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8/17/2019 Topic 2 Budget (2)
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PREPARATION OF BUDGET FOR SCHOOLS AND
COLLEGES
INTRODUCTION
Quality of Schools and colleges depend on budgeting plans which provide the
resources necessary for the proper functioning of the institution. Budgeting is an ongoing
activity in which the revenues and expenses are managed to maintain fiscal responsibility
and health. The manager has financial responsibility and accountable for preparing and
managing the budget in school and colleges.
MEANING OF BUDGET
The term budget derived from the French word “Bougettee ” denoting in
leather pouch in which funds are appropriated for meeting anticipated expenses.
DEFINITION OF BUDGET
Budget is a concrete precise picture of the total operations of an enterprise in monetary
terms !onovan " .#$ %&&&'
PURPOSES OF BUDGETING
The purposes of budgeting are
(. Budget supplies the mechanism for translating fiscal ob)ectives into pro)ected
monthly spending pattern.
%. Budget enhances fiscal planning and decision ma*ing.
+. Budget clearly recogni,es controllable and uncontrollable cost areas
-. Budget offers a useful format for communicating fiscal ob)ectives
. Budgeting allows feedbac* of utili,ation of budget
/. Budgeting helps to identify problem areas and facilitates for effective solution.
0. Budgeting provides means for measuring and recording financial success with the
ob)ectives of the institution.
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FEATURES OF BUDGET
a. 1t should be flexible
b. 1t should be synthesis at past$ present and future
c. 1t should be in the form of statistical standard laid down in the specific numerical
terms.
d. 1t should have a support at top management throughout the period of its planning
and implementation.
e. 1t should use available resources.
TYPES OF BUDGET
Since budget express plans and an organi,ation may have different types of plans$
there may be different types of budgets. These may be classified on the basis of
(. 2overage of functions 3 master 4 functional budgets
%. 5ature of activities covered 3 2apital 4 revenue budget
+. 6eriod of budgets 3 long term and short term budgets
-. Flexibility adopted 3fixed and flexible budgets
1. Master & funt!"na# $u%ets
7 master budget is prepared for the entire organi,ation incorporating the budget of
different functions. For example$ when we refer to the annual budget of government of
1ndia$ it incorporates the budget incorporates various functions and units and their
outlays. 1t generally sales$ production$ costs.
7 functional budget is prepared incorporating a ma)or function and its sub functions.
Since an organi,ation may have a number of functions numerous functional budgets are
prepared. 8.g. 6roduction budget$ cash budget in an organi,ation.
'. Ca(!ta# & Re)enue $u%et
7n organi,ation activity involves two process 3 creating facilities for carrying out
activities and actual performance activities include capital expenditure whose returns
occur over a number of years. For such activities$ capital budget is prepared which is
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essentially a list of what management believes to be worth while pro)ects for ac9uisition
of new assets together with the estimated cost of each pro)ect.
:evenue budget involve the formulation of target for a year or so in respect of various
organi,ational activities such as production$ mar*eting$ finance etc.Thus a revenue
budget includes expenditure and earning for a specific period li*e one year.
*. L"n ter+ an% s,"rt ter+ $u%ets
#any organi,ations integrate their yearly budgets with long term pro)ections of business
activities and along with yearly budgets; they prepare budgets for a longer period of %
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1/ Pre(arat!"n "f ("s!t!"n (a(ers
6reparation of position papers providing bac*ground on which strategic budget is
prepared such as position papers include environment$ organi,ational resources and
constraints$ past performance and direction for future activities.
a. P"s!t!"n (a(er "n en)!r"n+ent
These include economic regulatory$ political$ mar*eting and competitive technological
factors. The paper may cover the environments trends li*ely to affect the organi,ations
performance specifying the assumption involved. This position paper is li*ely to provide
reference base for the development of annual plan to ensure the re9uired between
strategic plan and annual plan.
$. P"s!t!"n (a(er "n "ran!0at!"na# "nstra!nts an% res"ures
This paper would specify at broad level the resources available for achieving the targets
by way of personnel$ funds$ technological$ capital expenditure etc. Similarly the paper
also suggests the li*ely constraints faced by the organi,ation so that the resources are
deployed by *eeping these constraints in mind.
. P"s!t!"n (a(er "n (ast (erf"r+ane
This paper can show the performance based on strategic business units or responsibility
centers. There is alignment between mar*et needs and products.
%. P"s!t!"n (a(ers "n future %!ret!"n "f at!)!t!es
This paper would suggest the various short term or long term targets to be fulfilled. The
targets may be identified again for the organi,ation as a whole and for different strategic
responsibility centers. The paper would also indicate the way the organi,ation will ta*e
over various activities to match itself with environmental re9uirements li*e meeting the
competitive threats.
The paper may also include the various tracts to be adopted to meet the above ob)ectives.
These may include the fixation of levels for wor*ing capital$ credit level$ waitage of
materials and other physical factors.
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'. PREPARATION OF BUDGET
The strategic budget as prepared through the interaction between corporate level
and SBA level in the light of position papers. The process will go li*e the one given as
follows<
2orporate
Cevel
SBA
Cevel
• Budget preparation will actually start when SBA managers are communicated
about the li*ely covers of future action in the light of environmental factors$
organi,ational resources and constraints and past performance.
• 1t is better to initiate the budget preparation from the bottom in the light of position
papers.
• 8veryone responsible in the organi,ation must as* for resources allocation will be
integrated in a master budget for the organi,ation as a whole.
• Since budget demand at each level is based on the chosen strategy of the
organi,ation. 8very possibility that master budget will allow the allocation of
various resources according to the needs and importance of various functions
products or business$ thereby ensuring the better use of organi,ational resources
and achievements of organi,ational ob)ectives.
#aster
budget
preparedSBA
budget
approved
2orporate
ob)ectives4 strategy
with
assump<
tions made
SBA
ob)ectivesstrategies
accepted
and
changed
Bud
etsare
called
for
Budgets
re9uestsreviewed
accepted
6remises
and
forecastsmade
SBA
ob)ectivesand
strategies
defined
7pproved
budgets
received
6roposed
changes
inresource
re9uire<
ment
6reliminary
budgets
prepared
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BUDGETING EPENDITURE
- Salaries and wages
- #aterial
- Atilities
- Service and maintenance
- 8xpenditure an academic activities
- :esearch activities
#ar*eting
- #iscellaneous Sports activities
=elfare of students
- Cibrary
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BUDGET MODEL
Based in steps of budget preparation a new budget model prepared for school and
2olleges. Student@s strength 3 & members.
Su$2et Part!u#arsA+"unt !n
ru(ees
Sports Fees
For purchase of Sports goods /D %+-&.&&
Tournament 3 +&D (&E&.&&
?thers 3 D (E&.&&
Total < (&&D +/&&.&&
Cibrary Fees
:egular subscription of newspaper$
maga,ines &D
(E&&.&&
For purchase of boo*s +&D (&E&
For binding old boo*snew (&D +/&.&&
For repair charts D (E&.&&
For repair furniture@s D (E&.&&Total (&&D +/&&.&&
#edical examination
fees
For honorium to doctors &D -&.&&
For first aid %&D (E&.&&
For assistance to doctors (&D G H&.&&
Total 0%&..&&
Iocational education boo*s
For purchase of materials /&D (&E&.&&
For boo*s purchase (&D (E&.&&
For registration with the commission fees%&D
(E&&.&&
Total +/&&.&&
7udio visual aids Type of model /&D %E&&.&&:epairing old 7.I. aids %&D E&&.&&
#aintenance %&D E&&.&&
Total --&&.&&
Caboratory fees
Solutions -&D (&&&.&&
Test tube e9uipments -&D (&&&.&&
#aintenance %&D E&&.&&
Total %&&.&&
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COLLEGE OF NURSING BUDGET MODEL 3M.S.Nurs!n4 P"st Bas! B.S.Nurs!n4 B.S.Nurs!n/
S.NO. PARTICULARSPre)!"us 5ear3'61-/ Current 5ear 3'617/ Future 5ear3'618/
In"+e E(en%!ture In"+e E(en%!ture In"+e E(en%!ture
&(. ?pening Balance (&&&& (/&&& %%+H&&
&%. 7dmission fees E&(&&&& E/(&&&& H/(&&&
&+. Transport fees (&&&& (&&&&& (&&&& (&&&&& E&&&&&-. 8xam fees (/&&&& (&&&&& (/&&&& (&&&&& (0&&&& (&&&&&
&. Funds +&&&& +&&&& +&&&
&/. Transcript %&&&& +&&&& +&&&&
&0. Cibrary fees (&&&& (&&&&& (&&& (&&&&& (E&&&& (+&&&&
&E. Salaries &&&&& &&&&& E&&&&
&H. 6rovident Fund -&&&&& (/&&& -&&&&& -&&&&&
(&. #aintenance %&&&& (&&&& %&&&&& /&&&&&
((. Tax %&&&&& %&&&&& %&&&&&
(%. Stationeries (&&&& (&&& (&&&& (&&&&
(+. Furniture %&&&& %&&&& (&&&&
(-. Caboratory (&&&&& (&&&&& (&&&&&
(. Tournament E&&&& H&&&& H&&&&
(/. 2ultural programmes /&&&& 0&&&& 0(&&&
S.NO. PARTICULARSPre)!"us 5ear3'61-/ Current 5ear 3'617/ Future 5ear3'618/
1ncome 8xpenditure 1ncome 8xpenditure 1ncome 8xpenditure
(0. 89uipment &&&& &&&& &&&&
(E. 6ri,e distribution &&&& &&&& &&&&
(H. Boo*s$ :ecord 4 !iary &&&& 0&+&&& /&&&& H&&&&& -&&&&
%&. Aniform fees /&&&& E&&& /&&&& H&&&&& /&&&&
%(. #iscellaneous ++&&& -&&&& /&&&&
T"ta# 98:6666 :167666 117';666 ;';6666 1-1-;666 11*11666
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BALANCE SHEET
S.NO. BALANCE SHEET '61- '617 '618
(. 152?#8 E/0&&&& ((%H&&& (-(-H&&&
%. 8J685!1TA:8 0(&&&& H%H&&&& ((+((&&&1787666 ''*;666 '9*9666
SCHOOL OF NURSING BUDGET MODEL3GNM4ANM/
S.NO. PARTICULARSPre)!"us 5ear3'61-/ Current 5ear 3'617/ Future 5ear3'618/
In"+e E(en%!ture In"+e E(en%!ture In"+e E(en%!ture
&(. ?pening Balance E&&& H+&& (+(&&&
&%. 2apitation fees 0/&&&& E/%&&& (H0&&&
&+. Tuition fees +&&&& +&&&& +&&&&&-. Cibrary fees (&&& %&&&& %&&&&
&. Aniform fees (%&& &&& (%&& &&& (%E&& /&&&
&/. Boo*s$ record and dairy %/&&& (&&& %/&&& (&&& +E&&& (/&&&
&0. Transport %&&&& %&&&& %&&&
&E. 8xam fees (&&& (&&&& (/&&& (&&&& (E&&& (&&&&
&H. Tournament fees %&&&& %&&&& %&&&
(&. Funds (&&& (&&&& (&&&&
((. #iscellaneous ((E&&& (%&&&& %/&&&&
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(%. Transcript (&&&& (&&& %&&&&
(+. Salaries &&&&& /&&&&& E&&&&&
(-. Stationeries (&&&& (&&& (&&&
(. #aintenance &&&& &&&& &&&&
(/. Caboratories %&&&& %&&&& %&&&&
S.NO. PARTICULARSPre)!"us 5ear3'61-/ Current 5ear 3'617/ Future 5ear3'618/
1ncome 8xpenditure 1ncome 8xpenditure 1ncome 8xpenditure
(0. Furniture &&&& %&&&& %&&&&
(E. Stipend %&&&& %&&&& %&&&&
(H. 6ri,e distribution (&&&& (&&&& (&&&&
%&. 89uipment &&& &&& &&&
%(. Tax %&&&& %&&&& %&&&&
T"ta# ;88766 9:*666 ;88766 ;96666 '';-966 1**7766
BALANCE SHEET<
S.NO. BALANCE SHEET '61- '617 '618
(. 152?#8 H//&& H//&& %%H-E&&
%. 8J685!1TA:8 E0+&&& HE&&&& (++&&
;*766 1*1666 ;7;*66
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THE RESPONSIBILITIES OF NURSING ADMINISTRATOR IN BUDGET
ARE
(. 6articipation in budget
%. 2onsultation with subordinate in determining the needs of the unit for ensuring year.+. :e9uesting sufficient funds to suggest a sound programme such as to provide for developing
programme provision$ expansion of programme$ to attend and hold 9ualified staff to provide
for expansion of physical facilities$ supplies etc.
-. Submit budget re9uest with )ustification with proposal expenditure.
. =hen the budget is allotted$ the administrator should support the budget she should interpret
the budget to the subordinates.
/. Budget controlling once the administrator receives her approved budget$ a plan of action is
necessary for review and control during the fiscal year.
SUMMARY
So far we have discussed about the definition of budget$ purposes and features of
budgeting$ types of budget$ stages of budgeting preparation$ budget model$ college of nursing
and school of nursing budget model and responsibility of nurse administrator in budget.
CONCLUSION
Budget is an important plan for building the nursing schools and colleges. 1t has to be revised
periodically to find deviatory and ma*e correction in the plan and prepare them effectively.
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RESEARCH ABSTRACT
Bu%et!n resear,< t,ree t,e"ret!a# (ers(et!)es an% r!ter!a f"r se#et!)e
!nterat!"n.
7rticle from Kournal of #anagement 7ccounting :esearch L Kanuary ($ %&&+ L2ovales*i$ #ar*
7.; 8vans$ Kohn ".$ 111; Cuft$ Koan C.; Shields$ #ichael !. L
7bstract Budgeting is one of the most extensively researched topics in management accounting and has
been studied from the theoretical perspectives of economics$ psychology$ and sociology. Thus
budgeting offers opportunities for research that chooses between competing theories from these
perspectives or combines theories from different perspectives if they are compatible$ to create more
complete and valid explanations of the causes and effects of budgeting practices. 1n the first part of the paper we analy,e budgeting research in the three theoretical perspectives$ focusing on important
similarities and differences across perspectives with respect to the primary research 9uestion$ levels of
analysis$ assumptions about rationality and e9uilibrium$ budgeting and nonbudgeting variables$ and
causal
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BIBLIOGRAPHY
(. 6rasad C.". %&&-.6rinciples and practice of management. /th
edi. Sultan 2han 4 sons$ 5ew !elhi. 6p %(%
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MHR DA= INSTITUTE OF NURSING
>ALANDHAR 5ursing #anagement
T?612< Budget 6reparation of 2ollege and School of 5ursing
SUBMITTED TO SUBMITTED BY
:espected #s. :avneet Maur #eena*shi
Cecturer #.Sc 5' 11 Near
#ental "ealth 6sychiatric' 5ursing #edical Surgical 5ursing
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INDE
S.NO CONTENT PAGE NO.
(. #eaning 4 !efinitions of Budget (
%. 6urpose of Budget (
+. Features and 1mportance of Budget %
-. 6rinciples of Budget %
. Types of Budget %
/. Stages of Budget 6reparation +
0. Budgeting 8xpenditure /
E. Budget #odel 0
H. 2ollege of 5ursing Budget E(&. School of 5ursing Budget (&
((. :esponsibilities of 5ursing Staff (%
(%. Summary and 2onclusion (%
(+. :esearch 7bstract (+
(-. :eferences (-