Chapter 6 Working With The Budget

Question 1

What 3 important functions do local government budgets serve?

Answer 1

*Control
*Management
*Planning

Question 2

What budget tool controls how much can be spent on day-to-day operations. And states that is important to operate within budget parameters?

Answer 2

*Control Tool

Question 3

What budget tool defines what the department wants to accomplish for the year?

Answer 3

*Management tool

Question 4

What budget tool involves setting priorities for the fiscal year and serves as a resource for planning outcomes in future years?

Answer 4

*Planning tool

Question 5

What are the 2 types of budgets?

Answer 5

*Operating budget
*Capital budget

Question 6

What type of budget covers revenue estimates and planned expenditures for the year for all ongoing government activities?

Answer 6

*Operating budget

Question 7

What type of budget covers revenue sources and planned non-recurring expenditures, for multi-year items like construction equipment, improvement of public facilities?

Answer 7

Capital Budget

Question 8

What are the local government’s most frequently used operating budget formats?

Answer 8

*Line-item budget
*Program budget
*Performance budget

Question 9

What kind of operating budget format presents finacial information according to services to be provided such as solid-waste collection, street sweeping, vehicle repair, public safety and recreation?

Answer 9

*Program budget

Question 10

What kind of operating budget format, organizes financial information into categories of expenditures such as salaries and other expenses?

Answer 10

*Line-item budget

Question 11

What kind of operating budget format, carries a program budget one step further by describing the amount of services to be provided for money spent?

Answer 11

*Performance budget

Question 12

What is a multi year plan for financing major equipment or infrastructure improvements like new buildings additions or improvements, new roads or bridges, information technology equipment for several years?

Answer 12

*Capital Improvement Plan (CIP)

Question 13

What does the budget document consist of?

Answer 13

*The budget message
*Revenue estimates
*Program expenditures

Question 14

What communicates to citizens, the government body, and the media the major elements of the budget?

Answer 14

*The budget message

Question 15

What shows both the sources and total amount of projected revenue necessary to fund government operations?

Answer 15

*Revenue estimates

Question 16

What shows where money is being spent and for what purposes?

Answer 16

*Program expenditures

Question 17

What does the budget cycle consist of?

Answer 17

*Planning & Estimates
*Departmental Preparation
*Internal Review
*External Review
*Implementation
*Planning for next year

Question 18

What are 3 ways that supervisors can affect budget outcomes?

Answer 18

*Well maintained equipment
*No workers injuries or claims
*Minimal employee turnover(recruiting cost and time to interview and select candidates)

Question 19

Well maintained equipment
No workers injuries or claims
Minimal employee turnover are examples of?

Answer 19

*Ways that supervisors affect budget outcomes