Chapter 14 Flashcards
272
budget
an itemized summary of estimated or intended revenues and expenditures.
272
Revenues
the income of an organization from all sources
272
expenditures
the money spent for goods and services
272
The budget process is a cycle consisting of six steps.
- identification of needs and required resources
- preparation of a budget request
- local government/public review requested budget
- adoption of an approved budget
- administration of approved budget, w/ periodic review
- close-out of budget year
272
Budget preparation is both a _____ and a _____ process.
Technical and a political process
272
How far in advance is the process for developing a budget usually begin?
a full year before the beginning of the fiscal year
272
Base budget
The level of funding that would be required to maintain all services at the currently authorized level, including adjustments for inflation and salary increases.
272
Supplemental budget request
Proposed increase in spending to provide additional services.
272
When budget are to be reduced it is usually expressed as a percentage of ____.
Base budget
ie 15% reduction of base budget
274
What is a fire district
Fire district is a separate local government unit that is specifically organized to collect taxes that support fire protection.
274
Fire tax district
Provide fire protection within a designated area. A special fire protection tax is charged to properties within that service area.
274
the United States census summarize the source of state and local tax revenues into nine general areas. What are the top three local tax revenue sources, Which represent about half the total revenues collected by local governments?
- General sales and gross receipts tax
- property taxes
- individual income taxes
274
One of the two general ways volunteer fire departments are funded?
- Funded by municipal governments supported by local tax revenue, treats volunteer department as local government agency.
- Organized as independent 501c nonprofit corporations. These volunteer organizations raise their own operating funds through public donations and fundraising.
275
local revenue, like the economy at large, has history of a _____ behavior.
Cyclical
275
What is the reason local officials monitor vacancy rates of office buildings and mercantile space?
Lower occupancy rates correlates with gross revenue
275
What are five options fire departments may face with declining revenues
- Defer scheduled expenditures, apparatus, station maintenance
- privatize/contract out elements of service
- regionalized or consolidate services
- reduce workforce
- reduce department size
276
When municipalities are forced to reduce fire department workforces what are three possible ways to accomplish this goal?
- Reduce position in administrative and support areas, low numbers equals, small budget savings.
- reduce staffing per vehicle
- temporarily close companies for one day or one shift at a time
277
petty cash
Member of fire department acts as a custodian of an amount of cash that is provided by the organization. Small dollar amount items, example up to hundred dollars, are allowed in a noncompetitive manner.
277
purchase orders
Method of ensuring the budget account contain sufficient funds to cover a purchase. Limit on maximum amount (ie 2000), acquire item at most reasonable cost organization (3 phone bids). Vendor allows fire department to “charge” merchandise until purchase order is paid.
279
requisitions
For purchases over a predetermined amount (ie 2000), exact amount unknown. Department request specific amount of funds set aside from the budget. Bidding process, and requisition allows for payment of the item.
279
What are two ways of purchasing an item through a bidding process?
- Purchase based on specifications, specs- department writes up exactly what it wants in the product with the exact specs. Vendor must meet all specs for consideration.
- Request for proposal, RFP- formal process to solicit goods or services general information about what’s desired, allows vendor to determine how it will meet the need. Contract awarded to the lowest bidder. When proposals are assessed based on performance as well as price RFP is awarded to vendor with the highest score.
280
One of the largest sources of grant funds is the ____ which distributes federal funds to local jurisdictions.
Assistance to Firefighters Grant Program
280
U.S. fire administration provides a four step method to develop a competitive grant proposal:
- Conduct community/fire department needs assessment
- Compare community needs to priorities of grant program.
- Decide what to apply for.
- Complete the application.
281
Government Accounting Standards Board GASB
The standard-setting agency for governmental accounting
281
Line item budget
Format in which expenditures are identified in a categorized line by line format.
281
What three general areas are fire departments expenditures generally divided into?
- personnel cost
- operating cost
- capital expenditures
281
More than ___ % of a career fire department’s budget is likely to be allotted to salaries and benefits, What general category of expenditures.
90%
personnel cost
281
Operating expenditures
Basic expenditures that support the day-to-day delivery of municipal services.
ie uniforms, protective clothing, electricity for stations, apparatus maintenance etc.
281
When budgets need to be trimmed which of the three general areas of fire department expenditures is first to be considered?
Operating expenditures
282
Capital expenditures
Durable items that cost more than a predetermined amount and will last for more than one budget year
i.e. computers, rescue tools, SCBA’s
282-283
Bond
Certificate of debt issued by government or corporation, guarantees payment of original investment plus interest by a specified future date. Voters must approve this type of expenditure through a local referendum.
283
Funds obtained by issuing a bond are classified as…
Special revenue source
