Capital Planning And Budgeting System Process

1667 Words7 Pages
Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicated by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans that are required to finance those investments (p. 475). Capital budgeting is a central part of the universal practice of accounting as it has an implication on the other…show more content…
The agency relies on capital budgeting as a tool to ensure that all capital and resources are being well utilized. The process of capital budgeting entails the emphasis on key aspects that includes determining debt capacity, funding and other activities that may include refunding and the restructuring of the existing debt obligations. FLDOE just like other agencies perceive a budget differently and the management believes it as a tool and a plan to create a productive environment and for the company to achieve goals and objectives. Florida Department of Education are responsible for the improvement, growth and use of planned strategic management data for the provision of short and long-range planning, planning for public schools, community colleges, state universities, and associated education undertakings. Respectively state public agencies and also many local agencies are actively using the systematic method of capital budgeting in calculating the annual budgeting forecast. This is because they are all obliged with the responsibility of numerous projecting on their investments and principally on their potential expenditures.
Debt capacity
Debt capacity is an essential feature that many public and private financiers and accounting experts are paying substantially more attention to in recent years. As expounded in the
Get Access