The nurse supervisor is speaking to the nurse managers regarding the organization's budget. Which of the following statements by a nurse manager indicates the need for further education?

Question

1. "I can see how important it is to tie in my unit's budget with the organization's objectives."
2. "It doesn't matter when we do the budget. It just needs to be done at some point within the year."
3. "Every department has an individual operating budget based on the needs of that department."
4. "There is a system in place to ensure that the needs of the organization are met through policies that apply to every department."

Answer 1

Answer: 2

Rationale: The budget is the financial plan for the organization. It must be managed on a very specific schedule. Usually, budgeting activities are performed every 12 months. It is not appropriate to only perform budgeting activities at some point within the year. Some activities need to be done weekly or monthly. The unit's budget should contribute to the overall objectives of the organization. Every department has a unique and individualized operating and capital budget that has been designed to help meet the needs of the department. Each organization should have a set of centralized budgeting policies in place to help control the organization's budget.