Chapter 6 Working With The Budget Flashcards
An ______ is local government single most important financial responsibility. It establishes plans and priorities for service delivery and communicates them to all stakeholders. (Page 84)
annual budget
In most local governments, the ____ ultimately determines the ________. (Page 84)
budget/level of taxation
The budget is where organizations ________ to accomplish its vision and carry our agreed-upon strategic priorities. (page 84)
allocate it resources
_____ is the term used to describe the annual (twelve month) budget cycle; sometimes it coincides with the calendar year, but just as often it does not. (Page 85)
Fiscal Year
Preparation for any fiscal year budget can begin as much as ___to ___ prior to the onset of the fiscal year. (Page 85)
five to eight months
What are the three important functions that local government serve? (page 85)
- Control
- Management
- Planning
Generally, ____ defines the steps for approving an annual balanced budget so that expediters don’t exceed revenues for the fiscal year. (Page 86)
State Law
____ is an important supervisory responsibility. (Page 86)
Operating within approved budget parameters
The ____ defines what your department plans to accomplish during the coming year. (Page 86)
Budget
One of your budget responsibilities is to help your _____ educate _____ about what your need in order to do the job they want you to do. (Page 86)
Department Head/Chief Adminstrative Officer and Elected Officials
What does the budget do? (Page 87)
- Priorities for the fiscal year
- Provides a road map for carrying out program and policy objectives set by elected officials
- Serves as a resource for planning outcomes in future years
A well-designed and carefully administered _____ helps local government leaders think about how to make the best of limited dollars. (Page 87)
annual budget
Some local governments prepare ______ to show how expenditures in the current year will affect future resource allocation. This maximizes the planning component of the annual budget. (Page 87)
multiyear budgets
Most local governments have two separate budgets. What are they? (Page 87)
Operating budget
Capital budget
The _______ covers revenue estimates and planned expenditures for the year for all ongoing government activities. (Page 87)
operating budget
The _____ covers revenue sources and planned expenditures for nonrecurring, multiyear items such as construction, equipment acquisition, or improvement of facilities. (Page 87)
capital budget
Operating and Capital Budgets are sometimes combined into a single document for the current fiscal year to show all current expenditures, but they are generally developed separately and considered as two distinct budgets by _______. (Page 87)
elected officials
The _____ is the local government’s plan for allocating resources for personnel, supplies, equipment, and the operation of the facilities during a fiscal year. (Page 88)
Operational Budget
Local governments use several kinds of operating budget formats. The most frequently used budget formats are _____, _____, and _____. (Page 88)
- line-item
- program
- performance
A _____ organizes financial information into categories of expenditure for each department, division, or agency. It also provides a clear explanation of what will be purchased with tax revenues, offers strong central control over departmental expenditures, and helps elected official compare the new budget with previous budget.(Page 88)
line-item budget
Generally, there are two broad expenditure categories, which are?
salaries and other expenses
A line item budget is the most traditional budget format and is often used by _________. (Page 88)
smaller local governments
A _____ presents financial information according to services to be provided, such as solid waste collection, street sweeping, vehicle repair, public safety, and recreation. It shows the purpose for which money will be spent, focusing on program goals and outcomes rather than expense categories such as salaries and supplies. (Page 88)
program budget
Many large and medium sized local governments use _____ to connect major outcomes to expenditures. In addition, grant-funded activities that cross departmental lines are best presented in a program format. This budget will often include some line-item detail in order to identify and control the cost factors for each program. (page 89)
program budgets
A _____ carries a program budget one step further by describing the amount of services to be provided for money spent. This budget will also list a number of miles of streets to be swept in a year and the cost per mile. Its focus is on what the local government will do during the fiscal year rather than what it will buy. (Page 89)
performance budget
Performance Budget: Many local governments use a combination of formats, including _____, _____, and _____ in their annual budgets. (page 89)
- program outcomes
- performance measures
- line items
_____ involves collecting data in a systematic and objective way to determine the efficiency and effectiveness of service delivery. (Page 89)
Performance measurement
A well-designed performance measurement system provides data to support: (Page 89)
decision making justifying budget request improving overall performance communicate progress provide accountability
Performance measures generally fall into these categories: (Page 89)
- inputs
- outputs
- outcomes
- efficiency
- effectiveness
As a supervisor, you are likely to be involved in: (Page 89)
- developing performance measures for your work unit
- Regularly tracking progress toward achieving the
measures - Gauging how meaningful and useful the measures are for decision making
The capital portion of a local government’s annual budget is often drawn from the __________. (Page 90)
Capital Improvement Plan (CIP)
The _____ is a multiyear plan for financing major equipment or infrastructure improvements including new buildings, additions, or improvements; new roads or bridges; sewer expansion; or new information technology equipment that will be used for several years. (Page 90)
Capital Improvement Plan (CIP)
The _____ developed in conjunction with the _____ explains the spending plan for one year of the CIP and its impact on the current fiscal year. (Page 91)
Capital Budget/Annual Budget
Financing for the capital budget may come from ___________. (Page 91)
local government tax revenues, a state or federal grant, long term borrowing, or a combination of funding sources
While CIP is an important planning tool, not all local governments have either a plan or a separate capital budget. Some smaller local governments, for example have sections in their operating budget, called _____ where capital items are listed. (Page 91)
Capital Outlay
The ______ is a legal, technical, and public document. It meets state requirements, provides a blue print for operations, and reports to the citizens on how their taxes will be used to deliver public services. (page 92)
Annual Budget
The major components of a local government budget include: (page 92)
The Budget Message
Revenue Estimates
Program Expenditures
The budget message communicates to citizens, the governing body, and the media the major elements of the budget. It is usually submitted by the mayor or _______. (Page 92)
Chief Administrative Officer
_______ showing both the sources and total amount of projected revenues necessary to fund government operations. (page 92)
revenue estimates
______ show where money is being spent and for what purpose. (Page 92)
Program expenditures
Some local governments link their budget documents to their _______ by including goals, objectives, and performance measures in the budget document. (Page 92)
Strategic Plan
Budget Document: Unless other state or local laws give directives on this matter, local governments typically use standardized financial terminology provided by the ___________, which provides general guidelines and best practice to support local government budgets. (Page 92)
Government Finance Officers Association (GFOA)
In all likelihood, you will work closely with your _____ to organize and prepare the budget for your _____. Page 93)
department head/work unit
Budget Planning: Budget preparation begins about ____ to ____ months before the beginning of your local government’s _________. (page 94)
five to eight/fiscal year
Budget Planning: The _____ working with the _____, will launch the process by defining broad goals and guiding principles for all departments to use in developing their budget proposals. (page 94)
CAO/governing body
_____ may be involved in the budget process at the ______ stages such as use through the use of citizen advisory groups that may help shape priorities and guidelines (page 94)
Citizens/Planning
As a supervisor, you need to be aware of the planning process and familiar with ______ that emerge from this step so that you can develop the budget for your work unit in alignment with the organizations priorities. (page 94)
Strategic Guidelines
Approximately ____ to ____ months before the new fiscal year, department heads and supervisors will prepare their individual budgets. (Page 94)
four to six
In preparing your budget request, keep these guidelines in mind: (Page 95)
- . Keep it simple
- Provide enough detail
- Separate capital items from operating expenditures and justify the need
The need for any new equipment should be explained and related to a _________. (Page 95)
new or expanded service
In step three of the internal budget review, the _____ and _____ review budget request with department heads. (page 95)
CAO/key staff members
In step four of the External Budget Review, ________ review the budget and hold public hearings so that citizens have an opportunity to comment. (page 96)
elected officials
Once the budget has been approved by the governing body, it is up to the _________to carry out their programs and activities witin the approved budget. (Page 96)
department heads and supervisors
The _____ process is the one time during the year when your activities will be looked at and evaluated very closely. (Page 97)
Budget
What are three ways that a supervisor can affect budget outcomes? (page 99)
- Well maintained equipment
- No worker injuries or claims
- Minimal employee turnover
Your _____ as a supervisor can help your retain good employees and prevent the cost of turnover. (page 99)
success
