Evaluating Budget Documents Essay

Evaluating Budget Documents Essay

The concept of budgeting has prevailed in the human domain for centuries. There are various budgeting approaches which are globally acceptable and which have various levels of efficiencies.

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The core budgeting approaches or formats include; line item budgeting, PPBS budgeting, program budgeting, zero-based budgeting, performance based budgeting, priority based budgeting, program assessment rating tool and flexible freeze.

The GFOA criteria of budget evaluation have been acknowledged for offering guidelines in assessment of budgets. Through establishment and adoption of budgets, public and private organizations have been able to enjoy high levels of accountability, efficacy and efficiency.

The King Faisal Specialist Hospital is a leading public organisation in Saudi Arabia which has been acknowledged for leadership in provision of health services. The hospital which is based in Riyadh, Saudi Arabia has a bed capacity of 850 and is endowed with over 8,500 employees.

The reputation of the hospital has taken the global platform based on the hospitals high regard on medical research and advancement (Al-Munif, 1988). In realization of its objectives and goals, the hospital has adequately embraced the concept of budgeting. This has been evident in all its activities and units of operations.

The core aspects of budgeting have been demonstrated in human resource department, patient services, research and development as well as procurement. Through budgeting, the hospital has been able to ensure high levels of efficacy, accountability and efficiency (Al-Malik and Al-Takhassusi, 2005).

This has been reflected in rapid development in the hospital, quality health care services, customer satisfaction, and employee satisfaction

In case of the King Faisal specialist hospital, site-based budgeting has been adopted. This budgeting approach has played a vital role in helping the organization to meet its objectives and mission of offering quality medical services. As indicated by Groves Et al (2003), site-based budgeting offers staff and local managers the opportunity to participate in budget preparation process.

This approach to budgeting integrates the requirements of each department or unit of the organization into the overall budget. As observed in King Faisal specialist hospital, site-based budgeting has been adopted. This form of budgeting has been able to bring together the individual needs of each department or aspect of the organization.

In particular, the site-based budget approach adopted in the hospital has taken into consideration the average number of employees, average number of beds, cost of beds, cost per inpatient days, and average number of outpatient visits among other costs. This has helped the hospital to forecast on the total expenses as well as the expected revenues thus helping in planning (Groves Et al, 2003).

In light with the GFOA criteria, it is explicit that King Faisal Specialist Hospital’s budget is of high quality. The site-based budget approach has enabled the hospital to efficiently identify all needs of the organisation. The core elements of the organisation which include the patients, employees and developmental projects have been adequately addressed in the budget.

The budget by the hospital has keenly focused on the inpatient and outpatient needs as well as employee welfare (Al-Munif, 1988). Focus on these aspects has enabled the hospital to meet its goals and attain maximum satisfaction on all stakeholders.

By keeping in mind the average costs of inpatients, employees, outpatients and beds per year, the budget has been able to address all needs of the stakeholders and constituents (Groves Et al, 2003).


In summation, the discussion and analysis of the issue of public budgeting has offered very insightful ideas. The various approaches to budgeting have been identified. The focus on King Faisal Specialist Hospital has clearly outlined the need for budgeting. As noted in the discussion, the hospital has adopted site-based budgeting.

This approach or format of budgeting has helped the hospital to incorporate the needs of all stakeholders. It is worth noting that the budget by the hospital has met the GFOA criteria by putting the needs of all stakeholders in mind.

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