Budget Preparation

You have completed the salary expense budget for your department (Part I). You will begin a new spreadsheet (a new tab at the bottom of the salary sheet) for the operating budget. You will also create a 3rd sheet that is a summary sheet. Here is the operating budget expenses for the upcoming fiscal year.

You normally budget approximately $1,000 per month for supplies and you have been told to project an increase in supplies of 7% for the next fiscal year. The following expenses will increase by 5% for the next fiscal year: We have approximately $2,000 per month in mandatory maintenance fees. We spend around $50 per month on postage. We pay Iron Mountain, our off-site storage company, $500 per month. 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 (director only), and to reimburse any coder who successfully passes the CCS examination. You know that two of your coders plan to take the CCS exam next year. (Check AHIMA for these costs) Your Coding supervisor and the other coder on staff already have the credential. You need to budget to attend the AHIMA convention (use 2019 costs). Be sure to estimate airfare, hotels, food, and registration fees for a 4 day convention. Attach appropriate document that details estimated expenses. (Yes, check actual airfare from your local airport to the site of the 2019 convention and include that. Estimate $160.00 a night for hotel and $35.00 a day for food). You typically host lunch for your staff during HIM week in November. You have 12 employees in your department and you usually plan to spend $10.00 per person. 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). Additionally, your coders need a minimum of 10 CEs a year to maintain their coding certification and the hospital provides that education. (check AHIMAs web site, go to the book store, and check the price of audio seminars. Budget enough to cover the cost for approximately 10 hours) You also realize that your coders are struggling with ICD-10 procedure coding and your coders will need some additional education on Anatomy and Physiology. That training will cost around $400 total. Your department normally makes around $1,000 in revenue per month on release of information fees. You have also been advised to make any capital requests at this time. You need 5 scanners. The scanners should be high quality and high volume. They should allow for multiple settings and should be high-speed. (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.)

1. Create an operating and summary budget for 2020. Justify all of your calculations and recommendations.

2. Create supporting documentation in word.