Sheet1
Account FY 21 Actual July August September October November December January Fe
uary March April May June FY 17 Budgeted
Salary Expenses
Salaries-Regular 1,573,042
Salaries-Other-Incentive Compensation 172,900
Salaries-Temporary 83,200
Total Salaries 1,829,142
FICA 133,555
Employee Benefits 276,731
Total Benefits 410,286
Other Expenses
Legal Fees 500
Consulting Fees 32,000
Office Supplies 95,757
Paper Goods 6,846
Books, Periodicals, Publications 1,200
Printing 17,232
Minor Equipment 648
Microfilm Processing 103,500
Employee Training/Audioconferences 12,236
Catered Meals-Dietary Orders 5,000
Outside Services-Coding Support 137,040
Outside Services-Transcription 183,285
Outside Services-Release of Information 14,900
Maintenance Contracts 10,600
Telephone 1,004
Medical Staff Record Completion Incentives 4,160
Dues & Subscriptions & Meeting Registrations 30,920
Travel Expenses for Educational Meetings 6,000
Purchased Services-Shredding 3,681
Employee Relations 3,500
Miscellaneous 13,800
Freight/Postage/Express Mail 225
Total Other Expenses 684,034
Total Expenses 2,923,462
Sheet2
Sheet3
Today is your first day as the new Director of HIM. You were hired directly out of college. The budget is due next week and according to the CEO—“there are no exceptions.” Your predecessor has retired after 42 years. The Assistant quit because he was not promoted to Director. He was being paid $45,000 and will not be replaced. All other supervisory staff members are relatively new and serving as working supervisors. Because you are an RHIA rather than an RHIT, you are being paid $10,000 more than your predecessor. The Budget Data provided is the only data available because you cannot find anything in the “disaster” of an office that your predecessor left.
For this assignment, you are to prepare the 12-month budget for FY XXXXXXXXXX/1/21-6/30/22). Display your 12 months budget on a single Excel spreadsheet showing all line items. Each month should be clearly labeled with all months on the same sheet.
Your assignment should include the budget assignment spreadsheet (see modules section of canvas), a memo, and a written explanation of budget assumption below. The memo and explanations should be submitted as one or two word document(s).
DO NOT EMBED NOTES IN THE SPREADSHEET THAT YOU WANT ME TO CONSIDER
In addition to the Budget Assumptions (see below) and the Prior Year’s Actual Data, the Budget Manager has given the following guidelines:
1. Your overall budget must decrease by at least 10% from last year because there have been volume declines.
2. You should not add any new expense accounts/line items.
3. Salary increases are anticipated for the next fiscal year and are not expected to exceed 2% due to the poor economy.
4. The Budget Manager expects you to give him the 12-month budget for all line items.
1. If you increase or reduce any of these line items, you must thoroughly explain why.
2. You cannot transfer costs to another department.
5. Prepare a written summary of the basis for the changes to each account for the CFO to accompany your budget.
Budget Assumptions for FY 2022:
1. Paper goods are expected to increase 2%.
2. The imaging/scanning project is fully implemented and 2 FTEs (1 of which is an analyst) and all temporary workers who were paid by the hospital will be eliminated. Average hourly compensation is $14.50/hour.
3. Prior to the scanning project being fully implemented you had 7 analysts.
4. Your coding consultant indicates that the consulting fees for her services will increase by 3%. She will do her audits in the Spring and Fall. She is the only consultant you use at this time.
5. The imaging project has replaced the need for microfilming.
6. The CFO states that all travel, training, dues, books, and employee relations budgets must be zero-based. (READ YOUR TEXTS TO ENSURE YOU PROVIDE A ZERO-BASED EXPLANATION.) A detailed explanation for these items must be provided showing the cost of each and how the cost was derived (see page XXXXXXXXXXof your text). You have 9 AHIMA credentialed coders, 2 credentialed cancer registrars, and 4 supervisors (2 are AHIMA credentialed members).
7. This is your year to go to the National AHIMA meeting. Only the Director is allowed to go to the National meeting and you are going! Your CFO has asked you to learn as much as possible about implementing ICD-10 and an EHR system. The meeting is in Baltimore, MD.
8. Each week you are responsible for buying candy and assorted small sport items as giveaways for the Medical Staff. Cost is expected to increase by 2%.
9. There is no change expected in the rates applied by the Federal Government. The FICA can be calculated as a percentage of salaries.
10. During this past year it was decided that food would no longer be provided at Medical Staff meetings. Therefore, you no longer need to budget catered food for the Cancer Conferences or for the Medical Records Committee.
11. You will have a catered lunch from Dietary for HIM Week in November. You will have 50 employees in the department during HIM Week and 3 Volunteers. Additionally, you intend to invite your CFO and the President of the Medical Staff. No other catered meals are expected. In addition to a free lunch for HIM Week you will purchased a logo-line item from AHIMA.
12. You will continue to have employee incentive plans for your analysts and coders. These are flat payments made for achieving goals regardless of the employee’s rate of pay and are not tied to any compensation increase. The incentives are paid quarterly.
13. A full-time equivalent employee (FTE) is considered as one who could be paid 2,080 hours/year.
14. Temporary staff is not eligible for benefits.
15. Incentive compensation is not eligible for benefits.
16. Maintenance contracts are to be budgeted in the month they are due to be paid.
17. Your contracted release of information firm does not intend to make any changes to their services nor does it intend to raise its charges to you. Their 2 staff members are included in your “employee” count for HIM week.
18. The FICA amount is based on regular and temporary salaries as well as incentive compensation.
HEALTH INFORMATION MANAGEMENT
"ACTUAL FOR THE YEAR ENDING "
XXXXXXXXXX
Account-Expense Category
Total FY 2021
Actual
Salary Expenses
Salaries-Regula
1,573,042
Salaries-Other-Incentive Compensation
172,900
Salaries-Temporary
83,200
Total Salaries
1,829,142
FICA
133,555
Employee Benefits
276,731
Total Benefits
410,286
Other Expenses
Legal Fees
500
Consulting Fees
32,000
Office Supplies
95,757
Paper Goods
6,846
Books, Periodicals, Publications
Printing
1,200
17,232
Minor Equipment
648
Microfilm Processing
103,500
Employee Training/Audioconferences
12,236
Catered Meals-Dietary Orders
5,000
Outside Services-Coding Support
137,040
Outside Services-Transcription
183,285
Outside Services-Release of Information
14,900
Maintenance Contracts
10,600
Telephone
1,004
Medical Staff Record Completion Incentives
4,160
Dues & Subscriptions & Meeting Registrations
30,920
Travel Expenses for Educational Meetings
6,000
Purchased Services-Shredding
3,681
Employee Relations
3,500
Miscellaneous
13,800
Freight/Postage/Express Mail
225
Total Other Expenses
684,034
Total Expenses
2,923,462
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