1 / 13

BUDGET METHODS AND PRACTICE

BUDGET METHODS AND PRACTICE. Preparation of Agency Budget Requests Review of Budgets Balancing the Overall Spending Plan Managing Budget Execution Audit & Evaluation. PREPARATION OF REQUESTS I. Budget Instructions or Guidance Main Goals of the Executive

jeroen
Download Presentation

BUDGET METHODS AND PRACTICE

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BUDGET METHODS AND PRACTICE Preparation of Agency Budget Requests Review of Budgets Balancing the Overall Spending Plan Managing Budget Execution Audit & Evaluation

  2. PREPARATION OF REQUESTS I • Budget Instructions or Guidance • Main Goals of the Executive • Forecasts of Critical Operating Conditions and Prescribed BASELINE • A Prescribed FORMAT • A Time Schedule • MAXIMUM Increase

  3. PREPARATION OF REQUESTS II • Agency Proposals • Narrative -- Current Commitments and Expected Results from New Initiatives • Detail Schedules establishing Baselines • Cumulative Schedules Showing Effects of New Initiatives (up or down) on Details and Revised Totals Description dominates numbers. Budgeting is logic, justification, and politics -- not accounting.

  4. Spenders’ Budget Tactics: Ubiquitous • Cultivation of an active and influential (well-organized) clientele • Media • Demonstrate competence • Deliver • Explain -- show understanding and mastery of situation

  5. Avoiding Cuts: Propose a study Cut Popular programs Dire consequences All or nothing You pick We are the experts Seeking Bucks for the Base Round up Glitter Sprinkling Physical units Workload and backlog Spenders’ Budget Tactics: Contingent I

  6. Seeking New Bucks: Old stuff Initial commitment It pays for itself Spend to save Crisis Mislabeling What they did makes us do it Mandates Matching the competition It’s so small Spenders’ Budget Tactics: Contingent II

  7. Budget Justification -- Or, Why the Numbers in Next Year’s Budget are Different from this Year’s • Major Programmatic Changes/New Services -- Major Cutbacks of Service levels • Price/Wage Changes • Workload Changes • Methods Improvements • Full Financing of Activities Initiated in the Current Year

  8. Estimates: Grouped by Organization; Task, Purpose, Function, or Activity, AND OE or Account Code • Wages and Salaries • Non-Wage Personnel Costs • Non-personnel Costs (Cost Drivers) • Volume x Unit Price • Ratios to another OE • Adjustment to Prior Year Cost • Breakeven Analysis

  9. EXECUTIVE REVIEW I • Policy Rationale/Conformity with Executive Priorities • Conformity with Budget Guidance/Including all Required Supplemental Documents • Arithmetic

  10. EXECUTIVE REVIEW II • Linkages • Program Changes • Omissions • Ratios, Shares, Trends • Clear Tradeoffs

  11. BALANCING THE CONSOLIDATED BUDGET • Budget Message • Summary Schedules • Detail Schedules • Performance Targets • Supplemental Data • Many on the Assumptions Presented in the Budget Guidance and Trends

  12. BUDGET EXECUTION I • Preventive Controls • Procurement • Personnel • Pre-audit • Allotments • Feed-forward Controls -- Diagnostic Tools, e.g. variance measures • Feedback Controls -- affect Next Year’s Budget, Fig. 3.1

  13. BUDGET EXECUTION II • Internal Controls • Personal Responsibility • Personnel Qualifications & Rotation • Segregate Responsibilities • Separate Operations and Accounting • Maintain Controlled Proofs and Security • Record Transactions -- complete journal and general ledger

More Related