401362 Health Services Financing: Summary of a Budget Interpretation Answer

School of Health Sciences

Western Sydney University

Unit Code: 401362 

Unit Name: Health Services Financing 

Credit Points: 10 

Unit Level: 7 

Assumed Knowledge: Competent use of Microsoft Excel, and high school mathematics (arithmetic, formulas and 

algebra, reading graphs).

Summary: Summary of a Budget Interpretation

Rationale 

Understanding and interpreting budgeting information is crucial when addressing organisation strategic priorities, 

planning and evaluating the effectiveness of the organisation. Health services managers must interpret budgets to 

identify elements that should be discussed in future planning meetings. This may include areas where expenses are 

higher than anticipated or may not be operating in the most cost-effective manner.

Task 

For this task, students will be provided a sample budget for a health service. Students will need to interpret the 

budget and then provide a summary of their findings and key discussion points that would be addressed in a review 

of the service’s performance throughout the fiscal year. The budget summary should present budget and actual 

transactions in summary form. This assists individuals in fiscal roles understand how the actual revenues compare to 

the budget and how actuals in the current fiscal year compare to previous fiscal years. Providing a budget summary 

helps identify where activity can be increased or where it may be necessary to reduce activity.