3rd Edition Chapter 14 Budgeting

Question 1

An itemized summary of estimated or intended revenues and expenditures?

Answer 1

Budget

Question 2

The income of an organization from all sources intended for the payment of expenses?

Answer 2

Revenues

Question 3

The money spent for goods or services?

Answer 3

Expenditures

Question 4

The budget process is a cycle consisting of six steps?

Answer 4

1. Identification of needs and required resources
2. Preparation of a budget request
3. Local government and public review of requested budget
4. Adoption of an approved budget
5. Administration of approved budget, with periodic review and revision
6. Close-out of budget year

Question 5

The level of funding that would be required to maintain all services at the currently authorized levels, including adjustments for inflation and salary increases?

Answer 5

Base Budget

Question 6

Proposed increases in spending to provide additional services are classified as what kind of request?

Answer 6

Supplemental Budget Requests

Question 7

Special service district created to finance the fire protection of a designated district?

Answer 7

Fire Tax District

Question 8

The US Census summarizes the sources of state and local government tax revenues in nine general areas. The top three local tax revenue sources represent about half of the total revenues collected by local governments?

Answer 8

1. General sales and gross receipts taxes
2. Property taxes
3. Individual income taxes

Question 9

When faced with declining revenues, fie departments have to make difficult choices. Five such options, provided in increasing order of difficulty are?

Answer 9

1. Defer scheduled expenditures, such as apparatus replacement and station maintenance
2. Regionalize or consolidate services
3. Privatize or contract out elements of the service provided by the department
4. reduce the workforce
5. Reduce the size of the department

Question 10

What are the different methods of purchasing process in a fire department?

Answer 10

1. Petty Cash
2. Purchase Orders
3. Requisitions

Question 11

Once funds have been encumbered, the fire department must go about the process of making the purchase. This is done in one of two ways?

Answer 11

1. For smaller items, Specification for Bids
2. Very large or complex purchases,
   Request for Proposal (RFP)

Question 12

The fire department gives the general information about what is desired to purchase and allows the vendor to determine how it will meet the need?

Answer 12

Request for Proposal

Question 13

When purchasing an item, the fire department writes up exactly what is desires in the product?

Answer 13

Specifications for Bids