Cost benefit analysis

a topic of importance in nursiing manaagement

1. COST BENEFIT ANALYSIS & AUDITTING

2. An approach to make economic decisions of any kind. Economic evaluation technique that measures all the positive (benefits) and negative (cost) consequences of an intervention or programme in monetary terms . Or It is a process for evaluating the merits of a particular project in a systematic way in terms of cost & benefits of the project.

3. Cost - it is the value of money that has been used up to produce something & hence is not available to use anymore. Benefit - monetary values of desirable consequences of economic policies or decisions.

4. PRINCIPLES OF CBA COMMON UNIT OF MEASUREMENT VALUATION OF HUMAN LIFE PARTICULAR SYUDY AREA AVOID DOUBLE COUNTING

5. TECHNIQUES OF CBA COST Cost of healthcare services is estimated. e.g supplies, expenditure, materials & their maintenance BENEFIT Can not be expressed in monetary terms. e g morbidity, mortality

6. AUDITTING Systematic & critical examination to examine & verify. CRITICAL REVIEW DETERMINE EFFECTIVENESS ACCURACY & ADEQUACY EXTENT OF COMPLIANCE IDENTIFICATION OF UNAUTHORISED & UNSOUND TRANSACTIONS PURPOSE OF AUDITING-

7. AUDIT Nursing audit is the assessment of quality of nursing care or related to planning, delivery & evaluation of care. Budget audit is verification of accounting, determining the accuracy & reliability of accounting, statements & reports.

8. STATUTORY AUDIT COST AUDIT- To verify the accuracy of accounts in accordance with established norms. TAX AUDIT- Compulsory audit of accounts under income tax act, 1961 . BALANCE SHEET AUDIT- Verification of details in balance sheet for ascertaining profit. SPECIAL AUDIT-Can be done by central govt. at any time under company's act , 1956 FINANCIAL AUDIT- Independent examination of vouchers & account book .

9. PHASES OF BUDGET AUDITTING PLANNING COMMUNICATE RESULTS CONDUCT THE AUDIT AUDIT FOLLOW UP

10. FINANCIAL AUDIT TECHNIQUE VOUCHING- inspection for authorization, recording & entry book . CHECKING & TICKING- with colored pencils, pens or rubber stamps. TEST CHECKING- random sample checking AUDIT NOTES- careful & precise note of discoveries in audit QUESTIONNAIRES- about important elements of cost, asked to managers.,