Budget Inventory

1. Budget & Inventory Can you appropriately manage the money & have enough supplies to last the year?

2. Relationship of Financial Activities

3. Components that Express Objectives of Business Operations Sales: gross money coming in Cost: expenses of doing business Profit: amount of money remaining after the expenses have been paid Revenue: all incoming receipts & investments Return on Investment: ratio between capital outlay & revenue generated Growth Earnings: relates the growth in earnings over time by comparing progress from year to year

4. Budget Financial plan of operation � Commits resources for projects, programs, or activities Specifies the services to be provided & the resources that must be spent to achieve these service deliveries Certain AT settings may be appropriated monies from a supervising or controlling organization

5. Budgetary Concerns Managing budget & equipment/supplies is critically important! Size of budget?? Different settings = different size budgets & space allocations Equipment needs & supplies vary depending on the setting Continuous planning & prioritizing is necessary to effectively manage monetary allocations to meet programmatic goals Do you need to justify hours of operation? (clinic setting)

6. Budget Types Operating budget: Allocates money for the daily conduct of the program Costs of supplies & equipment (maintenance & repair) In clinic, revenues may be generated in patient fees Equipment budget: Used for items that will be used more than once Hydrocollator packs Various rehabilitation equipment Capital equipment outlay: Used for long-term equipment (Cybex)

7. Budget Systems Limited Budget: budget managed throughout year If monies left at end of year, then it reverts back to organization Government, education May spend money on things not needed just to keep the money Rollover Budget: monies not spent in one year may be carried over & may be spent in next year

8. Budget Types Spending-ceiling model: requires justification only for those expenses that exceed those of previous budget cycle Spending-reduction model: used during periods of financial problems and requires reallocation of funds

9. Budget Types 1) Zero-based budget: Requires justification for EVERY budget line item without reference to previous spending patterns Based on assumption that cost estimates are based on a fresh assessment of monies available to deliver services All programs must justify their existence annually or can be eliminated Time consuming

10. Budget Types 2) Fixed budget: method in which expenditures & revenues are projected on a monthly basis Provides an estimate of cash flow Most appropriate for large, well-established sports medicine clinics Rarely used in schools

11. Budget Types 3) Variable budget: requires adjustment of monthly expenditures so that they do not exceed revenues Requires that expenditures for any given time period be adjusted according to revenues for same period Rarely used in schools Example: $30,000 expenses for January; $40,000 revenues If received revenues of $50,000 � greater profit If received revenues of $35,000 � less profit

12. Budget Types 4) Line-item budget: all expenditures are itemized by categories Each category can have subcategories Concentrates on the here & now, doesn�t look at long-term planning Expendable supplies, professional expenses, operations, & capital outlay Does not allow for transfer of monies between accounts to cover shortfalls Often seen in AT rooms in colleges, universities & high schools Strong on control, but weak because of overcontrol

13. Budget Types 5) Lump-sum budget: fixed sum of money given to athletic trainer Can spend the money without having to specifying how the money will be spent Gives freedom to spend money where you think it is most needed People in charge of the money are to be held accountable for their actions

14. Budget Systems 6) Program budget: functional categories within an overall budget that include all of the costs of the particular program Often seen in clinics Each area of operations (rehab, prevention, education) is evaluated for total costs Must consider long-term objectives Details program costs & can examine the extent to which services are actually delivered Strong budget because of ability to relate costs to goals & objectives

15. The Budget Process Inventory � must know what you have & what you have been using throughout the past year May want to do this semiannually or quarterly Economic order quantity � a fixed # of items on hand, more ordered once level falls below predetermined point (e.g. stock & bill) Re-order when item is gone (e.g. cough drops) Make sure you have money in budget

16. Purchase Plans When ordering make sure you write down EXACTLY what you want Open Accounts or Direct Buy: purchase supplies in smaller quantities (under certain $$ amount) Competitive Bid Procedure or Competitive Bidding: send out a bid request sheet to prospective bidders who respond with prices for specific items At UI if an item is over $5000 it must go out for bid unless there is a sole vendor Lease Alternative:

17. Supplies Expendable � supplies that cannot be reused Tape, First aid, antiseptics, pharmaceuticals, and injury prevention supplies Non-expendable � reusable supplies Ace wraps, scissors Yearly inventory & records must be maintained in both areas

18. Equipment Permanent equipment: items that can be used for a number of years Capital (fixed, non-expendable) � remain in the athletic training room Expensive, durable equipment Ice machine, tables, modalities, chairs, rehab equipment � big ticket items Non-fixed (expendable) � Crutches, coolers, kits

19. Additional Budget Considerations Telephone, postage & printing expenses Paperwork, Bulk mailing to parents Contracts for outside services Modality calibration Insurance Medical Expenses Doctor visits, Dental molds, Orthotics Salaries & benefits ATC staff, GA, Student, Doctor, Transcriptionist Professional development Travel, Dues Miscellaneous expenses Gatorade, Post-game beverages, clothing, awards

21. Supplies & Equipment Inventory Managing budget & equipment/supplies is critically important Set up a spreadsheet to maintain supplies numbers for the last several years

22. Differences by Setting Clinic vs. High School vs. College/Univ. College/Univ. sizes