National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

What aspect does the administration of the budget by the administrator primarily focus on?

1. Requires intervention by the governing body

2. Is a controlling function

3. Involves extensive external auditing

4. Is solely a financial task

The correct answer is: Is a controlling function

The administration of the budget by the administrator primarily focuses on being a controlling function. This means that the administrator utilizes the budget as a tool to monitor and manage the financial resources of the organization effectively. By establishing a budget, the administrator can set financial goals, track expenditures, and ensure that resources are allocated according to the priorities of the organization. Inherent in this controlling function is the responsibility of the administrator to make adjustments and decisions based on the financial data and performance indicators that emerge throughout the budgeting period. This proactive management includes analyzing variances between the budgeted figures and actual performance, allowing for strategic decisions to maintain financial stability and drive organizational goals. While other options may touch on aspects related to budgeting, they do not encapsulate the primary focus and responsibility of the administrator in managing the budget effectively within the organization’s overall control framework.