E07 Budgeting

Card Set Information

E07 Budgeting
2013-05-02 15:02:55
E07 Budgeting

SPSC E07 Budgeting
Show Answers:

  1. A budget is a critical document for ____________.
    Operations, Planning, & Administration

    "Answer...All the Above."
  2. Budgeting is an __________ & _________ process:
    Annual and Continous Process

    (Answer: "Both A & B")
  3. Discretionary budgets are for _________ that arise
    Special Needs
  4. A starting point for budget preparation is:
    The Prior Year's Budget
  5. Some communities operate on a certain philosophy which permitts departments to shift funds from one budget to the other as long as the total budget amount is not exceeded.

    This philosophy is called?
    "Bottom-Line" Philosophy
  6. Which of the following statements is true?

    1. Tough decisions are often necessary regarding the budget?

    2.  Not all factors can be measured in dollars?

    3.  All budget items require justification?
    All of the above statements are TRUE
  7. Personnel costs account for what total percent of the police budget?

    Of this... how much of this is fringe benefits?

    ANSWER: 25%
  8. Subordinates should submit their budget proposals to whom?
    Immediate Supervisor
  9. The Federal Government's fiscal year starts in what month?
  10. The process by which financial information about an agency is recorded, classified, summarized interpretted and then communicated to managers and other interested parties is called?
  11. Top 3 common cost problems include:
    • 1.  Absenteeism
    • 2.  Paperwork
    • 3.  Turnover

    Answer: "All the above"
  12. Variance budget analysis involves:

    A.  Proactive Budgeting

    B.  The difference between actual costs and the amount budgeted

    C.  The difference between estimated costs and actual budget

    D.  None of the above
    D. None of the above

    Variance analysis is the difference between what is budgeted and what will be spent. 

    Variance analysis basically tells you what you have left over.
  13. Cut back budgeting/ reducing costs is often referred to as:
    A.  Doing more with less
    B.  Budget reduction
    C.  Reducing expenditure spending
    D.  All the above
    D. All the above
  14. What type of grants are awarded to states based on population and crime rates?
    Formula Grants.

    (...Also known as Block Grants)
  15. Costs that do not vary in total during a period even though the amount of service may be more or less than anticipated are called?
    Fixed Costs
  16. The budgeting process begins with the Department's:
    A.  Goals
    B.  Objectives
    C.  Work Plans
    D.  All the above
    D. All the above
  17. The budgeting system where dollars are allocated based on productivity is ___________.
    Performance Based Budgeting
  18. Budgeting is a _______ process and a __________ committment
    Continuous Process and a Written Committment
  19. The leading federal funding agency for all law enforcement programs is the _____________.
    Department of Justice (DOJ).
  20. The budgeting system that requires justification for all expenditures, not only those that exceeded the prior years allocation.
    Zero Based Budgeting
  21. The budget is usually divided into two classes of expenditures:
    Fixed and Variable
  22. Operating costs that can not be easily assigned to a particular department when transactions occur and are recorded are called __________ expenses.
    Indirect Expenses
  23. All levels police budget approach means that all levels of personnel should be involved in budget preparation.

    True or False?
  24. Operating expenses of the department or agency exclusive of personnel are called _______________.
  25. The 12 month accounting period is also known as the _____________.
    Fiscal Year
  26. A list of probable expenses and incomes during a given period.
  27. Costs that arise out of normal activities of the agency.
    Operating Expenses
  28. TRUE or FALSE?

    A budget is a working document to be used not to be cast in stone or held in reverence.
  29. Reducing costs is all employees' responsibility.

    TRUE or FALSE?
  30. Preparing budgets is difficult because most law enforcement services are intangible?

    TRUE or FALSE?
  31. Salaries and benefits are considered direct expenses.

  32. TRUE or FALSE?

    An agency's calendar year and fiscal year are always the same.
  33. TRUE or FALSE?

    Rent and insurance are considered fixed costs.
  34. TRUE or FALSE?

    All law enforcement employees should contribute ideas related to budget items as specific needs arise.
  35. TRUE or FALSE?

    Budgets prepared using a logical process beginning with the lowest levels of the department and working upward will be more accurate and complete.
  36. TRUE or FALSE?
    Line Item Budgeting was initiated in the 1930's and is no longer popular.
  37. TRUE or FALSE?

    Chiefs should develop a mindset that sees budgeting as a year round process, not just a task that occurs once per year.
  38. TRUE or FALSE?

    Most budget items are short term that are applicable to current year activities.
  39. TRUE or FALSE?

    The use of volunteers is declining in law enforcement departments across the country.
  40. TRUE or FALSE?

    The CPA is an accountant licensed by the state to do public acounting.
  41. TRUE or FALSE?

    A cash fund of limited amount used for small expenditures when it is not practical to write checks is called a "slush fund."

    Petty Cash
  42. TRUE or FALSE?

    The first step in solving cost problems is identifying waste areas.
  43. TRUE or FALSE?

    A Formula Grant is also called a Block Grant.
  44. A modern version of the program budgeting system that breaks down costs by activity is called _____________.
    Activity Based Costing
  45. TRUE or FALSE?

    Rules of accounting used by agencies in reporting the financial activities are called GAAS.

    • GAAS - Auditing
    • GAAP - Accounting
  46. TRUE or FALSE?

    A capital budget deals with expenses that run the department. 

    Capital Budgets deal with BIG TICKET ITEMS
  47. TRUE or FALSE?

    Operating costs that can be identified with specific individual departments are called indirect expenses.

    Direct Expenses
  48. __________ reports should be made known to everyone who directly or indirectly influences the costs.
    Variance Reports
  49. Most police budgeting is both a(n) __________ and ___________ process.
    Annual and Continuous process
  50. This philosophy holds that funds may be expended up to the total amount approved regardless of category?
    Bottom Line Budget Philosophy
  51. Budget preparation reponsibility may be assigned to
    A.  The Records Division
    B.  Any of these
    C.  Finance Officer
    D.  Seperate Police Division
    B. Any of These
    (this multiple choice question has been scrambled)
  52. All levels of police budgeting approach means:
    A.  All of these
    B.  All levels must approve expenditures
    C.  All department categories must spend equally
    D.  All levels of personnel should be involved
    D.  All levels should be involved
    (this multiple choice question has been scrambled)
  53. Fiscal year is also known as the ___________ or __________ period for the agency.
    Accounting or Budget Period
  54. The basic starting period for a budget is what?
    The Prior Year
  55. Budgets are not invalible because _______ will always arise.
  56. Cut Back Budgeting requires:
    A.  Doing less for more
    B.  That contingency cost are required to cover cost
    C.  That not all factors can be measured in dollars
    D.  Using the same revenue to provide more services
    D. Using the same revenue to provide more services
    (this multiple choice question has been scrambled)
  57. According to the textbook, all are examples of ways to cut budgets EXCEPT:
    A.  Cutting equipment that is viewed as luxuries
    B.  Use a precendent
    C.  All are ways to cut budgets
    D.  Cut all requests for personnel increases
    C.  All are ways to cut budgets
    (this multiple choice question has been scrambled)
  58. Program budgeting:
    A. Is perceived by many managers as unproductive
    B.  Both A & B
    C. Neither A nor B
    D. Requires much paperwork
    B.  Both A and B
    (this multiple choice question has been scrambled)
  59. Personnel costs are _______ % of police budgets and ______% of fringe benefits
    • 80% - Police Benefits
    • 25% - Fringe Benefits
  60. Most departments have how many types of budgets?
    Answer:  2

    Financial and Discretionary
  61. The most important obligation by the government to the citizens is to protect __________ and ________.
    Lives and Property
  62. Using the team concept, departments can cut costs and make improvements at the same time by using a(n) ________________.
    Employee Suggestion Program
  63. Quartermaster Systems help officers maintain __________.
  64. Variance budget analysis involves the difference between the __________ and the ______________.
    Actual Cost and the Amount Budgeted
  65. Departments have begun charging for traditional services including ____________.
    DUI Arrests
  66. _____________ is a budgeting system where dollars are allocated based on productivity.
    Performance Budgeting
  67. Most budget items are ________ term for the current budget year.
    Short Term
  68. According to text, the asset forfeiture program is not designed to create property used in illegal activities.

  69. The budget is usually divided into two classes of expenses:
    Fixed and Variable
  70. TRUE or FALSE

    Once drawn up, a budget should be strictly adhered to and never exceeded.
  71. If you exceed your budget, you should apply for a _________________.
    Supplemental Appropriation
  72. TRUE or FALSE?

    Common costs are costs that are directly traceable to a segment of the agency such as a particular department or division 
  73. TRUE or FALSE?

    Reducing costs is a responsibility of all employees.
  74. Are you supposed to use 3 carbon copies for all notes?
  75. TRUE or FALSE?

    Preparing budgets are difficult because most agencies are intangible.
  76. TRUE or FALSE?

    Salaries and benefits are considered direct expenses.
  77. Overtime is a fixed or variable expense?
  78. TRUE or FALSE?

    An agency's calendar year and fiscal year are always the same.
  79. TRUE or FALSE?

    Another relatively new approach to saving costs that is being implemented by many agencies across the country is the effort to "Go Green."
  80. TRUE or FALSE?

    Long term expenses are easier to plan for than short term expenses.
  81. TRUE or FALSE?

    Rent and Insurance are considered fixed costs.
  82. TRUE or FALSE?

    All law enforcement employees contribute ideas to budget items as specific needs arise.

    ...They should tell their immediate supervisor
  83. TRUE or FALSE?

    Budgets prepared using a logical process beginning with the lowest level of the department and working upward will be more accurate and complete.
  84. TRUE or FALSE?

    The main clearing house for federal budgets is www.grants.gov which allocates billons of dollars in grants.
  85. TRUE or FALSE?

    Writing a grant application is fairly easy, most applications have templates for departments to use which make them essentially a fill in the blank type of application.
  86. TRUE or FALSE?

    An accounting period is a time covered by the income statements or other financial statements that report operating results.
  87. What type of budget deals with all expenses needed to run the department?
    Operating Budget
  88. ___________ funds is set aside for unforseen emergencies but the precise total of allowable expenditures is difficult to ascertain.
    Contingency Funds
  89. Expenses that do not vary in costs including insurance or rent...
  90. A periodic report summarizing the financial affairs of the agency 
    Financial Statement