Answer the following: (Use the Excel Sheet attached)

1. What two changes to the budget process you followed would you make to improve the budget management of the clinic?
2. Provide two recommendations to the owners to try to improve the financial performance of the clinic.

	Pro Forma		Actual Results
	Year 2021		End of 2021		$ Variance	% Variance
Revenues
Private Insurance	$ 610,000		$ 552,750		$ (57,250)	-9.4%
Medicare	$ 240,000		$ 257,040		$ 17,040	7.1%
Medicaid	$ 30,000		$ 58,950		$ 28,950	96.5%
Self-pay	$ 62,500		$ 32,520		$ (29,980)	-48.0%
Total revenue	$ 942,500		$ 901,260		$ (41,240)	-4.4%
Expenses
Salaries and Benefits	$ 702,000		$ 707,109		$ (5,109)	-0.7%
Medical Supplies	$ 140,000		$ 140,216		$ (216)	-0.2%
Administrative Supplies	$ 8,000		$ 7,526		$ 474	5.9%
Rent and Utilities	$ 52,000		$ 52,620		$ (620)	-1.2%
Total expenses	$ 902,000		$ 907,471		$ (5,471)	-0.6%
Income/Loss	$ 40,500		$ (6,211)		$ (35,769)