Operational budgeting
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Operational budgeting

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Operational budgeting Operational budgeting Presentation Transcript

  • Operational Budgeting CASAP Annual Conference January 17 and 18, 2009
  • Definition An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts. It contains estimates of the total value of resources required for the performance of the operation including reimbursable work or services for others. It also includes estimates of workload in terms of total work units identified by cost accounts. Wikipedia
  • Definition Sincean operating budget is a short term budget, capital outlays are excluded because they are long-term costs. Business Dictionary
  • PurposeProvide a forecast of revenues and expenditures i.e. construct a model of how your organization might perform financially speaking if certain strategies, events and plans are carried out.Enable the actual financial operation of the business to be measured against the forecast.en.wikipedia.org
  • Operating Budget Types Line Item Program Performance Zero-Base
  • Line-item budget Budget typically used by governmental entities in which budgeted financial statement elements are grouped by administrative entities and object. These budget item groups are usually presented in an incremental fashion that is in comparison to previous periods. Line item budgets are used also in private industry for the comparison and budgeting of selected object groups and their previous and future estimated expenditure levels within an organization. Answers.com
  • templeton.org
  • Program Budget Planning-oriented approach to developing a program budget. A program budget is a budget in which expenditures are based primarily on programs of work and secondarily on character and object. It is a transitional type of budget between the traditional character and object budget, on the one hand, and the performance budget on the other. The major contribution of PPBS lies in the planning process, i.e., the process of making program policy decisions that lead to a specific budget and specific multi-year plans. Answers.com
  • Performance Budget Medium- to short-range budget used in governmental accounting. It is typical of the type incorporated by a Program Planning- Budgeting System (PPBS) but without references to long range goals. Answers.com
  • Zero-based Budget Zero based budgeting derives from the idea that such budgets are developed from a zero base; that is, at the beginning of the budget process, all budget accounts have a value of ZERO. This is in sharp contrast to the incremental budgeting system where generally a new budget tends to start with a balance at least equal to last years total balance, or an estimate of it. Wiki.answers.com
  • Operating Budget Summary County Operating Funds Available Funding  Fund Balance Used  Cancellation of Prior Years Reserves  Additional Financing Sources Financing Requirements  Financing Uses  Provisions for Reserves
  • Nevada County AgriculturalCommissioner 2008-09 Budget
  • Budget Schedule Department meetings Budget Kick-off  Rate Sheets  Discretionary spending CEO/CAO meetings Board Budget Subcommittee Final Draft Public Hearing / Board Approval
  • Procedure Identify major revenue sources  Contracts  Fees  Estimate amounts of revenue  Base contract costs and revenue received for work done Identify expenses (Contract Financial Plan based on staff and other costs)  Personnel Hours and Salary  Benefits  Overhead  Supplies  Mileage
  • Compilation of Program Budgets Program 1 Program 2 Program 3 TotalPersonnel Employee 1 Employee 2Other Direct Costs Travel Supplies Professional ServicesIndirect Costs(Overhead)
  • Adopted Current Proposed Budget Budget Actuals Projected BudgetAccount Description FY 08/09 FY 08/09 12/31/08 FY 08/09 FY 09/10 REVENUE 441530 STATE AGRICULTURE $2,700 $2,700 $2,700 $2,700 Weighmaster W&M petroleum Sub-Total Class 4 $2,700 $2,700 $2,700 $2,700 $0 445205 CIWMB - CA INT. WASTE MGMTBD $0 446160 FED CDBG 449000 OTHER GOVERNMENT AGENCIES $0 453630 WEIGHTS/MEAS INSPECT FEE $85,000 $85,000 $2,657 $85,148 Inspection Fee Device Registration NSAQMD - Vapor Recovery 455030 NSF CHECK COLLECTIONS Sub-Total Class 5 $85,000 $85,000 $2,657 $85,148 $0 462000 OTHER REVENUES $0 GENERAL FUND - AGRICULTURE $0 $21,477 FUND BALANCE USAGE
  • EXPENSE Budget Budget Actuals Projected BudgetAccount Description FY 08/09 FY 08/09 12/31/08 FY 08/09 FY 09/10 510100 PERMANENT SALARIES $53,080 $53,080 $28,578 510105 OVERTIME 510110 SHIFT DIFFERENTIAL 510115 STAND BY 510120 LEAVE PAYOFF $0 $0 $130 510200 TEMPORARY SALARIES $0 $0 $0 510300 RETIREMENT BENEFITS $16,216 $16,216 $9,245 510301 RETIREE HEALTH $3,142 $3,142 $1,575 510400 EMPLOYEE GROUP INSURANCE $12,988 $12,988 $6,525 510500 WORKERS COMP $610 $610 $610 510600 OTHER BENEFITS $764 $764 $357 Class 1 - Salaries and Benefits Total $86,800 $86,800 $47,020 $0 $0
  • 520010 MISC EXPENSE520200 CLOTHING & PERSONAL $450 $450 $432 $450520310 TELEPHONE SERVICE $0 $0 $0520690 HOUSEHOLD EXPENSE520700 INSURANCE $0 $0 $0520900 MAINTENANCE EQUIPMENT $2,500 $2,500 $2,721 $2,861520910 MAINTENANCE FUEL $0 $0 $226 $450521000 MAINTENANCE BLDG521200 MEMBERSHIPS $100 $100 $0 $100 National W&M Assoc Western W&M Association521410 OFFICE EXPENSE $450 $450 $173 $450521470 COMPUTER SOFTWARE & LIC $0 $0 $311 $311521480 COMPUTERS & RELATED EQUIP $0 $0 $0 $1,850521493 CENTRAL SERVICES OTHER521520 PROFESSIONAL SERVICES $0 $0 $0 $50521551 INTERFUND DEPT ALLOCATION521552 INTERAGENCY ALLOCATION $7,084 $7,084 $4,123 $7,084521553 INTERAGENCY EXPENSE $0 $0 $0521560 INTERFUND SERVICES-OTHER521561 INTERFUND SERVICES- A/C521563 INTERFUND SERVICES-PERSONNEL $0 $0 $0521564 INTERFUND SERVICES-TELEPHONE
  • CSAChttp://sco.ca.gov/ard/manual/cntyman.pdf
  • Jeff PylmanNevada County Agricultural Commissioner530-273-2648Jeffrey.pylman@co.nevada.ca.us