Principles Of Managing Resources And Budgeting Flashcards
State five resources in health care delivery
State the functions and sources of financial REsources in the healthcare
Resources in health care delivery
•Human resources
•Financial resources
•Materials and equipment
•Fixtures and fittings
•Other resources
The Functions of Health Care Financing
•Resources are mobilised or collected
•They are pooled and managed in a risk-sharing perspective(so according to the needs of health facilities then the resources are shared because some will need more than others )
• Health care services are purchased by the relevant organisations, individuals or health care facilities
Sources of Health Financing
These functions can be carried out by pooling resources from:
- Government of Ghana
•Internally Generated Funds (IGF)
•Social Security contributions
•Donor funds
•Other charitable institutions
- National Health Insurance Scheme (NHIS)
- optional private insurance schemes
Explain the Different financing methods available
and organization of the financing systems in public and private finances
Give five examples of private insurance schemes in Ghana
Financing systems
1.methods of public financing can be internal or external financing(or aid)
Both methods can be gotten from public systems of health service
But only internal financing method can be gotten from social insurance systems (illnesses) . The social insurance systems are divided into unified systems and fragmented systems
2.methods of private financing can be grouped into user payments,for profit or non profit private insurance ,medical savings which could be voluntary or compulsory,social contributions by employers or employees.
The social contributions by employers or employees also can be gotten from social insurance systems (illnesses) . The social insurance systems are divided into unified systems and fragmented systems
Acacia health insurance limited
Ace medical insurance
Apex health insurance limited
Cosmopolitan health insurance limited
Equity health insurance limited
Premier health insurance coMpany limited
Donor funds are pooled at the ministerial level true or false
Composite budgeting is due to decentralization true or false
True
True
What is a budget
Know how to prepare a budget
What is the purpose of a budget
What is a Budget?
A detailed plan, expressed in quantitative terms, that specifies how resources will be acquired and used during a specified period of time.
A budget is a formal estimate of future revenues and costs
•A detailed breakdown of all costs and revenues is necessary for attaining profit goals
•Institutions must analyze operations to develop reliable estimates of revenues and costs.
•If budgeting is done right, it forces better thinking about the firm’s goals and purpose and how to achieve them. It forces management to ask what to be done if certain target levels of sales and costs are to not being realized.
•Making realistic budgets requires clear thinking; As a financial plan of firm’s expectations over time, it should be an assessment of what each part of the firm can accomplish
What are the stages of budgeting and explain them
State some potential causes of significant deviations from budget
Planning
Control
Planning:
The budget process forces managers to consider carefully their goals and objectives and to specify means of achieving them.
Control
Budgets provide a means of evaluating performance. Potential causes of significant deviations from budgets include:
●Budget was poorly conceived.
●Conditions have changed since the budget was prepared.
●Managers have done a particularly good or poor job.
How is a budget developed?(the three stages of developing a budget and explaining them)
1.The Budget Committee: Various budgets are approved by a budget committee that is composed of senior managers such as the president, CFO, VP of operations, and the controller.
Budgets may be developed with either a top-down or bottom-up approach.
2.The Budget Time Period: Budgets may cover a variety of time periods including a month, quarter, year, or even longer. Generally, longer budget periods provide less detail.
3.Zero Base Budgeting: Zero Base Budgeting
Budgets are often adjusted up or down on the basis of a previous period adjusted for current conditions. Zero base budgeting requires that all budget amounts be currently justified even if they were supported in prior budgets. Due to the cost of the process, this zero base budgeting is often not used in business.
Explain the master budget and it’s functions
State six selected budget formats
A.A Formal Summary of an institution’s Plans
B.Selected Budget Formats
A.Formal Summary of and institution’s Plans
•It sets specific targets for sales, production, selling and admin., and capital acquisitions.
•It culminates a budgeted income statement, balance sheet, and cash receipt and disbursement summary.
Selected Budget Formats
A.Sales Budget
B.Production Budget
C.Direct Materials Budget
D.Direct Labor Budget
E.Overhead Budget
F.Cash Receipts and Disbursements Budget
How is a sales budget done
How is a production budget done
Projected sales x Selling price per unit
= Budgeted sales revenue
Production budget:
Budgeted sales in units + Desired ending inventory of finished goods
= Total needs
Total needs - Beginning inventory of finished goods
=units to be produced
What is a direct material budget
Units to be produced x Cost of parts per unit
= Cost of parts needed for production
Cost of parts needed for production + Desired ending inventory of parts
= Total needed
Total needed - Beginning inventory of parts
= Cost of purchases
What is a direct labour budget
What is an overhead budget
Direct labor hours per unit
x Labour rate per hour
= Direct labour cost per unit
Direct labour cost per unit x units to be produced = total direct labour cost
Overhead:
Units to be produced
x Variable costs per unit
= Total variable overhead
Total variable overhead + Budgeted fixed overhead
= Total budgeted overhead
Total budgeted overhead - Noncash expenses
= Cash disbursements for overhead
What is a cash receipts and disbursement budget
Cash Receipts and Disbursements Budget
Cash receipts - Cash disbursements
= Excess (deficiency) of cash
Excess (deficiency) of cash available over disbursements + Beginning cash balance
= Ending cash balance
What is a static budget
What is a flexible budget
Know the difference between the two in the slides
Static v. Flexible Budget
A.Static Budget
B.Static Budget Illustration
C.Flexible Budget
D.Flexible Budget Illustration
Static budget
A budget designed for only one level of activity. Differences from the budget can be misleading when an organization actually operates at a different level of activity.
Flexible Budget
•A budget designed to cover a range of activity.
•It can be used to compare actual costs incurred to budgeted costs around that level of activity.
What does a simple budget look like?
What does a statement of sample income and expenditure look like?
Check the notes
