![Program Based Budgeting System Program Based Budgeting System](http://2.bp.blogspot.com/-7-vEjdzCH_Q/T6iaFdYeZ1I/AAAAAAAACNs/aRocjQ5whR8/s1600/OBB%2Bchart_01.jpg)
![Program Based Budgeting System Program Based Budgeting System](http://web.njit.edu/~ml7/ie492_project/activity_budget.jpg)
ACVC 2. 00. 1 - Program- Based Budgeting. Program- Based Budgeting. Thomas E. Catanzaro, DVM, MHA, FACHEDiplomate, American College of Healthcare Executives The First Rule of Budgeting - the front door must swing. The accounting approach to budgeting is one of cost control. The traditional veterinary methods of fiscal management are to beat the expense percentages to death when compared to a national average. The veterinary- specific software systems generally tell you everything about income centers, but none are yet linked to any expense center comparisons. The accountant's system is to catalog your checks into as many categories as possible so the Profit & Loss (P& L) Statement (Income Statement) looks impressive.
![Program Based Budgeting System Program Based Budgeting System](http://www.civilserviceindia.com/subject/Management/notes/images/traditional-vs-zero-base-budgeting.png)
Then you wonder why most veterinary practices do not have a dynamic budgeting process. THE DYNAMIC BUDGETING PROCESSWhen I reference a . These are similar, but in greater, tailored detail, to the AAHA Chart of Accounts, now provided in the ISUP text, Building The Successful Veterinary Practice: Programs & Procedures (Volume 2), as well as in the new Signature Series monograph, Fundamental Money Management (with diskette), available at www.
When I speak of significant ratios, I refer to expense compared to income for the same line item, or specific program income compared to outpatient visits, or of fluid therapy units compared to general anesthetic cases, or even diagnostic sales compared to pharmacy sales (by DVM and by practice). Let's try a few tests: Question: Drugs and medical supply cost of goods sold for a companion animal practice are 1. X- ray/ECG diagnostic costs are 8.
- Chapter 3: Budgeting, Financial Accounting for Local. The basic tenet of zero-based budgeting (ZBB) is that program activities and services. Within a school system, site-based budgeting generally.
- Program Based Budgeting Ghana 2012 Dan Narainsamy 0267315666 [email protected] www.sites.google.com/site/ ghanapbb/ 1 PBB in Ghana. Program budgeting includes:-.
- Program-Based Budgeting. Catanzaro, DVM, MHA, FACHEDiplomate, American College of Healthcare Executives. Can your current system change client message based on aging of accounts? Yes, easily and automatically = 0.
- This programme budgeting system was first introduced by the United States Secretary of. The Challenges of Implementing a Performance-based Budget System, Ian. Program budgeting on a government level can be.
- A program budget is a budget in which expenditures are based primarily on programs of work and secondarily on.
- What is Program-Planning-Budgeting System PPBS?
16 From Line-item to Program Budgeting Global Lessons and the Korean Case this volume, properly defined, the conceptual aspects of a program. State Budgeting System; Education Management Information System; Post-Disaster. What is 'Zero-Based Budgeting - ZBB' Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a 'zero base,' and every function within an.
Which percentage(s) appear inappropriately high or low? Total gross was $9. Now your answers would be. Film and developing fluid, ECG paper and contact cream, outside laboratory costs and reagents are low cost. Someone probably added equipment or maintenance to the wrong expense categories.
Okay, so you feel I tricked you, but how often do you make a snap judgement on practice operations based on old habits, old information, or someone else's perspective, like these generalized articles in periodicals. The focus must be on your practice, your community, and your clients, if you want the front door to swing! A similar set of numbers exists for mixed animal practices, especially in farm call pricing, mileage, sale barn fees, or when they compete with the . A dynamic budget means we know how much money it took to create how much income within a specific practice program (dentistry, X- ray, laboratory, vaccinations, etc.). Vaccinations . Most of our consulting clients have started to use the term . This differentiation is critical when you exist in a community where other veterinarians, super pet stores, and vaccine clinics have made price a commodity to shop for in pet health care.
Heck, I don't mind a ten minute vaccine appointment with a paraprofessional wellness exam, but if they want a doctor's consultation, they need to be scheduled for at least 2. The secret motivator is not that secret. The front door must swing for ANY program to be effective! A dynamic budget process means we accept the forecast as targets, and if we hit the target we are okay. If we hit the bulls- eye every time, we are exceptional (and more likely, a falsifier of data). Each quarter, we look at what our in- service training plan did to affect which programs, and assess if the expense and income ratio changed based on the new knowledge shared within the team. If it did as expected, we must change the next quarter's budget to reflect the new trends, and make new forecasts on lateral areas of interest.
What does this mean in application? Please look at this simple example: ISSUE: The practice decides they must start to use a laboratory test waiver before any general anesthesia for forensic reasons. It was added to the bottom of the Surgery and Hospitalization Authorization Form (from the AVMA Directory). The practice leadership decided to add a minimum level to the practice's existing . Each client would be asked to waive the animal's rights to this screening so the practice can save them money.
To their utter astonishment, another 2. Since no one expected any impact, just a lot of waivers, the practice must now adjust the next quarter's projections. Where will the adjustments occur? Sure, pre- anesthetic, but what about the geriatric animal baseline laboratory profiles which were offered only by exception in the past during annual exams? In fact, the doctors became so comfortable with the increased client awareness of laboratory profiles, the . Slowly, in about a year, they started to offer baseline profiles when animals entered .
Similarly, there can be four levels of bandaging (joint and bandage dependent) and four levels of hospitalization (o. To keep the front door swinging, good clients must feel they are appreciated, and having levels of care allows them either recognition or options. Both are elements which will bring them back to your practice, as well as . These are only examples of . The clients perceive a benefit when presented as .
Satisfied clients make the front door swing! There are challenges to making this system work, and must be addressed in the earliest development phases, either with your consultant's help, or with a strong personal belief and vision.
IMPLEMENTATION OF PROGRAM- BASED BUDGETINGHow do you get enough time to do all this ? It must be a team effort.
Every staff member must be involved in the new programs and processes. The leadership becomes visionaries and trainers. The following six elements must be accepted as a minimum set of requirements and expectations for program- based budgeting to work: First: The practice must have a team that believes. They must believe in the core values of the practice and the standards of quality healthcare delivery.
They must believe in the . Success measurements will be founded in outcomes and results. Respect for all immediately, responsibility concurrent with training to trust, and recognition, since behavior rewarded is behavior repeated.
Strategic response replaces the outdated strategic planning process. Be ready to do unique and unusual things as if they were usual and do the usual in a new and unusual way. Continuous quality improvement (CQI) means EVERY staff member is accountable for unilaterally causing improvement and change on a regular basis for the benefit of the client, the staff, or the practice entity. Be ready to upgrade computer knowledge and increase the trend assessment discussions within the staff. Start getting balanced financial reports. Pair income to expense centers, with expenses not alphabetized, but rather, in order of importance.
Be ready to change accountants if the firm will not support your effort. Be ready to have every member initiate new programs and target actions every quarter.
Embrace practice performance planning rather than performance appraisals of the past. Once started, you can't go back. Once started, you are committed to change the future, forever. Change will be the norm, and if . Does your current invoicing system allow efficient preparation and printing? Yes = 0. No = 1. 0Not Important To Us = 2 2. Does your current system allow close tracking of receivables?
Yes, easily = 0. Not close enough = 4. Not Important To Us = 6. Not easily = 8. No = 1. Does your current system automate monthly client billing? Yes, easily = 0. Not Important To Us = 2.
Yes, but with difficulty = 5. No = 1. 04. Can your current system change client message based on aging of accounts? Yes, easily and automatically = 0. With close personal effort = 5. No = 1. 05. Does your current system allow you to manage cash flow and payables? Yes, easily and automatically = 0.
With close personal effort = 5. Takes substantial analysis to maintain = 8. Not managed well = 1.
Are you on an automated vendor check printing system? Yes, easily and automatically = 0. With close personal effort = 5. No = 1. 07. Does you current system maintain a perpetual balance inventory? Yes, easily and automatically = 0.
With close personal effort = 5. No = 1. 08. Are client estimates an automated process? Yes, easily and automatically = 0. With close personal effort = 5.
No = 1. 09. Do the end- of- month financial reports match income centers to expense centers? Yes, easily and automatically = 0.
With close personal effort = 5. No = 1. 01. 0. Does it take extensive staff training time to learn the tracking systems? No, easy and automated system = 0. Not much; procedures are keyed to recurring reports = 4.
With multiple recycling = 6. Yes = 1. 01. 1. Are end- of- month financial reports generated in- house?
Yes, easily and automatically = 0. With close personal effort = 5. No = 1. 01. 2. Does the accountant convert the cash- based program data to tax- based data? Yes, easily and automatically = 0. Yes, quarterly, with our guidance = 4. Annually, with close personal effort = 7.
No = 1. 0System Flexibility Issues: 1. Have you modified the AAHA Chart of Accounts to meet your own needs? Yes = 0. Use them unchanged = 3. We use one from our accountant = 6. We don't have a system = 1.
Do your current tracking systems change with the practice's evolution? Yes, easily = 0. No = 1. 03. Can your current system develop customized reports to track trends? Yes, easily and automatically = 0.
With close personal effort = 5. No = 1. 04. Is your word processing integrated with a spread sheet system? Yes, easily and automatically = 0.
Separate programs, manual combining = 5. No = 1. 05. Are you willing to change computer systems or add accounting software?
Yes = 0. Yes, but not happily = 4. Only if you can prove a major cost benefit = 8. No = 1. 0Networking Concerns: 1. Do you use a management review system for your practice operational data? Yes, practice consultant = 0. Yes, . Is your accountant monitoring the practice data against National trends?