Budgeting

Question 1

what are the key components of financial management?

Answer 1

cost/expenditure and revenues

Question 2

what is cost/expenditure?

Answer 2

resources used to create or develop a program or experience - all dollars regardless of source

Question 3

what is revenue?

Answer 3

the income that can be earned to the organization to provide program service

Question 4

what are the 6 types of cost and expenditure?

Answer 4

operating vs capital; direct vs indirect; fixed vs variable

Question 5

what is operating cost?

Answer 5

normal costs of operation that occur on a regular basis (lights, staff, rent, telephone)

Question 6

what is capital cost?

Answer 6

larger projects that are not reoccurring in cost such as gym equipment / infrastructure

Question 7

what is direct cost?

Answer 7

costs related to producing/developing the program

Question 8

what is indirect cost?

Answer 8

services that are provided or exist in a organization that are shared across programs (janitorial services, registration, management)

Question 9

what is fixed cost?

Answer 9

costs that will be incurred regardless of the number of individuals (insurance, rent, electrical)

Question 10

what is variable cost?

Answer 10

depends on number of customers served (manuals)

Question 11

what are sources of revenues/income?

Answer 11

compulsory resources; earned income; contractual receipts; financial assistance

Question 12

what is compulsory resources?

Answer 12

taxes, government support

Question 13

what is earned income?

Answer 13

fees and charges (registration, rental, sales, service, feels, permits)

Question 14

what are contractual receipts?

Answer 14

contracts with outside parties

Question 15

what is financial assistance?

Answer 15

external funds from grant sources/ resource (sponsorship, partnerships, donations/fundraising)

Question 16

what is a budget?

Answer 16

a financial plan

Question 17

what are the types of budget?

Answer 17

line-item budget, program budget; performance budget

Question 18

what is line-item budget?

Answer 18

object classification budget. helps identify the object pf the expenditure … basically the break down of budget . EX) staff, supplies, materials, current charges, debt, etc

Question 19

what are program budgets?

Answer 19

clustering all associated costs for a given event, activity or facility … lining the items within programs instead of organization… essentially putting it into certain categories

Question 20

what is performance budgeting?

Answer 20

links the amount of resources used in developing and implementing a program with its output (workload - how much is being completed?; efficiency (ratio of resources to output)
Effectiveness (achieve goals and objectives?)

Question 21

what is a budget worksheet?

Answer 21

to help the programmer project financial estimates

Question 22

what are the 3 types of information provided by the budget worksheet?

Answer 22

program description, cost estimates, potential revenues

Question 23

what is financial control?

Answer 23

time sheets, purchase order systems, banking authority … basically to see where you’re money is going i guess fuckkk i hate this class

Question 24

financial record keeping?

Answer 24

accounting

Question 25

what is financial reporting?

Answer 25

income statement & balance sheets

Question 26

whats a balance sheet?

Answer 26

assets and liability table

Question 27

what is the income statement ?

Answer 27

revenue - expenses = net profit