QUESTIONS

Description of Expenses

Personnel Related Expenses

All full-time workers are eligible for fringe benefits at 30%. This must be added to the annual salary in the spreadsheet. Some workers will donate a percentage of their salary as an in-kind contribution. This should be subtracted from the projected budget amount. The proposed intervention will employ the following fulltime faculty:

• 1 full-time program director will earn $80.000 in annual salary. The director has agreed to donate 20% in-kind of the first-year salary during the start-up. Note: In the worksheet this line has been done for you as an example (in yellow).
• 1 fulltime nurse practitioner who will be a clinical supervisor will earn $69,000 in annual salary. They have agreed to donate 10% in-kind of the first-year salary during the start-up.
• The program will hire 3 full-time practical nurses will each earn $45,000. There will be no in-kind contributions, but their salary should be based on 6 months rather than a year because they will not be employed a full year.
• A part-time (.50 FTE) nutritionist at an annual salary of $62,000 will be hired to provide dietary and nutritional advice. There will not be any in-kind contribution for this position, but their salary should be based on 6 months rather than a year because they will not be employed a full year.
• A full-time plastic surgeon will be hired at an annual salary of $175,000. They have agreed to an in-kind contribution of 20% for the first year.
• A full-time bariatric specialist will be hired at an annual salary of $150,000. They have agreed to an in-kind contribution of 20% for the first year.
• A full-time administrate assistant at an annual salary of $33,000. There is no in-kind contribution, and this position will begin immediately and be paid for the full year due to the need for administrative support during implementation.

Medical Equipment & Supplies Expenses

The following items will be needed in year one. Existing medical equipment and the surgery suite are being contributed by the facility and are considered in-kind contributions and therefore not included in the budgeted amount but must be shown as an item in the budget. These expenses include:

• Medical Examination Equipment ($50.000)

• Ambulatory Surgery Suite ($175,000)

• Medical Supplies ($87.000)

• Procedural Devices ($120,000)

Administrative, Technology and Other General Expenses

The program will convert existing clinical space so there are no space related expenses. The following expenses should be included in the budgeted amount.

• 6 tablet computers ($750 each)
• 2 professional printer, scanner fax machines ($650 each)
• office supplies ($250 per month for 6 months)
• 6 workstations ($ 1,100 each)
• monthly utilities ($120 per month for 6 months
• website creation and maintenance ($60 per month for 10 months)
• online and local marketing ($100 per month for 10 months)

Summary of Expenses Year 1

After completing each expense category, summarize all the projected expenses.

Description of Revenue and Funding

Use the following descriptions to input and calculate the dollar amounts for expenses.

The program director has used information from a similar practice to estimate revenue related to clinical procedures, consultations, and sales of supplements. The following are revenue projections:

• Nutritional & Dietary Services 7,000 consultations and evaluations at $350 for each consultation
• Plastic Surgery Consultations 25,000 consultations and evaluations at $500 for each consultation
• Clinical Procedures 35,000 procedures at $25,000 each
• Surgeries 7,000 procedures at $40,000 each
• Nutrition and Diet Supplements 2,500 in product sales $200 for each sale

Other Revenue Sources

Other sources of revenue sources to implement interventions include the bank loan for $250,000.

Bank Loam Principle borrowed is $250,000 with an interest rate of 3%

There is no other additional funding.

Budget Summary

To complete this section, calculate the surplus or deficit resulting from the proposed budget and select either deficit or surplus by placing an X under surplus or deficit.