Agency Budget Cycle Essay

The budget process is a powerful planning tool for government to make important resource decisions. According the Carney and Schoenfeld‘s article on How to read a Budget, an operating budget is a reflection of government’s financial plans. When a budget is

To begin with , budgeting in the public setting clearly have political implications ,as Rubin discussed in her writings “ The politics of public budgeting”. In the government’s effort to build an audacious spy satellite , the government surpassed it’s budget limit for a failed attempt on the creation of “F.I.A.” During this time the C.I.A and the government was in a rush to build this brand new spy program in order to spy on the soviet union. Although , after a while congress realized there were no progress in building the spy program and wanted to shut it down others in the political setting continuously paid for the project to keep it going. According to Phillip Taubman “ It took two more years, several more review panels , and billions more dollars before the government finally killed this project.”

The profession of accounting is a one that is highly regulated, due to the knowledge and power each accountant possesses. Although an accountants duties differ from one position to the next, the main sectors that accountants pursue are auditing or taxation. Auditing is ensuring the public that the information listed on the financial statements of public companies is free of material misstatements. While taxation is helping people or companies file their tax returns to the federal government or offering tax advice. In the world of auditing, you either follow the Public Company Accounting Oversight Board (PCAOB), for public company audits, or the American Institute of Certified Public Accountants (AICPA), for other entities

The GAO was founded in 1921 when the Budget and Accounting Act transferred accounting, auditing responsibilities, and claims functions away from the treasury Department to the new agency (GAO 2014). Federal financial management was a disaster after World War I due to wartime spending that had driven up the national debt. As a result, Congress felt it needed more information and better control over expenditures. The Budget and Accounting Act made the GAO independent from the executive branch and gave it the task of investigating how federal dollars are truly spent. Legislation made after the creation of the GAO added new nuances to its role in the federal government role, but the Budget and Accounting Act continues to serve as its foundation for all work it partakes in.

The State of New York’s budget process involves six phases namely: The Call; The Executive Budget; Public Hearings; Legislative Amendments; Enactment Phase; and Implementation Phase. The budget process or cycle formally begins after the budget director issues the memorandum policy referred to as “The Call Letter” to heads of agencies. The Call Letter marks the official commencement of the budget process and starts at August and last through to October. As the early-mid fall approaches, each agency assembles a final program package and is then send to the Budgetary Division. By the time December starts, the budgetary division normally has completed the preliminary commendations for both the revenues and expenditures, and subsequently presents them to respective Governor Office (New York State Government, n.d.).

125). Preparation, approval and implementation are the main steps in the development of public budgets. First the preparation must be begin with the issuance of instructions from the executives, followed by the development of department budgets by the department managers. Once all departmental budgets are completed, they are sent to the central budget office for final review and revision before being sent to the elected officials for approval. Approval is issued by the elected officials after any necessary deliberations take place. Once approved by the elected officials, the budget is considered law and must be followed. The next step is implementation. The budget is constantly implemented as funds are released over the course of the year, reviewed for appropriate use and to verify the budget is in line with projections. Finally the budget must be reviewed at the end of the year by the budget office. A comparison is made between actual figures and budgeted figures. The information gathered in this final step is used in helping to determine future budgets (Bartle, Hildreth, & Marlowe, 2013). There are two major challenges to balancing public budgets. The many actors (e.g. CEO, CFO, department heads, staff, etc.) involved in the development of a public budget and span many departments, and many units in one department making the meeting and negotiating process difficult. Due to the many constraints of policy and the law, the budget process can be long and arduous with four steps stretched into many. These are a few of the many challenges involved in developing a balanced public

Analyze the steps required for budgeting, such as preparing a budget, making a financial plan, conducting a cost-benefit analysis, and making budget decisions.

Harding listened to the demands of the rich citizens, in terms of taxes. In 1921, he created the Bureau of the Budget, which provided the government with an accounting of its income, and it eventually helped in assessing past performances and in planning future government programs. This Bureau also allowed the government to decide what is best for the citizens and for the economy very easily. It saved so much money during such a crucial time, as it, for the first time ever, limited government spending. Additionally, Mellon, Harding’s Secretary of Treasure, introduced

At the same time staff meets with staff where goals and priorities are communicated. The second stage in the cycle relates to preparation where revenue estimates and possible available resources are determined (Florida Finance Officers Association, 2011). Departments equally prepare expenditure requests as well as forecasts. Once that is done, the chief administrator presents a proposed budget that serves as a reflection of the needs and desires of the community to the local governing body to undertake a review. The third stage of the cycle relates to adoption where a review is made by the governing body and recommendations made. Changes then follow, approval is done by the governing body and adoption of the budget takes place. The next step relates to an implementation where revenue collection and incurring expenditures occur according to the budget. Modification or amendment may equally take place in this stage depending on procedures that state laws establish. The last stage of the cycle relates to evaluation where performance measurement and internal reports preparation takes

* U.S. governmental oversight of accounting fraud and abuse and its effect on the company Potential corruption schemes to be aware of in the company

The Office of Management and Budget and the Congressional Budget office have some overlapping roles and different powers within our government. They both play key roles in the Federal budget and how it impacts US citizens. They work together while also providing

The Office of Management and Budget (OMB) was established through the Budget and Accounting Act of 1921. The OMB is the financial planning and management division of the Executive Office of the President (What is the Office of Management and Budget (OMB),) The director of the OMB is appointed by the President, and is in charge of the fiscal policy, the director speaks in front of congressional committees to discuss prosed budgets (Office of Management and Budget legal definition of Office of Management and Budget). The OMB does not have the authority to make laws, however it assists the President in developing the federal budget. The OMB evaluates the policies of the federal agencies, and makes sure that they are managing their finances appropriately.

4) Identify and explain the main activities that occur during the ‘Legislative Approval’ stage of the budget cycle.

There are three basic budgets to operate by. The government and military use a zero-based budget. Every year the budget starts at zero. Each budget unit must be justified for the next year. The key advantage to this system is that each budget unit is reviewed and analyzed every year (welch, 168). This allows the organization to determine if more or less resources should be requested in regard to the budget item. It also allows the organization to assess the need for the budget unit.

Budgetary cycle in Malaysia, consist of four stages which are planning, budget preparation, budget implementation and budget evaluation. In first stage, government organisations are accountable in planning the budget target. Also, they require planning activities and programs for following year with efficiency. Second stage, budget is prepared and approved. Third stage, after Parliament has been approved the budget; a General Allocation Warrant to the Accountant General’s office will issue by the Finance Minister. It is as an authority for Accountant General’s office to expend the consolidated funds required for the expenditure. Government organisations are accountable to keep all accounting records in a vote book; so that, the allocation gets control and the expenditure occurred has been account. Fourth stage, the final of budgetary process cycle, Accountant General’s Department, Auditor General’s Department, Parliament and others will involve. According to the Federal Constitution Article 106 and 107, all public accounts have to be audited by the Auditor General’s Department and must be presented in Parliament. Thus, government organisations shall be update and present all information to the Auditor General with accurately and completely to ensure that there is no misuse of public fund. Auditor General will audit, examine and evaluate the financial performance of the government organisation’s