1. Using the attached 2020 Salary Worksheet, calculate a salary expense budget for 202 Your budget should consider the following:

1. Each employee listed on the worksheet will receive a 3% cost of living increase for 2021. Based on this increase, you will need to calculate each employees 2021 annual salary and enter this information in the 2021 salary column in your salary worksheet. Then, calculate the total salary expense for 2021.

Use Excel formulas for your calculations. To calculate a specific positions 2021 salary based on a 3% cost of living increase:

2020 salary X 1.03 = 2021 salary

Ex: 50,000 x 1.03 = $51,500

NOTE: All cells highlighted in yellow should be completed.

2. Using the 2020 Annual Operating Expenses (included in the 2020-2021 Annual Budget Worksheet), your completed Salary Worksheet, and the following information for the budget categories, complete the Annual Budget for 2021portion of the 2020-2021 Annual Budget Worksheet.

1. Off-site Storage - As your record retention policy states records should be retained for 10 years, all 2010 records currently stored at off-site storage will be destroyed, reducing your off-site storage expense by 5% for 2021.

2. Education - You plan to send your DRG Coordinator and coding staff to the OHIMA annual meeting coding track sessions on February 24, 2021. Assume that this will be the only external educational program that you will send staff to in 2021. Calculate what you will need to budget for the staff to attend OHIMA. You can reference the OHIMA website (find the registration form for the Annual Meeting) to determine the cost of attendance. Assume that the DRG Coordinator and coders are all OHIMA members and that the registration fees will be paid prior to 2/10/2021. Also add the expense for you, as Director, to attend all three days of the OHIMA meeting. (Also a OHIMA member and paid prior to 2/10/2021). These expenses will be the only educational expenses for the year.

3. Supplies Assume a 4% increase in supply expenses due to inflation.

4. Salaries Use the salary figure you calculated in #1 above.

5. All other budget expense categories Assume no increase/decrease in 2021.

6. Revenue Your department is taking on the release of information function for several physician practices that are affiliated with your healthcare system. Plan for a 2% increase in revenue due to increased copy fee revenue.

NOTE: All cells highlighted in yellow should be completed.

A B D E F G ANNUAL OPERATING BUDGET IT FOR 2021 SALARIES EDUCATION MAINTENANCE CONTRACTS REPAIRS FOOD OFF-SITE STORAGE POSTAGE OFFICE SUPPLIES PROFESSIONAL DUES TRAVEL TOTAL OPERATING EXPENSE 1 2 HEALTH INFORMATION MANAGEMENT 3 4 ANNUAL OPERATING EXPENSES ES FOR 2020 5 6 SALARIES $471,040.00 7 EDUCATION $1,200.00 8 MAINTENANCE CONTRACTS $25,000.00 9 REPAIRS $3,500.00 10 FOOD $300.00 11 OFF-SITE STORAGE $7,200.00 12 POSTAGE $1,200.00 13 OFFICE SUPPLIES $36,000.00 14 PROFESSIONAL DUES $250.00 15 TRAVEL $1,800.00 16 TOTAL OPERATING EXPENSE $547,490.00 17 18 19 20 REVENUE $78,000.00 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 TOTAL REVENUE A B D E F G H 1 2 3 SALARY EXPENSES WORK SHEET 2020 Hourly Rate 2020 Salaries 2021 Salaries $28.00 $22.00 $22.00 $18.00 $20.00 $12.00 $12.00 $12.00 $15.00 $15.00 $12.00 $58,240.00 $45,760.00 $45,760.00 $37,440.00 $41,600.00 $24.960.00 $24,960.00 $24,960.00 $31,200.00 $31,200.00 $24.960.00 $80,000.00 $471,040.00 5 POSITION 6 7 DRG COORDINATOR 8 CODER 9 CODER 10 CODER 11 SUPERVISOR 12 CLERK 13 CLERK 14 CLERK 15 ROI CLERK 16 ROI CLERK 17 VITAL STATS CLERK 18 DIRECTOR SALARY 19 TOTAL DEPT SALARIES 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 A B D E F G ANNUAL OPERATING BUDGET IT FOR 2021 SALARIES EDUCATION MAINTENANCE CONTRACTS REPAIRS FOOD OFF-SITE STORAGE POSTAGE OFFICE SUPPLIES PROFESSIONAL DUES TRAVEL TOTAL OPERATING EXPENSE 1 2 HEALTH INFORMATION MANAGEMENT 3 4 ANNUAL OPERATING EXPENSES ES FOR 2020 5 6 SALARIES $471,040.00 7 EDUCATION $1,200.00 8 MAINTENANCE CONTRACTS $25,000.00 9 REPAIRS $3,500.00 10 FOOD $300.00 11 OFF-SITE STORAGE $7,200.00 12 POSTAGE $1,200.00 13 OFFICE SUPPLIES $36,000.00 14 PROFESSIONAL DUES $250.00 15 TRAVEL $1,800.00 16 TOTAL OPERATING EXPENSE $547,490.00 17 18 19 20 REVENUE $78,000.00 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 TOTAL REVENUE A B D E F G H 1 2 3 SALARY EXPENSES WORK SHEET 2020 Hourly Rate 2020 Salaries 2021 Salaries $28.00 $22.00 $22.00 $18.00 $20.00 $12.00 $12.00 $12.00 $15.00 $15.00 $12.00 $58,240.00 $45,760.00 $45,760.00 $37,440.00 $41,600.00 $24.960.00 $24,960.00 $24,960.00 $31,200.00 $31,200.00 $24.960.00 $80,000.00 $471,040.00 5 POSITION 6 7 DRG COORDINATOR 8 CODER 9 CODER 10 CODER 11 SUPERVISOR 12 CLERK 13 CLERK 14 CLERK 15 ROI CLERK 16 ROI CLERK 17 VITAL STATS CLERK 18 DIRECTOR SALARY 19 TOTAL DEPT SALARIES 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36