ABCs of Budgeting

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BUDGET PREPARATION
What is a Budget
 An itemized summary of expenditures
 Total sum of money allocated to your department
 A statement of the financial position of a
department/organization
 A plan for spending money for the designated period
 Useful for projecting future expenditures
Characteristics of a Budget
 A well thought out plan
 Detailed
 Contains estimated expenditures
 Includes appropriate subtotals and totals
 Concerning a defined length of time
 Explanation of activities
Working Definition
A budget is the plan for your department. It contains
detailed itemized estimates of all expenditures and
contributions from all sources
AND
Also a budget includes the amount and distribution of
funds needed to perform the
project activities over the fiscal year.
Types of Budget Concepts
 Line Item
 Continuation
 Performance
 Planning
 Management By Objective (MBO)
 ZBB (Zero Based Budgeting)
EXAMPLE OF BUDGET
KEY COMPONENTS
 Salary and Fringe Benefits
 Operational
 Capital
2011
General Fund Operating
Expenditures
Operations
23%
Capital
0%
Salaries and Fringes
77%
Total = $432,956,364
2011
General Fund Revenue Budget
Intergovernmental Revenue
5%
Reimbursement for
Services
7%
Miscellanous
2%
Charges for Services
15%
Use of Money and Property
2%
Fines and Forefeitures
4%
Taxes
63%
License, Permits &
Registrations
2%
Total - $440,926,537
BUDGET PREPARATION
 S W O T ANALYSIS
 Strengths
 Weaknesses
 Opportunities
 Threats
BUDGET PREPARATION
 WHAT ARE YOUR STRENGTHS?
 WHAT ARE YOUR WEAKNESSES?
BUDGET PREPARATION
 WHAT ARE OPPORTUNITIES THAT ARE VIABLE AND POSSIBLE
TO IMPLEMENT?



Are those opportunities realistic?
Are they cost effective
Are they attainable?
 Short term

Long term
 IF THERE IS A CHANGE WILL IT BECOME A THREAT TO
PERFORMING MANDATED FUNCTIONS IN YOUR OFFICE?


Be Proactive – in minimizing potential threats to changes that may
occur
Change potential threats into an opportunity to explore new
opportunities for providing a service delivery
HOW DO YOU PREPARE YOUR
BUDGETS
 Largest line item is Personnel
 Review every position and job functions
 Understand why your office is doing what it is doing
 Operations
 Determine if you can cut costs by doing something
more efficient
HOW DO YOU PREPARE YOUR
BUDGETS
 Project your expenditures for the year based on the year
to date total

Was there an activity performed that will not be done in the
upcoming year?
Example:
 cut down on publishing and printing a management book
mainly used for internal purposes. Place it online for
accessibility
 Capital
 Is this expense necessary to adequately perform job functions
 Understand why your office is doing what it is doing
FY 2011 CHALLENGES
 Property taxes collected down
 Assessments for commercial taxes are down
 Fines and Fees collected down
 Potential Health Benefits increase
 Potential decrease in State funding for grants
 Quality of Services jeopardized (asking staff to do
more with less)
 No Merit Increase for Staff for the 4th year
 Hiring Freeze in Place for the last 2 years
 Unfunded Mandates verses Funded Mandates
EFFICIENCIES
 Question cutting a budget line item

Does making the change make your service delivery more
efficient?
 Does an increase in the use of technology equate to
less personnel and decrease in operational expenses?



E-filing
Paperless Systems
Digital Courts (long term)
2012
Budget Resolution
Revenue
Expenses
APPROACH FOR FUTURE
 TO ACCOMPLISH THE MISSION OF YOUR
DEPARTMENT/ORGANIZATION
 Changed
 Modified, and/or
 Redirected
BECOME A SOUND FISCAL AND PROACTIVE AGENT
OF CHANGE FOR THE CITIZENS YOU REPRESENT
AND SERVE
Comments/Questions
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