Section 3 - Part 1-4

Question 1

Steps of Government Management Cycle (Traditional)

Answer 1

Planning: Identifying and prioritizing attainable objectives, as well as specific, sequenced actions to attain them

Organizing: Obtaining and deploying human resources and other resources necessary to achieve planned objectives

Directing: Providing leadership and management to ensure human resources and other resources are deployed for maximum results.

Controlling: Systematically checking work against the plan, identifying variances and making adjustments to previous steps as required

Question 2

Government Management Cycle

Answer 2

Planning
Programming
Budgeting
Operations
Accounting
Reporting
Auditing

Question 3

Planning (Govt Management Cycle)

Answer 3

Keystone of public Management
Strategic Planning Model
Planning Outcome

Identifying and prioritizing attainable objectives, as well as specific, sequenced actions to attain them.

Question 4

Keystone of Public Management

Answer 4

Planning is often called the keystone in the arch of public management. Rooted in legislation and the basic mission of the agency, planning addresses the “what” and “how” of agency operations.

Question 5

GRPA

Answer 5

In 1993, the U.S. Congress passed the Government Performance and Results Act (GPRA), which impacts executive branch agencies at the national level. The GPRA requires agencies to create strategic plans; create performance plans with measurable goals; and submit follow-on performance reports. This was followed in 2010 with the enactment of the Government Performance and Results Act Modernization Act (GPRAMA). This law built on the GPRA by requiring the government to establish cross-agency priority goals.

Question 6

GFOA Strategic Planning Model

Answer 6

The Government Finance Officers Association (GFOA) recommends 13 steps to be included in the strategic planning process

IPA-IAD-CDI-OIMR

1. Initiate the Strategic Planning Process.
2. Prepare a Mission Statement.
3. Assess Environmental Factors.
4. Identify Critical Issues.
5. Agree on a Small Number of Broad Goals.
6. Develop Strategies to Achieve Broad Goals.
7. Create an Action Plan.
8. Develop Measurable Objectives.
9. Incorporate Performance Measures.
10. Obtain Approval of the Plan.
11. Implement the Plan.
12. Monitor Progress.
13. Reassess the Strategic Plan.

Question 7

Planning

Answer 7

Planning must be conducted with a look forward to other phases of the cycle. While planning precedes budgeting (planning outcomes are an input to programming and then budgeting), planning must be grounded in reality and should recognize the level of resources likely to be available. Also, for planning to be most effective, it should occur throughout the year.

Of all the phases in the management cycle, planning is the most creative. It is during planning when new strategies are adopted.

Question 8

Planning Outcomes

Answer 8

Planning involves the identification of mission and goals and may also include the identification of key objectives. (Objectives are refined and more fully articulated during the programming phase.) Effective planning will be reflected in the agency’s mission, goals and objectives:

• A mission is an ideal statement of what the organization hopes to achieve.
• A goal is a broad statement of purpose for a program within the agency. It is derived from the mission and is more specific than the mission statement, but less specific than an objective.
• An objective is a measurable accomplishment to be achieved within a specific period. All objectives should contain projected, measurable achievement standards.

Question 9

Purpose of Programming

Answer 9

programming is to determine the most cost-effective means for accomplishing goals and objectives.

Another distinction is that planning is characterized by creativity, judgment and responsiveness to stakeholders, while the programming phase is more prosaic and deadline driven.

Factors to be considered:
* the entity’s mission, goals and objectives; and
* policies and guidance of the chief executive and the legislature

Question 10

Link Strategy and Goals to Resources

Answer 10

When the programming phase begins, the mission and goals have already been identified and there may be a good start on specific objectives. Now, the task is to refine the full set of objectives, and plan deployment of resources to specific programs to accomplish goals and objectives.

Question 11

Process of Programming phase

Answer 11

RE-MAC

1) resource requirements are identified and assigned to specific offices/programs.
2) entails a review of what other entities and departments are doing to avoid duplication and waste of public resources.
3) Make/buy decisions
4) Anticipate future need
5) Covers multiple years.

Question 12

Programming and Budgeting

Answer 12

Programming and budgeting have something in common—both are derivatives of the planning phase. But, a difference between programming and budgeting is that programming usually covers multiple years, while operating budgets usually cover only one or two years.

Another difference is that programming cuts across responsibility centers (departments, offices) while budgets are often structured by responsibility centers.

Question 13

Outcome of Programming Phase

Answer 13

SIILD

• specific, measurable objectives, including timeframes;
• identification of the most cost-effective means to achieve objectives;
• identification of personnel, funding, equipment and other resources needed to achieve objectives;
• level of resources that will be requested during the budgeting phase; and
• decisions on how resources will be distributed among various offices and programs to achieve objectives.

Question 14

Budgeting

Answer 14

Legal Status
Types of Budgets
Budgetary Controls
Roles of Forecasting

Question 15

Budgeting- Legal Status

Answer 15

Budgets are also laws or ordinances that reflect the priorities and objectives of government and the citizens served.

Section II addresses the role of the budget and the budget process in detail. A good budget is not limited to dollars and cents—it also contains information on government priorities, how government is organized and how it operates. The priorities reflected in the budget are derived from planning. The organization and operations of government are derived from programming.

Question 16

Types of Budgets

Answer 16

Operating
Cash
Capital Budgets

Question 17

Operating Budgets

Answer 17

Defines level of resources to be applied in providing government programs and services; usually covers periods of one to two years.

Operating budgets specify planned revenues and expenditures throughout the budget period. They cover expenditures for salaries, supplies, utilities and other noncapital items. The “current” budget is one that has been appropriated and covers the current operating period. Simultaneously, financial managers will be working on planned budgets for future operating periods.

Question 18

Cash Flow Budget

Answer 18

Forecasts the timing, as well as amount of cash flows, for a period. Used to project required cash levels.

The purpose of a cash budget is to help plan the timing of receipts and expenditures so funds will be available when it is time to make a payment

Question 19

Capital Budget

Answer 19

Forecasts and controls spending for “big-ticket” items that are acquired and used over a period of several years, such as construction projects and major equipment purchases. Used at state and local levels

Question 20

Examples of Capital Budget

Answer 20

The purchase of five, stand-alone laptop computers would likely be covered in the operating budget.
* The purchase of an integrated computer system to support finance and accounting transactions across several departments would likely be covered in a capital budget.
* The capital budget would cover the construction of a new building.

Although some governments choose to have annual capital budgets, a multiple-year capital budget establishes confidence, as well as continuity for long-term projects.

Question 21

Capital Budget- Additional info

Answer 21

Like operating and cash flow budgets, the capital budget is derived from plans and programs. Moreover, capital projects may impact future programming decisions.

Question 22

Proposed Budget

Answer 22

Whatever the budget type or duration of the budget authority, a proposed budget becomes an appropriation (law or ordinance).
Entities often have the option of combining the operating and capital budgets into a single bill or ordinance. But to ease the process, the capital budget is often passed separately. In some cases, laws or ordinances may require that capital budgets be passed separately from operating budgets.

Question 23

Budgetary Controls - Review Pages for Examples

Answer 23

A budget can be organized in many ways, including organizational unit, project, program, line item, object or object class.

Question 24

Budgetary Control- Example of Program

Answer 24

A budget identifies expenditures to achieve program goals. For example, a state budget may reflect levels of spending for a drug awareness program ($5 million), a smoking cessation program ($7 million) and a drivers’ training program ($4 million). This would be budgeting by program.

Question 25

Budgetary Control- Example of Object

Answer 25

the term “object” refers to what money is spent on, rather than the intended outcome of the expenditure (such as transportation, public safety, or health care). As an example, assume a local government’s legislative body wishes to spend $4 million for a drivers’ training program. The legislative body could have enacted a single appropriation for $4 million. But, to further control spending, the legislative body limits spending by object within the program. An appropriation by object for the drivers’ training program might be as follows: * Salaries for driver education teachers $3.2 million * Equipment (industrial-hardened laptops to record assessments of student driving) - .1M * Capital equipment (automobiles) - .4M * Supplies (printed training material) - .1M * Liability insurance- .2M Total- $4M In the example above, an appropriation is defined and controlled by five object classifications. Salaries, supplies and liability insurance would be classified as separate objects. Automobiles and laptop computers, vastly different types of equipment, would also be separate objects. In many cases, an entity’s objects are further defined into sub-objects.

Question 26

Role of Forecasting

Answer 26

Forecasting identifies probabilities—the most likely outcomes. Forecasters usually start with current levels of activity and then adjust for economic assumptions, such as the future rate of inflation, economic growth and unemployment levels. Forecasters also adjust for planned or actual changes in policy.

Question 27

Example of Forecasting

Answer 27

For example, if an economic slowdown is expected, forecasters will make downward adjustments to expected sales tax and income tax receipts. Forecasters also adjust for planned or actual changes in policy. If a new education bill is working its way through the legislature and is expected to become law, planners will forecast a related change in spending for education programs. They also consider demographic trends that will impact spending on health and welfare, which may be nondiscretionary.

Question 28

Role of Forecasting- Techniques

Answer 28

* Expert—Government officials ask for advice and input from recognized experts in economics and other fields. * Delphi—The Delphi technique refers to an iterative process for gathering and refining input from several, sometimes anonymous, experts. * Extrapolation—Assumes certain trends will continue and, based on that assumption, enables charting of future results. It is especially useful for assessing known demographic trends, such as aging of the baby-boom population and associated growth in Medicaid requirements. * Leading Indicators—Current events provide insight into future conditions. For instance, a rise or fall in the trade imbalance or change in durable goods orders can be useful for forecasting revenues. * Technology Assessments—The probable impact of introduction and adoption of new technology.

Question 29

Organizing (Govt Management Cycle)

Answer 29

Obtaining and deploying human resources and other resources necessary to achieve planned objectives.

Question 30

Directing (Govt Management Cycle)

Answer 30

Providing leadership and management to ensure human resources and other resources are deployed for maximum results.

Question 31

Controlling (Govt Management Cycle)

Answer 31

Systematically checking work against the plan, identifying variances and making adjustments to previous steps as required.