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Developing an Operating Budget

Demonstration of Proficiency

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

  • Competency 1: Explain the importance of reporting in health care.
    • Explain why budgets are an important part of the planning process.
    • Explain the difference between operating, project, and capital budgets.
    • Analyze the impact of the budget on the operations of the organization.

Part 2: Types of Budgets and Their Importance

In the second part of the assessment, you will demonstrate your understanding of the importance of budgets within the context of financial and strategic planning for health care organizations. A comprehensive analysis of the budget consists of your interpretation of the numbers: What are the numbers telling you? Use the readings from your Financial Management for Public, Health, and Not-for-Profit Organizations as well as the independent research you conducted to fully develop a 2–4 page (excluding cover and references pages) response to the relevant scoring guide criteria:

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  • Explain why budgets are an important part of the planning process.
    • “Explain” means to make something (an idea, situation, or problem) clear to someone by describing it in more detail or revealing relevant facts or ideas.
  • Explain the difference between operating, project, and capital budgets.
  • Analyze the impact of the budget on the operations of the organization.
    • “Analyze” means to examine methodically and in detail the constitution or structure of something (especially information), typically for purposes of explanation and interpretation.
  • Adhere to the rules of grammar, usage, and mechanics.
    • “Grammar” refers to the basic rules for how sentences are constructed and how words combine to make sentences (for example, word order, case, and tense).
    • “Usage” refers to correct word choice and phrasing, particularly with regard to the meanings of words and phrases.
    • “Mechanics” refers to correct use of capitalization, punctuation, and spelling.
  • Apply APA formatting to in-text citations and references.
    • Be sure to include a separate References page.
  • Length: Part 2 should be 2–4 double-spaced pages in length.
  • References: Cite at least four current scholarly or professional resources.
    • Your textbook can be one of the four resources.
  • APA formatting: You may wish to refer to the following APA resources to help with your structure, formatting, and style:
  • Font and font size: Times New Roman, 12 point, for narrative portions only.

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