In six weeks you will be creating a comprehensive Organization-Wide Operating Budget for a real or hypothetical mental health-related practice for your Budget Assignmentsin this class. Whether this is a non-profit or for-profit sole proprietorship, limited liability corporation (LLC), partnership, sub-s corporation, or other. We begin this process by identifying the following:
1. Name of Organization
2. Type of Organization (non-profit or for-profit, see above options)
3. Location of Organization (urban vs. rural)
4. Staff required
5. Program/organization objectives or mission statement (why are you in business)
6. Proposed clientele you will be working with (age, gender, diagnosis, how many/day, what payer sources…private pay, traditional health insurance, Medicare/Medicaid, managed care, grants related).
7. Facilities you will need to deliver services (square footage, equipment, etc.).
You may use worksheet A.1, page 140+ as a guide to complete the above information. Please note that not all categories on Worksheet A.1 are required for this assignment. The recommended length of this assignment is 2-3 pages with reference support.
ORG6660 Week 1 Instructor Guidance
Focusing your life solely on making a buck shows a certain poverty of ambition. It asks too little of yourself. Because it’s only when you hitch your wagon to something larger than yourself that you realize your true potential. – Barack Obama
Week 1 Overview
Greetings! Welcome to the first week of ORG6660 – Fiscal Administration in Mental Health Care Systems. During this week, you will be introduced to a variety of topics related to budgeting practices in mental health organizations. I hope you find your readings, our discussions, and the assignments both interesting and thought provoking!
Please note that this course may be a little different from other courses you’ve taken. What I mean by this is that much of the work in the course requires practice. Because of this, many of your assignments, discussion questions, and self-assessments require you to apply and perform various budgeting concepts. This is a much more “hands-on” approach when compared to other subjects such as theory or human development. Don’t worry though, this is still a learning environment and no one is expected to be budgetary experts. It is hoped that the practice of creating a budget will be the type of “hands on” learning necessary to best master course concepts.
Introduction to Budgeting
In your readings this week, Dropkin, Halpin, and LaTouche (2007) introduce basic budgeting principles and definitions. The authors answer questions such as:
1.) What is a budget?
2.) Why are budgets important?
3.) Who is responsible for managing budgets?
4.) How do various types of income affect budgets?
5.) What are the most effective strategies for creating budgets?
I encourage you to pay particular attention to Chapter 1. This initial chapter, even though it appears fairly basic, is the framework you will need for the remainder of the course.
The second chapter reviews and details the six most common types of budgets for mental health care organizations. (This information is also the focus of your first discussion question). These six types of budgets include:
Organization-wide operating budgets
Operating budgets for individual programs
Capital budgets
Cash flow budgets
Opportunity budgets
Zero-based budgets
Chapter 6 in your readings this week discusses effective strategies for developing organization-wide operating budgets. Here, you are provided with specific suggestions to create well-planned and thoroughly researched budgets. Worksheets 6.1 – 6.4 assist with the “hands-on” approach to our learning experiences in the course.
You have two short videos to view this week. Both provide introductory level information about the fiscal responsibilities of nonprofit board members. You also have several websites to examine this week, which provide relevant information for budgeting in mental health agencies. Because I had difficulty using the link provided by the University in the syllabus, I have provided a website below regarding mental health parity and laws pertaining to health insurance. Please take time to review the websites thoroughly.
Finally, please take a moment to introduce yourself to the CD that accompanies your text. Among other information, the CD contains Worksheet A.1 which is helpful for your first assignment. For your convenience, I have provided the worksheet below as well. Additional information regarding the assignment can be found in your syllabus.
Questions to Ponder this Week
Are the definitions of the various types of budgets clear?
Has your knowledge of basic budgeting principles increased?
After reading and reviewing all of the materials, are there any questions still unanswered or unclear?
As you can see by the information above, successful budgeting and financial management is not an easy task. This week, your readings and the class discussions will provide further information regarding budgeting in nonprofit organizations. As you read the materials, please ask any questions that you have- your opinions and thoughts are important! Finally, as you read the course materials this week consider your Week 1 learning objectives. At the end of the week, you should be able to:
Compare and contrast the six different types of budgets outlined by Dropkin, Halpin, and LaTouche.
Identify the sources of income for a mental health facility budget.
Evaluate sources of income for a mental health facility budget.
If for any reason the above objectives are not clear, please let me know. My goal is to help all of you be successful in the course. Here’s to a great first week!
References
Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). San Francisco, CA: Jossey-Bass.