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STAFFING BUDGETS/FTES/ VARIANCE ANALYSIS ASSIGNMENT
GUIDELINES WITH SCORING RUBRIC Q & A
PURPOSE
Week 4: Staffing Budgets/FTEs/ Variance Analysis Assignment Guidelines with Scoring Rubric. This assignment provides learners with the opportunity to apply budgeting knowledge and skills by calculating full-time equivalents for a nursing unit, projecting FTE needs related to census changes, and analyzing a variance scenario. DUE DATE: Sunday 11:59 p.m. MT at the end of Week 4 TOTAL POINTS POSSIBLE: 150 REQUIREMENTS Description of the Assignment This assignment is in two scenario-based sections each related to staffing budgets. In the first, the student will perform multistep calculations of FTEs and projection of future FTE needs for a selected nursing unit. The second section involves calculation of budget variance and its analysis. Each section requires supported written interpretation of findings. Criteria for Content Answer the questions and complete the calculations required for the two sections of the assignment. Key points related to Calculations:
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STAFFING BUDGETS/FTES/ VARIANCE ANALYSIS ASSIGNMENT
GUIDELINES WITH SCORING RUBRIC Q & A
- When performing calculations, standard rounding rules apply. If the number to the right of the decimal is less than 5, round down to the nearest whole number, e.g.,
= 33 If the number to the right of the decimal is 5 or greater, round up to the nearest whole number, e.g. 33.5 =34.
- Read the question carefully. Pay close attention to the units be asked and keep them consistent. For example, hours vs FTEs; days vs months vs years.
- Provide ALL formulas with references. Designate which formula associates with which source. It is not sufficient to simply list the source at the beginning of the section. Write out the formula used BEFORE filling in the numbers.
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STAFFING BUDGETS/FTES/ VARIANCE ANALYSIS ASSIGNMENT
GUIDELINES WITH SCORING RUBRIC Q & A
years. A fifth unit has realized a steady increase in patient volume during that time and is currently at 88% capacity. It has been projected that within the next 12 months the volume of patients moving through that unit will increase by 20%. Sandra needs to determine if the current FTEs for the unit will be sufficient to ensure quality and safe care continues to be provided, and if not, what is the number of FTEs that will be needed to cover a 20% increase in volume.
- Suggest all the information Sandra needs to collect in order to project the FTEs needed for the next fiscal year accounting for the projected increased capacity. Remember, she is new to her position so be sure to include background data on the unit itself as it relates to previous budgets, nursing staff, and the organization. In other words, summarize your approach to this Case Study.
- Sandra has collected the following census information on all five units for the last month, in addition to what was asked in question number one. Calculate the ADC and Occupancy Rate for each unit using the Daily Census/Occupancy Rate table to determine which unit is currently at 88% occupancy rate and projected to increase over the next year.
3 Uni t Bed s
Total Patie nt Days A 35 3 1
B 15 1
C 13 1
D 32 3
E 6 6 3 3 3 3 5 5 5 2 2 2 2 4 4 3 3 0 0 0 6 5 5 3 3 3 2 5 4 3 3 0 97
(adapted from…..Healthcare Financial Management Association (2012). Managing fiscal resources: A budget and productivity case study. Retrieved from hfmamd.org TOTAL INPATIENT SERVICE DAY TOAL NUMBER OF DAYS IN THE PERIOD TOTAL SERVICE DAY PER PERIOD x TOAL BED COUNT DAYS IN PERIOD (BED COUNT X # DAYS) Average Daily Census/Occupancy Rate Unit ADC Occupancy (%) A (941/30) = 31 (941X100/35X30) = 89.6%
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C 1
D 3
What is the ALOS for the unit you identified earlier at an 88% occupancy rate? 10 You have determined the Unit for which Sandra must make FTE projections. For the remaining questions in this section, refer to the figures used and or obtained related to the Unit identified in Question 1. Additional information includes
**_- the budgeted hours of care per patient day (HPPD-budgeted) is 8.
- each employee receives 300 paid non-productive hours/year._**
- Calculate the number of FTEs needed for the Unit. Show the formulas used and all calculations. Include the reference used for your calculations at the beginning of your work. 8hr/day, 5dy/wk, 52wk/yr (8x5x52)=
- Calculate the TOTAL FTEs needed accounting for nonproductive time. Include the reference used for your calculations at the beginning of your work.
- Sharon now knows how many total FTEs are currently needed on the unit to provide safe, quality care to the patients on the unit. However, with a 20% projected increase in occupancy rate and average length of stay remaining steady on the unit, how will the required FTEs be affected?
- Calculate the TOTAL FTEs required to reflect an increased patient volume of 20% (don’t forget to account for nonproductive time). Include the reference
6 used for your calculations at the beginning of your work.
- When Sharon calculated the number of FTEs budgeted currently in this unit and compared it to the number of actual FTEs being paid for, she found she was under budget by three FTEs. Explain how that could have happened and how this information affects her FTE budget request for the next year. Section Two—Variance Analysis Variance Analysis Case Study
8 a. Volume (efficiency) variance: b. Quantity (volume) variance: c. Cost (price) variance:
- What is the total variance in personnel budget for this month?
- Analyze all the factors that made the differences and why the variances occurred. How can this variance be justified?
- In what ways might these variances inform the current or future budgets? DIRECTIONS AND ASSIGNMENT CRITERIA
9 Category Points % Description Section One: Staffing Budget and FTEs Backgroun d Informatio n 10 10% Approach to Personnel Case Study is clearly articulated and contains the elements needed to address the situation presented in the scenario. ADC and Occupanc y Rate 10 10% ADC/Occupancy Rate table completed with reference for formulas included, formulas and work shown, correct unit calculations, correct unit identified. Averag e LOS 10 10% ALOS table completed with reference for formulas, formula and work shown, correct calculations, ALOS of identified unit correct. Current FTE 15 15% Current FTEs of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. Total FTE (Current ) 15 15% Total FTEs (accounts for nonproductive time) of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. Effect of Volume Increase on FTE 10 10% Describes effect of increase of patient volume on FTEs over the next year. Describes what effect an increased length of stay would have on FTEs. Total FTE (Projecte d) 15 15% Total FTEs (accounts for nonproductive time) for projected volume increase of identified unit calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. FTE Difference Explanatio n 10 10% Explains potential causes for being under budget and explicitly describes its effect on the budget request for next year. Uses data from given and calculated elements to support explanations. Section Two: Variance Analysis Calculatio n of Total Variance 35 35% Calculations that lead to the total variance of the unit are present and include volume efficiency, volume (quantity), and cost variances. References for formulas used, formulas and all work are shown, calculations are correct. Analysis of 15 15% All elements of variances explained, variance
GRADING RUBRIC
Assignment Criteria Exceptio nal (100%) Outstandin g or highest level of performanc e Exceeds (88%) Very good or high level of performance Meets (80%) Competent or satisfactory level of performance Needs Improvem ent (38%) Poor or failing level of performan ce Developi ng (0) Unsatisfactory level of performance Content Possible Points = 150 Points Section One: Staffing Budget and FTEs Background Information
Points 8 Points 6 Points
Points Approach to Personnel Case Approach to Personnel Case Approach to Personnel Case Approach to Personnel Case
Study is clearly articulated and contains all the elements needed to address the situation presented in the scenario. Study is generally described and contains nearly all elements needed to address the situation presented in the scenario. Study is minimally described, generally stated and missing key elements needed to address the situation presented in the scenario. Study is absent or does not contain adequate elements to all the elements needed to address the situation presented in the scenario. ADC and Occupancy Rate
Points 8 Points 3 Points
Points Table completed with formulas referenced and shown, work shown All but one element are present and correct. All but two elements are present and correct. No elements are present or they are present and incorrect.
calculated correctly and includes reference for formulas used, formula and work shown, calculations correct. present and correct. present and correct. they are present and incorrect. Total FTE (Accounts for nonproductive time-current)
Points
Points
Points
Points Total FTEs (accounts for nonproductive time) of identified unit calculated correctly and includes reference for formulas used, All but one element are present and correct. All but two elements are present and correct. No elements are present or they are present and incorrect.
formula and work shown, calculations correct. Effect of Volume Increase on FTE
Points 5 Points 0 Points Describes effect of increase of patient volume on FTEs over the next year. Describes what effect an increased length of stay would have on FTEs. Only one element present or is answered correctly. Both elements are missing or no elements are answered correctly. Total FTE (Projected) 15 Points
Points
Points
Points Total FTEs (accounts for nonproductive All but one element are present and All but two elements are present and No elements are present or they are
budget request for
next year. Uses data from given and calculated elements to support explanations. Section 2: Variance Analysis Personnel Budget table 5 Points 0 Points Table completed with correct calculations. Table incomplete or complete with incorrect calculations. Volume (Efficiency) Variance Calculated
Points 8 Points 3 Points 0 Points Calculated correctly and includes reference for formulas used, All but one element are present and correct. All but two elements are present and correct. No elements are present or they are present and incorrect.
