Flexible Budgeting

Total Control Over Your Unique Costing Needs

 

Affinity Budgeting tools are an outstanding tool for budget preparation. A complete cost analysis may be performed on all departments and procedures before final approval.

Global

Modification

The global modification features greatly simplify the task of preparing a budget. You define the assumptions, such as Actual 2008, Budget 2009, Budget 2009 revision 1, etc. This single feature will save hours of tedious calculations.

The system was designed to allow administrators and department directors to concentrate on the development of valid budget assumptions. When the budget is finished, the software provides a complete cost analysis using the new budget assumptions. All assumptions may be copied from one set to another. Assumptions may be copied, modified or deleted globally (all departments) or by selected department(s).

Percentage changes may be made to each set of data. Of course, any item (e.g., account standards, procedure volumes or charges, allocations, revenue realizations) may be changed individually.

For example, you can change the rate of pay for a group of employees such as department directors or nurses. Procedure volumes and/or charges can be changed with varying percentages by department, financial class or patient type.

Flexible

Budgeting

Account standards are set during the cost accounting phase of implementation. Using the current budget, Flexible Budgeting features will ‘flex’ the budget based on actual charge item volumes allowing administrators and department directors to monitor actual performance.

Budgeting

Process

Actual charge volumes and revenue are downloaded each month and imported using interface utility programs provided with the system.

The system calculates the actual service units (patient days, acuity values, lab procedures, CAPs, etc.) and provides a comparison to the budgeted volumes for each service unit. For example, actual volumes of laboratory tests will be shown along with the actual number of laboratory hours.

Affinity Budgeting will increase or decrease the budget amount for each account based on the variability of the accounts in relation to the actual service unit volumes.

The resulting analyses provide valuable information about budget variances. Variances for each labor group account include:

Total Variance Did we achieve our budget objectives for the actual level of activity? Then analyze the total variance by providing the following information:

Efficiency Variance Did the department utilize more or less staff than was expected for this level of activity?

Rate Variance Was our actual rate of pay for each labor account higher or lower than we anticipated?

Variances for non-labor accounts do not include the efficiency and rate variances.

The Flexible Budgeting module of the system is integrated with the Cost Accounting application.

TESTIMONIALS

What People Are Saying

Affinity Decision Support’s drill-down is definitely our favorite feature. It allows for financial management decentralization and cuts down on telephone calls to AP and payroll offices

Katja Waldman

Director of Finance,

Executive and senior level managers consistently find the drill-down functionality in Affinity Decision Support useful and valuable, in some cases, on a daily basis. Affinity Decision Support’s reporting capabilities are the best available on the market.

Masood Peracha

Consultant

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