operational budgeting
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
Since an operating budget is a short term budget, capital outlays are excluded because they are long-term costs.Business Dictionary
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
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 year's 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 Agricultural Commissioner 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 Total
Personnel
Employee 1
Employee 2
Other Direct Costs
Travel
Supplies
Professional Services
Indirect Costs (Overhead)
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
Sub- Total Cl;ass 6 $0 $21,477
474000 TRANSFERS IN
474001 TRANS SALES TAX REALIGN
TOTAL REVENUE $87,700 $87,700 $5,357 $109,325 $0
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
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
CSAC
http://sco.ca.gov/ard/manual/cntyman.pdf