Speaking With Claire I Learned That The Line Item Budget

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

The line item budget gives a detail example of what is spent where. This gives the greatest insight on where money can be saved and in what areas can have the greatest effect with additional funding. When cities are having trouble finding funding for departments that are as important as the police department these budgets will also help find money from other departments that can be used for the police department.

All departments of the City are required to submit requests for appropriation to the Finance Department on or before the first week of January each year. The Finance Department uses these requests as the starting point for developing a proposed budget. The government’s manager then reviews this proposed budget and makes adjustments to be presented to the Council at the annual budget retreat held at the beginning of March. The Council then makes any suggestions or changes in programs and policy and instructs staff to provide a budget document by the end of April, sixty days prior to the beginning of the fiscal year ("City of North Myrtle Beach," n.d.). Council then holds a public hearing and as soon thereafter as possible, adopts a budget and passes a tax levy ordinance and such other ordinances as may be required for accounting and budgetary control ("City of North Myrtle Beach," n.d.). Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted ("City of North Myrtle Beach," n.d.).

Case II is a continuation of Case I. In this case you will convert the line-item budget developed in Case I into a functional budget. Then you will employ further information to create a flexible budget. Refer to the Case I Solution for data.

The personnel services section of the CPD’s budget is the most important and accounts for the largest portion of funds. The department must staff an adequate amount of police officers and support staff to cover the 24/7 operations and to achieve its mission. An evaluation of the department’s budget should be conducted annually to ensure the department has enough staff to address the needs of the community.

A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.

I’m quite impressed by the way TLC (Taxi & Limousine Commision) proceed with its budgeting. The budget process of TLC is the same way like the government builds its budget. In New York, TLC’s inspired budgeting process engages taxi drivers and citizens responsible for adhering to the budget and implementing the agency’s objectives in creating the budget. The finance committee and senior staff input is built into timeline and process. This fact allows adequate time for review, research, feedback, revisions of drivers. before the budget is ready for presentation to the full board. The annual budgeting process is usually documented with everyday jobs, accountability assignments and deadlines. New York TLC budgeting process also incorporates

Touchstone budget expresses, in terms of dollars, the funded programs and plans of the Agency for the budget year and the estimated income necessary to finance these programs and plans. The budget is the primary instrument of fiscal control and, accordingly, contains all income and expenditures of the Agency.

Budgeting allows investors and banks to know that company is responsible with the money that goes in and out to determine their future. Also, budgeting allows a company to expand or create more businesses. My boss started his business as a mom and pop shop as a cleaning company Last year, he opened the restoration company, and this year he opens the cleaning supplies store and in the next month a window cleaning company. All his business relates to one another, but the overall success of his companies has known how to budget his expenses and profits. By budgeting, it has allowed him to continue investing in other ventures and secure his kids

A budget can be disadvantageous also. There is judgment and subjectivity in the budgeting process. It does not consider quality and customer service. Budgets can be seen as pressure devices imposed by management, thus resulting in: bad labour relations. Budget could results departmental conflict arises due to disputes over resource allocation, and departments blaming each other if targets are not attained. It is difficult to reconcile personal and corporate goals

Line item budgeting, which categorizes various expenses and places them in list format a document for budgetary purposes, can be associated with incremental budgeting as means for budget making because once that is done “Statutory or administrative controls

Budget formulation and use are tools that guide many decision making strategies in business. The measures that are least effective could create an avalanche of catastrophic events that can negatively impact the decision making strategies. It is in the best interest of the pertinent parties to draft an operating budget based on a collective set of information relating to organizational vision and mission. Ineffective measures can be catastrophic based on the foundation for measures used in creating the budget. Among the many issues organizations face that relates to creating an effective operating budget results from poor

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

Line-item budgeting. It is good for government to use this format, because Line-item format remains a popular and useful format, because of its easiness of control and clear reports. To the advantages of line-item possible to attribute strict control over the activities of state organs.

Budget and budgetary control practices are undeniably indispensable as organizations routinely go about their business activities and operations. These organizations are constantly on the alert on how actual levels of performance agree with planned or budgeted performance. A budget expresses a plan in monetary terms. It is prepared and approved prior to a particular budgeted period and explicitly may show the income, expenditure and the capital to be employed by organizations in achieving their goals and objectives.