Budget Project Case Study With plans to expand your department by five rooms, the Chief Financial Officer (CFO) has asked that you, as the department director, make "expense budget" also known as an "operational budget"

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Budget Project Case Study

With plans to expand your department by five rooms, the Chief Financial Officer (CFO) has asked that you, as the department director, make "expense budget" also known as an "operational budget". Your department has been granted $500,000 to provide needed equipment (under $1,000), supplies, labor (salaries and benefits), etc. for the five rooms.  Adding these extra rooms will, not only help meet space needs, but it will also help increase organization's effectiveness. 

 Instructions

Develop an expense/operational budget needed for the five room expansion. 

• Decide which type of department that you manage.
• It is much easier to plan an expansion of an area that you already have knowledge of. 
• For example, if you work in outpatient registration, consider expanding the patient registration area by five rooms. If you have experience as a phlebotomist, consider expanding the number of rooms used to draw patient's blood.  
• Different patient care areas have different equipment, supplies, labor, etc. needs. Be sure to list the department type (radiology, nursing unit, outpatient surgery, patient registration, outpatient laboratory) in your heading of the assignment.
• Equipment over $1,000 will be capital expenses so the cost does not have to be included in the operating budget.
• Keep in mind that $500,000 is the maximum amount allotted for the expansion.
• Be sure to have some funds left over to handle unexpected costs.

Format for Assignment:

Budget Spreadsheet:

• Use an Excel® spreadsheet
• Be sure the type of department is noted in your spreadsheet title
• List all expense categories down the left-hand side of the spreadsheet
• There is no limit to the number of categories that you include
• Possible categories and items may include
• Equipment such as computers, chairs, and desks if under $1000. Items over $1000 are not to be included as they are considered capital expenses.
• Maintenance repair costs 
• Supplies such as linens, medical supplies, office supplies
• Environmental costs such as cleaning supplies, disinfectants
• Salaries and benefits for the individuals that will staff your expansion
• Benefits can be calculated at 30% of salary costs
• Remember that you can use any categories that you deem necessary for the successful expansion