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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 (-