Organization And Design Of An Effective Budget Function By R. Gregory Michel

Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made.

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

Budget preparation is a process with designated groups and individuals having defined responsibilities. According to Irene S. Rubin “ The public budget process mediates between organizations and individuals who want different things and determines who gets what out of the budget.”1The Government set up an annual budget that includes people perspectives, opinions , accountability and than determine how the budget will get divided based on protected interests. Moreover, Public budgeting determines how government spend money, provide necessary resources , and limit government expenditures to prevent overspending.

Texas’ two-year budget takes roughly twice that quantity of time to prepare, develop and distribute. Offices develop their appropriations requests in the first year; the legislative body approves the “General Appropriation Act in the second year, and the budget implemented over the following two years.” The foremost step in preparing the budget is the evolution of a statewide vision for the future of Texas government. The regulator, in cooperation with the “Legislative Budget Board”, (LBB), handles making the mission statement for Texas.

Budgeting is perhaps the most essential process involved in the United States government. While this process seems to exist only in the background, it is, in reality, what allows all other processes of government to function as they do. In order to satisfy the most necessities of modern society, changes must be made to each of the three major categories of the budget: the big five, the middle five, and the little guys.

“To budget is to fight over money and the things money buys” (Document A). The federal budget is adjusted every year and has to follow certain criteria set forward by the Preamble to the Constitution. The Preamble sets five goals that the budget must fulfill, these goals are: to establish justice, to insure domestic tranquility, to provide for the common defence, to promote the general welfare, and to secure the Blessings of Liberty to ourselves and our prosperity. Furthermore, it is difficult to decide what clusters of the federal budget to allocate money to in order to meet the five goals of the Preamble which are “The Big Five”, “The Middle Five”, and “The Little Guys.” In each of the three budget clusters,

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

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 explicate 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 is required to finance those investments (p. 475). Capital budgeting is a central part of the universal

Americans are not unfamiliar with the concept of a budget, in fact, most follow a budget on an everyday basis, however, the topic of a public budget can be overwhelming to many them. Although many Americans might have a small concept of how the federal budget works, very few are familiar with their local budget process, and even less familiar to their adopted annual city budget. Every local budget is as unique as the cities who developed them. The following paper will summarize, evaluate, and compare El Paso Texas and San Diego California’s 2012 budgets. It will compare their revenues, expenditures, and budget format. It will attempt to analyze the similarities and differences and determine the causes of such similarities and differences.

The budget process is the most important aspect of fiscal decision making in Public Administration. Smith and Lynch (2004), argues that “Public budgeting is an activity that many people view from their own perspectives and, thus, they do not comprehend the full complexity of budgeting” (p. 34). Similar to the contextual definition of complexity in budgeting process, a classic example was the State of California’s budget impasse for the year 2010-2011. This essay examines and analyses the concerns that lead to passing a late budget in the State of California. It further goes into details regarding the reasons, resolutions, and consequences faced due to the budget Impasse.

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

Budget analysis is an important process involving the evaluation of a given budget's efficiency. When conducting a budget analysis, it is crucial that all the problems areas be locate and that a check of the achieved financial goals be carried out. A budget analysis can be conducted on a monthly, quarterly as well as on a yearly basis. In this paper, we present an analysis of the state of Illinois Enacted FY2012 budget with a view of highlighting its efficiency and deficits.

Registering cost of centered budgetary destinations. Choosing the cost of different budgetary objectives is a fundamental framework that can incite achievement of needed cash related target. Cost check should be adequately versatile to alter future money related fluctuations and Companies' helper changes. Finding out

Budgets serve five main purposes; planning, facilitating communication and coordination, allocating resources, controlling profits and operations and evaluating performance and providing incentives. The budgeting process requires both technical and interpersonal leadership skills to achieve each of these purposes effectively. The director’s memo demonstrates several short comings in the budgeting process. The director instituted the “responsibility accounting system” as a means of evaluating performance. However, the DPW director has not consulted Sam in the budget process. Sam understands that his total expenditures are impacted by relatively unpredictable events that contribute to an uncontrollable element of his cost. The

The Government Finance Officers Association (GFOA) budget criteria framework covers 27 budgeting categories and was launched in 1984 to encourage the preparation of high quality budgets (Bland, 211). The following memo evaluates the budget of the City of Lake Oswego using GFOA’s Distinguished Budget Presentation Awards Criteria, and also compares it to the budget of the City of Detroit.