DQ 5

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?

.