Study for Test

Question 1

What is an Operational Budget

Answer 1

An operational budget provides the day to day services. For example - fuel, water, electric, general operations.

Question 2

What is a Capital Budget?

Answer 2

A capital budget covers large scale projects. For example - new construction, large scale equipment purchases, overhauls to things within your department.

Question 3

What does Title 23 Chapter 36 cover?

Answer 3

Title 23 Chapter 36 covers the law in reference to budgeting. The budget must be balanced, must meet GAAP/GAAS standards, budget must be advertised and a public hearing must occur before adoption, audit must occur once a year.

Question 4

What does GAAP stand for and what does it mean?

Answer 4

GAAP stands for Generally accepted accounting principle. The principles requires a set auditors language so that any auditor can look at a budget and immediately understand it.

Question 5

What are the 4 phases of the budget cycle?

Answer 5

The four phases of the budgeting cycle are the preparation phase, legislative phase, execution phase, and the audit and evaluation phase.

Question 6

What is the preparation phase of the budget cycle?

Answer 6

The preparation phase of the budget cycle includes all the planning and goals for the next year. The previous year is reviewed and research is done to ensure prices are correct.

Question 7

What is the legislative phase of the budgeting cycle?

Answer 7

The legislative phase of the budgeting cycle is when advertising must occur, approval and sign off occurs (official and unofficial), and when you have a chance to sell the budget and gain buy in from the department and public.

Question 8

What is the execution phase of the budgeting cycle?

Answer 8

The execution phase of the budgeting cycle is when you get to spend the money. The money must be closely monitored and everyone must be held accountable. Reports for the spending should happen AT LEAST once a month.

Question 9

What is the audit and evaluation phase of the budgeting cycle?

Answer 9

The audit and evaluation phase of the budgeting cycle is when you continuously evaluate the budget to ensure it is being followed and that the goals are being met. Audits are being done to ensure the money is spent wisely and to stay within the legal bounds.

Question 10

Does the budget cycle ever end?

Answer 10

The budget cycle is continuous and a person must constantly look at the past budgets and costs and use them to predict trends in the future. The budget must even evolve during the budget year.

Question 11

What are the two dimensions to a budget?

Answer 11

The two dimensions to a budget are the political dimension and the technical dimension. The political dimension refers to the politics and effect the budget has on the community and department. The technical dimension describes where the money comes from and how the revenue is provided for the budget.

Question 12

What is GAAS?

Answer 12

GAAS stands for gereral accounting audit standards. The standards dictate how an audit is done and how often it occurs.

Question 13

Name the different ways of purchasing.

Answer 13

The different ways of purchasing are cash payments, check payments, credit cards, Charge accounts, direct billing, purchase orders, and bids.

Question 14

Explain cash payments.

Answer 14

Cash payments are payments that are made it is typically smaller purchases that must be made at that instant. The time for approval is not there and a purchase must be made. For example - food for officers on a long scene.

Question 15

Explain Check Payments.

Answer 15

Check payments are generally used used by government finance office to make payments on accounts. The checks are generally the more used form of payment and is often used with purchase orders (PO’s).

Question 16

Explain Credit Card payment.

Answer 16

Credit Card payments are beginning to be used more by government agencies. The use of credit cards sometimes require approval and sometimes they do not.

Question 17

Explain Charge Accounts.

Answer 17

Charge accounts may be setup for vendors that the government office uses frequently. The charge account allows for the vendor to draw funds often with a simple SIGNATURE from an employee and by receiving a receipt for work done.

Question 18

Explain Direct Billing.

Answer 18

Direct Billing is a form of a charge account however it is distinguished in that it is frequently setup by the finance office for specific projects or services. Upon a showing of financial responsibility, the vendor agrees to directly bill the agency for services. (car wash)

Question 19

Explain Purchase Order.

Answer 19

Purchase orders may be called requisitions and are forms which contain the information for ordering or requisitioning equipment/supplies/services/or good. these are used VERY OFTEN to pay for goods and services.

Question 20

Explain Bids.

Answer 20

Bids are when the government requests information from different vendors on providing a goods or service. The bidding process is how government agencies ensure they get the most for their money.

Question 21

Discuss how LE agencies market themselves and how it helps our budget.

Answer 21

Departments can use social media, special events, but must remember that every officer at all times does the marketing. It helps with the buy in political aspect.

Question 22

Explain how core statements and values effect the budget.

Answer 22

we must be ambassadors for our brand and realize that every officer effects it. also that our budget should reflect them. political.