fiscal policy

1. Chapter 10
FISCAL
MANAGEMENT

2. FISCAL MANAGEMENT
• DEALS WITH GOAL SETTING,
• DESIGNING A BUDGET THAT IS
TARGETED TO ACHIEVE THOSE
GOALS,
• THE PROCESS OF BUDGET REVIEW
AND APPROVAL,
• AND THE ACTUAL MANAGEMENT
OF THE PROGRAM

3. IMPORTANCE AND FUNCTION
OF FISCAL MANAGEMENT
• ENSURE THE WISE AND EFFICIENT
USE OF RESOURCES
• PREVENT MISUSE AND WASTE
• FOCUS ON ACHIEVING OBJECTIVES
• ALLOCATE FUNDING TO NEEDS
• ENGAGE ENTIRE STAFF IN PLANNING
• GUARANTEE INTEGRITY & PURPOSE

4. BUDGETING
FORMULATION OF A
FINANCIAL PLAN . . .
• IN TERMS OF WORK TO BE
ACCOMPLISHED AND SERVICES
TO BE PERFORMED
• BASED ON PROJECTED
EXPENDITURES AND ESTIMATED
INCOME TO BE GENERATED

5. TYPES OF BUDGETS
• SHORT TERM AND LONG TERM
• CLASSIFIED IN VARIOUS WAYS:
– ORGANIZATIONAL UNIT OR FUND
– FUNCTION (E.G., TECHNOLOGY)
– OPERATIONAL
– EQUIPMENT AND SUPPLY
– CAPITAL OUTLAY
– HUMAN RESOURCE

6. CRITERIA FOR
A SOUND BUDGET
• CLEARLY PRESENTS FINANCIAL NEEDS
• KEY PERSONS IN THE UNIT CONSULTED
• IS A REALISTIC ESTIMATE OF INCOME
• REFLECTS EQUITABLE ALLOCATIONS
• FLEXIBILITY TO MEET EMERGENCIES
• PREPARED WELL IN ADVANCE
• REQUESTS ARE RALISTIC, NOT PADDED
• MEETS ALL ESSENTIAL REQUIREMENTS

7. THE PROCESS OF BUDGET
PREPARATION
• PLANNING
• COORDINATING
• INTERPRETING
• PRESENTING
• APPROVING
• ADMINISTERING
• APPRAISING

8. INVOLVEMENT OF
STAFF MEMBERS
• MAINTAIN INVENTORY RECORDS
• KEEP RECEIPTS OF EXPENDITURE
• IDENTIFY UNADDRESSED NEEDS
• GO OVER INITIAL BUDGET TO
ENSURE CORRECTNESS
• ENGAGE IN DISCUSSIONS TO HELP
PRIORITIZE NEEDS

9. BUDGET ORGANIZATION
• CLEAR INTRODUCTORY MESSAGE
• OVERALL GRAPHIC PROJECTION OF
ANTICIPATED INCOME & EXPENSES
• DETAILED ESTIMATE OF RECEIPTS
AND ITEMIZED EXPENDITURES
• SUPPORTING DOCUMENTATION IF
NEEDED TO CLARIFY ANY REQUESTS

10. REVENUE SOURCES FOR SPORT
AND PHYSICAL EDUCATION
• STATE (STATE UNIVERSITIES)
• LOCAL (PUBLIC SCHOOLS)
• GATE RECEIPTS
• CONCESSIONS
• ACTIVITY FEES
• BOOSTER CLUBS
• FUNDRAISING

11. PAY-TO-PLAY POLICIES
• FEE ASSESSED TO PARTICIPANTS
• SUPPLEMENTS SCHOOL REVENUES
• PREVENTS ELIMINATING SPORTS
• MORE FAIR TO NONPARTICIPANTS
• FEES MUST FAIRLY ADDRESS SPORT
COSTS AND GENDER EQUITY
• DISADVANTAGED STUDENTS NEED
ASSISTANCE OR EXEMPTION

12. ZERO-BASED BUDGETING
• INTRODUCED IN 1969 BY TEXAS
INSTRUMENTS COMPANY
• REQUIRES JUSTIFICATION FOR EACH
EXPENDITURE IN THE BUDGET
• EXPENDITURES ARE DETAILED AS
LINE ITEMS
• PROMOTES MORE FAIR AND
EQUITABLE FUNDING

13. STEPS IN THE PROCESS OF
ZERO BASED BUDGETING
• IDENTIFY GOALS
• GATHER DATA
• PLAN PROGRAM TO MEET GOALS
• IDENTIFY ALTERNATIVE WAYS TO
ACHIEVE GOALS
• DO COST ANALYSIS OF ALTERNATIVES
• MAKE DECISION AS TO FUNDING

14. PPBES
STANDS FOR:
• PLANNING -- PROGRAMMING --
BUDGETING -- EVALUATION --
SYSTEM
• HOOVER COMMISSION (1949)
• FORD MOTOR COMPANY (1950s)
• DEPARTMENT OF DEFENSE (1960s)

15. THE PPBES CYCLE
• GOALS AND
OBJECTIVE
• STATEMENT OF
NEEDS
• EXPECTED
SATISFACTION
• CONSTRAINTS
• IDENTIFY
ALTERNATIVES
• RESOURCE
REQUIREMENTS
• ESTIMATE OF
BENEFITS
• OPERATING PLAN
• IMPLEMENTATION
• EVALUATION
• FEEDBACK
• ANALYSIS

16. COST ANALYSIS
• NEEDED TO EVALUATE PRESENT
OPERATIONS AND THE PROJECTIONS
IN FUTURE BUDGETS
• LIMITED BY THE ACCOUNTING
SYSTEM AND SOFTWARE USED
• VERY APPLICABLE TO BUDGETS OF
SCHOOLS, COLLEGES, AND
UNIVERSITIES

17. BUSINESS MANAGERS AND
FINANCIAL OFFICERS IN
SCHOOLS AND COLLEGES
• FUNCTION
• OBJECTIVE – OBTAIN GREATEST
EDUCATIONAL VALUE FROM
EACH DOLLAR SPENT
• RESPONSIBILITES – next slide

18. RESPONSIBILITIES OF FINANCIAL
OFFICERS AND MANAGERS
• BUDGET AND FINANCIAL PLANNING
• PURCHASE & SUPPLY MANAGEMENT
• PLANNING FACILITY EXPANSION,
RENOVATION, & CONSTRUCTION
• HUMAN RESOURCE FINANCING
• STAFF DEVELOPMENT
• COMMUNITY RELATIONS

19. RESPONSIBILITIES OF FINANCIAL
OFFICERS (continued)
• TRANSPORTATION
• FOOD SERVICES
• ACCOUNTING AND REPORTING
• DEBT SERVICE
• INSURANCE
• LEGAL MATTERS
• GRANTS AND FINANCIAL AID
• SYSTEMS ANALYSIS

20. FINANCIAL ACCOUNTABILITY
• MANAGEMENT POLICIES FOR
FINANCIAL ACCOUNTABILITY
• ACCOUNTING FOR RECEIPTS
AND EXPENDITURES
• REASONS FOR FINANCIAL
ACCOUNTING