Term
| What is the purpose of forecasting? |
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Definition
| To determine the likely level of economic activity and economic trends and how they will impact revenue and expense. |
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Term
| What publicatioin of the national government provides an effective guide to internal controls and may be applied at all levels of government? |
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Definition
| Standards for Internal Control in the Federal Government, published by GAO. |
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Term
| Describe popular reports. |
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Definition
| Popular reports is a term given to annual financial reports that have been summarized and presented in a manner easy for the typical citizen to comprehend. |
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Term
| Name the body who defines GAAP for state and local government. |
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Definition
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Term
| Compare and contrast internal reports and external reports. |
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Definition
| External reports are often formal and required at the end of the reporting period. The format and content of external reports may be prescribed by GAAP, legislation or covenants. In contrast, internal reports are issued at a time and in a format useful to management. |
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Term
| True or False: State governments are required by standard setting bodies to issue performance reports. |
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Definition
| FALSE: GASB recommends performance reporting but it is not a GAAP requirement at state and local levels. In contrast, the GPRA requires performance reporting from federal departments. |
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Term
| Explain the difference in roles of auditor's and accountants. |
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Definition
| The accountant and other financial mangers prepare the statements; the auditor examines the statments and provides an opinion on the fairness of the statement's presentations. |
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Term
| Explain the difference between outputs and outcomes. |
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Definition
Outputs are more immediate and easily measured. Examples include the number of shots delivered and courses taught.
Outcomes are more difficult to measure. The are hoped for social or economic benefits. Proxies may be used to gauge outcomes. Examples include the number of indigent people who find and keep jobs as a result of training. |
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Term
| Describe the classic management cycle. |
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Definition
- Planning- Identifying and prioritizing attainable objectives as well as specific, sequenced actions to attain them.
- Organizing- Obtaining and deploying the human and other resources necessary to acheive planned objectives.
- Directing- Providing leadership and management to ensure human and other resources are deployed for maximum results.
- Controlling- Systematically checking work against the plan, identifying variances and making adjustments to previous steps as required.
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Term
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Definition
- Planning is often called the keystone in the arch of public management.
- Rooted in legislation and the basic mission of the agency, planning addresses the "what" and "how" of agency operations.
- During planning, priorities are determined.
- Planning is the most creative phase
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Term
| Describe GPRA requirements. |
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Definition
| GPRA requires agencies to create strategic plans; create performance plans with measurable goals; and submit follow-on performance reports. |
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Term
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Definition
| An ideal statement of what the organization hopes to acheive. |
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Term
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Definition
| A broad statement of purpose for a particular program within the agency. It is derived from the mission and more specific than the mission statement, but less specific than an objective. |
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Term
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Definition
| A measure accomplishment to be achieved within a specific period of time. All objectives should contain projected, measurable achievement standards. |
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Term
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Definition
- Programming comes after the planning phase
- Primary purpose is to determine the most cost effective means for accomplishing goals and objectives.
- Most appropriate factors to consider are the entity's mission, goals and objectives and policies and guidance of the chief executive and legislature.
- Resources are assigned to specific offices and programs.
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Term
| Describe the simularity and differences between programming and budgeting. |
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Definition
| Programming and budgeting are derivatives of the planning phase. The difference between programming and budgeting is that the former is usually multi-year, while operating budgets usually cover one or two years. Another difference is that programming cuts across responsibility centers while budgets are often structured by responsibility. |
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Term
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Definition
The budget is a central control device in the government management cycle. Budgets are also laws or ordinances that reflect the priorities and objectives of government and the citizens served.
See section II |
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Term
| What are some different types of budgets? |
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Definition
- Operating- Most familiar, cover limited period
- Cash flow- concerned with specific timing of cash receipts and expenditures. Derived from operating budgets, forecasts the timing as well as amount of cash flows for the year.
- Capital- cover big ticket items that will support operations for several years and may be acquired over a period of several years. Multi-year capital budgets establish confidence as well as continuity for long term projects.
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Term
| Describe fixed and flexible budgets. |
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Definition
A fixed budget is prepared in total dollars; when a budget is deplated, the activity is discontinued even if there is a continuing need.
A flexible budget authorizes and amount of dollars per unit of work or service provided. |
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Term
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Definition
Operations refer to all activities needed to acheive program objectives. Actual government services are delivered.
- Planning, programming and budgeting help government acheive their goals.
- Preceding operations (accounting, reporting and auditing) address financial and performace impacts of the operational phase.
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Term
| Commitments and obligations are the same as what at the state level? |
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Definition
| Requisitions and encumbrances at the state and local levels. |
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Term
| Describe internal controls. |
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Definition
Internal controls are sometimes referred to as management controls. They are critical during the operations phase.
- Minimize the risk of loss, fraud and mismangement
- No such thing as a perfect control
- Operational controls should accompany financial controls. (i.e. Seperation of duties)
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Term
| Describe Financial and Managerial Accounting. |
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Definition
Financial accounting is designed to serve the needs of external usersand is the form of accounting that leads to preparation of external financial records.
- Guided by formal standards (FASAB and GASB for National and State respectively)
Officials use managerial accounting to gauge the cost-effectiveness of operations and improve efficiency.
- Combines financial and nonfinancial data (internal)
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Term
| What can't financial reporting do? |
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Definition
| Financial reporting cannot provide information about the achievement of government objects. Rather, this role is achieved through performance measurement and reporting. |
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Term
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Definition
| Reporting is one of the most important activities of government. The primary purpose of reporting is the management cycle is to communicate accomplishments and resources expended. Reporting is essential to accountability. |
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Term
| Describe the different types of external reports. |
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Definition
- Financial- Meet the needs of legislators, oversight bodies, investors and ultimately citizens. Subject to GAAP standards and may be subject to other requirements. One section must be citizen friendly (MD&A)
- Non-Financial- Increasing in popularity to release nonfinacial or mixed data format. Includes performance reports and popular reports.
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Term
| Describe Internal Reports and differences with External Reports. |
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Definition
- Internal reports are prepared as needed (recurring or one-time)
- Help government officals make decisions to improve operations. External demonstrate accountability.
- Quantitative data may be financial and non-financial
- Structure of external reports defined by GAAP and in some cases, by legislation, internal reports may take any form useful for managemnt.
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Term
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Definition
Audits may address financial results, performance results, internal controls, compliance with law and regulations, or any combination thereof. Audits may be external or internal.
- Established by GAAS by the AICPA
- GAO issues guidelines for federal audits (GAGAS)
- State and local subject to the Single Audit Act
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