Expenditures and Revenues Matrix and Summary
Expenditures and Revenues Matrix and Summary
Amber Pickett
AJS/522
April 16, 2012
Park Atatah
Expenditures and Revenues Matrix and Summary Budgets are significant in the budget formulation process. Budgeting as a tool is the make-up of public policy (Smith & Lynch, 2004). Budgets exist at all levels of government, local, state, and federal. When describing revenue sources in public budgeting, it is important to describe the source of revenue, the source of the funding, importance of informed financial decisions, financial analysis tools used, and organizational financial analysis alternatives (University of Phoenix, 2012).
What is a Budget? A budget is a plan of allocation of resources to accomplish and organizations’ objectives and goals for a specific amount of time (Ganapati, n.d.). The budget gives a detailed analysis of how an organization will spend and receive money in a fiscal period.
Why is a Budget Required? Accountability and prioritization are two reasons for a budget requirement. Accountability refers to the taxation of the public, which means that the government cannot tax more than required for government purposes (Ganapati, n.d.). Prioritization refers to allocating funds and resources to areas that require priority over another area (Ganapati, n.d.).
Public Budgets There are different budget cycles at the local, state, and federal levels; however, the major components of any budget, regardless of government level are revenues and expenditures.
Revenues
Revenues are funds raised through various entities. “Revenue estimation is very important in local and state government, particularly in the planning and analysis phase because elected leaders must balance their budgets” (Smith & Lynch, 2004, p. 47).
Federal Government Revenues
Granted, the federal government collects the most amount of tax, state and local governments have more options on taxing. For example, the federal government taxes individual and corporate taxes,
Amber Pickett
AJS/522
April 16, 2012
Park Atatah
Expenditures and Revenues Matrix and Summary Budgets are significant in the budget formulation process. Budgeting as a tool is the make-up of public policy (Smith & Lynch, 2004). Budgets exist at all levels of government, local, state, and federal. When describing revenue sources in public budgeting, it is important to describe the source of revenue, the source of the funding, importance of informed financial decisions, financial analysis tools used, and organizational financial analysis alternatives (University of Phoenix, 2012).
What is a Budget? A budget is a plan of allocation of resources to accomplish and organizations’ objectives and goals for a specific amount of time (Ganapati, n.d.). The budget gives a detailed analysis of how an organization will spend and receive money in a fiscal period.
Why is a Budget Required? Accountability and prioritization are two reasons for a budget requirement. Accountability refers to the taxation of the public, which means that the government cannot tax more than required for government purposes (Ganapati, n.d.). Prioritization refers to allocating funds and resources to areas that require priority over another area (Ganapati, n.d.).
Public Budgets There are different budget cycles at the local, state, and federal levels; however, the major components of any budget, regardless of government level are revenues and expenditures.
Revenues
Revenues are funds raised through various entities. “Revenue estimation is very important in local and state government, particularly in the planning and analysis phase because elected leaders must balance their budgets” (Smith & Lynch, 2004, p. 47).
Federal Government Revenues
Granted, the federal government collects the most amount of tax, state and local governments have more options on taxing. For example, the federal government taxes individual and corporate taxes,
References: American Management Association. (n.d.). Financial decision-making. Retrieved from http://www.flexstudy.com/catalog/schpdf.cfm?coursenum=96088 City of Milwaukee. (2012). Retrieved from http://city.milwaukee.gov/ImageLibrary/User/crystali/2012budget/2012proposedbook.pdf U.S. Department of Justice. (2012). Federal Bureau of Investigation financial report fiscal year 2011. Retrieved from http://www.justice.gov/oig/reports/2012/a1216.pdf Ganapati, N. (n.d.). Budgeting. Retrieved from http://www2.fiu.edu/~ganapati/3003/budget.html Smith, R. W.; and Lynch, T.D. (2004). Public budgeting in America, (5th ed.). Upper Saddle River, NJ. Pearson/Prentice Hall. University of Phoenix. (2012). Course design guide. Retrieved from University of Phoenix, AJS522 – Finance and Budgeting in Justice and Security Wisconsin Department of Public Instruction. (2010). Wisconsin Department of Public Instruction. Retrieved from http://dpi.state.wi.us/pb/pdf/combinedfair.pdf