Operational Budgeting

CASAP Annual Conference

January 17 and 18, 2009

Definition

An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/subfunctional categories and cost accounts. It contains estimates of the total value of resources required for the performance of the operation including reimbursable work or services for others. It also includes estimates of workload in terms of total work units identified by cost accounts.Wikipedia

Definition

Since an operating budget is a short term budget, capital outlays are excluded because they are long-term costs.Business Dictionary

Purpose

Provide a forecast of revenues and expenditures i.e. construct a model of how your organization might perform financially speaking if certain strategies, events and plans are carried out.

Enable the actual financial operation of the business to be measured against the forecast.

en.wikipedia.org

Operating Budget Types

Line Item Program Performance Zero-Base

Line-item budget

Budget typically used by governmental entities in which budgeted financial statement elements are grouped by administrative entities and object. These budget item groups are usually presented in an incremental fashion that is in comparison to previous periods. Line item budgets are used also in private industry for the comparison and budgeting of selected object groups and their previous and future estimated expenditure levels within an organization.

Answers.com

templeton.org

Program Budget

Planning-oriented approach to developing a program budget. A program budget is a budget in which expenditures are based primarily on programs of work and secondarily on character and object. It is a transitional type of budget between the traditional character and object budget, on the one hand, and the performance budget on the other. The major contribution of PPBS lies in the planning process, i.e., the process of making program policy decisions that lead to a specific budget and specific multi-year plans.

Answers.com

Performance Budget

Medium- to short-range budget used in governmental accounting. It is typical of the type incorporated by a Program Planning-Budgeting System (PPBS) but without references to long range goals.

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Zero-based Budget

Zero based budgeting derives from the idea that such budgets are developed from a zero base; that is, at the beginning of the budget process, all budget accounts have a value of ZERO. This is in sharp contrast to the incremental budgeting system where generally a new budget tends to start with a balance at least equal to last year's total balance, or an estimate of it.

Wiki.answers.com

Operating Budget Summary

County Operating Funds Available Funding

Fund Balance Used Cancellation of Prior Years Reserves Additional Financing Sources

Financing Requirements Financing Uses Provisions for Reserves

Nevada County Agricultural Commissioner 2008-09 Budget

Budget Schedule

Department meetings Budget Kick-off

Rate Sheets Discretionary spending

CEO/CAO meetings Board Budget Subcommittee Final Draft Public Hearing / Board Approval

Procedure Identify major revenue sources

Contracts Fees Estimate amounts of revenue

Base contract costs and revenue received for work done

Identify expenses(Contract Financial Plan based on staff and other costs) Personnel Hours and Salary Benefits Overhead Supplies Mileage

Compilation of Program Budgets

Program 1 Program 2 Program 3 Total

Personnel        

Employee 1        

Employee 2        

       

Other Direct Costs        

Travel        

Supplies        

Professional Services        

       

Indirect Costs (Overhead)        

Adopted Current Proposed

  Budget Budget Actuals Projected Budget

Account Description FY 08/09 FY 08/09 12/31/08 FY 08/09 FY 09/10

  REVENUE          

441530 STATE AGRICULTURE $2,700 $2,700 $2,700 $2,700  

  Weighmaster          

  W&M petroleum          

  Sub-Total Class 4 $2,700 $2,700 $2,700 $2,700 $0

           

445205 CIWMB - CA INT. WASTE MGMTBD $0        

446160 FED CDBG          

449000 OTHER GOVERNMENT AGENCIES $0        

453630 WEIGHTS/MEAS INSPECT FEE $85,000 $85,000 $2,657 $85,148  

  Inspection Fee          

  Device Registration          

  NSAQMD - Vapor Recovery          

455030 NSF CHECK COLLECTIONS          

  Sub-Total Class 5 $85,000 $85,000 $2,657 $85,148 $0

           

462000 OTHER REVENUES $0        

  GENERAL FUND - AGRICULTURE $0     $21,477  

  FUND BALANCE USAGE          

  Sub- Total Cl;ass 6 $0     $21,477  

           

474000 TRANSFERS IN          

474001 TRANS SALES TAX REALIGN          

  TOTAL REVENUE $87,700 $87,700 $5,357 $109,325 $0

             

  EXPENSE Budget Budget Actuals Projected Budget

Account Description FY 08/09 FY 08/09 12/31/08 FY 08/09 FY 09/10

510100 PERMANENT SALARIES $53,080 $53,080 $28,578    

510105 OVERTIME          

510110 SHIFT DIFFERENTIAL          

510115 STAND BY          

510120 LEAVE PAYOFF $0 $0 $130    

510200 TEMPORARY SALARIES $0 $0 $0    

510300 RETIREMENT BENEFITS $16,216 $16,216 $9,245    

510301 RETIREE HEALTH $3,142 $3,142 $1,575    

510400 EMPLOYEE GROUP INSURANCE $12,988 $12,988 $6,525    

510500 WORKERS COMP $610 $610 $610    

510600 OTHER BENEFITS $764 $764 $357    

Class 1 - Salaries and Benefits Total $86,800 $86,800 $47,020 $0 $0

           

520010 MISC EXPENSE        

520200 CLOTHING & PERSONAL $450 $450 $432 $450

520310 TELEPHONE SERVICE $0 $0 $0  

520690 HOUSEHOLD EXPENSE        

520700 INSURANCE $0 $0 $0  

520900 MAINTENANCE EQUIPMENT $2,500 $2,500 $2,721 $2,861

520910 MAINTENANCE FUEL $0 $0 $226 $450

521000 MAINTENANCE BLDG        

521200 MEMBERSHIPS $100 $100 $0 $100

  National W&M Assoc        

  Western W&M Association        

521410 OFFICE EXPENSE $450 $450 $173 $450

521470 COMPUTER SOFTWARE & LIC $0 $0 $311 $311

521480 COMPUTERS & RELATED EQUIP $0 $0 $0 $1,850

521493 CENTRAL SERVICES OTHER        

521520 PROFESSIONAL SERVICES $0 $0 $0 $50

521551 INTERFUND DEPT ALLOCATION        

521552 INTERAGENCY ALLOCATION $7,084 $7,084 $4,123 $7,084

521553 INTERAGENCY EXPENSE $0 $0 $0  

521560 INTERFUND SERVICES-OTHER        

521561 INTERFUND SERVICES- A/C        

521563 INTERFUND SERVICES-PERSONNEL $0 $0 $0  

521564 INTERFUND SERVICES-TELEPHONE        

CSAC

http://sco.ca.gov/ard/manual/cntyman.pdf

Jeff Pylman

Nevada County Agricultural Commissioner

530-273-2648

Jeffrey.pylman@co.nevada.ca.us