Section III Government Management Cycle Flashcards
18% - identify and describe each phase of the government management cycle - describe how phases of government management cycle interrelate - identify techniques that support the management cycle - identify and define the terms and concepts that underlie performance measurement and reporting
Traditional model of management cycle:
4
- planning
- organizing
- direction
- controlling
Expanded government management cycle:
7
- planning
- programming
- budgeting
- operations
- accounting
- reporting
- auditing
What is the keystone of public management?
planning
What are determined during planning?
mission, objectives, and goals.
GPRA
Government Performance and Results Act
1993
GPRA requires….
…agencies to create strategic plans, create performance plans, and submit follow-on reports.
GPRAMA
Government Performance and Results Act Modernization Act 2010
GPRAMA requires….
establish cross-agency goals and appoint chief operating officer and a performance improvement officer.
Most creative phase of the management cycle is…
…planning.
New strategies are adopted during which phase?
planning
Mission
ideal statement of what the organization hopes to achieve
Goal
broad statement of purpose for a particular program within the agency.
Objective
measurable accomplishment to be achieved
Primary purpose of programming
determine most cost-effective means for accomplishing goals and objectives
Most appropriate factors to consider:
2
- entity’s mission, goals and objectives
2. policies and guidance
Outcomes of programming phase:
5
- specific, measurable, objectives, timeframes
- identification of most cost-effective means to achieve objectives
- identification of personnel, dollars, equipment, and other resources needed
- level of resources that will be requested
- decision on how resources will be distributed
3 major types of budgets
operations
cash
capital
Features of operating budget
limited period
specify planned revenues and expenditures
anticipate total revenues
anticpate costs
Features of cash-flow budget
specific timing of cash receipts and expenditures
forecasts timing and cash flows throughout the year
Features of a capital budget
covers big ticket items
GFOA recommended threshold for capitalization
a useful life of at least 2 years and a cost of at least $5k for a single item
Major budget control is…
…appropriation.
Forecasting identifies…
…probabilities or most likely outcomes.
Forecasting techniques:
5
- expert
- delphi
- extrapolation
- leading indicators
- technology assessments
Operations
all activities needed to achieve program objectives
Which agency publishes a guide to internal controls
GAO
Standards for Internal Control in the Federal Government
Purpose of accounting
ensure reliability and integrity of financial information
3 types of accounting
- financial
- budgetary
- managerial
Financial accounting is used…
…to determine results of operations (revenues and expenses) and changes in net position (assets, liabilities, and fund balance).
Formal standards of financial accounting is guided by…
GASB and FASAB
FASAB
Federal Accounting Standards Advisory Board
Budgetary accounting helps entities…
remain within the legal budget by tracking commitments (requisitions), obligations (encumbrances), and expenditures.
Backbone of the accounting phase
financial and budgetary accounting
Managerial accounting (aka cost accounting) is used…
to gauge the cost-effectiveness of operations and improve efficiency.
What characterizes managerial accounting?
combination of financial and non financial data
Who is required to maintain cost accounting systems?
all federal agencies
Primary purpose of reporting is…
communicate accomplishments and resources expended.
GAAP
Generally Accepted Accounting Principles
GPEFR
General purpose external financial reports
GAAP setting bodies for U.S.:
3
- GASB
- FASAB
- FASB
Who defines GAAP for state and local governments, tribal governments, and U.S. territories, trusts and commonwealths?
GASB
Who defines GAAP for the national government?
FASAB
Who defines GAAP for private sector entities?
FASB
What are popular reports?
condensed financial information in easy-to-read format
Who provides guidelines for a citizen-centric report?
AGA
AGA
Association of Government Accountants
PAR
Performance and Accountability Report
Who provides instructions for PARs?
OMB
MD&A
Management Discussion and Analysis
Differences between internal and external reports:
3
- timing
- purpose
- structure
Factors to consider when reporting systems are designed:
purpose intended user report content frequency output format integrate data internal controls
AICPA
American Institute of Certified Public Accountants
Who establishes standards for financial audits for non-publicly traded companies and not-for-profit entities?
AICPA
GAAS
Generally Accepted Auditing Standards
PCAOB
Public Company Accounting Oversight Board
Who establishes standards for financial audits for publicly traded companies?
PCAOB
GAGAS
Generally Accepted Government Auditing Standards
Who issues standard for conducting audits for governmental agencies?
GAO
GAGAS recognizes 3 types of audit engagements:
- financial audits
- performance audits
- attestation engagements
What is the primary purpose of a financial audit?
providing reasonable assurance eon whether financial statements are presented fairly in conformity to GAAP
What is the primary purpose of an attestation engagement?
assertion about a limited subject matter and reporting on the results
What is the primary purpose of a performance audit?
examination of the performance and management of a program
What is an internal audit?
a management process conducted by staff personnel
IIA
Institute of Internal Auditors
Who publishes standards for internal audits?
IIA
