Chapter 2 (THE BUDGET PROCESS) Flashcards
budgetary accounting, provide budget info (PPSAS
Government Accounting
gov’s estimate of sources & use of funds (fiscal year)
National budget (gov budget)
Budget Cycle
Budget Preparation
Budget Legislation
Budget Executions
Budget Accountability
Budget Preparation
- Budget Call
- Budget hearings
- Presentation to the office of the president
prepared by DBM, agency budget ceiling
- Budget Call
estimated rev exceeds estimated exp
a) Balanced budget
period 1 year ( basis for annual prep
b) Annual budget
focus on specific exp (salaries and wages, travel exp)
d) Line item budget
plan of activities with related costs
e) Performance budget
exp incurred, paid this year or following year
f) Obligations budget
Budget Legislation
- House deliberations
- Senate deliberations
- Bicameral deliberations
- President’s enactment
Budget Executions
- Release and Guidelines & BEDs
- Allotment
- Incurrence of Obligations
- Disbursement Authority
Budget Accountability
- Budget Accountability Reports
- Performance reviews
- Audit
authorization by a legislative body to allocate funds for specified purposes.
- Appropriation
authorization to agencies to incur obligations (obligations authority)
- Allotment
amount contracted by an authorized officer for which the government is held liable.
- Obligation
actual amounts paid out of the budgeted amount.
- Disbursement
Budget Preparation (BP)
- Uses bottom-up approach (lowest to highest levels of gov)
without regard to previous year’s budget (back to zero)
zero-based budgeting approach
System of providing cost and revenue information over which manager has direct control
Responsibility Accounting
Is a part, segment, unit or function of gov agency, headed by manager, accountable for specified set of activities
Responsibility center
costs where manager has the power to incur within given a period of time
Controllable costs
