BUDGET METHODS AND PRACTICE.ppt

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1、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 Forecasts of Critical Operating Conditions and Pr

2、escribed BASELINE A Prescribed FORMAT A Time Schedule MAXIMUM Increase,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

3、 Details and Revised Totals Description dominates numbers. Budgeting is logic, justification, and politics - not accounting.,Spenders Budget Tactics: Ubiquitous I,Cultivation of an active and influential (well-organized) clientele Media Demonstrate competence Deliver Explain - show understanding and

4、 mastery of cost estimates Honesty,Spenders Budget Tactics: Ubiquitous II,Price Changes Workload Changes Methods Improvement New Services Full Financing,Spenders Budget Tactics: Contingent I,Avoiding Cuts: Propose a study Cut Popular programs Dire consequences All or nothing You pick We are the expe

5、rts,Seeking Bucks for the Base Round up Sprinkling Physical units Workload and backlog,Spenders Budget Tactics: Contingent II,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 Its so smal

6、l,Budget Justification - Or, Why the Numbers in Next Years Budget are Different from this Years,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 Deferred main

7、tenance and/or replacement of equipment,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 or activity level x Unit Price Ratios to another OE Adjustment to Prior Year

8、Cost Breakeven Analysis,BREAKEVEN ANALYSIS I,BREAKEVEN ANALYSIS II,BREAKEVEN ANALYSIS III,EXECUTIVE REVIEW I,Policy Rationale/Conformity with Executive Priorities Conformity with Budget Guidance/Including all Required Supplemental Documents Arithmetic,EXECUTIVE REVIEW II,Linkages Program Changes Omi

9、ssions Ratios, Shares, Trends Clear Tradeoffs,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,BUDGET EXECUTION I,Preventive Controls Procurement Personnel Pre

10、-audit Allotments Feed-forward Controls - Diagnostic Tools, e.g. variance measures Feedback Controls - affect Next Years Budget, Fig. 3.1,BUDGET EXECUTION II,Internal Controls Personal Responsibility Personnel Qualifications & Rotation Segregate Responsibilities Separate Operations and Accounting Ma

11、intain Controlled Proofs and Security Record Transactions - complete journal and general ledger,Thought Questions,Some programs have an explicit revenue component and policy makers make decisions about revenues and program characteristics with the long term sustainability of the program in mind. For

12、 instance, unemployment insurance or Social Security and there are actuarial studies that give us an idea of where we need to be in 5, 10, 20, etc years both from a revenue and an expense perspective if the program is to be in balance. Why dont we look at all program commitments this way?,Thought Questions,2. Someone once told me the problem with government is that it is easy to spend someone elses money. Do you think that is true?,