Chapter 10

FISCAL MANAGEMENT

FISCAL MANAGEMENT

• DEALS WITH GOAL SETTING,• DESIGNING A BUDGET THAT IS

TARGETED TO ACHIEVE THOSE GOALS,

• THE PROCESS OF BUDGET REVIEW AND APPROVAL,

• AND THE ACTUAL MANAGEMENT OF THE PROGRAM

IMPORTANCE AND FUNCTION OF FISCAL MANAGEMENT

• ENSURE THE WISE AND EFFICIENT USE OF RESOURCES

• PREVENT MISUSE AND WASTE

• FOCUS ON ACHIEVING OBJECTIVES

• ALLOCATE FUNDING TO NEEDS

• ENGAGE ENTIRE STAFF IN PLANNING

• GUARANTEE INTEGRITY & PURPOSE

BUDGETING

FORMULATION OF A FINANCIAL PLAN . . .

• IN TERMS OF WORK TO BE ACCOMPLISHED AND SERVICES TO BE PERFORMED

• BASED ON PROJECTED EXPENDITURES AND ESTIMATED INCOME TO BE GENERATED

TYPES OF BUDGETS

• SHORT TERM AND LONG TERM

• CLASSIFIED IN VARIOUS WAYS:– ORGANIZATIONAL UNIT OR FUND

– FUNCTION (E.G., TECHNOLOGY)

– OPERATIONAL

– EQUIPMENT AND SUPPLY

– CAPITAL OUTLAY

– HUMAN RESOURCE

CRITERIA FORA SOUND BUDGET

• CLEARLY PRESENTS FINANCIAL NEEDS

• KEY PERSONS IN THE UNIT CONSULTED

• IS A REALISTIC ESTIMATE OF INCOME

• REFLECTS EQUITABLE ALLOCATIONS

• FLEXIBILITY TO MEET EMERGENCIES

• PREPARED WELL IN ADVANCE

• REQUESTS ARE RALISTIC, NOT PADDED

• MEETS ALL ESSENTIAL REQUIREMENTS

THE PROCESS OF BUDGET PREPARATION

• PLANNING

• COORDINATING

• INTERPRETING

• PRESENTING

• APPROVING

• ADMINISTERING

• APPRAISING

INVOLVEMENT OFSTAFF MEMBERS

• MAINTAIN INVENTORY RECORDS

• KEEP RECEIPTS OF EXPENDITURE

• IDENTIFY UNADDRESSED NEEDS

• GO OVER INITIAL BUDGET TO ENSURE CORRECTNESS

• ENGAGE IN DISCUSSIONS TO HELP PRIORITIZE NEEDS

BUDGET ORGANIZATION

• CLEAR INTRODUCTORY MESSAGE• OVERALL GRAPHIC PROJECTION OF

ANTICIPATED INCOME & EXPENSES• DETAILED ESTIMATE OF RECEIPTS

AND ITEMIZED EXPENDITURES• SUPPORTING DOCUMENTATION IF

NEEDED TO CLARIFY ANY REQUESTS

REVENUE SOURCES FOR SPORT AND PHYSICAL EDUCATION

• STATE (STATE UNIVERSITIES)• LOCAL (PUBLIC SCHOOLS)• GATE RECEIPTS• CONCESSIONS• ACTIVITY FEES• BOOSTER CLUBS• FUNDRAISING

PAY-TO-PLAY POLICIES

• FEE ASSESSED TO PARTICIPANTS• SUPPLEMENTS SCHOOL REVENUES• PREVENTS ELIMINATING SPORTS• MORE FAIR TO NONPARTICIPANTS• FEES MUST FAIRLY ADDRESS SPORT

COSTS AND GENDER EQUITY• DISADVANTAGED STUDENTS NEED

ASSISTANCE OR EXEMPTION

ZERO-BASED BUDGETING

• INTRODUCED IN 1969 BY TEXAS INSTRUMENTS COMPANY

• REQUIRES JUSTIFICATION FOR EACH EXPENDITURE IN THE BUDGET

• EXPENDITURES ARE DETAILED AS LINE ITEMS

• PROMOTES MORE FAIR AND EQUITABLE FUNDING

STEPS IN THE PROCESS OF ZERO BASED BUDGETING

• IDENTIFY GOALS• GATHER DATA• PLAN PROGRAM TO MEET GOALS• IDENTIFY ALTERNATIVE WAYS TO

ACHIEVE GOALS• DO COST ANALYSIS OF ALTERNATIVES• MAKE DECISION AS TO FUNDING

PPBES

STANDS FOR:• PLANNING -- PROGRAMMING --

BUDGETING -- EVALUATION -- SYSTEM

• HOOVER COMMISSION (1949)• FORD MOTOR COMPANY (1950s)• DEPARTMENT OF DEFENSE (1960s)

THE PPBES CYCLE

• GOALS AND OBJECTIVE

• STATEMENT OF NEEDS

• EXPECTED SATISFACTION

• CONSTRAINTS• IDENTIFY

ALTERNATIVES

• RESOURCE REQUIREMENTS

• ESTIMATE OF BENEFITS

• OPERATING PLAN• IMPLEMENTATION• EVALUATION• FEEDBACK• ANALYSIS

COST ANALYSIS

• NEEDED TO EVALUATE PRESENT OPERATIONS AND THE PROJECTIONS IN FUTURE BUDGETS

• LIMITED BY THE ACCOUNTING SYSTEM AND SOFTWARE USED

• VERY APPLICABLE TO BUDGETS OF SCHOOLS, COLLEGES, AND UNIVERSITIES

BUSINESS MANAGERS AND FINANCIAL OFFICERS IN

SCHOOLS AND COLLEGES

• FUNCTION

• OBJECTIVE – OBTAIN GREATEST EDUCATIONAL VALUE FROM EACH DOLLAR SPENT

• RESPONSIBILITES – next slide

RESPONSIBILITIES OF FINANCIAL OFFICERS AND MANAGERS

• BUDGET AND FINANCIAL PLANNING

• PURCHASE & SUPPLY MANAGEMENT

• PLANNING FACILITY EXPANSION, RENOVATION, & CONSTRUCTION

• HUMAN RESOURCE FINANCING

• STAFF DEVELOPMENT

• COMMUNITY RELATIONS

RESPONSIBILITIES OF FINANCIAL OFFICERS (continued)

• TRANSPORTATION• FOOD SERVICES• ACCOUNTING AND REPORTING• DEBT SERVICE• INSURANCE• LEGAL MATTERS• GRANTS AND FINANCIAL AID• SYSTEMS ANALYSIS

FINANCIAL ACCOUNTABILITY

• MANAGEMENT POLICIES FOR FINANCIAL ACCOUNTABILITY

• ACCOUNTING FOR RECEIPTS AND EXPENDITURES

• REASONS FOR FINANCIAL ACCOUNTING