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Budgeting and Forecasting

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Budgeting and forecasting is required to offer the Hospital executives, facility administrators, and department managers a powerful tool to create and manage their budgets.
Budget Control is the module that integrates with all aspects of expenditures related to salaries, procurement and administrative. The module should allow the Hospital to reserve, commit and expense funds as per Ministry of Finance rules and regulations in this respect.

 
The following has been extracted from a recent RFP. I've included it here for your reference. It may prove useful for anyone preparing such a document.
Please feel free to comment on this list, and propose any items that you think should have been included in this list. 

Budget

Description
Budgeting and forecasting is required to offer the Hospital executives, facility administrators, and department managers a powerful tool to create and manage their budgets.
Budget Control is the module that integrates with all aspects of expenditures related to salaries, procurement and administrative. The module should allow the Hospital to reserve, commit and expense funds as per Ministry of Finance rules and regulations in this respect.


>>> General
 
1   Access to system-wide, current and historical data such as personnel, payor and patient information; resource and material consumption and costs; actual and projected revenue; actual and projected costs of services.
2   ‘What if ‘ analysis on data to aid in projecting and forecasting budgetary information or scenarios, without corrupting the original data
3   Ability to factor in variables such as depreciation and inflation percentages, staff size fluctuation, price changes, new purchases of equipment and supplies, etc..
4   Provide consistent and coordinated budgeting processes and formats throughout the organization
5   Ability to include online notes related to specific budget numbers
6   Ability to create departmental budget planner worksheets
7   Ability to create several versions of any budget plan in order to project or forcast budgets or specific variables within a budget
8   Ability to enter online notes in the form of free text to explain budget numbers
9   Ability to override/edit to adjust each department’s budget

>>> Budget Planning
 
10   Support unlimited budget files for current or future periods
11   Allow for department-level access for budget development and analysis
12   Allow users to create budget data for accounts from current or previous period budget or actual balances
13   Support seamless integration of budget files created in payroll/personnel, fixed assets, and budgeting and forecasting modules
14   Support budget worksheet comparison for a range of periods, including prior fiscal year, actual and projections, and budget variances.
15   Required to budget all accounts
16   Budgets support multiple account types: income, expense, liability, capital , statistical
17   Multiple budgets per account
18   Budgeting periods: monthly, quarterly , annually
19   Ability to generate financial statements with budgets
20   Provide integration and sharing of data between general ledger and budgeting systems
21   Ability to use account numbers from general ledger system for budget preparation ( ex: no re-keying of account codes )
22   Ability to use actual current period and YTD general ledger account balances for budgeting
23   Ability to use general ledger account balances for past three years’ current period for budgeting
24   Ability to use actual general ledger account balances for past three years’ current period and YTD for budgeting
25   Support online maintenance of budgeted GL account data for current period and YTD, for current and prior year
26   Store general ledger historical data for budget and trend analysis for five years
27   Maintain departmental statistics for current period and YTD for current and prior year for budget purposes
28   Maintain departmental FTE data for current period and YTD for current and prior year for budget purposes
29   Share the same Chart of Accounts with the General Ledger
30   Ability to define budget models
31   Provide flexible budgeting formulas

>>> Budget Preparation
 
32   Ability to prepare budget in a distributed environment anytime, anyplace
33   Ability to sort budget data to work on items one at a time or all at once; mark items as complete when finished
34   Ability to add new budget items dynamically
35   Ability to spread, repeat, and copy budget data
36   Ability to add itemized lists that allow you to drill down to see detailed budget information
37   Ability to include text notations to provide further explanations of budgeted amounts
38   Ability to use position budgeting in payroll budgets
39   Ability to review and update budget data online
40   Drill down by account and department, account and period, department and period, and product and period , or customize drills
41   Add notations during the review process ( ex: explain why portions of a budget were rejected or altered)
42   Ability to use a multilevel approval process based on the hierarchy of the Hospital
43   View notes and itemizations entered by preparers
44   Ability to adjust budget ledgers at multiple levels
45   Ability to use mass change to make volume changes to the entire budget or specific accounts
46   Allocate and move data using allocations
47   Ability to adjust detail budget by account , year, and period
48   Ability to enter budget journals
49   Ability to make adjustments to the entire year
50   Ability to spread a lump sum amount evenly across all periods
51   Ability to designate a specific amount to repeat across every period
52   Ability to designate a specific amount to add to every period
53   Ability to designate percentage by which you want to increase / decrease every period

>>> Budget Data
 
54   Totals for the entire Hospital ( major cost centers )
55   Grand totals for all departments ( cost centers )
56   Totals by selected departments(s) only
57   Budget numbers for each facility in the Hospital
58   Totals in specific categories for all departments, such as total pay increases
59   The drilled-down numbers that constitute the detail of a specific department budget plan
60   Entry of data online with online validation and real-time update
61   Ability to input budgets by :- Manual entry
62   Ability to input budgets by :- Uploading from a spreadsheet
63   Ability to input budgets by :- Copy
64   Ability to record budgets at :- Summary level
65   Ability to record budgets at :- Detailed account level
66   Ability to record budgets at :- Detail level rolled up into summary level
67   Ability to record budgets for : revenue , expense, capital expenditures
68   Ability to record budgets spanning multiple accounting years ( investment budget )
69   Allow budget transfers between accounts
70   Allow budget copy between accounts
71   Distinguish between operating budget and investment budget
72   Provide audit trail on budget transfers between accounts
73   Ability to operate budgets for two fiscal years at one time

>>> Planning Tools
 
74   General ledger expense projections
75   Projected number of employees
76   Projected salaries of employees
77   Projected patient days
78   Admissions projections
79   Revenue projections
80   Service volume projections
81   Reimbursement projections
82   Managed care ( third party ) contract analysis and negotiation

>>> Computations and Revisions
 
83   Compute future period projections based on average of prior years’ data plus or minus a percentage
84   Compute future period projections based on user-defined calculations on prior year(s) data
85   Create future period data based on zero-base budget
86   Support automatic spreading of summary level budget revisions to detail items
87   Allow across the board revisions for a department
88   Allow across the board revisions for a range of departments
89   Allow across the board revisions for a natural class
90   Allow across the board revisions for a range of natural classes
91   Allow revision of budget amounts for a range of periods by a user-defined percentage
92   Allow revision of budget amounts for a range of periods by a fixed amount
93   Support flexible budgeting of revenue, expense, and labor data based on user-defined volumes
94   Support flexible budgeting using step variables
95   Support flexible budgeting using pure variables
96   Support flexible budgeting using fixed plus variable amounts
97   Support capital expense budgeting with automatic calculation of depreciation based on assets useful life
98   Allow creation of and access to budget file for next year’s budget before close of current year
99   Provide option to automatically interface monthly budget adjustments to general ledger system
100   Allow users to amend the forecast at an individual account level
101   Allow budget to be frozen in order to preserve the budget
102   Provide for a multi-level approval for the budget

>>> Budget Versions
 
103   Ability to designate budget versions for :- Baseline plan
104   Ability to designate budget versions for :- Current budget version
105   Ability to designate budget versions for :- Amended budget version
106   Ability to designate budget versions for :- Forecasts
107   Ability to designate budget versions for :- Ability to hold and operate at least 4 different budget versions
108   Ability to record description text against budgets in :- Summary
109   Ability to record description text against budgets in :- Detail for specific lines
110   Ability to adopt and approve a final version

>>> Personnel Budgeting
 
111   Provide for Position Budgeting
112   Track expenditures for salaries from payroll, other earnings and benefits
113   Vary individual components of the personnel cost equation to determine the impact on the overall budget

>>> Queries
 
114   Maintain and allow access to multiple budget files ( ex: revised and original) for current year’s budget
115   Ability to inquire online by each segment of the COA
116   Online variance analysis and comparison between actual, budget and forecast
117   Allow summary and detail inquiries of all budget accounts and analysis on screen and by report
118   Allow drill down from GL account level to budget information

>>> Reports
 
119   Provide ad hoc report writing capabilities within budgeting system
120   Print budget reports comparing actual amounts to flexible budget amounts
121   Print budget reports in same format as GL reports, using GL report format paramters
122   Print budget worksheets with calculated projections
123   Print pro forma profit and loss statements
124   Print monthly departmental exception reports of actuals that exceed a user-defined budget variance

>>> Integration
 
125   General ledger
126   Accounts Payable
127   Purchasing

>>> General
 
128   Ability to define allotments based on the approved budget in accordance with the Chart of Accounts
129   Ability to control reservation, expenditure and payment of amount in accordance with the governing rules.
130   Rolling up of budget amounts
131   Capability to transfer allotment amounts between different chapters of the budget
132   Interface with Payable for expending and payment of dues
133   Provide a multi level approved mechanism from the time of amount reservation to disbursement
134   Create proper documents, and print at each step of the budget control process
135   Integrate with purchasing and payable for the procurement control, and payment follow-up
136   Define budget control allotments based on approved budget plan
137   Real-time check for available budget as entries are processed through the system
138   Monitor available budgets at either the detailed or summary level
139   Display actual figures, budgeted figures, commitments and variances, online at the account level
140   Ability to display overspent accounts which have exceeded either pre-defined monetary or percentage limit
141   Ability to stop over expenditure at all levels

>>> Budget Control Process
 
142   Allotment creation:
143   Ability to automatically create allotment figures from budget plan figures
144   Ability to override allotment figures
145   Ability to add / change an allotment figure
146   Ability to transfer allotments between accounts for the same cost center , or to other cost centers
147   A commitment is required to be created/released in the following circumstances:
148   Commitment created when a requisition is raised and approved
149   Commitment is cancelled when a requisition is cancelled
150   Commitment is converted to encumbrance when the requisition is converted into a purchase order
151   Commitment is credited when the purchase order is cancelled
152   Commitment is amended if requisition is changed
153   Encumbrance is created when a purchase order is created
154   Encumbrance is cancelled when a purchase order is cancelled
155   Encumbrance is converted to expense when the purchase order is matched to an invoice
156   Encumbrance is amended when a credit note is entered
157   Encumbrance is amended if purchase order is changed
158   Encumbrance is recreated when an invoice is cancelled
159   Expenditure is created when an invoice is accepted by the payable system, encumbrance is adjusted by the reverse of the expenditure amount
160   Management reports are printed at various steps in the cycle
161   Control Reports are printed
162   Ability to view online allotment , commitment , encumbrance , expense and available balance ( Available Funds = allotment – commitment – encumbrance – expense )
163   Ability to report on open commitments, open encumbrances and available balances
164   Ability to handle and resolve budget exceptions online
165   Ability to automatically update available funds in one of the cost center / account bucket
166   Ability to define budget based on the structure of the COA
167   Ability to display available funds in summary or details ( roll up / roll down )
168   Ability to define user budgetary control rules at any account structure component, at any combination of levels
169   Ability to define Budgetary control rules by document source, by document type, by user
170   Provide Control options: absolute or advisory
171   Provide User set control tolerances and overrides

>>> Integration
 
172   Accounts Payable
173   General Ledger
174   Purchasing
175   Human Resources


Last Updated ( Tuesday, 28 October 2008 01:07 )  

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