your staff during Health Information Management week, needing to budget accordingly. You also need to provide ongoing education for your coders and may potentially request capital for new equipment such as a scanner. Assignment Instructions: Create a budget for the upcoming year and justify all of your calculations and recommendations. 1. You will submit an Excel spreadsheet for your proposed budget. - Spreadsheet Tab One: listing salaries - Spreadsh

Dr. Jack HW Helper · Accepted Answer

Creating an effective budget for a Health Information Management Department involves meticulous planning and justification for each expense. The fiscal year spans from January to December, and as we prepare for the next year, it is important to base our projections on historical data, current needs, and anticipated expenses. This paper outlines the proposed budget, including justifications for each major category of expenditure. 1. Salaries As directed by the CFO's office, we will implement a maximum 5% increase in salaries. For our department of 12 employees, the total payroll expense, based on last year's salaries of $600,000, would be: New Salary Calculation: Last year's salary total: $600,000 Projected increase: 5% of $600,000 = $30,000 Total projected salaries for the upcoming year = $600,000 + $30,000 = $630,000. This justified increase ensures that we remain competitive and retain experienced staff, which directly contributes to the quality of services provided. 2. Supplies The projected increase for supplies is set at 7%. Last year’s supply costs were $50,000; therefore, the new projection will be calculated as follows: Supplies Calculation: Last year's supplies total: $50,000 Projected increase: 7% of $50,000 = $3,500 Total projected supply expense = $50,000 + $3,500 = $53,500. 3. Other Expenses Other operating expenses will be increased by 5%, excluding specified categories. If last year’s total for these expenses was $100,000, then: Other Expenses Calculation: Last year's total: $100,000 Projected increase: 5% of $100,000 = $5,000 Total projected other expenses = $100,000 + $5,000 = $105,000. 4. Travel and Memberships Travel expenses, especially for the AHIMA convention, also need careful consideration. For the upcoming year, we need to budget for two coders attending the certification exam, along with convention costs. Example Budget Estimations for Convention: - Airfare: Approximately $400 per person x 2 = $800 - Hotel: $180/night for 4 nights x 2 = $1,

Uploaded Excel Document For This Project. Refer To ✓ Solved

There is uploaded Excel document for this project. Refer to the

Paper For Above Instructions

1. Salaries

2. Supplies

3. Other Expenses

4. Travel and Memberships

5. Health Information Management Week

6. Education Expenses

7. Capital Requests

8. Summary of Budget Proposal

Conclusion

References