The document provides information about operational budgeting for the CASAP Annual Conference held on January 17-18, 2009. It defines different types of operating budgets including line-item, program, performance, and zero-base budgets. It then gives examples of the Nevada County Agricultural Commissioner's 2008-09 budget, including estimated revenues from government agencies and fees, and planned expenses for personnel salaries and benefits, equipment, supplies, and other operating costs.

1. Operational Budgeting
CASAP Annual Conference
January 17 and 18, 2009

2. 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

3. Definition
 Sincean operating budget is a short term
budget, capital outlays are excluded because
they are long-term costs.
Business Dictionary

4. Purpose
Provide 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

5. Operating Budget Types
 Line Item
 Program
 Performance
 Zero-Base

6. 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

7. templeton.org

8. 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

10. 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

12. 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 year's total
balance, or an estimate of it.
 Wiki.answers.com

13. 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

17. Nevada County Agricultural
Commissioner 2008-09 Budget

19. Budget Schedule
 Department meetings
 Budget Kick-off
 Rate Sheets
 Discretionary spending
 CEO/CAO meetings
 Board Budget Subcommittee
 Final Draft
 Public Hearing / Board Approval

20. 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

22. Compilation of Program Budgets
Program 1 Program 2 Program 3 Total
Personnel
Employee 1
Employee 2
Other Direct Costs
Travel
Supplies
Professional
Services
Indirect Costs
(Overhead)

23. Adopted Current Proposed
Budget Budget Actuals Projected Budget
Account 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

24. EXPENSE Budget Budget Actuals Projected Budget
Account 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

25. 520010 MISC EXPENSE
520200 CLOTHING & PERSONAL $450 $450 $432 $450
520310 TELEPHONE SERVICE $0 $0 $0
520690 HOUSEHOLD EXPENSE
520700 INSURANCE $0 $0 $0
520900 MAINTENANCE EQUIPMENT $2,500 $2,500 $2,721 $2,861
520910 MAINTENANCE FUEL $0 $0 $226 $450
521000 MAINTENANCE BLDG
521200 MEMBERSHIPS $100 $100 $0 $100
National W&M Assoc
Western W&M Association
521410 OFFICE EXPENSE $450 $450 $173 $450
521470 COMPUTER SOFTWARE & LIC $0 $0 $311 $311
521480 COMPUTERS & RELATED EQUIP $0 $0 $0 $1,850
521493 CENTRAL SERVICES OTHER
521520 PROFESSIONAL SERVICES $0 $0 $0 $50
521551 INTERFUND DEPT ALLOCATION
521552 INTERAGENCY ALLOCATION $7,084 $7,084 $4,123 $7,084
521553 INTERAGENCY EXPENSE $0 $0 $0
521560 INTERFUND SERVICES-OTHER
521561 INTERFUND SERVICES- A/C
521563 INTERFUND SERVICES-PERSONNEL $0 $0 $0
521564 INTERFUND SERVICES-TELEPHONE

27. CSAC
http://sco.ca.gov/ard/manual/cntyman.pdf

28. Jeff Pylman
Nevada County Agricultural Commissioner
530-273-2648
Jeffrey.pylman@co.nevada.ca.us