...makers. This is useful because it indicates the future revenue and expenditure trends that can have an immediate or long-term impact on government policies, goals, and services provided. Projections are usually made for salaries, maintenance, food, supplies, medical services, and many more items. Before preparing estimates, the budget manager will log into PeopleSoft enterprise, which is a management system that provides financial documents and employee data. The employee data and financial documents provide the relevant information that are necessary for creating projections. PeopleSoft enterprise is also used to upload and transfer financial worksheets. On that project I observed and reviewed projection methodology with the budget projections...
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...Sara Torocco and Rexhina Elezi RE: Federal Budget Proposals DATE: October 2, 2012 This memorandum analyzes the federal budget proposals currently being debated. Detailed information related to the components of budgets is also provided. Focusing mostly on the issue of Medicare, this memo identifies how Medicare will change in future years. The following compares and contrasts the overall budgets and Medicare budgets for each of the federal proposals, and also presents an argument against Congressman Ryan’s proposed Medicare budget. U.S “On-Budget” Surplus and Deficit Historical Data Presented below is the United States surplus and deficit data according to the historical tables provided by the Office of Management and Budget. * The United States on-budget has ran a deficit for the majority of the years between 1990 and 2011. * The years 1999 and 2000 both ran a surplus on-budget. * See chart no. 1, page 6. Federal Government “Off-Budget” Financing * Federally owned and operated entities that are off-budget do not affect the federal budget. The revenues and expenditures of these organizations are not included in the calculation of the federal deficit or surplus. * When the off-budget entities have a surplus, the Federal Government can borrow the money. The surplus in the Social Security Trust Funds is a large source of borrowing for the Federal Government (Penner, 2007). The government uses these borrowed funds, along with other monies...
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...Our country has Budget deficits and government debt have significantly increased in many countries around the globe over the past 20 years, and almost all these countries are now faced with the challenge of building back up, their economy. The current problem of budget deficits and public debt has come about mainly because the growth in government spending has exceeded the growth of goods and services. “While the average ratio of tax revenue to GDP in industrial countries increased from 28 percent in 1960 to 44 percent in 1994, the corresponding ratio for government expenditures rose from 28 percent to 50 percent.” (McDermott & Wescott, 1997). Given the high levels to which taxes have risen and the danger of stunting growth by raising taxes further, to say nothing of the political consequences of trying to do so, it is reasonable to say that reducing government spending offers the best means, if not the only means, of eliminating these fiscal monetary inequalities. Reducing government spending is not as easy as it may sound. According to traditional Keynesian theory, if you manage to reduce the government deficit, you run into another problem: the country might slide into recession. Why is this? Budget deficits, despite their unfavorable reputation, are not always bad. They at sometimes can indicate the government is buying goods and services, is paying wages to its employees, and is making transfers of money to its needy citizens. In doing so, it is putting money into...
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...LOCAL GOVERNMENTS ASSOCIATION (ULGA) THE NATIONAL BUDGET 2010/2011: IMPLICATIONS FOR THE LOCAL GOVERNMENTS A Presentation by the Ag. Secretary General ULGA, to the State of Nation Platform 2 July 2010 1. INTRODUCTION: The National Budget was presented to the nation by the Minister of Finance, Planning and Economic Development, Hon. Syda Bbumba on Thursday 10th June 2010. ULGA as the representative body for the local governments is carrying out a detailed analysis of the budget. Below are some of the critical issues to note: 2. OVERALL BUDGET PRIORITIES: In line with the National Development Plan (NDP)2010-2015, whose theme is “Growth, Employment and Socio Economic Transformation for Prosperity”. The Budget this year focuses on the following priorities: • Infrastructure development in roads and energy. • Promotion of science, technology and innovation to facilitate value addition and employment. • Enhancing agricultural production and productivity. • Private sector development and • Improving public service delivery. Suffice to note that Decentralization remains the key policy of the NRM Government in implementing the NDP. The spending in local governments is largely aligned to government priorities of Education, Health, Agriculture, Transport, Water and Good Governance. As such, financing the local governments is imperative...
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...modern industrial economies, the budget is the key instrument for the execution of government economic policies. Because government budgets may promote or retard economic growth in certain areas of the economy and because views about priorities in government spending differ widely, government budgets are the focus of competing political interests. The budget has been announced with eight major objectives including creating employments, maintaining prices of essentials at a tolerable level, ensuring food security and extending social safety net. INTRODUCTION Forecast of governmental expenditures and revenues for the ensuing fiscal year. In modern industrial economies, the budget is the key instrument for the execution of government economic policies. Because government budgets may promote or retard economic growth in certain areas of the economy and because views about priorities in government spending differ widely, government budgets are the focus of competing political interests. A government budget is a legal document that is often passed by the legislature, and approved by the chief executive. For example, only certain types of revenue may be imposed and collected. Property tax is frequently the basis for local revenues, while sales tax may be the basis for state revenues, and income tax and corporate tax are the basis for national revenues. On 9 June 2008, the Finance Adviser to the Caretaker Government presented the national budget for the financial year (FY) 2008-09...
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...European Union is currently working to assist member states with |In light of the budget crisis in Chicago, ComED has implemented a | |contingency plan serves. |energy supply outages. European Commission conducted a stress test to |contingency plan to assist the military family, senior citizen, | | |determine which states would be the most vulnerable if a power outage |Veterans, unemployed, sick and disable customer with payment on their | | |occurred. With the data collected from the stress test, Europe has |energy bill. | | |decided to make a major modification to it security supply regulation.| | |Describe the risks the plan identifies and | |The risk identified by the plan would be income challenged customer | |covers. |The risk identified would be Europeans uses over one quarter of |would not be able to afford to pay their electric bills due in part to| | |natural gas to import supplies. In addition, some countries in Europe |budget cuts by the state new Governor. | | ...
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...think ahead by formalizing their responsibilities for planning. 3. Budgeting aids managers in communicating objectives and coordinating actions across the organisation. 4. Budgeting provides benchmark to evaluate subsequent performance. The advantages of budgeting described previously are limited, in some cases severely, by problems associated with budgets. In this section, three problems that complicate the implantation of budgets: 1. Low levels of participation in the budget process and lack of acceptance of responsibility for the final budget. 2. Incentives to lie and cheat in the budget process. 3. Difficulties in obtaining accurate sales forecasts. What external factors need to be considered? External influences that are not in your control may have an impact on the success of your efforts. Having alternate plans or rethinking your strategies should be a part of your planning. Some external influences that can affect your financial planning include (examples in parenthesis): Government or national policies and legislations (the Poverty Reduction Strategy that may affect the way governments address poverty) Natural disasters or epidemics (drought that affects the people you are working with) Political conditions (elections that may disrupt daily life or cause instability) Global economic forces (changes in global market prices for the commodity that farmers are producing) Local...
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...Budget Management Analysis John Thorpe HCS/571 April 13, 2014 Professor: Amy Reed Budget Management and Variance Analysis Healthcare organizations are faced with severe financial pressures resulting in extreme budget cuts. Consequently, nurse managers and financial managers are tasked with the responsibility of doing more with less while maintaining the high quality of care offered to its consumers. To accomplish the aforementioned tasks, managers use budgetary tools to help them focus on controlling cost while running an efficient operation. Budgeting gives managers the tools necessary to ensure the availability of required resources to meet the organization’s goals and objectives, communicate strategies and monitor results (Cleverly, Song & Cleverly, 2007). Finkler, Kovner & Jones (2007) offer that budgeting should be used to make the organization become more effective and efficient. It is not a tool for maintaining the status quo. Organizations use different approaches to introducing the budgetary process. Some organizations take the current year's budget update it for inflation and projected revenue growth. Others take a clean slate approach; compel managers to justify their expenses and staffing needs on an annual basis. Still other organizations forecast revenue and profit and assign expense rates to departments. However, the most effective budget is one that reflects the true financial position of the organization, provides flexibility and monitored...
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...billion proposed budget for the forthcoming fiscal, 2012-13, is sized at 18.1 per cent of the country's gross domestic product (GDP) that is projected to do grow at 7.2 per cent during the year. There are challenges and risks, both domestic and external, that do provide some strong reasons for being not much optimistic at this stage about achieving this growth performance. That does not mean that the growth target itself is overambitious. The actual performance of the Bangladesh economy has otherwise been impressive over the past several years in a row, given the comparative picture of other low-income developing countries and the odds and difficulties, both exogenous and endogenous. But even this performance has been considered below the potential of Bangladesh. This is what the economists, analysts, development practitioners and all others, within and outside, have been stating about Bangladesh over the years. The growth rate, however, is not the sole indicator of 'socio-economic development' in its broad sense. But it unquestionably remains to be one of the important criteria for assessing the overall performance of an economy. The quality of growth -- its nature and dimension of inclusiveness, impact on social development indices concerning the state of education, health, nutrition and, thus, human resource development, income-distribution and employment-generation effects, poverty alleviation efforts etc. -- is also a pertinent point for consideration. The budget through its...
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...Introduction and Background of Budget The Capital Budget of the public sector or sometimes also known as Public Budget concerns how the government plans its revenues and expenditures at the Federal level, State level, and Local government level, to carter for the needs of its development programs and projects. In a democratic society, the division of resources between the public and private sectors is roughly determined by the desires of the electorate. But because it’s such a complex and time-consuming task to acquire adequate political information, the electorate is chronically ignorant. Since the Revolutionary War, democratic system of governance has forever been looking for better ways to inform the public and to design more sophisticated techniques for deciding how best to allocate scarce public resources. Despite the good sense it makes to “budget to a plan”, public expenditures are frequently approved based on who supports what, rather than on a clear understanding of what exactly the expenditures will accomplish. Public Budgeting is not about numbers; it is about making Democratic governance work. During the debates leading to the creation of the American Constitution, taxation and public expenditures were one of the driving forces leading to the creation of our peculiar and complex system of separation of powers and checks and balances. Our various state and local democratic constitutions give the executive branch the power to propose a budget and collect taxes, but...
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...Irene Rubin at the outset argue that "public budgets are not merely technical managerial documents; they are also intrinsically and irreducibly political"? Do you agree or disagree based on your reading of the case "County Prison Overtime" Irene Rubin’ view that public budgets are not merely technical managerial documents and that they are also intrinsically and irreducibly political is because public budgets reflect the choice of government. As a general rule of thumb, government chooses to go along with programs that fit their own political agenda. Programs should reflect a general consensus about what kind or type of services that government should provide to the people. She argued that budgets should reflect priorities. Should government spend money on national defense or on public welfare? or should government spend money on the criminal justice system rather than nuclear power? She also believes that budgets should reflect broader public goals, meaning that legislators ought to listen their constituency and approve more spending to satisfy their needs. She further stated that government should be accountable. People always want to know if government is following their preferences and keep its promises. They also want to know that there isn’t any waste and want to see solid outcome. Irene also thinks that budgets should ensure that taxation is done fairly to redistribute wealth either upward or downward. She stated that budgets should influence the economy, so that fiscal...
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...Budget Variance Every hospital faces many challenges, but one of the most difficult challenges is knowing how to manage expenses. When a hospital is planning their budget not only do they have to plan a budget that is beneficial for their staff but also high level care for their patients. With so much in society changing such as technology, increase health care cost, and government restrictions it makes planning the budget very challenging. In order to analyze how expenses are being spent compared to the budget that is allotted for them, budget variances have to be made (accountingtools.com, 2013). These variances have to be extremely well detailed in order to make an accurate budget for the following year. Things that should be taken into consideration when doing a budget variance are variance reports, interpreting the results of variance reports and analyzing these reports based on actual performance, and developing a way to better the budget based on these results. The purpose of this paper is to fully analyze all factors that should be considered for a budget variance for a hospital. The very first step for a budget variance is to develop a variance report (accountingtool.com, 2013). There are various factors that should be analyzed to produce a proper variance report such as how many beds are available, how many patients are seen daily, how much staff is available or working in a specific day, how many supplies will be used, and how much utilities such as electricity...
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...Annual Financial Statements (AFS) of the Royal Government of Bhutan Annual financial statements is very important document for government manual. Annual Financial Statements (AFS) reports on the budgetary operations of the Government for a particular Fiscal Year (FY). As of 30th June of the fiscal year AFS presents the financial position of the Government for the last 12 months. It shows revenue generated, expenditure incurred, fiscal deficit, internal and external borrowings and also the resource gaps. Public Finance Act, which is amended in 2012 which serves as the main documents for the government and reference document for the constitution. The Minister of Finance shall produce the Annual Financial Statements as prescribed in the Financial Rules and Regulations and the AFS shall be prepared for each fiscal year within six months after the close of the fiscal year. Once the fiscal year close the government will start with the preparation of the Annual Financial Statements starting from 1st June and within six months (31st December) the governments have to produce the documents and submit to the Royal Audit Authority to get audited and certified before submission to the government. And within three months after the completion of the consolidated annual financial statements, The Auditor General will give an audit opinion on the Annual Financial Statements of the Government. For the completion of the information for the MoF the information shall be collected from various...
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...Developing a Financial Model (GROUP ASSIGNMENT) Finances in mission-driven organizations are critical because they serve the mission, which means having a financial strategy is integral to organizational survival (Greco, 2011). The financial model below demonstrates how Housing Helpers will support its home improvement work for low socioeconomic status households. Budge Responsibility A key component of financial sustainability is the commitment of board and staff to financial management that includes timely review of financial reports and advance planning. One way that board and staff plan for income and expenses in the future is by creating a budget. Approval of the annual budget is one of the fundamental building blocks of sound financial...
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...CASE STUDY Denison Specialty Hospital Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: Oncology (cancer), Cardia (heart), and Rhinoplasty (nose jobs). Part I. Section A The managers at Denison have been busy working. They have reviewed past records, considered changes in competition, the general economy, and overall medical trends. Using past changes and anticipated rates of medical inflation, they have also made a first attempt at setting their prices. Based on a thorough review and discussion of these data, they have projected that next year will have 240 patients. They expect 120 oncology patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for Oncology patients will average $50,000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 per patient. However, those charges often are not the actual amount ultimately received. The amount the hospital receives depends on whether patients pay their own hospital bills or have health care insurance. Assume that private insurance companies pay the full charge or list price. However, Medicare and Medicaid have announced rates they will pay for the coming year as follows: Oncology patients $40,000, Cardiac patients, $30,000, Rhinoplasty $10,000. Self-pay patients are supposed to pay the full charge, but generally...
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