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Flashcards in Airport Operating Finance & Budget Preparation Deck (10)
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1
Q

What are the 3 Financial Ratios?

A

Leverage - ability to pay its obligations
Effectiveness- effective way to utilize its assets
Profitable - success in generating profit

2
Q

What is “break-even”?

A

The annual cost for providing, operating, maintaining, and administering an airport facility

3
Q

What are the 4 budget cycles?

A

1) budget preparation by executive agency (Airport exec, city manager, etc.)
2) budget is submitted to the legislative body (i.e. Commission, board, airline MII, etc.) for approval
3) execution/expenditure
4) audit

4
Q

What are the budgeting techniques?

A

1) Line-item - divided into specific purposes; least flexibility for Airport Exec
2) Performance Based Budget - what it’s trying to accomplish, how much it’s planning and what resources
3) Program Budgeting - divides expenditures by activities
4) Zero-based budgeting - starts from zero base

5
Q

What is a variance report?

A

Budget tracking tool

6
Q

Program Budgeting is…

A

Divides expenditures by activities

Most potential for policy makers to review the implications of spending

7
Q

Zero bases budgeting is…

A

Associating service levels in each program with cost and prioritizing all options

8
Q

Performance based budget is…

A

What each administrative unit is trying to accomplish

9
Q

Line item budget is…

A

List each Dept and assigns money

Least amount of flexibility

10
Q

When is an airport required to report finances to FAA?

A

Commercial airports enplaning 2500 or more file form of Financial Governmental Payment Report and Operating Financial Summary