...INTRODUCTION: The budget preparation phase starts with the Development Budget Coordination Committee (DBCC). It is headed by the DBM Secretary and its members are the Secretary of Finance, the NEDA Director-General, and the Bangko Sentral Governor, with the Office of the President for general oversight. The NEDA provides the over-all macro-economic assumptions with which budgetary levels are to be determined. They involve the projected Gross National Product (GNP) real growth rates, inflation rates, 91-day treasury bill rates, the London Interbank Offered Rates (LIBOR) rates, foreign exchange rates, population growth, and other economic parameters. The Department of Finance (DOF), the Bureau of the Treasury, the Bureau of Internal Revenue and the Bureau of Customs help the DBCC in determining the sources of financing. They project the revenues that will be generated for the budget year as well as the borrowings that may have to be tapped. The DBCC determines the overall economic targets, expenditure levels, the revenue projection, deficit levels and the financing plan. It submits them to the President and the Cabinet for approval. Once these are approved, the DBM issues the Budget Call. This requires agencies to prepare their budgets in accordance with the said guidelines, macro-economic assumptions, and ceilings. The DBM spells out guidelines, procedures, and timetables. Agencies undertake their own internal consultations. They rank programs, projects and activities using...
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...CASE STUDY Denison Specialty Hospital Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: Oncology (cancer), Cardia (heart), and Rhinoplasty (nose jobs). Part I. Section A The managers at Denison have been busy working. They have reviewed past records, considered changes in competition, the general economy, and overall medical trends. Using past changes and anticipated rates of medical inflation, they have also made a first attempt at setting their prices. Based on a thorough review and discussion of these data, they have projected that next year will have 240 patients. They expect 120 oncology patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for Oncology patients will average $50,000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 per patient. However, those charges often are not the actual amount ultimately received. The amount the hospital receives depends on whether patients pay their own hospital bills or have health care insurance. Assume that private insurance companies pay the full charge or list price. However, Medicare and Medicaid have announced rates they will pay for the coming year as follows: Oncology patients $40,000, Cardiac patients, $30,000, Rhinoplasty $10,000. Self-pay patients are supposed to pay the full charge, but generally...
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...each assignment. Please complete all details clearly. | |If you are submitting your assignment on paper, please staple this sheet to the front of each assignment. | |If you are submitting your assignment online, please ensure this cover sheet is included in front your assignment. | |Please check your course information booklet for assignment submission deadline and information. | |Family Name |Lim |Given Names |Glenda | |Program/Intake |AFM7 |Student No. | | |Module’s Name | |Lecturer’s Name | | |Assignment No. | |Assignment Due Date |...
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...Russian Budget System: A Move to More Devolved Budget Management? Jack Diamond © 2005 International Monetary Fund WP/05/104 IMF Working Paper Fiscal Affairs Department Reforming the Russian Budget System: A Move to More Devolved Budget Management? Prepared by Jack Diamond1 May 2005 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. The Russian federal government has recently initiated a fundamental reform of its budget system, encompassing important policy, procedural, and institutional changes. This paper reviews this reform agenda with reference to the experience of industrial countries that over the past two to three decades have followed a similar reform path toward a more devolved budget management system. From this perspective, the importance of the strength of existing public expenditure management systems to accommodate increased devolution and the scope for employing decentralized agencies is explored. An assessment of the present Russian reform plans in light of this review reveals a number of concerns. First, the speed of the reforms contemplated appears overly ambitious when judged by the experience of other countries. Second, the preparedness of budget institutions...
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...Introduction There are various strategies that are utilized to control budgets.Through managing budgets organization put themselves in better positions for the financial forecasts. The strategies include the following • Zero based • Activity based • Performance based • Cost variances and benchmarking Zero based budgeting is where expenses are analysed in the organization and the need and cost for each is justified.This strategy of budgeting results in efficient allocation of resources since its based on needs and benefits rather than history. It helps managers to find cost effective ways to improve operations. Activity based costing is the gathering of operating cost data which are associated with specific activities such as maintainance. Under activity based budgeting resource allocation is based on relationship between activities and cost. The most distinct advantage of this type is greater precision in determining costs in cases where departments or products need to be tracked. Performance based budgeting is the practice of developing budgets on a relationship between program funding levels and expected result from that program, allocation of resources are based on their potential results. Performance based budgeting focuses on strategic objectives, performance measurement and effectiveness. One advantage of PBB is that employees perform better since they will be aware that high performing departments will continue to receive funding...
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...058/93,975RATIO= .87 | 302,902/337,033RATIO= .90 | Long-Term Solvency=Total Assets/Total Liabilities | 391,270/310,246 RATIO= 1.26 | 359,863/259,979 RATIO= 1.38 | 699,004/338,937 RATIO= 2.06 | Contribution=Largest Revenue Source/Total Revenue | 617,169/1,165,065RATIO= .53 | 632,889/1,244,261 RATIO= .51 | 1,078,837/2,191,243 RATIO= .49 | Program/Expense =Total Program/Total Expenses | 684,008/1,185,008 RATIO= .58 | 945,579/1,316,681 RATIO= .72 | 1,526,311/1,972,131 RATIO= .77 | General and Management Expense = Total General and Management Expenses/ Total Expenses | 351,000/1,185,008 RATIO= .30 | 371,101/1,316,681 RATIO= .28 | 445,819/1,972,131 RATIO= .23 | Revenue/Expense= Total Revenues/Total Expenses | 1,165,065/1,185,008RATIO= .98 | 1,244,261/1,316,681 RATIO= .94 | 2,191,243/1,972,131 RATIO= 1.11 | After reviewing the XYZ Corporation’s financial statements of the last three fiscal years there is evidence that the organizations finances have improvement significantly in three ratio areas where the remaining ratios were fine. First problem area is the programs ratio as it had started off with violating the standard ratio with .58 percent where .60 percent is the minimum standard. The last two fiscal years were in good standing. The second problem area is the general and management ratio as it had started off a bit too high, but has consistently managed to lower the ratio over time. The third problem area is the...
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...are road congestion and traffic accidents. This change ultimately affects the City of Kelsey current budget fiscal cycle. The mayor deemed it appropriate to get the city’s budget director involved. The focus of the fiscal budget should be on how additional funds can be added to the fiscal year budget. The most likely revenue source for additional funding will come from the increase in gas taxes. The budget director will have to focus their attention on how well the citizens will respond to the tax increase. The budget director needs to set goals for the budget. Once the goals are set, the city’s budget director meets with the City of Kelsey officials to discuss current and future city policies (Apollo Group, Inc, 2011). Gas Tax Increase The city’s gas tax is at a current rate of 5 cents per gallon (Apollo Group, Inc, 2011). If the proposed budget is approved, the current gas tax will increase to a staggering 20 cents. The budget director understands this will be a hard one for citizens to swallow. Therefore, other areas of the budget may be compromised as well. One option is requesting a lower tax increase because the City of Kelsey’s population has grown. Citizens’ Involvement To determine what other areas of the budget can be modified will little to no affect, the budget director should identify unnecessarily spent funds and eliminate those programs for which the funds were allocated for (Smith & Lynch, 2004). The best way to make this determination...
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...Introduction and Background of Budget The Capital Budget of the public sector or sometimes also known as Public Budget concerns how the government plans its revenues and expenditures at the Federal level, State level, and Local government level, to carter for the needs of its development programs and projects. In a democratic society, the division of resources between the public and private sectors is roughly determined by the desires of the electorate. But because it’s such a complex and time-consuming task to acquire adequate political information, the electorate is chronically ignorant. Since the Revolutionary War, democratic system of governance has forever been looking for better ways to inform the public and to design more sophisticated techniques for deciding how best to allocate scarce public resources. Despite the good sense it makes to “budget to a plan”, public expenditures are frequently approved based on who supports what, rather than on a clear understanding of what exactly the expenditures will accomplish. Public Budgeting is not about numbers; it is about making Democratic governance work. During the debates leading to the creation of the American Constitution, taxation and public expenditures were one of the driving forces leading to the creation of our peculiar and complex system of separation of powers and checks and balances. Our various state and local democratic constitutions give the executive branch the power to propose a budget and collect taxes, but...
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...national budget indicates, in terms of manpower, money, machines and materials, the country’s total resources to be utilized for various activities during a specified period. It is scrutinized by the country’s legislature; it becomes a piece of legislation when the legislature approves its adoption. The annual budget of an educational institution is approved by the institution’s governing board. The approved budget becomes the legal authority by virtue of which executives, agency heads or administrators can initiate or carry out activities designed to achieve organizational objectives. What is Budgeting? Budgeting is the process of systematically relating expenditure to achieve planned goals and objectives. It follows five phases and has three major functions. The phases of budgeting are as follows: Phase I – identification of programs/projects/activities to be accomplished during the budget period; Phase II – identification of resources in terms of manpower, money, machines and materials; Phase III – costing of resources, which is the most important activity in budgeting since the budget is fundamentally a financial statement; Phase IV – presentation of the budget in accordance with guidelines periodically issued by the proper authority, e.g., the Department of Budget and Management in the case of the Philippines; and Phase V – obtaining the approval of the appropriate authority, this involves piloting of the budget through a series of budget hearings...
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...Mouhamed Tall 6110 47th Ave South Seattle WA 98118 EDUCATION Bachelor of Arts in Economics – Minor: Public Policy Georgia State University – Andrew Young School of Policy Studies May 2013 Associate of Applied Science in Banking and Finance Georgia Piedmont Technical College May 2009 EXPERIENCE Amazon, BFI 5Seattle, Washington 2014- Present Fulfillment Associate • Sort packages manually to assigned areas • Use a RF unit to palletize product for delivery • Unload trailers for packages to be sort it out • Maintain accuracy, quality, and meet or exceed productivity quotas while performing these tasks • Operate manual and electric material handling equipment such as hand jacks • Perform other duties as assigned Katmai Government Services, Anchorage, Alaska 2011-2013 Role player/foreign language specialist • Trained soldiers through military mission and situational exercises that enable soldiers’ battalions to interact under various conditions • Replicated various roles and groups of people representing possible situations military battalions may face during deployment ...
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...#4: Public Budgeting-Death of a Spy Satellite Program Wideline Servius Columbus State University 1) Why does Irene Rubin at the outset argue that "public budgets are not merely technical managerial documents; they are also intrinsically and irreducibly political"? Do you agree or disagree based on your reading of the case "County Prison Overtime" Irene Rubin’ view that public budgets are not merely technical managerial documents and that they are also intrinsically and irreducibly political is because public budgets reflect the choice of government. As a general rule of thumb, government chooses to go along with programs that fit their own political agenda. Programs should reflect a general consensus about what kind or type of services that government should provide to the people. She argued that budgets should reflect priorities. Should government spend money on national defense or on public welfare? or should government spend money on the criminal justice system rather than nuclear power? She also believes that budgets should reflect broader public goals, meaning that legislators ought to listen their constituency and approve more spending to satisfy their needs. She further stated that government should be accountable. People always want to know if government is following their preferences and keep its promises. They also want to know that there isn’t any waste and want to see solid outcome. Irene also thinks that budgets should ensure that taxation is done fairly to...
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...CASE STUDY Denison Specialty Hospital Denison Specialty Hospital is planning its master budget for the coming year. The budget will include operating, capital, cash, and flexible budgets. The hospital is noted for its three fine programs: Oncology (cancer), Cardia (heart), and Rhinoplasty (nose jobs). Part I. Section A The managers at Denison have been busy working. They have reviewed past records, considered changes in competition, the general economy, and overall medical trends. Using past changes and anticipated rates of medical inflation, they have also made a first attempt at setting their prices. Based on a thorough review and discussion of these data, they have projected that next year will have 240 patients. They expect 120 oncology patients, 80 cardiac patients, and 40 rhinoplasty patients. The charge, or list price, for Oncology patients will average $50,000. Cardiac patients will be charged an average of $40,000, and rhinoplasty, $25,000 per patient. However, those charges often are not the actual amount ultimately received. The amount the hospital receives depends on whether patients pay their own hospital bills or have health care insurance. Assume that private insurance companies pay the full charge or list price. However, Medicare and Medicaid have announced rates they will pay for the coming year as follows: Oncology patients $40,000, Cardiac patients, $30,000, Rhinoplasty $10,000. Self-pay patients are supposed to pay the full charge, but generally...
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...Merriam-Webster dictionary, a budget can be defined as “the amount of money that is available for, required for, or assigned to a particular purpose”. Many people think of budgeting as something to do when they're short on cash. College students might turn to a budget to figure out how to make due with their high expenses and limited incomes. Two purposes for budgets are planning and control. Planning is a way of constructing the budget to meet the pre determined goal and, it also controls the feedback system to ensure proper execution of the plan. The advantages of budgeting are communication of management plan in the organization, provides guidelines for managers to think and plan for future, allocate resources, uncover bottle necks, co-ordinate activities for entire organization and provide benchmark for evaluation of future performance. Typically budgets can be prepared annually, and they can represent a company’s plan in specific, quantitative terms. A budget can help companies plan for the future. So companies can also take advantage of a budget by shaping the well-organized line for making money and increasing assets. “A budget may span any period of time. It may be short-term (one year or less, which is usually the case), intermediate (two to three years), or long-term (three years or more). Short-term budgets provide greater detail and specifics. Intermediate budgets examine the projects the company currently is undertaking and start the programs necessary to achieve...
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... There was lack of accountability, while decision making was highly centralized. To address these problems, the PPBS was improved and introduced as the Modified Budgeting System (MBS) in 1990. The system expounded the concept of “let managers manage” and held them accountable for their performance. However, even under this system, the emphasis was still on output, with each ministry and agency focusing on delivering its programmes and projects. This gave rise to duplication of efforts and resources across ministries. It soon became apparent that there were weak linkages between policy formulation, budgeting process as well as project implementation and evaluation. There was also little or no integration between operating and development budget. More importantly, the system could not meet...
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...Health Care Budget An operating budget is a strategic initiative for the organizations financial plans over the course of the coming year. The operating budget works directly with the Statement of Activities (SOA) for a fiscal year to accomplish the organization financial goals. To produce an effective operating budget the organization needs to have knowledge of what financial management practices work best for the financial goals they are planning to use. Proper understanding of these concepts is vital for the operating budget to become successful for the upcoming year. Effective Financial Management Practices Effective financial management practices include several types of rules that an organization should follow to create a successful operating budget. Budgeting should focus on income first targeting the reliable income in the budget. Never filling those gaps with income projections to cover expenses can cause a deficit if your organization can not produce the income target within the year. Expenses should be lower than the dependable income total. Each department should be in agreement with this financial management practice. This leaves the additional programs and projects to be set in motion if the revenue allows additional funds (Hamilton, 2010). A financial management practices uses the beginning with the prior fiscal years total, and building the new upcoming year budget on those amounts. This takes calculating percentage of increases and decrease to determine...
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