Chapter 6: Working with the Budget

Question 1

An ____ is a local government’s single most important financial responsibility

Answer 1

annual budget

Question 2

The ____ is where an organization allocates its resources to accomplish its vision and carry out agreed-upon strategic priorities

Answer 2

budget

Question 3

The ____ is an important resource for you as a local government supervisor.

Answer 3

budget

Question 4

____ is the term used to describe the annual (twelve month) budget cycle.

Answer 4

Fiscal year

Question 5

Preparation for any fiscal year budget can begin as much as ____ months prior to the onset of the fiscal year.

Answer 5

five to eight

Question 6

The local government budget serves three important functions:

Answer 6

Control, Management and Planning

Question 7

A local government ____ is a legal document that defines how much money can be spent for day-to-day operations.

Answer 7

budget

Question 8

The ____ defines what your department plans to accomplish during the coming year.

Answer 8

budget

Question 9

The ____ covers revenue estimates and planned expenditures for the year for all ongoing government activities.

Answer 9

operating budget

Question 10

The ____ covers revenue sources and planned expenditures for nonrecurring, multiyear items such as construction, equipment acquisition, or improvement of public facilities.

Answer 10

capital budget

Question 11

The ____ is the local government’s plan for allocating resources for personnel, supplies, equipment, and the operation of facilities during a fiscal year.

Answer 11

operating budget

Question 12

A____ organizes financial information into categories of expenditure for each department, division, or agency. Generally, two broad categories: ___ and ____.

Answer 12

line-item budget / salaries and other expenses

Question 13

A ____ presents financial information according to services to be provided, such as solid-waste collection, street sweeping, vehicle repair, public safety, and recreation.

Answer 13

program budget

Question 14

A ____ shows the purposes for which money will be spent, focusing on program goals and outcomes rather than expense categories such as salaries and supplies.

Answer 14

program budget

Question 15

A ____ carries a program budget one step further by describing the amount of services to be provided for money spent.

Answer 15

performance budget

Question 16

A ____ focus is on what the local government will do during the fiscal year rather than what it will buy.

Answer 16

performance budget

Question 17

____ involves collecting data in a systematic and objective way to determine the efficiency and effectiveness of service delivery.

Answer 17

Performance measurement

Question 18

____ generally fall into these categories: Inputs, Outputs, Outcomes, Efficiency, and Effectiveness.

Answer 18

Performance measurement

Question 19

____: resources required to accomplish an activity

Answer 19

Inputs

Question 20

____: quantitative measures of what the activity produces

Answer 20

Outputs

Question 21

____: impact or results of the activity focusing on service quality

Answer 21

Outcomes

Question 22

____: cost per unit of outputs and inputs

Answer 22

Efficiency

Question 23

____: quality of the work performed

Answer 23

Effectiveness

Question 24

The capital portion of a local government’s annual budget is often drawn from the ____(CIP).

Answer 24

capital improvement plan

Question 25

The ____ is a multiyear plan for financing major equipment or infrastructure improvements including new buildings, additions, or improvements

Answer 25

CIP

Question 26

Some smaller local governments, for example, have section in their operating budget, called ____, where capital items are listed.

Answer 26

capital outlay

Question 27

The ____ is a legal, technical, and public document.

Answer 27

annual budget

Question 28

Three ways that supervisors affect budget outcomes:

Answer 28

1. Well-maintained equipment
2. No worker injuries or claims
3. Minimal employee turnover

Question 29

Approximately ___to___ months before the new fiscal year, department heads and supervisors will prepare their individual budgets.

Answer 29

4-6

Question 30

Budget preparation begins about __to __ months before the beginning of your local government’s fiscal year.

Answer 30

5-8