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ABCs of Budgeting

ABCs of Budgeting. 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

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ABCs of Budgeting

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  1. ABCs of Budgeting BUDGET PREPARATION

  2. 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

  3. 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

  4. 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.

  5. Types of Budget Concepts • Line Item • Continuation • Performance • Planning • Management By Objective (MBO) • ZBB (Zero Based Budgeting)

  6. EXAMPLE OF BUDGET KEY COMPONENTS • Salary and Fringe Benefits • Operational • Capital

  7. 2011 General Fund Operating Expenditures Total = $432,956,364

  8. 2011General Fund Revenue Budget Total - $440,926,537

  9. BUDGET PREPARATION • S W O T ANALYSIS • Strengths • Weaknesses • Opportunities • Threats

  10. BUDGET PREPARATION • WHAT ARE YOUR STRENGTHS? • WHAT ARE YOUR WEAKNESSES?

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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)

  16. 2012 Budget Resolution Revenue Expenses

  17. 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

  18. Comments/Questions

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