A ___________ is a list of probable/estimated expenses and income during a given period, most often one year.
Budget
A ___________ _________ is a plan or schedule adjusting expenses during a certain period to the estimated income for that period.
Financial budget
Match the Role of the branch of government to the budget process:
a. Executive
b. Legislative
c. Judicial
1. Settles disputes
2. Makes laws,levies taxes, authorizes spending
3. Proposes and spends the budget
A = 3
B = 2
C = 1
5. The phases of the budget cycle are:
A. Allocation, obligation, expenditure, audit B. Execution, allocation, preparation, audit
C. Preparation, approval. execution, audit
D. Approval, preparation, execution, audit.
C. Preparation, approval, execution, audit
Budgeting is a ______________ annual process resulting in a written commitment.
Continuous
In summary, a budget is a critical document for ________, ________
and ________.
Operations
Planning
Administration
Personnel services, Operating expenses and Capital Expenses are the three major parts of the _____________ ________________.
Operating budget
The ______________ _____________ deals with expenses needed to run the department.
Operating Budget
Operating expenses exclusive of personnel is considered as ________________.
Overhead
The _______________ budget sets aside funds for special needs that arise (emergencies, special events, and unanticipated expenses).
Discretionary
Budgets are a law enforcement agency’s work plan translated into ________.
Dollars
___________ ______ budget is when funds may be expended up to the total amount approved regardless of category.
Bottom Line
_________________ is the process by which financial information about an agency is recorded, classified, summarized, interpreted and communicated to managers.
Accounting
_________ _____ the 12-month accounting period used by an agency.
Fiscal year
____________ _______ ________________ is a person licensed by a state to do public accounting.
Certified Public Accountant – CPA
________ _____ _____ is a cash fund of a limited amount used to make small expenditures.
Petty cash fund
Encumbrance- Committed during the current year for ______________ future expenditure for a specific line item.
Projected
Obligation- Cash liability. Money ________ to vendors for products and or services provided.
Owed
GAAP stands for ____________ ____________ ______________ ____________. The rules of accounting used by agencies (State & Local Governments) in reporting their financial activities.
Generally accepted accounting principles
Reducing _________ is all employees’ responsibility.
Cost
Match the term with the definition:
A. A gift of money from one entity to another Revenue
B. Money collected from any source
C. A loan to a government to be paid back w/ interest
1. Taxes
2. Bonds
3. Grant
A = 3
B = 1
C = 2
Preparing police budgets is difficult because most law enforcement services are ___________________.
Intangible
Employees should submit their ideas relating to budget items to their most ________________ ________________.
Immediate supervisor
Budget preparation should be a ____-___________ project.
Year-round
The _________ _____________ is the most important document to the police administrator in developing the budget
Budget manual
The _________ _____________contains all the needed information and ground rules for completing the budget.
Budget manual
___________ ____________ ________ are used to justify major discretionary purchases, new line-items or activities or significant increases in a line-item or activity.
Budget justification forms
True or False – Audits are submitted to a higher authority.
True
_________ _________________ means providing the same or more services with less funding, or budget reduction resulting from reduced expenditure spending.
Cutback budgeting
Which of the following is not a cause of cutbacks?
E. embezzlement
True or False - Reducing costs is every employee’s responsibility.
True
The lead federal funding agency for law enforcement programs is ________Office of Justice Programs
DOJ’s – Department of Justice
The _________ is the primary funding arm for law enforcement agencies.
BJA – Bureau of Justice Assistance
The availability of grants is advertised in the _________ _____________ and _____________.
Federal register and www.Grants.Gov
Six components of effective grant writing are:
1. A statement of need
2. How this need can be met
3. Who will accomplish the tasks
4. What time line will be followed
5. What the cost will be
6. When you may look for approval to proceed
The focus of _____-______ budgeting is to control and limit spending to line items by object code.
Line-item
The _________ _______________ system looks at work as programs.
Program Budgeting
____-___________ budgeting system assumes NOTHING is getting funded, requires justification of all expenditures, not only those that exceeded the prior year’s allocations.
Zero-Based
True or False – Performance Based Budgets:
Focus on Efficiency and Productivity and has performance measures.
True
________-_____ budgets are usually based on the preceding year’s budget and a comparison between it and actual expenses
Line-Item
True or False - Program Budgeting System (PBS) identifies the various programs an agency provides and allocates funds for each.
True
True or False - Zero Based Budgeting (ZBB) begins with a clean slate, justifying each expenditure anew
True
Activity Based Costing (ABC) is the modern version of program based budgeting and breaks down costs by _______.
Activity
Discretionary budgets are for ____________ needs that arise.
Special
What percentage of the average total police budget is for personnel?
80-85%
True or False – Bottom Line Budgeting allows for funds to be expended up to the total amount approved regardless of category.
True
True or False - A basic starting point for budget preparation is the previous year’s budget.
True
The Federal Government’s fiscal year starts in:
C. October
True or False – Absenteeism and turnover are common cost problems.
True
True or False – Variance Analysis consists of comparing actual costs against what was budgeted and analyzing differences
True
A formula or ________ grant is awarded to states or localities based on population and crime rates.
Block
True or False – Variable costs do not vary in total even though the amount of service provided is more or less than anticipated.
False – this is a definition of fixed costs
The top common cost problems are ___________, __________ and ___________.
Absenteeism
Turnover
Paperwork
The budgeting system where dollars are allocated based on productivity is called _______________ _______ ________________.
Performance based budgeting
The two classes of expenditures are __________ and _______________.
Fixed and variable
Of the total amount budgeted for salaries and benefits, what percentage is allocated for fringe benefits?
25%
Operating costs that cannot be easily assigned to a particular department are ___________ expenses.
Indirect
__________ budgeting means providing the same or more services with less funding.
Cutback
A 12 month accounting period is also known as ________ ______.
Fiscal year
True or False – Salaries and benefits are considered direct expenses?
True
Rent and insurance are considered ___________ costs.
Fixed
True or False – Line item budgeting was initiated in the 1900’s and is widely used today.
True
True or False – The first step in solving cost problems is to identify waste.
True
A modern version of the program budgeting system that breaks down costs by activity is called __________ ____________ _______________.
Activity Based Costing
A list of major and minor object codes in a budget is a _______ __ ____.
Chart of Accounts
______________ can suggest ways to cut costs through an employee cost improvement suggestion program
