Policy Manual sample

MDT Home Health Care Agency, Inc. POLICY ON BUDGET PURPOSE: To delineate roles and responsibilities in the preparation of the organization’s budget. It is the policy of MDT Home Health Care Agency, Inc. maintain a budget and capital expenditure plan for at least a three year period, both must be revised to include the approval of both the agency budget and capital expenditure plan by the governing board. Also our Agency will have a new year overall plan and budget which shall be computed every January between 1 st and 2 nd week of each new year. The plan and budget shall take into account such variables as: a) Number of patients anticipated; b) Number of visits anticipated; c) Rate of visits anticipated; d) Number of employees anticipated. POLICY: · The agency utilizes two budgets, the Operating and Capital Budgets, in the overall management of its business. · The Operating and Capital Budgets are prepared each fiscal year, based on the agency’s plans/ The Operating Budget shows detailed projections for revenue and expenses, while the Capital Budget projects the agency’s use of case and purchase of fixed assets · All budgets are developed by staff and submitted to the President of the Governing Board for review. The President of the Governing Board has the overall responsibility for approving the budgets · Agency management and representative staff develop and review fiscal factors that affect patient service(s). The following factors may be considered: Assumptions that are the basis for the budget Data relevant to service statistics, staffing, performance improvement (QAPI), fiscal Reports Budget variance reports Agency strategic plans and operational plans Other information relating to resource allocation PROCEDURE: · Operating Budget and Capital Budget: Based on specific goals, programs, staffing, and capital equipment needs, senior management staff develops the Operating Budget and Capital Budget in September/October. The preparation is based on the most current statistics, cost analysis, and budget analysis · The draft budgets are presented for review to the Chairman of the Finance Committee (CFO) · The President presents the budget as approved by the Governing Board. Home Health Agency Overall Plan and Budget F-1