Chapter 3 Flashcards
Appropriation budget
concerned mainly with current operating revenues and expendituers
Key purpose of budgets
planning
Controlling and administering
Reporting and evaluating
capital budgets
acquistion and construction of long-term assets
flexible budgets
outputs and are thereby intended to help control costs, especially those of business-type activities
Expenditure Classifications
Fund,organizational unit, function or program, activity, character, object classification
Revenue classification
Taxes, licenses and permits, intergovernmental revenues, charges for services, fines and forfetis
Primary virtue of an object classification budget
facilitates control
Why do we use performance budgets
they focus on measurable units of efforts, services, and accomplishments.
program budget
tyoe of performance budget which resources and results are identified with programs, and expenditures are categorized by activities
Key Phases for the budget cycle
Preparation
Legislative adoption and executive approval
Execution
Reporting and auditing
Appropriation
legislature offically adopts it by enacting, authorizing expenditures.
allotments/apportionments
periodic allocations of funds to departments or agencies (to control expenditures)
Commitments to purchase goods or services
encumbrance
GASB requires governments present their budget-to-actual comparisons on a
budgetary basis
TEMPORARY ACCOUNT APPROPRIATIONS AND ESTIMATED REVENUES ARE CLOSED TO
Budgetary fund Balance
