Week 4: Staffing Budgets/FTEs/ Variance
Analysis Assignment Guidelines with
Scoring Rubric
PURPOSE
This assignment provideslearners 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
, 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
them consistent. 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 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
2
,response, please adhere to proper grammar and syntax, and provide references. For the questions
3
, 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.
For Sandra to accurate forecast the next financial year’s budget, the information that are
supposed to be gathered are the average length that patients stay, care hours offered per the total
days of the patient, average of the total number of the days a patient stays in the hospital, and the
4
Analysis Assignment Guidelines with
Scoring Rubric
PURPOSE
This assignment provideslearners 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
, 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
them consistent. 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 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
2
,response, please adhere to proper grammar and syntax, and provide references. For the questions
3
, 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.
For Sandra to accurate forecast the next financial year’s budget, the information that are
supposed to be gathered are the average length that patients stay, care hours offered per the total
days of the patient, average of the total number of the days a patient stays in the hospital, and the
4
