Asp Budgeting Research Paper

Budgeting http://nces.ed.gov/pubs2004/h2r2/ch_3.asp Budgeting. Retrieved on February 17, 2009 at
A major element of financial data activity rests in the act of budgeting. Budgeting is the process of allocating finite resources to the prioritized needs of an organization. In most cases, for a governmental entity, the budget represents the legal authority to spend money. Adoption of a budget implies that a set of decisions has been made that culminates matching resources with needs. As such, the budget is a product of the planning process.
The budget also provides an important tool for the control and evaluation of sources and the uses of resources. Using the accounting system to enact the will of the governing body, administrators are able
Thus, enacting and adhering to the budget establishes restrictions in the absence of a competitive market.
· These goods and services provided by governments are generally considered critical to the public interest and welfare.
· The scope and diversity of operations in an organization make comprehensive financial planning essential for good decisionmaking.
· The financial planning process is critical to the expression of citizen preferences and is the avenue for reaching consensus among citizens, members of the governing board, and staff on the future direction of the governmental unit's operations.
The link between financial planning and budget preparation gives the budget document a unique role. Budgets are often considered the definitive policy document because an adopted budget represents the financial plan to achieve its goals and objectives. When a financial plan is dropped, the budget has secured the approval of the majority of the governing board and
In an educational environment, budgeting is an invaluable tool for both planning and evaluation. Budgeting provides a vehicle for translating educational goals and programs into financial resource plans-that is, developing an instructional plan to meet student performance goals should be directly linked to determining budgetary allocations. The link between instructional goals and financial planning is critical to effective budgeting and enhances the evaluation of budgetary and educational accountability.
· Performance evaluation allows citizens and taxpayers to hold policymakers and administrators in governmental organizations accountable for their actions.
Meeting these objectives requires budget preparation that is based on several concepts recognizing accountability. Accountability is often established by incorporating these objectives into legal mandates that require state and local public sector budgets to
· be balanced so that current revenues are sufficient to pay for current services;
· be prepared in accordance with all applicable federal, state, and local laws; and
· provide a basis for the evaluation of a government's service efforts, costs, and