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Budgeting

Budgeting. Financial Resources Management. Resources vs. Expenditures. Needs to be a continuous process Planning Prioritizing Documenting Constant evaluation b/c of evolving nature of AT. Types of Budgets. Spending Ceiling Model (incremental).

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Budgeting

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  1. Budgeting Financial Resources Management

  2. Resources vs. Expenditures • Needs to be a continuous process • Planning • Prioritizing • Documenting • Constant evaluation b/c of evolving nature of AT

  3. Types of Budgets

  4. Spending Ceiling Model (incremental) • Only have to justify increases in previous years • Often linked to inflation (4%), but medical costs often increase faster than inflation • Doesn’t implement good planning • Will be forced into a “spending reduction model” in lean financial times that has not been anticipated or planned.

  5. Zero Based Budget • Must justify every expense • Requires documentation of needs • Requires much more effort and detail • Helps with prioritizing

  6. Fixed Budget • Predict month to month income and expenditures • Used in clinical situations, rare in school settings • Helps identify profitable practices • If not predicted accurately, could be dipping into “savings”

  7. Variable Budget • Tough to predict month to month expenditures • Budget is adjusted according to the actual revenues • 20% drop = 20% cut on expenditures

  8. Lump Sum Budget • Provided with a fixed amount of money and can spend any way the ATC sees fit • Very definite limits and easy to use • Gives ATC freedom to spend as he/she sees fit • Must plan for unknowns or will be accountable after the fact

  9. Line Item Budget • List of expenditures are categorized based on program sub-function • Expendable Supplies, equipment repair, team physician services, insurance, ect • Money in one line may not be transferable to another so parent organization has some control • Easy to understand and prepare • ATC has limited flexibility in financial crises

  10. Sample Line-Item Budget for a School Sports Medicine Program

  11. Performance Budget • Breaks budget into functions and appropriates funds necessary to achieve those activities • (ex) rehab, emergency, administration, etc • Similar to line item budgeting but much more detailed and requires analyzing expenditures and returns (tough in athletic training)

  12. Steps in Budgeting • Needs assessment • Make funding source decisions • Use past records • Plan on changes that occur as a result of policies, rules • Consult with vendors • Plan capital improvements / purchases far in advance • Keep close eye on accounting reports

  13. Terms to know • Capital expenses – large item, one time purchase • (ex) e stim unit • Medium-Priced Annual Rebuys – often are services that must be negotiated yearly • (ex) athletic program’s health insurance • Lower-cost Consumable Supplies – small items that have a limited number of uses • (ex) tape

  14. Inventory • Keep plenty, but not too much • Should be performed regularly • Develop a check out system, especially important in situations w/ multiple ATC’s • Central Supply? • Automated? • Restrict Access?

  15. Purchasing Goods 1.Quotations 4. Purchase orders 2. Negotiation 5. Receiving 3. Requisitions 6. Accounts payable

  16. Request Quotations • List that goes out to a variety of vendors • Vendors list is compiled by organization /agency • Bidding process can be on individual items • MUST BE SPECIFIC!!! • Include S&H • Most effective way to control costs

  17. Before you bid…

  18. Request for Quotation

  19. Request for Quotation (Bid Letter)

  20. Bid List (Pricing Schedule)

  21. Compare bids before purchasingMost institutions have guidelines requiring a certain # of bids based on the amount of money

  22. In most cases the lowest bid must be accepted

  23. Negotiations Price Supply Quality Shipping Technical Support

  24. Requisition /Purchase Order • Requisition is the request from the ATC to expend funds • Purchase order is the form approved by the institution that goes to vendor

  25. Purchase Order Form

  26. Receiving • Match packing slip • Inspect goods • Report ASAP

  27. Accounts Payable • Confirm receipt with business office / person by approving invoice • Wait to pay if problems

  28. Other Funding Sources • Pooled buying consortiums • Alumni / booster organizations • External funding

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