Section 2- Other Flashcards
A state legislature establishes limits
A state legislature establishes limits on the amount of money that can be spent on salaries, equipment, utilities, supplies and travel. The legislature is imposing what kind of accounting controls?
It is imposing object class controls. Other categories of control include programs and funds.
primary financial control device used in government?
It is an appropriated budget with an accompanying system of budgetary accounting. The budget is a law
What is the primary reason for establishing a special fund?
The purpose of establishing a special fund is to ensure that specially-identified (or dedicated) revenues are applied to specific programs. A well-known example is when receipts from gasoline taxes are deposited into a special fund for highway repairs.
Supported by Budget Process
a. establishing government priorities
b. communicating public values and policies
d. planning future government expenditures
Describe the relationship among appropriations, apportionments and allotments at the national level.
Appropriations are budget laws passed by Congress. After appropriations are passed, the OMB apportions budgetary authority to major departments and components of government. The major department or component further distributes the budgetary authority within its own organization (“down the chain”) by issuing allotments to its organizational units.
What is meant by reprogramming
The legislative branch has “power of the purse.” If the executive branch wants to reprogram funds, it submits a request to the legislative branch.
What limits the practice of government borrowing at various levels of government?
At the national level, the debt limit can only be raised by an act of Congress, which occurs frequently. The national government borrows for both operational and capital expenses. Most state constitutions and local charters limit borrowing to capital improvement projects. Most state and local entities cannot borrow to cover operational expenses. (There are a few exceptions, such as revenue anticipation notes.) In many cases, a proposed government debt issue must be put before voters in a referendum; that is, it must be approved by voters before borrowing can take place. Also, many bond covenants limit future borrowing by the entity until the debt issue associated with the covenant is paid off.
Provide preliminary budget targets to executive agencies?
b. establish broad goals to guide decision-making within agencies
c. develop approaches to achieve goals with available resources
d. make funding adjustments based on past performance
What is the relationship between the strategic plan and the budget?
The strategic plan is a longer-term document (usually 3 to 6 years) while the budget is a shorter-term planning document (usually 1 to 2 years). The budget reflects the current plans for achieving long-term goals. The strategic plan should always be integrated with the budget.
