IHP 450 Final Project Milestone Two: Departmental Budget and Outline Guidelines and Rubric Prompt: Because you have done such a good job with the consulting assignments, your boss has asked you to lead the development of the department’s annual operating budget for the healthcare facility you selected, (Joslin or Venice). She has also offered to review an outline of your capital budget proposal before you submit it for consideration by the decision makers. There are two parts to this assignment that you will submit together: Part One: Proposal Outline First, you will outline your proposal for your boss to review. With the goal of submitting a proposal that will help your organization and win a $2,500 bonus, you will create a 1–3 page outline of your final project presentation that identifies the key points you will use to address critical elements of the final project, providing sufficient detail to allow your boss to provide constructive feedback on your proposal. Your outline should incorporate, where applicable, the knowledge, concepts, and principles that you have learned in Modules One through Five. Review the Proposal Outline Template to gain an idea of what your outline may look like. The notes and ideas you generate in this outline may inform the speaker notes, visuals, and text that you will include in your final project proposal presentation. To complete this part of the assignment, the following items must be addressed:

I. Proposal A. Options: What various options are available for each item in your budget proposal? Provide multiple options for your supervisor or board to

consider based on their needs. B. Financial Research: Describe the cost-benefit of each option based on relevant information and research. Information and research can include

research on the items or vendors, organizational numbers, price quotes, and more. Be sure to provide relevant documentation in an appendix or reference slide to show the depth of your research and the various options available.

C. Organizational Resources: Identify what resources would be needed to implement one of the options in your proposal D. Communication: What method of communication would be used to notify departments across the organization and what methods would be

used throughout proposal implementation? Justify the appropriateness of your suggestions. Part Two: Departmental Budget Second, create your annual departmental budget per your boss’ request. As part of your capital budget proposal, you will need to apply the cost of your capital budget item, and all associated costs, to a specific department within the organization. Using the budget sample as an example, create your own departmental operating budget in the Operating Budget sheet. Please note that this is just an example provided to help you get started. You do not have to use all of the budget items found in the budget sample if they do not apply to your department. You may find that additional items are appropriate to include for your department beyond what is included in the sample. Use the Capital Budget sheet to calculate the costs of your capital budget item.

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As you create your department’s budget, consider items such as hiring new staff, training, technology, and any other related costs. Also account for the potential revenue generated as a result of implementing the capital budget item as well as any potential expenses incurred by your department. These should be high- level estimates. To complete this part of the assignment, the following items, as well as those listed above, must be addressed:

I. Budget (Please Note: Respond to the following critical elements in the proposal outline, with the exception of element G below, which should be submitted as an Excel spreadsheet)

A. Statements: What statements were utilized for formulating your proposal and why? Select the appropriate statements for analysis and defend your choices.

B. Expenses: What major expenses are associated with your proposal items? C. Budgetary Accounts: What budgetary accounts (i.e., salaries) are impacted and in what way? D. Reasoning: Based on the previous year’s budget data, why did you select these budget items for adjustment over other options? E. Ratios: Research the various ratio options (including ROI) used for reviewing financial statements. Determine what ratios you will use for your

proposal items and explain why. F. Ratio Calculations: Using budget statements, formulate calculations that support each recommendation. G. Projected Departmental Budget: Create a projected departmental budget for the upcoming year that incorporates the costs of the proposed

changes. (This will be submitted as an Excel spreadsheet) Guidelines for Submission: You will submit two deliverables for this assignment. Your departmental budget must be submitted as an Excel spreadsheet. Your proposal outline must be submitted as a single document. It should be 1–3 pages in length with double spacing, 12-point Times New Roman font, one-inch margins, and citations in APA style where applicable.

Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Proposal: Options

Provides reasonable implementation options for each proposal item

Provides implementation options for each proposal item, but options are not reasonable

Does not provide implementation options for each proposal item

8.63

Proposal: Financial Research

Describes the cost-benefit of the listed options based on relevant research and information

Describes the cost-benefit of the listed options, but with gaps in relevant research and information

Does not describe the cost- benefit of the listed options

8.63

Proposal: Organizational

Resources

Accurately and clearly identifies the organizational resources that will be needed for proposal implementation

Identifies the organizational resources that will be needed for proposal implementation, but lacks accuracy or clarity

Does not identify the organizational resources that will be needed for proposal implementation

8.63

Proposal:

Communication

Proposes methods for communicating budgetary changes and communicating throughout proposal implementation to departments across the organization, and justifies the appropriateness of these methods

Proposes methods for communicating budgetary changes and communicating throughout proposal implementation to departments across the organization, but does not justify the appropriateness of these methods

Does not propose methods of communication for notifying departments across the organization and for proposal implementation

8.63

Budget: Statements Selects and comprehensively defends the appropriate financial statements for use in the proposal

Selects and defends financial statements for use in the proposal, but statements are not appropriate or not comprehensively defended

Does not select and defend financial statements for use in the proposal

8.63

Budget: Expenses Accurately identifies the major expenses associated with the proposal and the budgetary accounts that would be impacted

Identifies the major expenses associated with the proposal and the budgetary accounts that would be impacted, but identification is not accurate

Does not identify the major expenses associated with the proposal and the budgetary accounts that would be impacted

8.63

Budget: Budgetary Accounts

Identifies what budgetary accounts are impacted and clearly states how

Identifies what budgetary accounts are impacted but does not state how they are impacted

Does not identify which budgetary accounts are impacted or state how

8.63

Budget: Reasoning

Justifies why the selected budgetary accounts were chosen for adjustment based on analysis of previous year’s budget

Justifies why the selected budgetary accounts were chosen for adjustment, but not based on previous year’s budget

Does not justify why the selected budgetary accounts were chosen for adjustment

8.63

Budget: Ratios

Selects appropriate ratios to use for support of the proposal and justifies logically

Selects and justifies ratios to use for support of the proposal, but does not select appropriate ratios or justification is not logical

Does not select and justify ratios to use for support of the proposal

8.63

Budget: Ratio Calculations

Calculates the selected ratios based on the budget statement analysis

Calculates the selected ratios, but not based on the budgetary statement analysis

Does not calculate the selected ratios

8.63

Budget: Projected Departmental Budget

Creates a projected budget that applies the proposed changes to the specific department

Creates a projected budget but is missing key elements of a departmental budget

Does not create a departmental budget applying the proposed changes to a specific department

8.63

Articulation of

Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas