Figure Transactions Outside the Operating Budget.
Health Care Finance: Basic Tools For Nonfinancial Managers, Fifth Edition
Judith J Baker, RW Baker, and Neil R Dworkin
Assignment Exercise
Assignment Exercise : Transactions Outside the Operating Budget
Review Figure and the accompanying text.
Metropolis Health System MHS has received a wellness grant from the charitable arm of an
area electronics company. The grant will run for months, beginning at the first of the next fis
cal year. Two therapists and two registered nurses will each be spending half of their time work
ing on the wellness grant. All four individuals are fulltime employees of MHS The electronics
company has only recently begun to operate the charitable organization that awarded the grant.
While they have gained all the legal approvals necessary, they have not yet provided the manu
als and instructions for grant transactions that MHS usually receives when grants are awarded.
Consequently, guidance about separate accounting is not yet forthcoming from the grantor.
Required
How would you handle this issue on the MHS operating budget for next year?
