Week 4: Staffing Budgets/FTEs/ Variance Analysis
Assignment Guidelines with Scoring Rubric
PURPOSE
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:
1. 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., 33.4 = 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.
2. Read the question carefully. Pay close attention to the units be
asked and keep themconsistent. For example, hours vs FTEs; days vs
months vs years.
3. Provide ALL formulas with references. Designate which formula
associates with which source. It is not sufficient to simply list the
1.
, source at the beginning of the section. Write out the formula used
BEFORE filling in the numbers.
Example: Efficiency Variance + Volume Variance + Cost Variance = Total
Variance
Rundio, A. (2016). The nurse manager’s guide to budgeting and
finance. 2nd. Ed., Indianapolis, IN: Sigma Theta Tau International.
• Section One: Staffing Budget and
FTEs o Calculations of full-time
equivalents (FTEs) o Project FTE
needs related to census changes
• Section Two: Variance Analysis o
Calculating variance o Variance
analysis with explanation
Download the Assignment Word Document and submit your answers directly onto the
form. When completed, upload into the assignment portal in your course. For the
questions requiring a written response, please adhere to proper grammar and syntax,
and provide references. For the questions requiring calculations, show all your work
including the formula used. Include the references for formula chosen.
PREPARING THE ASSIGNMENT
Section One—Staffing Budget and FTEs
Personnel Budget Case Study
Sandra Chambers has recently accepted the position of assistant administrator for the
department of nursing at Potter Regional Medical Center where she will oversee the
operations of five medical units. As she evaluates the budgets for the different cost
centers, she finds that all are being used at near or full capacity. The activity in four of
the five has remained steady over the past 2 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.
1. 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.
.. 2
Assignment Guidelines with Scoring Rubric
PURPOSE
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:
1. 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., 33.4 = 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.
2. Read the question carefully. Pay close attention to the units be
asked and keep themconsistent. For example, hours vs FTEs; days vs
months vs years.
3. Provide ALL formulas with references. Designate which formula
associates with which source. It is not sufficient to simply list the
1.
, source at the beginning of the section. Write out the formula used
BEFORE filling in the numbers.
Example: Efficiency Variance + Volume Variance + Cost Variance = Total
Variance
Rundio, A. (2016). The nurse manager’s guide to budgeting and
finance. 2nd. Ed., Indianapolis, IN: Sigma Theta Tau International.
• Section One: Staffing Budget and
FTEs o Calculations of full-time
equivalents (FTEs) o Project FTE
needs related to census changes
• Section Two: Variance Analysis o
Calculating variance o Variance
analysis with explanation
Download the Assignment Word Document and submit your answers directly onto the
form. When completed, upload into the assignment portal in your course. For the
questions requiring a written response, please adhere to proper grammar and syntax,
and provide references. For the questions requiring calculations, show all your work
including the formula used. Include the references for formula chosen.
PREPARING THE ASSIGNMENT
Section One—Staffing Budget and FTEs
Personnel Budget Case Study
Sandra Chambers has recently accepted the position of assistant administrator for the
department of nursing at Potter Regional Medical Center where she will oversee the
operations of five medical units. As she evaluates the budgets for the different cost
centers, she finds that all are being used at near or full capacity. The activity in four of
the five has remained steady over the past 2 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.
1. 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.
.. 2
