Discretionary budgets are for _________ that arise
Special Needs
A starting point for budget preparation is:
The Prior Year's Budget
Some communities operate on a certain philosophy which permitts departments to shift funds from one budget to the other as long as the total budget amount is not exceeded.
This philosophy is called?
"Bottom-Line" Philosophy
Which of the following statements is true?
1. Tough decisions are often necessary regarding the budget?
2. Not all factors can be measured in dollars?
3. All budget items require justification?
All of the above statements are TRUE
Personnel costs account for what total percent of the police budget?
80%
Of this... how much of this is fringe benefits?
ANSWER: 25%
Subordinates should submit their budget proposals to whom?
Immediate Supervisor
The Federal Government's fiscal year starts in what month?
October
The process by which financial information about an agency is recorded, classified, summarized interpretted and then communicated to managers and other interested parties is called?
Accounting
Top 3 common cost problems include:
1. Absenteeism
2. Paperwork
3. Turnover
Answer: "All the above"
Variance budget analysis involves:
A. Proactive Budgeting
B. The difference between actual costs and the amount budgeted
C. The difference between estimated costs and actual budget
D. None of the above
D. None of the above
Variance analysis is the difference between what is budgeted and what will be spent.
Variance analysis basically tells you what you have left over.
Cut back budgeting/ reducing costs is often referred to as:
A. Doing more with less
B. Budget reduction
C. Reducing expenditure spending
D. All the above
D. All the above
What type of grants are awarded to states based on population and crime rates?
Formula Grants.
(...Also known as Block Grants)
Costs that do not vary in total during a period even though the amount of service may be more or less than anticipated are called?
Fixed Costs
The budgeting process begins with the Department's:
D. All the above
The budgeting system where dollars are allocated based on productivity is ___________.
Performance Based Budgeting
Budgeting is a _______ process and a __________ committment
Continuous Process and a Written Committment
The leading federal funding agency for all law enforcement programs is the _____________.
Department of Justice (DOJ).
The budgeting system that requires justification for all expenditures, not only those that exceeded the prior years allocation.
Zero Based Budgeting
The budget is usually divided into two classes of expenditures:
Fixed and Variable
Operating costs that can not be easily assigned to a particular department when transactions occur and are recorded are called __________ expenses.
Indirect Expenses
All levels police budget approach means that all levels of personnel should be involved in budget preparation.
True or False?
TRUE
Operating expenses of the department or agency exclusive of personnel are called _______________.
Overhead
The 12 month accounting period is also known as the _____________.
Fiscal Year
A list of probable expenses and incomes during a given period.
Budget
Costs that arise out of normal activities of the agency.
Operating Expenses
TRUE or FALSE?
A budget is a working document to be used not to be cast in stone or held in reverence.
TRUE
Reducing costs is all employees' responsibility.
TRUE or FALSE?
TRUE
Preparing budgets is difficult because most law enforcement services are intangible?
TRUE or FALSE?
TRUE
Salaries and benefits are considered direct expenses.
TRUE or FALSE
TRUE
TRUE or FALSE?
An agency's calendar year and fiscal year are always the same.
FALSE
TRUE or FALSE?
Rent and insurance are considered fixed costs.
TRUE
TRUE or FALSE?
All law enforcement employees should contribute ideas related to budget items as specific needs arise.
TRUE
TRUE or FALSE?
Budgets prepared using a logical process beginning with the lowest levels of the department and working upward will be more accurate and complete.
TRUE
TRUE or FALSE?
Line Item Budgeting was initiated in the 1930's and is no longer popular.
FALSE
TRUE or FALSE?
Chiefs should develop a mindset that sees budgeting as a year round process, not just a task that occurs once per year.
TRUE
TRUE or FALSE?
Most budget items are short term that are applicable to current year activities.
TRUE
TRUE or FALSE?
The use of volunteers is declining in law enforcement departments across the country.
FALSE
TRUE or FALSE?
The CPA is an accountant licensed by the state to do public acounting.
TRUE
TRUE or FALSE?
A cash fund of limited amount used for small expenditures when it is not practical to write checks is called a "slush fund."
FALSE
Petty Cash
TRUE or FALSE?
The first step in solving cost problems is identifying waste areas.
TRUE
TRUE or FALSE?
A Formula Grant is also called a Block Grant.
TRUE
A modern version of the program budgeting system that breaks down costs by activity is called _____________.
Activity Based Costing
TRUE or FALSE?
Rules of accounting used by agencies in reporting the financial activities are called GAAS.
FALSE
GAAS - Auditing
GAAP - Accounting
TRUE or FALSE?
A capital budget deals with expenses that run the department.
FALSE
Capital Budgets deal with BIG TICKET ITEMS
TRUE or FALSE?
Operating costs that can be identified with specific individual departments are called indirect expenses.
FALSE
Direct Expenses
__________ reports should be made known to everyone who directly or indirectly influences the costs.
Variance Reports
Most police budgeting is both a(n) __________ and ___________ process.
Annual and Continuous process
This philosophy holds that funds may be expended up to the total amount approved regardless of category?
Bottom Line Budget Philosophy
Budget preparation reponsibility may be assigned to
D. Any of These
All levels of police budgeting approach means:
B. All levels should be involved
Fiscal year is also known as the ___________ or __________ period for the agency.
Accounting or Budget Period
The basic starting period for a budget is what?
The Prior Year
Budgets are not invalible because _______ will always arise.
Variances
Cut Back Budgeting requires:
C. Using the same revenue to provide more services
According to the textbook, all are examples of ways to cut budgets EXCEPT:
C. All are ways to cut budgets
Program budgeting:
C. Both A and B
Personnel costs are _______ % of police budgets and ______% of fringe benefits
80% - Police Benefits
25% - Fringe Benefits
Most departments have how many types of budgets?
Answer: 2
Financial and Discretionary
The most important obligation by the government to the citizens is to protect __________ and ________.
Lives and Property
Using the team concept, departments can cut costs and make improvements at the same time by using a(n) ________________.
Employee Suggestion Program
Quartermaster Systems help officers maintain __________.
Uniforms
Variance budget analysis involves the difference between the __________ and the ______________.
Actual Cost and the Amount Budgeted
Departments have begun charging for traditional services including ____________.
DUI Arrests
_____________ is a budgeting system where dollars are allocated based on productivity.
Performance Budgeting
Most budget items are ________ term for the current budget year.
Short Term
According to text, the asset forfeiture program is not designed to create property used in illegal activities.
TRUE or FALSE
TRUE
The budget is usually divided into two classes of expenses:
Fixed and Variable
TRUE or FALSE
Once drawn up, a budget should be strictly adhered to and never exceeded.
FALSE
If you exceed your budget, you should apply for a _________________.
Supplemental Appropriation
TRUE or FALSE?
Common costs are costs that are directly traceable to a segment of the agency such as a particular department or division
FALSE
TRUE or FALSE?
Reducing costs is a responsibility of all employees.
TRUE
Are you supposed to use 3 carbon copies for all notes?
NO
TRUE or FALSE?
Preparing budgets are difficult because most agencies are intangible.
TRUE
TRUE or FALSE?
Salaries and benefits are considered direct expenses.
TRUE
Overtime is a fixed or variable expense?
Variable
TRUE or FALSE?
An agency's calendar year and fiscal year are always the same.
FALSE
TRUE or FALSE?
Another relatively new approach to saving costs that is being implemented by many agencies across the country is the effort to "Go Green."
TRUE
TRUE or FALSE?
Long term expenses are easier to plan for than short term expenses.
FALSE
TRUE or FALSE?
Rent and Insurance are considered fixed costs.
TRUE
TRUE or FALSE?
All law enforcement employees contribute ideas to budget items as specific needs arise.
TRUE
...They should tell their immediate supervisor
TRUE or FALSE?
Budgets prepared using a logical process beginning with the lowest level of the department and working upward will be more accurate and complete.
TRUE
TRUE or FALSE?
The main clearing house for federal budgets is www.grants.gov which allocates billons of dollars in grants.
TRUE
TRUE or FALSE?
Writing a grant application is fairly easy, most applications have templates for departments to use which make them essentially a fill in the blank type of application.
FALSE
TRUE or FALSE?
An accounting period is a time covered by the income statements or other financial statements that report operating results.
TRUE
What type of budget deals with all expenses needed to run the department?
Operating Budget
___________ funds is set aside for unforseen emergencies but the precise total of allowable expenditures is difficult to ascertain.
Contingency Funds
Expenses that do not vary in costs including insurance or rent...
Overhead
A periodic report summarizing the financial affairs of the agency
