Walton Community Health Clinic Fiscal Year end Income Statement Acutal Budget Variance Revenue Net Patient Revenue $ 7,588,476 $ 7,500,000 $ 88,476 Patient Volume 32,811 30,000 2,811 Other Revenue $ 78,884 $ 80,000 $ (1,116) Total Operating Revenue $ 7,667,360 $ 7,580,000 $ 87,360 Expenses Physician Salaries $ 2,833,027 $ 3,000,000 $ (166,973) Physician Incentive Compensation $ 1,448,510 $ 1,250,000 $ 198,510 Nursing Salaries $ 1,911,473 $ 1,750,000 $ 161,473 Administrative Salaries $ 210,000 $ 225,000 $ (15,000) Benefit Expenses $ 704,331 $ 684,750 $ 19,581 Total Compensation Expenses $ 7,107,341 $ 6,909,750 $ 197,591 Medical Supply Expense $ 163,200 $ 150,000 $ 13,200 Pharmacy Expense $ 200,462 $ 200,000 $ 462 Clerical Supply Expense $ 12,407 $ 15,000 $ (2,593) Depreciation Expense $ 22,000 $ 22,000 $ Rent Expense $ 90,000 $ 90,000 $ Other Expense $ 40,220 $ 50,000 $ (9,780) Total General Administrative Expenses $ 528,289 $ 527,000 $ 1,289 Total Operating Expenses $ 7,635,630 $ 7,436,750 $ 198,880 Excess (Loss) of Revenue over Expenses $ 31,730 $ 143,250 $ (111,520) 1 Review the overall variances to budget in the income statement Summarize at a high level your initial interpretation of this clinic's annual performance versus its budget expectations In your summary, consider whether this year was an overall financial success for the clinic Why or why not 2 Identify at least three key budget variances within the individual line items that you feel would require additional investigation or feedback from clinic management to better understand the operational drivers Explain why you selected these line items Hypothesize on some possible operational reasons that you suspect could have resulted in these line item budget variances 3 Utilizing Excel or another graphical software, create and submit snipped images of three graphs of your own design to effectively summarize for an executive leader the key findings or variances that you feel are important to take away from the income statement The graphs demonstrated in section 4 8 of this module are examples, but feel free to use your own creativity and preference in how you choose to display your findings

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Walton Community Health Clinic Fiscal Year-end Income Statement Acutal Budget Variance Revenue Net Patient Revenue $ 7,588,476 $ 7,500,000 $ 88,476 Patient Volume 32,811 30,000

Walton Community Health Clinic
Fiscal Year-end Income Statement


	Acutal	Budget	Variance
Revenue
Net Patient Revenue	$ 7,588,476	$ 7,500,000	$ 88,476
Patient Volume	32,811	30,000	2,811
Other Revenue	$ 78,884	$ 80,000	$ (1,116)

Total Operating Revenue	$ 7,667,360	$ 7,580,000	$ 87,360

Expenses
Physician Salaries	$ 2,833,027	$ 3,000,000	$ (166,973)
Physician Incentive Compensation	$ 1,448,510	$ 1,250,000	$ 198,510
Nursing Salaries	$ 1,911,473	$ 1,750,000	$ 161,473
Administrative Salaries	$ 210,000	$ 225,000	$ (15,000)
Benefit Expenses	$ 704,331	$ 684,750	$ 19,581
Total Compensation Expenses	$ 7,107,341	$ 6,909,750	$ 197,591

Medical Supply Expense	$ 163,200	$ 150,000	$ 13,200
Pharmacy Expense	$ 200,462	$ 200,000	$ 462
Clerical Supply Expense	$ 12,407	$ 15,000	$ (2,593)
Depreciation Expense	$ 22,000	$ 22,000	$ -
Rent Expense	$ 90,000	$ 90,000	$ -
Other Expense	$ 40,220	$ 50,000	$ (9,780)
Total General & Administrative Expenses	$ 528,289	$ 527,000	$ 1,289

Total Operating Expenses	$ 7,635,630	$ 7,436,750	$ 198,880

Excess (Loss) of Revenue over Expenses	$ 31,730	$ 143,250	$ (111,520)




1: Review the overall variances to budget in the income statement. Summarize at a high level your initial interpretation of this clinic's annual performance versus its budget expectations. In your summary, consider whether this year was an overall financial success for the clinic. Why or why not? 2: Identify at least three key budget variances within the individual line items that you feel would require additional investigation or feedback from clinic management to better understand the operational drivers. Explain why you selected these line items. Hypothesize on some possible operational reasons that you suspect could have resulted in these line-item budget variances. 3: Utilizing Excel or another graphical software, create and submit snipped images of three graphs of your own design to effectively summarize for an executive leader the key findings or variances that you feel are important to take away from the income statement. The graphs demonstrated in section 4.8 of this module are examples, but feel free to use your own creativity and preference in how you choose to display your findings.