Week 04 Course Project – Budget Variance

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Week 04 Course Project – Budget Variance

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Assume that you are the HIM director at a small rural hospital. Your department currently employs four full-time and one outsourced staff members, which includes a coder, file clerk, receptionist, data quality manager, outsourced release of information specialist (ROI) and director.

The department processes about 600 discharges per month, each discharge takes about 15 minutes to code. The department’s ROI request rate was as follows for this past year: 750 charts in first quarter, 900 in the second quarter, 575 in the third quarter, and 1000 in the fourth quarter.

This first part of your Course Project is to prepare a budget variance report from last year’s data. This will assist you in preparing future parts of the Course Project. This data is used as a starting point for the budget you are preparing next week.

The following table shows a portion of the HIM department’s supplies and materials from the previous year.

Prior-year Expenditures
Budget vs. Actual

Item

Budget Amount

Amount Spent

Supplies

$1,200

$1,000

Travel

$2,000

$2,500

Conference Fees

$1,000

$1,200

Membership Dues

$750

$600

Subscriptions

$350

$325

Equipment

$5,000

$3,000

Calculate and analyze the variance for the budgeted amount and the actual amount spent. The analysis should include reasons why you feel there was a variance.

Submit your completed assignment to the drop box below. Please check the Course Calendar for specific due dates.

Save your assignment as a Microsoft Word document. (Mac users, please remember to append the “.docx” extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:

Jstudent_exampleproblem_101504

Need Help? Click here for complete drop box instructions.

 


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