Budget Preparation

1. 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 told to project a maximum 5% salary increase.

You have been told to project an increase in supplies of 7%.

You have been told to project a 5% increase in all other areas.

2. You must also evaluate travel expenses, membership and dues. It is the policy of your facility to pay for the coder CCS annual maintenance, your AHIMA dues, and to reimburse any coder who successfully passes the CCS test. You know that two of your coders plan to take the CCS test next year. (Check AHIMAs website for these costs)

3. You need to budget to attend the AHIMA convention you will use the cost of the meeting (you may choose a virtual but you will need to provide detail justification) use 2020 or 2021 data. Be sure to estimate airfare, hotels, food, and registration fees for the convention.

Attach appropriate documentation that details estimated expenses. (Yes, check actual airfare from Waco Regional Airport to the site of the 2020 or 2021 convention and include that. Estimate the cost of the hotel using the housing information provided by AHIMA and $40.00 a day for food).

4. You typically host lunch for your staff (1) day during HIM week in November. You have 12 employees in your department and you usually plan to spend $10.00 per person.

5. You need to budget for education. You know that you must provide education for your coders to include, at a minimum, FY coding updates (both ICD-10 and CPT). Each coders needs a minimum of 20 CEUs a year to maintain their coding certification and the hospital provides that education. (check AHIMAs web site for webinars, face to face conferences, and any other applicable means for attaining continuing education hours. Budget enough to cover the cost for approximately 20 hours total for all coders combined)

6. You have also been advised to make any capital requests at this time. You need 2 new scanners to image in medical record forms. (check the internet, choose a model, see if you can find multiple sites with the same product and compare pricing, attach info to your budget.)

Based on 2080 hours working a year, what is your departments average hourly rate?

What is the total average monthly expense for your Department each month?

(total budget / 365 * days in month)

Create a budget for 2022. Justify all of your calculations and recommendations.

Create an excel spreadsheet for your budget. Create supporting documentation in word.

1. You will turn in 3 excel spreadsheet for your proposed budget for 2022.

One listing salaries.

One that is broken down by month.

One that is an annual budget (see examples provided).

2. You will turn in a Word Document that justifies your expenses for every category in your budget.

3. You will turn in a Word Document that identifies the equipment you would like to purchase and a justification for that equipment. Your justification must be organized and well thought out.

E % Increase Multiply Column C by % $4,000.00 $1.40 $29.40 $1.10 $23.10 $1.10 $23.10 $0.90 $18.90 $1.00 $23.00 $0.60 $12.60 $0.60 $12.60 $0.60 $12.60 $0.75 $15.75 $0.75 $15.75 $0.60 $12.60 (+) F Hourly Rate after Increase B 4 5 SALARY HOURLY RATE *2080 6 $80,000.00 7 $28.00 $58,240.00 8 $22.00 $45,760.00 9 $22.00 $45,760.00 10 $18.00 $37,440.00 11 $20.00 $41,600.00 12 $12.00 $24,960.00 13 $12.00 $24,960.00 14 $12.00 $24,960.00 15 $15.00 $31,200.00 16 $15.00 $31,200.00 17 $12.00 $24,960.00 18 $391,040.00 19 $80,000.00 20 $471,040.00 21 22 SALARY WORKSHEET MONTHLY EXPENSES Ready? Accessibility: Unavailable G Total 1 Your Name 2 HEALTH INFORMATION MANAGEMENT 3 4 ANNUAL BUDGET FOR 2021 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 21 2022 % Increase Total Amount 5% $ 1,250.00 5% $175.00 5% $15.00 5% $360.00 5% $60.00 7% $2,520.00 2021 SALARIES $471,040.00 EDUCATION $1,200.00 MAINTENANCE CONTRACTS $25,000.00 REPAIRS $3,500.00 FOOD $300.00 STORAGE $7,200.00 POSTAGE $1,200.00 OFFICE SUPPLIES $36,000.00 PROFESSIONAL DUES $250.00 TRAVEL $1,800.00 TOTAL $547,490.00 AVERAGE HOURLY RATE $18.87 REVENUE $78,000.00 2021 EXPENSES SALARY WORKSHEET MONTHLY EXPENSES ++ 1 Your Name 2 HEALTH INFORMATION MANAGEMENT 3 4 MONTHLY EXPENSES FOR 2021 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 21 Ready IVI FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD JAN SALARIES $40,006.14 $36,134.58 $40,006.14 $38,715.62 $40,006.14 $38,715.62 $40,006.14 $40,006.14 $38,715.62 $40,006.14 $38,715.62 $40,006.14 $471,040.00 EDUCATION $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $1,200.00 MAINTENANCE CONTRACTS $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $2,083.33 $25,000.00 REPAIRS $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $291.67 $3,500.00 FOOD $25.00 $25.00 STORAGE $600.00 $600.00 POSTAGE OFFICE SUPPLIES PROFESSIONAL DUES $300.00 $25.00 $25.00 $25.00 $25.00 $600.00 $600.00 $600.00 $600.00 $48.00 $48.00 $48.00 $25.00 $25.00 $25.00 $25.00 $600.00 $600.00 $600.00 $600.00 $25.00 $25.00 $600.00 $600.00 $48.00 $48.00 $7,200.00 $48.00 $48.00 $48.00 $48.00 $48.00 $576.00 $48.00 $48.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $3,000.00 $36,000.00 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $20.83 $250.00 TRAVEL $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $1,800.00 TOTAL $46,324.97 $42,453.41 $46,324.97 $45,034.45 $46,324.97 $45,034.45 $46,324.97 $46,324.97 $45,034.45 $46,324.97 $45,034.45 $46,324.97 $546,866.00 AVERAGE HOURLY RATE REVENUE $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $6,500.00 $78,000.00 (+ 2021 EXPENSES SALARY WORKSHEET MONTHLY EXPENSES Accessibility: Unavailable 68F P M Clear