Budgets
This presentation is the property of its rightful owner.
Sponsored Links
1 / 64

Budgets PowerPoint PPT Presentation


  • 63 Views
  • Uploaded on
  • Presentation posted in: General

Budgets. Budget. Financial plan that outlines and forecasts the revenues and expenditures over a fiscal year. Some Terms. Fiscal year Allocated monies Expended monies Bu dget cycle Length of time required to prepare, administer & close out a single year budget. Budget Cycle.

Download Presentation

Budgets

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Budgets

Budgets


Budget

Budget

  • Financial plan that outlines and forecasts the revenues and expenditures over a fiscal year


Some terms

Some Terms

  • Fiscal year

  • Allocated monies

  • Expended monies

  • Budget cycle

    • Length of time required to prepare, administer & close out a single year budget


Budget cycle

Budget Cycle

Fiscal Year 2009

Fiscal Year 2010 Fiscal Year 2011

  • National Park Service – 21 month cycle

  • 2010 is in progress

  • 2011 is under congress review

  • 2012 preparation is beginning


Town of queen creek az

Town of Queen Creek, AZ

  • November – January

    • Finance Dept examines revenues collected to date & projected revenues

    • Distribution of info, instructions and worksheets to depts.

  • February - April

    • Depts. prepare estimated budget expenditures & revenues.

    • The Finance Department compiles projections

    • The Budget Committee (including three Town Council members) reviews departmental budget estimates.

  • May - June

    • The Budget Committee reviews and revises dept budgets and prepares the tentative budget summary.

    • The Town Council reviews and adopts the tentative budget.

  • June - July

    • Tentative budget is published 1 a week for 2 consecutive weeks.

    • A public hearing held to discuss budget.

    • The Town Council convenes special meeting to adopt final budget.

    • The final budget is implemented


Why do budgets

Why do budgets?


Why budget

Why budget?

  • Prediction of resources

  • Prediction of a work schedule

  • Used to make decisions

  • Explains resource acquisition & expenditures to stakeholders

    • How goals are being met


2 types of budgets

2 types of budgets

  • Capital

  • Operating


2 types of budgets1

2 types of budgets

  • Capital

    • Major purchases lasting 10+ years

    • Facilities, renovations, equipment

    • Developed independently of operating budgets

    • Covers 5-6 years (CIP)

    • Priorities are reviewed & shifted annually


Budgets

CIF = Capital Improvement Fund


2 types of budgets2

2 types of budgets

  • Operating

    • Annual, routine activities

    • All revenues & expenditures for day to day operation


Operating budgets

Operating Budgets

  • Line item budgets

  • Object classification budgets

  • Program budgets

  • Performance budgets

  • Zero based budgets

  • Running budgets


Line item budgets

Line Item Budgets

  • Item

    • Specific item or object for which monies will need to be allocated

      • Postage, equipment

  • Line

    • Process of placing the items in a line so that all items appear on the budget sheet


Line item budgets process

Line Item Budgets Process

  • List all revenues

    • Fees program 1

    • Fees program 2

    • Other sources

  • List all expenditures

    • Staff

    • Utilities

    • Office supplies

  • Determine costs of each item


Budgets

$1127/ $1130


Line item budgets1

Line Item Budgets

Advantages & Disadvantages?


Line item budgets2

Line Item Budgets

  • Advantages

    • Flexibility

      • Add/delete items as needed

    • No coding system

      • Easy to administer

    • Doesn’t require ee to conform to a single system


Line item budgets3

Line Item Budgets

  • Disadvantages

    • Easy to forget items, thus no $ allocated

    • Confusion in comparing between departments

    • Used most often in an informal situation


Line item object classification budgets

Line Item Object Classification Budgets


Budgets

OCB

  • Most common form of budget, similar to line item budgets

  • Object - item for financial cost

    • Salaries, phone bills

  • Classification – uniform method of grouping the objects into certain categories & subcategories

    • Personnel, Contractual services, Commodities

    • See handout


Example classification

Example Classification

Expenditure Classification by Object

2000: Services: Contractual

2100 Communication & Transportation

2110 Postage

2120 Telephone

2300 Printing, Binding, Advertising

2350 Advertising & Publication Notice

ClassificationsSub classificationsObjects


Advantages to ocb

Advantages to OCB

  • Uniform & standardized

  • Categories are provided

  • Easy to set-up

  • Can compare line items across areas


Disadvantages to ocb

Disadvantages to OCB

  • May not be as flexible as needed

  • May not be able to find the category needed

  • Requires a lot of detailed cost estimates

    • Multiple items in a category

      • Repair to buildings

      • Advertising


Making purchases

Making Purchases

How do you make purchases??


Making purchases1

Making Purchases

  • Charge account

  • Petty cash

  • Procurement card

  • PO….


Budgets

Normal Amusements

Address line 1

Address line 2

Purchase Order

Date: _______________PO #: 1234567

Vendor: ______________

Staff name: ___________Requisition #: _________


Budgets1

Budgets

Program

Performance


Program performance budgets

Program & Performance Budgets

  • Based on a performance outcome model….


Budgets

Performance Outcome Model

Inputs

Programs

Outputs

Outcomes

Resources dedicated to the programs and services

Financial

Human

Technological

Physical

Programs, products & services offered

Seniors in organized golf activity

Creative art experience for parent & child

City beautification

Volume of work produced or the number of people served

Number of senior golf leagues, # of sr. golfers served

# of Parent/child art classes offered; # of art projects done together

# of flowers planted

Benefits received from participation in the program or service or from buying the product

Social interaction with other seniors; improved BMI or health

New appreciation for each other’s interests; exposure to different mediums; increased art appreciation

Decreased vandalism in landscaped areas; increased property values

Adapted from: Measuring Program Outcomes: A Practical Approach (1996)


Program performance budgets1

Program & Performance Budgets

  • Program budgets – outcomes based

  • Performance budget – outputs based

  • Performance/Program Budgets – outputs & outcomes based


Program budgets outcomes

Program Budgets (Outcomes)

  • Focuses on outcomes (end results, g & o) rather than inputs (LIB, OCB)

  • Focuses on explaining why expenditures are required & tied to agency mission, goals & objectives

  • Emphasis on effectiveness rather than efficiency of spending

  • Not used at federal level

    • Increasing in public, NPOs, commercial


Budgets

  • Company: Backroads Bike Tours

  • Program Budget: New York Wine Country Bike Tour

  • Program Dates: October 2-7

  • Program Length: 6 days

  • # of participants: 20

  • Description:

  • This bike tour starts in Skaneateles, NY and tours the wine country in the Finger Lake area. Riders stay at unique inns and B & B’s along the 300 mile route. Trip fee includes 5 nights lodging, 10 meals, beverages and snacks, van support & expert & experienced guides.


Budgets

  • Goals:

  • 1. Gain appreciation of the wine country in the Finger Lakes area.

  • 2. Meet and interact with riders from all over the country.

  • 3. Develop a program that will help fight obesity

  • Objectives:

  • 1. Each rider will be given cue sheets describing the attractions and points of interest along the bike route each day

  • 2. The trip will be advertised nationally to attract a wide variety of riders.

  • 3. Riders will be given a training schedule to begin six months prior to the tour dates in order to achieve a needed level of physical fitness.

Why use Program Budgeting???


Advantages

Advantages

  • Narrative budget description rather than cost only

  • Highlights value & uniqueness of the program

    • Forces in depth examination of the outcomes


Disadvantages

Disadvantages

  • Potential of “overselling” a program

  • Limited budget-cost detailed information

  • Requires the use of another budget system to determine costs


Performance budgets outputs

Performance Budgets (Outputs)

  • Based on results oriented mgt

  • Used by federal government since 1997

    • More visibility of outcomes to public

    • Improved decision making

    • Accountability

    • Efficiency

  • Budgeting is more closely tied to service provision


Performance budgets

Performance Budgets

  • Goal to allocate $$ to accomplish specific units of performance

  • Set performance indicators for each program

    • Workload outputs

    • Efficiency measures

    • Effectiveness measures….


Performance budgets1

Performance Budgets

  • Workload outputs (program size or volume indicators)

    • Number of

      • parks managed

      • conferences held

      • programs offered

      • worker hours

      • teams in the league

      • season tickets sold


Performance budgets2

Performance Budgets

  • Efficiency measures

    • Acres mowed per hour

    • Cost per person served

    • Hotel capacity rates

  • Effectiveness measures

    • How well the program achieves its goals or meets a need

    • % satisfaction on program evaluation


Performance budgets3

Performance Budgets

  • Advantages

    • Accountability of expenditures

    • Difficult to hide money

  • Disadvantages

    • #’s driven

    • Not everything in rec is quantifiable


Performance program budgets p pb

Performance/Program Budgets (P/PB)


P pb budgets

P/PB Budgets

  • Newest form of budgeting

  • Focus on outputs & outcomes

  • Links objectives & end results

  • Shows relationship between inputs, outputs & outcomes


Questions on types of budgets

Questions on types of budgets??


Budget prep philosophies issues

Budget Prep Philosophies & Issues


Budget preparation philosophies

Budget Preparation Philosophies

  • Zero based budgeting

  • Open ended budget

  • Alternative budgets

  • Historical analysis

  • Fixed ceiling budget


Zero based budgeting

Zero Based Budgeting

  • Start with no previous budget

  • Examine effectiveness & value

    • Objectives

    • Outcomes

  • Develop & rank budget packages

  • Top x # of programs funded

  • Used more in the commercial sector


Zbb advantages

ZBB- Advantages

  • All programs have equal opportunity for funding

  • More detailed info is generated to justify program

  • Objectives & priorities are examined regularly

  • Eliminates waste by eliminating programs not meeting objectives


Zbb disadvantages

ZBB - Disadvantages

  • Information overload

  • Political nightmare

  • Time consuming


Open ended budget

Open Ended Budget

  • No restrictions on spending

  • Submit budget for optimum programming

  • Later adjust the budget to meet funding capabilities of agency

  • Seeing less of this


Alternative budgets

Alternative Budgets

  • Prepare a basic budget & then alternatives to it

    • Alternatives not shared with board or public

  • Time consuming!


Historic analysis

Historic Analysis

  • Historical analysis

    • Looks at past to predict future


Fixed ceiling budget

Fixed Ceiling Budget

  • Limits growth of expenditures

  • Doesn’t see changing needs of organization

  • Ie.1% growth, no growth budget

    • Expenditures = 155,000 v 1% = $156,550

  • Can you just turn in last year’s budget?


Bidding process

Bidding Process

Invitation to Bid

RFP

Request for Quotation


Bidding process1

Bidding Process

  • Invitation to bid (sealed/legal bids)

    • Advertised contract or sealed bid

    • Price is submitted in a sealed envelope

    • All bids are opened at the same time

    • Eg.

      • Printing

      • Equipment

      • T-shirts


Budgets

  • Body of Notice: INVITATION TO BIDDERSThe State of Alaska, Department of Natural Resources, Division of Parks and Outdoor Recreation, subject to the provisions of AS 41.21.020 will receive sealed bids for Bunkhouse & Warehouse Foundations, Project Number 70111-3, near Palmer, Alaska. Work includes replacing the existing foundations on two (2) historic buildings at the independence Mine State Historic Park.The bids will be received until 3:00 pm prevailing time on June 10th, 2003 at the division's Anchorage office, 550 W 7th Avenue, Suite 1340, Anchorage, Alaska 99501-3565 at which time and place the bids shall be publicly opened and read.Bids may be held by the Division for a period of forty (40) calendar days from the date of opening for the purpose of reviewing the bids and investigating the qualifications of the bidders prior to awarding the contract.Plans, specifications and contract documents may be obtained at a cost of $25.00 per set non-refundable by all who have a bona fide need for them for bidding purposes from the Director, Division of Parks and Outdoor Recreation, 550 W 7th Avenue, Suite 1340, Anchorage, Alaska 99501-3565. For information call 269-8731.Disadvantaged Business Enterprises are encouraged to submit proposals.The TTD telephone number for hearing impaired persons is (907) 269-2259.The State of Alaska is an Equal Opportunity Employer and it complies with Title II of the Americans with Disabilities Act of 1990. Individuals with disabilities who may need auxiliary aids, services, and/or special modifications to submit a proposal should contact the TTD number no later than one week prior to the submittal date to make any necessary arrangements.Engineer's Estimate is between $500,000 and $1,000,000.


Budgets

INVITATION FOR BID

JOHNSON COUNTY PARK AND RECREATION DISTRICT

Sealed bids will be received by the Planning & Development Department for the Johnson County Park and Recreation District (the “District”) at the JCPRD Administration Building located at 7904 Renner Road, Shawnee Mission, Kansas, 66219 until 2:00 pm on August 18, 2009 for the following four (4) bid items:

  • 1. Kill Creek Trail Concrete Sidewalk, Retaining Wall, Bridge Abutments

  • 2. 2009 JCPRD Miscellaneous Concrete Work

  • 3. 2009 JCPRD Miscellaneous Asphalt Work

  • 4. Prefabricated Concrete Restroom Building, Fabrication, Delivery and Setup.

    Bids will be opened and publicly read in the JCPRD Administration Building Boardroom at the time and date set forth to accept bids. Bids will then be delivered to the Board of Commissioners of the District for bid award determination at a public meeting of such Board to be held within 30 days following such bid opening.


Budgets

Idaho Parks and Recreation issued the following news release:

Sealed proposals will be received by the State of Idaho, Department of Parks and Recreation (IDPR), 5657 Warm Springs Avenue, Boise, Idaho 83716. All bids must be received at our Headquarters by 5:00 p.m. Mountain Standard Time on Wednesday, October 22, 2008, for: THE PURCHASE OF USED OVER SNOW VEHICLES (OSVs).

The following OSVs are being sold "as-is" and are available for examination by appointment, by contacting IDPRs Senior Buyer at (208)514-2499.

One (1) 1999 Tucker and a tiller, with approximately 2872 hours, located in Elk River, ID.

One (1) 1995 Pisten Bully ...


Bidding process2

Bidding Process

  • Request for Proposal (RFP)

    • Negotiated contract

    • General specs outlined

    • Submit proposal for what they will do for the price

    • Negotiate details with the selected vendor

    • Egs.

      • Strategic planning


Budgets

PURPOSE:

The City of Seattle, Department of Parks and Recreation, is issuing this Request for Proposal (RFP) for an Operator to install and manage the ongoing operation of a seasonal, temporary Ice Skating Rink at Occidental Square Park for the winter of 2009-2010.

The selected Operator will be allowed to propose a management and business plan that includes concession activities, event programming, and other activities that generate revenues to help defray their operating costs.

The Department will select the proposal that best addresses the goals and purposes as described in the RFP. Please review the following information carefully, and thank you for your interest in this RFP.

RFP schedule….


Budgets

RFP SCHEDULE:

March 31, 2009 Complete Draft of RFP Packet

April 15, 2009 Final RFP Packages available for pick up or mailed out to potential proposers and interested parties

April 15, 2009 Publish Ad in news media locally

April 29, 2009 Deadline for written questions to the Dept. from proposers

May 6, 2009 Deadline for Dept. responses to proposers’ questions

May 27, 2009 RFP Submittal Deadline

June 2-3, 2009 Evaluation Panel reviews and scores proposals

June 9-10, 2009 Oral interviews – Optional by Department

June 17, 2009 Recommendation to Superintendent of successful proposer

June 24, 2009 Superintendent decision, successful proposer notified

July 1, 2009 Issue a one year permit to operate pending finalizing the long-term agreement

July - Aug. 2009 Agreement negotiation

September 2009 Law Dept. and Dept. of Finance review of

Agreement/Legislation

October 2009 Proposed Ordinance is submitted to the City Council

November 2009 Agreement commencement date


Questions

Questions??


  • Login