Chapter 10
FISCAL
MANAGEMENT
FISCAL MANAGEMENT
• DEALS WITH GOAL SETTING,
• DESIGNING A BUDGET THAT IS
TARGETED TO ACHIEVE THOSE
GOALS,
• THE PROCESS OF BUDGET REVIEW
AND APPROVAL,
• AND THE ACTUAL MANAGEMENT
OF THE PROGRAM
IMPORTANCE AND FUNCTION
OF FISCAL MANAGEMENT
• ENSURE THE WISE AND EFFICIENT
USE OF RESOURCES
• PREVENT MISUSE AND WASTE
• FOCUS ON ACHIEVING OBJECTIVES
• ALLOCATE FUNDING TO NEEDS
• ENGAGE ENTIRE STAFF IN PLANNING
• GUARANTEE INTEGRITY & PURPOSE
BUDGETING
FORMULATION OF A
FINANCIAL PLAN . . .
• IN TERMS OF WORK TO BE
ACCOMPLISHED AND SERVICES
TO BE PERFORMED
• BASED ON PROJECTED
EXPENDITURES AND ESTIMATED
INCOME TO BE GENERATED
TYPES OF BUDGETS
• SHORT TERM AND LONG TERM
• CLASSIFIED IN VARIOUS WAYS:
– ORGANIZATIONAL UNIT OR FUND
– FUNCTION (E.G., TECHNOLOGY)
– OPERATIONAL
– EQUIPMENT AND SUPPLY
– CAPITAL OUTLAY
– HUMAN RESOURCE
CRITERIA FOR
A SOUND BUDGET
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CLEARLY PRESENTS FINANCIAL NEEDS
KEY PERSONS IN THE UNIT CONSULTED
IS A REALISTIC ESTIMATE OF INCOME
REFLECTS EQUITABLE ALLOCATIONS
FLEXIBILITY TO MEET EMERGENCIES
PREPARED WELL IN ADVANCE
REQUESTS ARE RALISTIC, NOT PADDED
MEETS ALL ESSENTIAL REQUIREMENTS
THE PROCESS OF BUDGET
PREPARATION
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PLANNING
COORDINATING
INTERPRETING
PRESENTING
APPROVING
ADMINISTERING
APPRAISING
INVOLVEMENT OF
STAFF MEMBERS
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MAINTAIN INVENTORY RECORDS
KEEP RECEIPTS OF EXPENDITURE
IDENTIFY UNADDRESSED NEEDS
GO OVER INITIAL BUDGET TO
ENSURE CORRECTNESS
• ENGAGE IN DISCUSSIONS TO HELP
PRIORITIZE NEEDS
BUDGET ORGANIZATION
• CLEAR INTRODUCTORY MESSAGE
• OVERALL GRAPHIC PROJECTION OF
ANTICIPATED INCOME & EXPENSES
• DETAILED ESTIMATE OF RECEIPTS
AND ITEMIZED EXPENDITURES
• SUPPORTING DOCUMENTATION IF
NEEDED TO CLARIFY ANY REQUESTS
REVENUE SOURCES FOR SPORT
AND PHYSICAL EDUCATION
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STATE (STATE UNIVERSITIES)
LOCAL (PUBLIC SCHOOLS)
GATE RECEIPTS
CONCESSIONS
ACTIVITY FEES
BOOSTER CLUBS
FUNDRAISING
PAY-TO-PLAY POLICIES
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FEE ASSESSED TO PARTICIPANTS
SUPPLEMENTS SCHOOL REVENUES
PREVENTS ELIMINATING SPORTS
MORE FAIR TO NONPARTICIPANTS
FEES MUST FAIRLY ADDRESS SPORT
COSTS AND GENDER EQUITY
• DISADVANTAGED STUDENTS NEED
ASSISTANCE OR EXEMPTION
ZERO-BASED BUDGETING
• INTRODUCED IN 1969 BY TEXAS
INSTRUMENTS COMPANY
• REQUIRES JUSTIFICATION FOR EACH
EXPENDITURE IN THE BUDGET
• EXPENDITURES ARE DETAILED AS
LINE ITEMS
• PROMOTES MORE FAIR AND
EQUITABLE FUNDING
STEPS IN THE PROCESS OF
ZERO BASED BUDGETING
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IDENTIFY GOALS
GATHER DATA
PLAN PROGRAM TO MEET GOALS
IDENTIFY ALTERNATIVE WAYS TO
ACHIEVE GOALS
• DO COST ANALYSIS OF ALTERNATIVES
• MAKE DECISION AS TO FUNDING
PPBES
STANDS FOR:
• PLANNING -- PROGRAMMING -BUDGETING -- EVALUATION -SYSTEM
• HOOVER COMMISSION (1949)
• FORD MOTOR COMPANY (1950s)
• DEPARTMENT OF DEFENSE (1960s)
THE PPBES CYCLE
• GOALS AND
OBJECTIVE
• STATEMENT OF
NEEDS
• EXPECTED
SATISFACTION
• CONSTRAINTS
• IDENTIFY
ALTERNATIVES
• RESOURCE
REQUIREMENTS
• ESTIMATE OF
BENEFITS
• OPERATING PLAN
• IMPLEMENTATION
• EVALUATION
• FEEDBACK
• ANALYSIS
COST ANALYSIS
• NEEDED TO EVALUATE PRESENT
OPERATIONS AND THE PROJECTIONS
IN FUTURE BUDGETS
• LIMITED BY THE ACCOUNTING
SYSTEM AND SOFTWARE USED
• VERY APPLICABLE TO BUDGETS OF
SCHOOLS, COLLEGES, AND
UNIVERSITIES
BUSINESS MANAGERS AND
FINANCIAL OFFICERS IN
SCHOOLS AND COLLEGES
• FUNCTION
• OBJECTIVE – OBTAIN GREATEST
EDUCATIONAL VALUE FROM
EACH DOLLAR SPENT
• RESPONSIBILITES – next slide
RESPONSIBILITIES OF FINANCIAL
OFFICERS AND MANAGERS
• BUDGET AND FINANCIAL PLANNING
• PURCHASE & SUPPLY MANAGEMENT
• PLANNING FACILITY EXPANSION,
RENOVATION, & CONSTRUCTION
• HUMAN RESOURCE FINANCING
• STAFF DEVELOPMENT
• COMMUNITY RELATIONS
RESPONSIBILITIES OF FINANCIAL
OFFICERS (continued)
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TRANSPORTATION
FOOD SERVICES
ACCOUNTING AND REPORTING
DEBT SERVICE
INSURANCE
LEGAL MATTERS
GRANTS AND FINANCIAL AID
SYSTEMS ANALYSIS
FINANCIAL ACCOUNTABILITY
• MANAGEMENT POLICIES FOR
FINANCIAL ACCOUNTABILITY
• ACCOUNTING FOR RECEIPTS
AND EXPENDITURES
• REASONS FOR FINANCIAL
ACCOUNTING