Budgetary planning and control at MMDNA

Abstract

The Malta Memorial District Nursing Association (MMDNA) was founded on 1st September 1945 on the initiative of Captain Robert Ingham MBE, LLD (Honoris Causa Malta), with the aim of providing a home nursing and midwifery service, which is reliable, efficient, cost-effective and of a high professional standard. The association can be run in the most efficient and effective manner possible only if a sound budgetary planning and control system is in operation, which is fundamental to ensure that the goals of the association are achieved and that the resources of the association are used in an optimal manner for the benefit of the community. Moreover, being a non-profit organisation that renders a service through public funds, a budgetary system will also suffice the general public needs for accountability and adequate financial control. The objective of this dissertation is to evaluate and analyse thoroughly the current budgetary system, after which appropriate remarks and recommendations will be forwarded. The primary data required for the compilation of this study was obtained from various interviews with members of the Board of Management of the association. Overseas correspondence was also carried out in order to obtain some of form of benchmarking. The study revealed that there is room for improvement in the current budgetary system adopted by MMDNA. At the operational planning and budgeting stage the adoption of Zero-Based Budgeting is being proposed thus replacing the incremental budgeting approach, which has certain drawbacks. Moreover, a means for estimating the number of visits using a statistical approach is suggested, in order to better plan for the requirement of the community. With regards to the control and performance measurement stage of the budgetary cycle, the introduction of the Balanced Scorecard would guarantee better controllability and better performance assessments. In addition, throughout all the budgetary cycle, bottom-line participation is recommended since this will enhance the quality of the service and job satisfaction. Through a sound budgetary system, MMDNA can strengthen its position as Malta's leading domiciliary nursing and midwifery service provider.