Budgeting Financial Resources Management

Resources vs. Expenditures Needs to be a continuous process Planning Prioritizing Documenting Constant evaluation b/c of evolving nature of AT

Types of Budgets

Spending Ceiling Model (incremental) Only have to justify increases in previous years Often linked to inflation (4%), but medical costs often increase faster than inflation Doesnt implement good planning Will be forced into a spending reduction model in lean financial times that has not been anticipated or planned.

Zero Based Budget Must justify every expense Requires documentation of needs Requires much more effort and detail Helps with prioritizing

Fixed Budget Predict month to month income and expenditures Used in clinical situations, rare in school settings Helps identify profitable practices If not predicted accurately, could be dipping into savings

Variable Budget Tough to predict month to month expenditures Budget is adjusted according to the actual revenues 20% drop = 20% cut on expenditures

Lump Sum Budget Provided with a fixed amount of money and can spend any way the ATC sees fit Very definite limits and easy to use Gives ATC freedom to spend as he/she sees fit Must plan for unknowns or will be accountable after the fact

Line Item Budget List of expenditures are categorized based on program sub-function Expendable Supplies, equipment repair, team physician services, insurance, ect Money in one line may not be transferable to another so parent organization has some control Easy to understand and prepare ATC has limited flexibility in financial crises

Performance Budget Breaks budget into functions and appropriates funds necessary to achieve those activities (ex) rehab, emergency, administration, etc Similar to line item budgeting but much more detailed and requires analyzing expenditures and returns (tough in athletic training)

Steps in Budgeting Needs assessment Make funding source decisions Use past records Plan on changes that occur as a result of policies, rules Consult with vendors Plan capital improvements / purchases far in advance Keep close eye on accounting reports

Terms to know Capital expenses – large item, one time purchase (ex) e stim unit Medium-Priced Annual Rebuys – often are services that must be negotiated yearly (ex) athletic programs health insurance Lower-cost Consumable Supplies – small items that have a limited number of uses tape

Purchasing Goods 1.Quotations 4. Purchase orders 2. Negotiation5. Receiving 3. Requisitions6. Accounts payable

Request Quotations List that goes out to a variety of vendors Vendors list is compiled by organization /agency Bidding process can be on individual items MUST BE SPECIFIC!!! Include S&H Most effective way to control costs

Negotiations Price Supply Quality Shipping Technical Support

Requisition / Purchase Order Requisition is the request from the ATC to expend funds Purchase order is the form approved by the institution that goes to vendor

Receiving Match packing slip Inspect goods Report ASAP

Accounts Payable Confirm receipt with business office / person by approving invoice Wait to pay if problems

Other Funding Sources Pooled buying consortiums Alumni / booster organizations External funding

Inventory Keep plenty, but not too much Should be performed regularly Develop a check out system, especially important in situations w/ multiple ATCs Central Supply? Automated? Restrict Access?