Financial Management

Front 1

What is "benchmarking"?

Back 1

It is one in your agency compares performance measures to other comparable agencies.

Front 2

Why have many governmental agencies, Inc. performance objectives and measures into their budget processes?

Back 2

Because the GASB has promoted the use of "service effort and accomplishment" measures or (SEAs) in year-end financial reports.

Front 3

In the book Reinventing Government, several criticisms of governmental budget practices were identified. What are they?

Back 3

1. Type expenditure controls that waste managers time and robbed them of flexibility.
2. A focus on accountability for detailed matters rather than focusing on results.
3. Lack of information on the cost of services.
4. Failure to incorporate the profit motive into budgeting, where possible.
5. Planning periods that are too short to allow managers to plan and budget effectively.

Front 4

What are some corrective techniques to the criticisms of governmental budget practices?

Back 4

1. Allocating lump sums for define programs, with clearly articulated goals.
2. Paying contractors based on outcomes rather than unit cost.
3 allowing managers to carryover funds from one fiscal year to the next.
4. Adopting multiyear budgets, developing performance measures, and determining the cost of their services.

Front 5

How do fire Department budget managers use these new budget processes?

Back 5

They view them as a chore.

Front 6

What is the advantage of developing performance measures and including them and in the budget presentations?

Back 6

Fire managers have a chance to steer their budget processes in a more useful direction.

Front 7

What is "activity-based costing"? Why do governmental agencies find it hard to use?

Back 7

It is where you determine the total cost of providing various services. It is difficult to use because most agencies are not set up to do so.

Front 8

What governmental budget technique is commonly used?

Back 8

A system where many expenses are often centralized rather than allocating them to the appropriate service areas.

Front 9

What is the advantage of developing performance measures and including them and in the budget presentations?

Back 9

Fire managers have a chance to steer their budget processes in a more useful direction.

Front 10

What is "activity-based costing"? Why do governmental agencies find it hard to use?

Back 10

It is where you determine the total cost of providing various services. It is difficult to use because most agencies are not set up to do so.

Front 11

What governmental budget technique is commonly used?

Back 11

A system where many expenses are often centralized rather than allocating them to the appropriate service areas.

Front 12

What are the two objectives of using "cost" services?

Back 12

1. Policymakers can make more informed decisions when evaluating whether to fund one service or another.
2. Managers can compare the cost of providing services with comparable agencies, and in some cases. with the private sector.

Front 13

Appointed representatives of academia, common labor unions, and private-sector financial services providers were organized in the late 1990s to form what organization?

Back 13

The National Advisory Council on state and local budgeting.

Front 14

The Advisory Council recommended that budget processes incorporate several principles. What are these principles?

Back 14

1. Establish broad goals to guide government decision-making.
2. Develop approaches to achieve goals.
3. Develop a budget consistent with approaches to achieve goals.
4. Evaluate performance and make adjustments.

Front 15

What broad goals, should a government used to provide overall direction for the government in its decision-making?

Back 15

-Assess community needs and priorities.
-Develop and disseminate broad goals.
-Identify opportunities and challenges for government services, capital assets and management.

Front 16

A government should have specific policies plans programs to define how will achieve its long-term goals. What elements should be considered?

Back 16

-financial policies.
-operating and capital policies and plans.
-programs and services that are consistent with policies and plans.
-management strategies

Front 17

Developing a process for preparing and adopting a budget, evaluating financial options, and making choices necessary to adopt a budget are elements of which financial plan?

Back 17

Developing a budget, consistent with approaches to achieve goals.

Front 18

Should program and financial performances be continually evaluated and adjustments made to encourage progress toward achieving goals?

Back 18

Yes

Front 19

Of the four principles, which one is typically thought of as budgeting?

Back 19

Developing a budget consistent with approaches to achieve goals.

Front 20

Which one of the four budget principles entail strategic planning?

Back 20

Establishing broad goals to guide government decision-making.