Week 4: Staffing Budgets/FTEs/Variance Analysis Assignment Guidelines with Scoring Rubric

PurposeThis assignment allows learners to practically apply their budgeting knowledge and skills by calculating full-time equivalents (FTEs) for a nursing unit, projecting FTE needs based on census fluctuations, and conducting a comprehensive variance analysis. This hands-on exercise is crucial for understanding how staffing budgets impact overall financial management in healthcare settings.

Due Date: Sunday, 11:59 p.m. MT, at the end of Week 4.

Total Points Possible: 150 points.

Requirements

Description of the Assignment:This assignment is divided into two scenario-based sections, each focusing on different aspects of staffing budgets within a healthcare organization. The first section requires the student to perform multiple calculations to determine the current FTEs and to project future FTE requirements for a specific nursing unit based on anticipated census changes. The second section involves the calculation of budget variances and an in-depth analysis of the results. Each section necessitates a written interpretation of the findings, supported by appropriate references and logical reasoning.

Criteria for Content:

1. Answer the Questions and Complete the Calculations:
   • Each section of the assignment has specific questions and calculations that must be addressed comprehensively.
2. Key Points for Calculations:
   • Rounding Rules: Apply standard rounding rules for all calculations. If the digit to the right of the decimal is less than 5, round down to the nearest whole number (e.g., 33.4 rounds to 33). If the digit is 5 or greater, round up to the nearest whole number (e.g., 33.5 rounds to 34).
   • Attention to Units: Ensure consistency in the units used throughout the assignment. Pay particular attention to whether the question pertains to hours, FTEs, days, months, or years.
   • Formulas with References: Provide all relevant formulas before performing any calculations. Clearly associate each formula with its source, and explicitly write out the formula before inputting any numbers.

Example:Efficiency Variance + Volume Variance + Cost Variance = Total Variance

Reference: Rundio, A. (2016). The nurse manager’s guide to budgeting and finance (2nd ed.). Indianapolis, IN: Sigma Theta Tau International.

Assignment Structure:

• Section One: Staffing Budget and FTEs
  • Calculations of Full-Time Equivalents (FTEs): Accurately calculate the current FTEs based on the given data.
  • Projection of FTE Needs Related to Census Changes: Use the provided census data to project future FTE needs, ensuring that the calculations are aligned with realistic staffing requirements.
• Section Two: Variance Analysis
  • Calculating Variance: Perform calculations to determine the budget variance, considering various factors such as efficiency, volume, and costs.
  • Variance Analysis with Explanation: Provide a thorough analysis of the variance, explaining the possible reasons for any discrepancies between the budgeted and actual figures. Offer insights into potential implications and recommendations for addressing the variance.

Submission Instructions:

• Download the Assignment Word Document provided in your course materials.
• Enter your answers directly into the form, ensuring clarity and accuracy in your responses.
• For written response questions, adhere to proper grammar, syntax, and academic writing standards. Cite all references according to APA guidelines.
• For calculation questions, show all work, including the formulas used, and provide references for any formulas applied.
• Once completed, upload the document to the assignment portal by the specified deadline.

Preparing the Assignment:

Section One—Staffing Budget and FTEs:

Personnel Budget Case Study: Sandra Chambers has recently been appointed as the Assistant Administrator for the Department of Nursing at Potter Regional Medical Center. In her new role, she is responsible for overseeing the operations of five medical units. Sandra must ensure that staffing levels are optimized to meet patient care needs while staying within the allocated budget. This section will require you to perform critical calculations to determine the current staffing levels (FTEs) and project future staffing needs based on anticipated changes in patient census.

Section Two—Variance Analysis:

In this section, you will analyze a budget variance scenario by calculating various components of the variance, including efficiency, volume, and cost. You will then provide a detailed explanation of the variance, offering insights into the factors that contributed to the differences between the budgeted and actual figures. Your analysis should include recommendations for addressing the variance and improving future budgeting practices.

By completing this assignment, you will gain practical experience in managing staffing budgets, an essential skill for any nursing administrator. Your ability to accurately calculate FTEs, project future staffing needs, and analyze budget variances will enhance your competency in financial management within healthcare organizations.