1. Week 4: Staffing Budgets/FTEs/ Variance Analysis
Assignment Guidelines with Scoring RubricPurpose
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 4Total
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 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

2. finance. 2nd. Ed., Indianapolis, IN: Sigma Theta Tau
International.
· Section One: Staffing Budget and FTEs
· Calculations of full-time equivalents (FTEs)
· Project FTE needs related to census changes
· Section Two: Variance Analysis
· Calculating variance
· 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

3. itself as it relates to previous budgets, nursing staff, and the
organization. In other words, summarize your approach to this
Case Study.
2. Sandra has collected the following census information on all
five units for the last month, in
addition to what was asked in question number one. Calculate
the ADC and Occupancy Rate for each unit using the Daily
Census/Occupancy Rate table to determine which unit is
currently at 88% occupancy rate and projected to increase over
the next year.
Unit
Beds
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

4. 20
21
22
23
24
25
26
27
28
29
30
31
Total Patient Days
A
35
31
30
31
30
29
30
31
30
31
29
29
32
31
33
31
31
33
34
34
34
34

5. 32
30
32
31
30
30
33
31
34
0
941
B
15
15
14
11
9
7
12
12
15
13
13
16
15
15
15
16
16
15
14
15
16
15
13
13

6. 17
16
15
16
16
14
15
0
424
C
13
10
12
11
11
11
13
13
13
12
13
12
12
12
13
13
13
13
13
13
13
13
13
13
12
12

7. 12
12
13
13
13
0
372
D
32
30
27
27
24
26
23
27
29
28
28
25
27
30
26
31
31
30
30
30
32
32
32
26
25
25
25
23

8. 31
31
30
0
841
E
6
6
3
3
3
3
5
5
5
2
2
2
2
4
4
3
3
0
0
0
6
5
5
3
3
3
2
5
4
3

9. 3
0
97
(adapted from…..Healthcare Financial Management Association
(2012). Managing fiscal resources: A budget and productivity
case study. Retrieved from hfmamd.org
Average Daily Census/Occupancy Rate
Unit
ADC
Occupancy (%)
A
B
C
D
E
The Unit with an 88% occupancy rate is _____.
3. Using data contained in the first questions, complete the table
below and determine the Average Length of Stay (ALOS) for
the following three units. Show your work.
Unit
# Beds
Patient Days
# Discharges
Average Length of Stay (ALOS)

10. A
110
C
96
D
85
What is the ALOS for the unit you identified earlier at an 88%
occupancy rate? _____
You have determined the Unit for which Sandra must make FTE
projections. For the remaining questions in this section, refer to
the figures used and or obtained related to the Unit identified in
Question 1.
Additional information includes
· the budgeted hours of care per patient day (HPPD-budgeted) is
7.5; and
· each employee receives 300 paid non-productive hours/year.
4. Calculate the number of FTEs needed for the Unit. Show the
formulas used and all calculations. Include the reference used
for your calculations at the beginning of your work.
5. Calculate the TOTAL FTEs needed accounting for
nonproductive time. Include the reference used for your
calculations at the beginning of your work.
6. Sharon now knows how many total FTEs are currently needed
on the unit to provide safe, quality care to the patients on the

11. unit. However, with a 20% projected increase in occupancy rate
and average length of stay remaining steady on the unit, how
will the required FTEs be affected?
7. Calculate the TOTAL FTEs required to reflect an increased
patient volume of 20% (don’t forget to account for
nonproductive time). Include the reference used for your
calculations at the beginning of your work.
8. When Sharon calculated the number of FTEs budgeted
currently in this unit and compared it to the number of actual
FTEs being paid for, she found she was under budget by three
FTEs. Explain how that could have happened and how this
information affects her FTE budget request for the next year.
_____________________________________________________
__________________________
Section Two—Variance Analysis
Variance Analysis Case Study
During the month of February, an outpatient surgery clinic has
incurred a significant unfavorable variance. The director of the
clinic is quite concerned, as this has never occurred before. The
director gathers information on total nursing care hours, average
hourly rate of the employees, and total patient visits to
determine what caused the variance. In addition, the director
receives the patient acuity levels for the month of February.
Budget
Actual
Budget Variance
Patient Days
450
520

12. Nursing Care Hours
HPPD
5.0
5.6
Average Hourly Pay
$35.00
$45.00
$10.00
Total Payroll Costs
(Table adapted from: Rundio, A. (2016). The nurse manager’s
guide to budgeting and finance, 2nd. Ed, Indianapolis, IN:
Sigma Theta Tau International)
1. Complete the monthly personnel report for the surgical unit.
2. Calculate each of the following. Include the formulas used
with reference. Remember, as this monthly report deals with
payroll, the variances should be in dollars.
a. Volume (efficiency) variance:
b. Quantity (volume) variance:
c. Cost (price) variance:
3. What is the total variance in personnel budget for this month?
4. Analyze all the factors that made the differences and why the
variances occurred. How can this variance be justified?
5. In what ways might these variances inform the current or

13. future budgets?
DIRECTIONS AND ASSIGNMENT CRITERIA
Category
Points
%
Description
Section One: Staffing Budget and FTEs
Background Information
10
10%
Approach to Personnel Case Study is clearly articulated and
contains the elements needed to address the situation presented
in the scenario.
ADC and Occupancy Rate
10
10%
ADC/Occupancy Rate table completed with reference for
formulas included, formulas and work shown, correct unit
calculations, correct unit identified.
Average LOS
10
10%
ALOS table completed with reference for formulas, formula and
work shown, correct calculations, ALOS of identified unit
correct.
Current FTE
15
15%
Current FTEs of identified unit calculated correctly and
includes reference for formulas used, formula and work shown,
calculations correct.
Total FTE (Current)
15

14. 15%
Total FTEs (accounts for nonproductive time) of identified unit
calculated correctly and includes reference for formulas used,
formula and work shown, calculations correct.
Effect of Volume Increase on FTE
10
10%
Describes effect of increase of patient volume on FTEs over the
next year. Describes what effect an increased length of stay
would have on FTEs.
Total FTE (Projected)
15
15%
Total FTEs (accounts for nonproductive time) for projected
volume increase of identified unit calculated correctly and
includes reference for formulas used, formula and work shown,
calculations correct.
FTE Difference Explanation
10
10%
Explains potential causes for being under budget and explicitly
describes its effect on the budget request for next year. Uses
data from given and calculated elements to support
explanations.
Section Two: Variance Analysis
Calculation of Total Variance
35
35%
Calculations that lead to the total variance of the unit are
present and include volume efficiency, volume (quantity), and
cost variances. References for formulas used, formulas and all
work are shown, calculations are correct.
Analysis of Variances
15
15%
All elements of variances explained, variance justification

15. present and supported with evidence, effect on current and
future budges explicit and clearly articulated.
Writing conventions, format, and reference citations
5
5%
Writing is clear and concise without grammatical and spelling
errors. All references are correctly cited (if applicable) and
written.
150
150%
A quality assignment will meet or exceed all of the above
requirements.
Chamberlain College of Nursing NR 533 Financial
Management in Healthcare Organizations
NR 533 Staffing_FTE_VarAnalysis AGR STUDENT VERSION
2 03_20_19nhs
1
Grading Rubric
Assignment Criteria
Exceptional
(100%)
Outstanding or highest level of performance
Exceeds
(88%)
Very good or high level of performance
Meets
(80%)
Competent or satisfactory level of performance
Needs Improvement
(38%)

16. Poor or failing level of performance
Developing
(0)
Unsatisfactory level of performance
Content
Possible Points = 150 Points
Section One: Staffing Budget and FTEs
Background Information
10 Points
8 Points
6 Points
0 Points
Approach to Personnel Case Study is clearly articulated and
contains all the elements needed to address the situation
presented in the scenario.
Approach to Personnel Case Study is generally described and
contains nearly all elements needed to address the situation
presented in the scenario.
Approach to Personnel Case Study is minimally described,
generally stated and missing key elements needed to address the
situation presented in the scenario.
Approach to Personnel Case Study is absent or does not contain
adequate elements to all the elements needed to address the
situation presented in the scenario.
ADC and Occupancy Rate

17. 10 Points
8 Points
3 Points
0 Points
Table completed with formulas referenced and shown, work
shown with correct calculations, and correct unit identified.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Average Length of Stay (ALOS)
10 Points
8 Points
3 Points
0 Points
ALOS table completed with formulas referenced and shown,
work shown with correct calculations, ALOS of identified unit
correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Current FTE
15 Points
10 Points
5 Points
0 Points
Current FTEs of identified unit calculated correctly and

18. includes reference for formulas used, formula and work shown,
calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Total FTE (Accounts for nonproductive time-current)
15 Points
10 Points
5 Points
0 Points
Total FTEs (accounts for nonproductive time) of identified unit
calculated correctly and includes reference for formulas used,
formula and work shown, calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Effect of Volume Increase on FTE
10 Points
5 Points
0 Points
Describes effect of increase of patient volume on FTEs over the
next year. Describes what effect an increased length of stay
would have on FTEs.
Only one element present or is answered correctly.
Both elements are missing or no elements are answered
correctly.
Total FTE (Projected)
15 Points

19. 10 Points
5 Points
0 Points
Total FTEs (accounts for nonproductive time) for projected
volume increase of identified unit calculated correctly and
includes reference for formulas used, formula and work shown,
calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
FTE Difference Explanation
10 Points
8 Points
3 Points
0 Points
Explains potential causes for being under budget and explicitly
describes its effect on the budget request for next year. Uses
data from given and calculated elements to support
explanations.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Section 2: Variance Analysis
Personnel Budget table
5 Points
0 Points
Table completed with correct calculations.

20. Table incomplete or complete with incorrect calculations.
Volume (Efficiency) Variance Calculated
10 Points
8 Points
3 Points
0 Points
Calculated correctly and includes reference for formulas used,
formula and work shown, calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Volume Quantity Variance Calculated
15 Points
10 Points
5 Points
0 Points
Calculated correctly and includes reference for formulas used,
formula and work shown, calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Cost (price) Variance calculated
15 Points
10 Points
5 Points
0 Points
Calculated correctly and includes reference for formulas used,

21. formula and work shown, calculations correct.
All but one element are present and correct.
All but two elements are present and correct.
No elements are present or they are present and incorrect.
Calculation of Total Variance
5 Points
0 Points
Calculation of Total Variance is correct.
Calculation of Total Variance is incorrect.
Analysis of Variances
15 Points
10 Points
5 Points
0 Points
Analysis of Variances thoroughly explained; variance
justification with evidence included; effects on current and
future budges explicit and clearly articulated.
Analysis of Variances generally explained; or variance
justification is missing or lacks support from evidence; or
effects on current and future budges is missing or generally
addressed.
Analysis of Variances contains only one of the required
elements: thorough explanation; variance justification with
evidence included; effects on current and future budges explicit
and clearly articulated.
Analysis of variances is missing or is inaccurate.
Writing Conventions, format, and reference citations
5 Points

22. 3 Points
1 Point
0 Points
No errors in any of the three elements of writing conventions,
format, and reference citations.
One error in any of the three elements of writing conventions,
format, and reference citations.
Two errors in any of the three elements of writing conventions,
format, and reference citations.
More than three errors in any of the three elements of writing
conventions, format, and reference citations.
Total Points
_____of points
NR 533 Staffing_FTE_Variance AGR ALTvs_1
03_19_19nhs
12