5. Allocation of resources

Question 1

Four budgeting approaches

Answer 1

1. program budgeting
2. subjective producing
3. Zero based budgeting
4. incremental budgeting

Question 2

Program budgeting

Answer 2

-the focus is the program (E.g. a subject, year group)
-Levacic (1995) calls this objective budgeting (budget costs are related to the object of expenditure)
-each program is costed according to inputs or subjects of expenditures e.g. staff salaries, professional development, books.
Advantage-The work of the school needs to be rethought each year so adequate plans can be costed, reviewed, prioritised
Disadvantage-attributing indirect costs to programs can be very difficult

Question 3

Subjective budgeting

Answer 3

-concentrates on the subject of expenditure (the cost of all the teachers salaries, building maintenance etc)
Advantage-all indirect costs are included
Disadvantage-difficult to relate planned or actual expenditure to the resourcing of teaching and learning.

Question 4

Zero based budgeting

Answer 4

• start from scratch every year
• requires those responsible for teaching activities to justify their intentions before spending is allowed

(Advantages/Disadvantages to department or a project leader of a curriculum change)

Advantage- Ensures intended expenditure is judged against the objectives of the school
disadvantage-leaders may inflate their requirements in the hope of securing a percentage of the request each year by playing the system
-Item by item costing is time-consuming

Question 5

Incremental budgeting

Answer 5

– involves making annual adjustments to establish patterns of expenditure

• re-considers this year‘s budget as the basis for planning next years budget
• the organisation continues as it has before

Advantages/Disadvantages to department or a project leader of a curriculum change)

Advantage-school continues from year to year. Saves time
Disadvantage- Minimises creativity

Question 6

Budgets are used in two ways

Answer 6

• forward-looking for planning the future use of resources
• Backwards looking when budget figures are recorded, reported and used to monitor how income and expenditure flows are actually performing

Question 7

Handy (1993) budgets fulfill 4 functions

Answer 7

1. Planning, to ensure your future operations
2. Providing data to compare practice in a fax over time
3. Controlling the way resources are used
4. Acting as a stimulant for change (forwardthinking)

Question 8

Edwards et al (2000) recognised at apology of school budgetary management

Answer 8

Safe-hands manages-using incremental approaches to achieve an annual balance budget (only 5 to 10% of annual budget linked to a planning exercise)
Active managers-financial stable schools using program planning or zero-based planning for development plans closely linked to long-term strategies
CrisisManagers-schools where there have been financial problems with budgets only balancing on paper and with pragmatic short termism

Question 9

Essay

Answer 9

1. Explore the advantages and disadvantages of historic, incremental and zero-budgeting approaches and consider their applicability to:
   a. a large subject department in a higher education institution, or,
   b. a project leader endeavouring to offer curriculum change in a secondary school, or
   c. a service provider within a district or local authority.

Question 10

Historic budgeting

Answer 10

Budget holder gets a share of the total according to previous expenditure.
Remains substantially the same from year to year.
Doesn’t respond to changing priorities

Advantages/Disadvantages to department or a project leader of a curriculum change)

-

Disadvantges

Question 11

Caldwell 2008

Answer 11

As a self managing school the leader has ‘the authority to make decisions Related to the allocation of resources.’

Ensure teachers are at the ‘forefront of knowledge and skill’