Chapter 6 - Working with a budget

Question 1

What do some local governments link their budget document to by including goals, objectives, and performance measures? p. 92

Answer 1

Strategic plan

Question 2

What is the last step to take when preparing a budget? p. 97

Answer 2

Plan for next year

Question 3

What is used to define how much money can be spent for day-to-day operations? p. 86

Answer 3

A local government budget

Question 4

Approximately how far before the new fiscal year should department heads and supervisors prepare their individual budgets? p. 94

Answer 4

4-6 months

Question 5

What can your success as a supervisor help?
p. 99

Answer 5

Reduce employee turnover

Question 6

Which is the most traditional budget format and is often used by smaller local governments?

Answer 6

Line item

Question 7

Who is responsible for carrying out the programs and activities once the budget has been approved?
p. 96

Answer 7

Department Heads

Question 8

How long is the fiscal year?
p. 85

Answer 8

12 months

Question 9

Which is NOT a correct statement about the local government budget?
p. 86
A.)Expenditures will be monitored carefully
B.)No approval is needed to spend money on an item that was
not specified
C.)Operating within approved budget parameters is an
important supervisory responsibility
D.)The annual budget is designed to keep expenditures and
revenues balanced

Answer 9

B.)No approval is needed to spend money on an item that was not specified

Question 10

At what point in the budget process may citizens be involved? pg. 94

Answer 10

Planning

Question 11

What defines what your department plans to accomplish during the coming year? p. 86

Answer 11

Budget

Question 12

Which type of funds cover services based on user fees such as water and sewer systems? p. 91

Answer 12

Enterprise

Question 13

Which type of budget presents financial information according to services to be provided?
p. 88

Answer 13

Program

Question 14

Which must be done first when preparing the department budget? p. 94

Answer 14

Establish goals and objectives for the year

Question 15

What is used to communicate the goals and objectives for the coming year? p. 92

Answer 15

Budget message

Question 16

About how long before the beginning of your local government’s fiscal year should budget preparation begin? p.94

Answer 16

5-8 months

Question 17

Who is given the opportunity to comment on the proposed budget during the external budget review?
p. 96

Answer 17

Citizens

Question 18

Which category of performance measure deals with the cost per unit of outputs and outcomes?
p. 89

Answer 18

Efficiency

Question 19

What is the third step in the budget process?
p. 95

Answer 19

Internal budget review

Question 20

How many years worth of comparative information is usually included in the revenue estimates?

Answer 20

1 or 2

Question 21

What type of budget covers revenue estimates and planned expenditures for the year for all ongoing government activities? p.87

Answer 21

Operating

Question 22

What helps to minimize fluctuations in tax rates by scheduling and financing the costs of capital facilities over a number of years?
p. 91

Answer 22

Capital improvement plan

Question 23

Which type of budget describes the amount of services to be provided for money spent? p. 89

Answer 23

Performance

Question 24

What includes the multiyear plan for financing major equipment?
p. 90

Answer 24

Capital Budget

Question 25

The local government budget serves three important functions? Pg 85

Answer 25

• control
• management
• planning

Question 26

What type of budget covers revenue sources and planned expenditures for nonrecurring, multi year items such as construction, equipment acquisition, or improvement of public facilities?

Answer 26

The capital budget

Question 27

Which category of performance resources required to accomplish an activity?

Answer 27

Inputs

Question 28

Which category of performance quantitative measures of what the activity produces?

Answer 28

Outputs

Question 29

Which category of performance impact or results of the activity focusing on service quality?

Answer 29

Outcomes

Question 30

Which category of performance quality of the work performed?

Answer 30

Effectiveness

Question 31

Which government budget includes showing both the sources and total amount of projected revenues necessary to fund government operations?

Answer 31

Revenue estimates

Question 32

Which government budget includes showing where money is being spent and for what purposes?

Answer 32

Program expenditures

Question 33

What are the steps for a budget cycle?

Answer 33

• step 1: planning and estimates
• step 2: departmental preparation
• step 3: internal review
• step 4: external review
• step 5: implementation
• step 6: planning for the next year