Chapter 12
Financial Management

1. Recent police budgets have been negatively affected by all of the following except:

a. Struggling national economies.
b. Struggling local economies.
c. Expanding tax bases.
d. Soaring costs of providing employee benefits.

2. The oldest, simplest type of budget format is:

a. ZBB.
b. Programmatic.
c. Line-item.
d. PSSB.

3. Assume a budget period runs from October 1, 2011, until September 30, 2012. It is properly referred to as:

a. Dillon’s fiscal year.
b. A biennium.
c. FY ’11.
d. FY ‘12.

4. The single most important political statement made by any unit of government in a given year is the:

a. Budget it adopts.
b. State of the Union address.
c. Civil Service regulations it issues.
d. Ordinances it adopts.

5. The budget cycle:

a. Consists of sequential steps which are repeated every year at about the same time in a well-operated unit of government.
b. Means that appropriators promise to fund agency programs, but often prefer to delay actually doing so when the time comes to make a decision.
c. is the common term used to refer to the budget-cutting power of the Director of Finance. d. Usually follows the 10% incremental rule.

6. Forecasting revenue, determining how much money will be left unexpended in the current fiscal year budgets of the department, and issuance of the budget calendar are functions associated with the:

a. Appropriators.
b. Police department’s budget officer.
c. State’s fiscal monitoring system.
d. City or county department of finance.

7. The audit:

a. Is the last phase of the budget cycle.
b. Is intended to be embarrassing.
c. Always focuses only on financial matters.
d. Is conducted by the sheriff’s budget officer.

8. The foundation of all other budget types or formats:

a. Is the line-item.
b. Emphasizes effectiveness.
c. Emphasizes scrutinizing form programmatic results.
d. Was in vogue following World War II until about 1960.

9. A budget is:

a. A contract between the appropriators and the department.
b. Translating financial resources into human purposes.
c. An estimate of future expenditures.
d. To some degree, all of the above.

10. In a typical large municipal police agency, whose responsibility is it to submit the police department budget to the city manager?

a. Police chief.
b. City council.
c. Police bureau commander.
d. City department head.

11. Which of the following is typically included in an operating budget?

a. Fringe benefits.
b. Uniforms.
c. Telephone service.
d. All of the above.

12. The practice of comparing one’s organizational performance to those that are recognized leaders in the field is known as:

a. Standardizing.
b. Yardsticking.
c. Benchmarking.
d. Targeting.