Chapter 14

Question 1

272

budget

Answer 1

an itemized summary of estimated or intended revenues and expenditures.

Question 2

272

Revenues

Answer 2

the income of an organization from all sources

Question 3

272

expenditures

Answer 3

the money spent for goods and services

Question 4

272

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/public review requested budget
4. adoption of an approved budget
5. administration of approved budget, w/ periodic review
6. close-out of budget year

Question 5

272

Budget preparation is both a _____ and a _____ process.

Answer 5

Technical and a political process

Question 6

272

How far in advance is the process for developing a budget usually begin?

Answer 6

a full year before the beginning of the fiscal year

Question 7

272

Base budget

Answer 7

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

Question 8

272

Supplemental budget request

Answer 8

Proposed increase in spending to provide additional services.

Question 9

272

When budget are to be reduced it is usually expressed as a percentage of ____.

Answer 9

Base budget

ie 15% reduction of base budget

Question 10

274

What is a fire district

Answer 10

Fire district is a separate local government unit that is specifically organized to collect taxes that support fire protection.

Question 11

274

Fire tax district

Answer 11

Provide fire protection within a designated area. A special fire protection tax is charged to properties within that service area.

Question 12

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?

Answer 12

1. General sales and gross receipts tax
2. property taxes
3. individual income taxes

Question 13

274

One of the two general ways volunteer fire departments are funded?

Answer 13

1. Funded by municipal governments supported by local tax revenue, treats volunteer department as local government agency.
2. Organized as independent 501c nonprofit corporations. These volunteer organizations raise their own operating funds through public donations and fundraising.

Question 14

275

local revenue, like the economy at large, has history of a _____ behavior.

Answer 14

Cyclical

Question 15

275

What is the reason local officials monitor vacancy rates of office buildings and mercantile space?

Answer 15

Lower occupancy rates correlates with gross revenue

Question 16

275

What are five options fire departments may face with declining revenues

Answer 16

1. First scheduled expenditures, apparatus, station maintenance
2. privatize/contract out elements of service
3. regionalized or consolidate services
4. reduce workforce
5. reduce department size

Question 17

276
When municipalities are forced to reduce fire department workforces what are three possible ways to accomplish this goal?

Answer 17

1. Reduce position in administrative and support areas, low numbers equals, small budget savings.
2. reduce staffing per vehicle
3. temporarily close companies for one day or one shift at a time

Question 18

277

petty cash

Answer 18

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.

Question 19

277

purchase orders

Answer 19

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 (phone bids). Vendor allows fire department to “charge” merchandise until purchase order is paid.

Question 20

279

requisitions

Answer 20

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.

Question 21

279

What are two ways of purchasing an item through a bidding process?

Answer 21

1. 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.
2. 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.

Question 22

280

One of the largest sources of grant funds is the ____ which distributes federal funds to local jurisdictions.

Answer 22

Assistance to Firefighters Grant Program

Question 23

280

U.S. fire administration provides a four step method to develop a competitive grant proposal:

Answer 23

1. Conduct community/fire department needs assessment 2. Compare community needs to priorities of grant program.
2. Decide what to apply for.
3. Complete the application.

Question 24

281

Government Accounting Standards Board GASB

Answer 24

The standard-setting agency for governmental accounting

Question 25

281

Line item budget

Answer 25

Format in which expenditures are identified in a categorized line by line format.

Question 26

281

What three general areas are fire departments expenditures generally divided into?

Answer 26

1. personnel cost
2. operating cost
3. capital expenditures

Question 27

281
More than ___ % of a career fire department’s budget is likely to be allotted to salaries and benefits, What general category of expenditures.

Answer 27

90%

personnel cost

Question 28

281

Operating expenditures

Answer 28

Basic expenditures that support the day-to-day delivery of municipal services.

ie uniforms, protective clothing, electricity for stations, apparatus maintenance etc.

Question 29

281
When budgets need to be trimmed which of the three general areas of fire department expenditures is first to be considered?

Answer 29

Operating expenditures

Question 30

282

Capital expenditures

Answer 30

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

Question 31

282-283

Bond

Answer 31

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.

Question 32

283

Funds obtained by issuing a bond are classified as…

Answer 32

Special revenue source