Appraisal System
CHAPTER
8
M a n a g i n g R e s o u rc e s to Support Excellence
C H A P T E R O U T L I N E
Budgeting Issues in Human Services Revenue Sources The Budget Cycle Resource Allocation Managing Resources to Support Excellence
C H A P T E R
O B J E C T I V E S
Upon completion of this chapter, the reader will be able to: Explain the purpose and meaning of a budget for a human services organization. Identify and discuss the concepts and issues associated with five revenue sources. Explain the differences between line-item, functional, and program budgeting. Create a line-item, functional, and program budget. Apply budgeting concepts to an agency budget and produce a budget report. Assumptions That in order to generate the kind of data and information expected from a human service organization today, it is necessary to integrate budget and services data. That functional and program budgeting concepts can produce the kind of information needed for accountability to all reporting and funding sources. That managers in human service organizations need to be familiar with the concepts but are not expected to handle the details of budgeting and financial management.
ISBN: 0-536-12111-7
190
Achieving Excellence in the Management of Human Services Organizations, by Peter M. Kettner.Copyright © 2002 by Allyn and Bacon, an imprint of Pearson Education, Inc.
CHAPTER 8
Managing Resources to Support Excellence
191
Budgeting Issues in Human Services
Dealing with finances in a nonprofit industry was, for many years, something like playing a baseball game without keeping score. Lohmann (1980) expresses well the critical difference between nonprofit financing and commercial enterprises:
In business and commercial settings, technical financial concerns and substantive goal-oriented concerns, along with certain standard assumptions about managerial and employee motivations, converge around the question of profits. At that point, the whole thing
8
M a n a g i n g R e s o u rc e s to Support Excellence
C H A P T E R O U T L I N E
Budgeting Issues in Human Services Revenue Sources The Budget Cycle Resource Allocation Managing Resources to Support Excellence
C H A P T E R
O B J E C T I V E S
Upon completion of this chapter, the reader will be able to: Explain the purpose and meaning of a budget for a human services organization. Identify and discuss the concepts and issues associated with five revenue sources. Explain the differences between line-item, functional, and program budgeting. Create a line-item, functional, and program budget. Apply budgeting concepts to an agency budget and produce a budget report. Assumptions That in order to generate the kind of data and information expected from a human service organization today, it is necessary to integrate budget and services data. That functional and program budgeting concepts can produce the kind of information needed for accountability to all reporting and funding sources. That managers in human service organizations need to be familiar with the concepts but are not expected to handle the details of budgeting and financial management.
ISBN: 0-536-12111-7
190
Achieving Excellence in the Management of Human Services Organizations, by Peter M. Kettner.Copyright © 2002 by Allyn and Bacon, an imprint of Pearson Education, Inc.
CHAPTER 8
Managing Resources to Support Excellence
191
Budgeting Issues in Human Services
Dealing with finances in a nonprofit industry was, for many years, something like playing a baseball game without keeping score. Lohmann (1980) expresses well the critical difference between nonprofit financing and commercial enterprises:
In business and commercial settings, technical financial concerns and substantive goal-oriented concerns, along with certain standard assumptions about managerial and employee motivations, converge around the question of profits. At that point, the whole thing