1.
As you know, budget development and control is the responsibility of the designated budget managers within each institution. Most employees in an agency will have no knowledge of the budget process. Do you think all employees should be involved in the budget process or just those who have budget development responsibility?
Do you think the current problem with public budgeting in Hadleyville has to do with inaccuracies in the financial reporting systems? Everything today is highly computerized. I can remember when I first started working when I graduated from college where the size of computers were very large sometimes extended through an entire large room. With the invention of the personal computer and the many advances in software development financial accounting systems are better than they ever have been. I believe the software being used in general is more than adequate to meet the needs of those who require financial data. Having said that, there could possibly be some human inaccuracies based on their evaluation of the data presented. Perhaps a recommendation would be to say budget problems could be alleviated by management following up on discrepancies found by comparing actual data with budgeted data.
2.
Budgets are estimates that are prepared in advance of the accounting period and they are mere estimates or projections of the expectations for each of the revenue and expenditure accounts. As the public institution starts to operate in the new budget year it will incur actual costs. Monthly budget versus actual reports should be prepared to give an indication of whether accounts are under-budget, over-budget, or on target. Without revenues there will be no expenditures. When I served as a business manager we first estimated the revenues then we estimated the expenditures.
Do you think it is better for Hadleyville to first look at revenues or expenditures in preparing its future budgets? That is to say what comes first?
.
Running head: FINACIAL REPORT
1
Responses
1& 2
1.
As
you
know,
budget
development
and
control
is
the
responsibility
of
the
designated
budget
managers
within
each
institution.
Most
employees
in
an
agency
will
have
no
knowledge
of
the
budget
process.
Do
you
think
all
employees
should
be
involved
in
the
budget
process
or
just
t
hose
who
have
budget
development
responsibility
?
Do
you
think
the
current
problem
with
public
budgeting
in
Hadleyville
has
to
do
with
inaccuracies
in
the
financial
reporting
systems?
Everything
today
is
highly
computerized.
I
can
remember
when
I
first
star
ted
working
when
I
graduated
from
college
where
the
size
of
computers
were
very
large
sometimes
extended
through
an
entire
large
room.
With
the
invention
of
the
personal
computer
and
the
many
advances
in
software
development
financial
accounting
systems
ar
e
better
than
they
ever
have
been.
I
believe
the
software
being
used
in
general
is
more
than
adequate
to
meet
the
needs
of
those
who
require
financial
data.
Having
said
that,
there
could
possibly
be
some
human
inaccuracies
based
on
their
evaluation
of
the
data
presented.
Perhaps
a
recommendation
would
be
to
say
budget
problems
could
be
alleviated
by
management
following
up
on
discrepancies
found
by
comparing
actual
data
with
budgeted
data
.
What
do
you
think
of
that
concept
?
2.
Budgets
are
estimates
that
are
prepared
in
advance
of
the
accounting
period
and
they
are
mere
estimates
or
projections
of
the
expectations
for
each
of
the
revenue
and
expenditure
accounts.
As
the
public
institution
starts
to
operate
in
the
new
budget
year
it
will
incur
actual
costs.
Mo
nthly
budget
versus
actual
reports
should
be
prepared
to
give
an
indication
of
whether
accounts
are
under
-
budget,
over
-
budget,
or
on
target.
Without
revenues
there
will
be
no
expenditures.
When
I
served
as
a
business
manager
we
first
estimated
the
revenues
then
we
estimated
the
expenditures
.
Do
you
think
it
is
better
for
Hadleyville
to
first
look
at
revenues
or
expenditures
in
preparing
its
future
budgets?
That
is
to
say
what
comes
first
?
.
Running head: FINACIAL REPORT 1
Responses1& 2
1.
As you know, budget development and control is the responsibility of the designated budget managers within each
institution. Most employees in an agency will have no knowledge of the budget process. Do you think all employees
should be involved in the budget process or just those who have budget development responsibility?
Do you think the current problem with public budgeting in Hadleyville has to do with inaccuracies in the financial
reporting systems? Everything today is highly computerized. I can remember when I first started working when I
graduated from college where the size of computers were very large sometimes extended through an entire large
room. With the invention of the personal computer and the many advances in software development financial
accounting systems are better than they ever have been. I believe the software being used in general is more than
adequate to meet the needs of those who require financial data. Having said that, there could possibly be some
human inaccuracies based on their evaluation of the data presented. Perhaps a recommendation would be to say
budget problems could be alleviated by management following up on discrepancies found by comparing actual data
with budgeted data.
What do you think of that concept?
2.
Budgets are estimates that are prepared in advance of the accounting period and they are mere estimates or
projections of the expectations for each of the revenue and expenditure accounts. As the public institution starts
to operate in the new budget year it will incur actual costs. Monthly budget versus actual reports should be
prepared to give an indication of whether accounts are under-budget, over-budget, or on target. Without revenues
there will be no expenditures. When I served as a business manager we first estimated the revenues then we
estimated the expenditures.
Do you think it is better for Hadleyville to first look at revenues or expenditures in preparing its future budgets?
That is to say what comes first?
.