The purpose of this assessment is to build a strong understa…

You are the nurse leader at your organization. You have been tasked with creating an operating and capital budget. It’s your responsibility to consider the strategic plan you discussed in your previous assessment and apply it to the development of the capital and operating budgets.

PLEASE USE A LOT OF REAL LIFE WORD EXAMPLE. PLEASE DONT JUST WRITE, SITE SOURCE, PLEASE BE VERY DETATIL AND GIVE REAL WORLD EXAMPLES.

Using the provided , create both budgets and explain your decisions in an accompanying paper.

Budget Spreadsheet

Capital Budget (think long-term):

Create a capital budget with line items that are specific to the business needs.

• Buildings, equipment, and working capital.
• Cash flow in.
• Cash flow out.
• Utilities.

Operating Budget (think day-to-day operations):

Create an operating budget with line items that are specific to the business needs.

• Marketing materials.
• Direct labor.
• Salaries.
• Insurance.

Narrative Component

Capital Budget:

Explain how the capital budget was designed and created.

• Explains how costs were estimated.
• Justify the need for each expense or service.

Describe the process for calculating costs in the capital budget.

• Explain breakdown costs for each of the major cost categories (ie., salaries, fringe benefits, equipment, travel, supplies, other direct costs, and indirect costs), as well as any additional categories required by the organization.
• Considers the elements of indirect costs and how they were calculated.

Explain ongoing management of the capital budget.

• Explain the role of the nurse leader in ongoing budget management.
• Include considerations for the organization’s financial sustainability.

Operating Budget:

Explain how the operating budget was designed and created.

• Explains how costs were estimated.
• Justify the need for each expense or service.

Describe the process for calculating costs in the operating budget.

• Explain the breakdown costs for each of the major cost categories.
• Considers the elements of indirect costs and how they were calculated.

Explain ongoing management of the operating budget.

• Explain the role of the nurse leader in ongoing budget management.
• Include considerations for the organization’s financial sustainability.
• Competency 1: Develop an operating budget for a healthcare organization.
• Create an operating budget with line items that are specific to the business needs.
• Explain how the operating budget was designed and created.
• Describe the process for calculating costs in the operating budget. Explain ongoing management of the operating budget.
• Competency 2: Develop a capital budget for a healthcare organization.
• Create a capital budget with line items that are specific to the business needs.
• Explain how the capital budget was designed and created.
• Describe the process for calculating costs in the capital budget.
• Explain ongoing management of the capital budget.
• Competency 4: Communicate effectively with diverse audiences, in an appropriate form and style, consistent with applicable organizational, professional, and scholarly standards.
• Integrate relevant and credible sources of evidence to support budget data and information, correctly formatting citations and references using APA style.