17115447 Topic 2 Budgeting

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Topic

2Budgeting

LEARNING OUTCOMES

By the end of this topic, you should be able to:

1. Identify the definition and function of budgeting;

2. Categorise the approaches in budgeting;

3. Describe the preparation of budgeting;

4. Explaine the budget cycle;

5. Discuss the implementation of budget; and

6. Measure the evaluation of budget.

INTRODUCTION

Ahmad is a Form 5 student. Hehas been preparing for the SPMexam. Thus, he must practise timemanagement, which will helphim to use his time efficiently. Hemust also have a little budgetingknowledge to utilise his financialresource wisely to spend onbooks, tuition, food, travellingfare, clothes and extra curricularactivities.

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36 TOPIC 2 BUDGETING

2.1 DEFINITIONS AND FUNCTIONS OFBUDGET

Table 2.1 shows various definitions of budget.

Table 2.1:Definitions of Budget

Writer Definitions

Scott, Martin, Petty &Keown (1999)

Budget is simply a forecast of future events.

Knezevich(1973)

Budget is a detailed plan of future receipts anddisbursements.

Campbell, Roald,Cunningham,Nystrand & Usdan(1990)

Budgets perform three basic functions :

Indicate the amount and timing of firms needs forthe future financing.

Provide the basis for taking corrective action inthe event budgeted figures do not match actual orrealised figures.

Provide basis for performance evaluation.

Guthrie & Pierce(1998)

Budget is the tool that provides benchmarks tomanagement to evaluate the performance of thoseresponsible for carrying out those plans and controltheir action.

Caldwell & Spinks(1998)

Budget is an instrument to value planning andcontrolling aspects of firms financial administration.

Horngren, Harrison& Robinson (1995)

Budgeting provides benchmarks to measure theperformance of division management as well asprogress towards strategic goals.

Candoli(1990)

Budget is a quantitative expression of a plan of actionthat helps managers to co-ordinate and implement the

plan.Leon Ovsiew &William Castetter(1960)

Budget is a document which specifies the plannedexpenditures and anticipated revenues of schooldistrict in a given fiscal year, along with other dataand information related to the fiscal elements of theeducational philosophy, programs and needs of thedistrict.

Swanson & King(1997)

A school budget is a planning document that linksprogrammatic decisions to financial information aboutthe revenues and expenditures.

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TOPIC 2 BUDGETING 37

In theory, the educational program is determined first. It is converted into costterms and finally the sources of required revenues is finalised. The rationale forsuch a sequence is that our educational programs are to be planned for the needsof pupils, without letting the available funds to be the limiting factor.

Actually, administration prepares budgets for the organisation as a whole and forindividuals as shown in Figure 2.2 below.

Three major components of a budget can be illustrated as a triangle, as perFigure 2.1 below. It contains an educational program of the school, revenues andexpenditures.

Figure 2.1:Budget triangle

Figure 2.2:Managements use of budget & performance report

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(a) Record of the past

It reflects bargains and compromises that have been made in the pastincluding priorities of earlier administrations. A record of earlier budgetdecisions is provided to indicate what has been eliminated in the past.

(b) A statement about the future

It links proposed expenditures with desired future actions such as a planto determine future events through current happenings.

(c) Predictions of future actions

Budgets specify connections between words and numbers in a budgetdocument and future human behaviour. Whether the behaviour intendedby the planners of budget occurs, is not a given, but rather a matter of

observation.

(d) A mechanism for allocating resources

Funds are almost always limited than requests. As a result, a budget isa mechanism for allocating resources across competing demands and ifthe intentions were to reach certain objectives at the lowest possible cost,then a budget can also serve as an instrument for pursuing efficiency.

Stevenson and colleagues (1990) said that a budget have six different functionsincluding those described in Figure 2.3.

Figure 2.3: Budget functions

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(e) A form of power

Budgets are mechanisms through which individuals or sub-units bargainover conflicting goals, make side-payments and attempt to motivate eachother to achieve their own specific goals.

(f) Signals

Budgets serve as signals of the preferences of others and provide a wayfor each group in an organisation to communicate their priorities andrequests.

Figure 2.4 shows the identified range of functions for a budget:

Figure 2.4: Range of budget functions

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According to Hack, Candoli & Ray (1997), a master budget includes operatingbudget, capital expenditures budget and the financial budget as shown in Figure2.6.

The summarised budget benefits can be illustrated by Figure 2.5.

Figure 2.5: Benefits of budgetingSource:Accounting; Horngren, Harrison & Robinson, 1995

Figure 2.6: Master budget

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(a) Operating budgetsets the expected revenues and expenses for the period. Itcontains:

Sales or revenue budget;

Purchases, cost of goods sold and inventory budget;

Operating expenses budget;

Budgeted income statement.

(b) Capital expenditures budget reflects the organisations plan of purchasessuch as:

Property;

Plan;

Equipment;

Long-term assets.

(c) Financial budgetcontains:

Cash budget (statement of budgeted cash receipts and disbursements);

Budget balance sheets.

The end of the operating budget is the budgeted income statement, which showsexpected revenues, expenses and operating income for the period. The financialbudget results in the budgeted balance sheet, which gives budgeted amounts foreach asset and liability and for owners equity.

SELF-CHECK 2.1

1. What are the three components in the Budget Triangle? State youranswers.

2. State eight examples of budget function.

3. What is included in a master budget?

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2.2 APPROACHES TO BUDGETING

There are six common features in a good budget.

Figure 2.7:Features of a good budget

(a) Unity

The budget document should describe all programs and services of theschool district;

The budget document should include detailed revenue and expenditureforecast for the general fund as well as for all other budgetary fundsused by the school, including capital funds.

(b) Regularity

Budgets must be prepared on regular basis.

Some states use biennial budgets, but the norm is the 12-month periodeach year.

The determination of a fiscal year is generally a state requirement andseveral states rely on a calendar year and at least one.

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(c) Clarity

A well-designed budget document makes it clearer how the districtsrevenue is collected and spent.

It will identify all sources of revenue and indicate not only how much isspent, but in general, what those funds will be used to purchase.

Particularly important are personnel counts by function or program andseparate breakdowns of expenditures for supplies and material, traveland other goods and services.

The budget should be displayed in a manner that is understandable tothe average citizen and provide aids to its review, such as descriptions ofthe budget process and a comprehensive table of contents.

(d) Balance

The budget must be balanced. This means that revenue should equal orexceed expenditures and any amount budgeted for contingencies.

(e) Publicity

School district budgets are public document that describe how thedistrict plans to use tax revenue it collects to provide educationalservices.

(f) Operational adequacy

The expenditures detail in the budget should be adequate to provide theservices required to meet the districts mission and goals

There many different approaches to developing a budget and providing theinformation it contains. This is shown in Figure 2.8:

Figure 2.8:Approaches of budgeting

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2.1.1 Site-Based Budget

Site-based budgeting (SBB) is a concept of developing a district budgetthrough the involvement of teachers, community and administrators at theschool level.

This approach budget is seen as a strict minimum, not a comfortableoptimum.

The starting point of the budgetary process is the necessary expenditurefacing the school.

Once this first call on funds or base budget has been identified, the school

can then explore options because resources in excess of the base budget areavailable for alignment with the schools aims.

It is decentralised system of providing revenues for instructional supplies,materials, equipment, texts and library books.

Such a degree of decision-making power is not always possible because ofunion or association influences, but it does demonstrate the flexibility possiblein a site-based budget process.

To be effective, SBB requires that principals and staff be able to match studentwith available resources.

It is not simply a matter of providing a principal with an amount of money

based on the number of pupils in the building, to be spent in three or fourcategories at the school level rather than at the district level.

The employees in the building must be a part of the planning and mustrecognise cultural, ethnic, and socioeconomic factors that may influencestudent needs and then establish priorities and budget to meet those needs.

Budgeting for administration, capital outlays and maintenance costs usuallyremain a district responsibility, because of the need for large expenditures onparticular projects.

The purpose of site-based management is to give the principal and instruction

staff more control over budget, personnel, and organization at the schoollevel.

Site-based management often gives authority to principals to move fundswithin a total school allocation among line items in the budget.

With site-based management contend that schools will be improved because it:

(i) Enables site participants to exert substantial influence on school policydecisions;

(ii) Enhances employee morale and motivation;

(iii) Strengthens the quality of school wide planning processes;

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(iv) Fosters the development of characteristics associated with effectiveschools;

(v) Improves the academic achievement of students.

2.1.2 Limited Plan

This approach uses the timetable plan as the major instrument of resourceallocation. It includes more obvious but limited planning element.

This approach can be illustrated by Figure 2.9 below:

Figure 2.9:Limited plan approachSource: Brian Knight, 1993

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This kind of strategy is still low-risk and relatively uncomplicated, but it doesnot encourage long-term planning or consideration of a broader range ofalternatives.

2.1.3 Zero Budgeting

This is a rational budgeting approach.

Zero budgeting means that the cost centre has to calculate its financial needsover each year, knowing what its commitments will be.

It is then possible to meet demands according to need.

One major problem is that over-estimation can occur to ensure that sufficientfunds are allocated.

It is more of a decision-making process than a complete resource allocationsystem.

It works bottom-up from basic organisational activities, rather than top-downfrom organisational goals and objectives.

In the zero budget there are five basic steps:

(i) Identification of decision units;

(ii) Analysis of each decision package;

(iii) Rank the decision packages;

(iv) Acceptance of packages and allocation of funds; and

(v) Preparation of the budgets;

There are several advantages to this type of budgeting, including involvementof staff members, the requirement of annual evaluation of all programs,accurate determination of programs and the development of priorities withalternatives.

The critics of the zero-base system is the great amount of paperwork involved,the need for more administrative time in the preparation of the budget andthe feeling that the system is too complicated and thus too impractical forsmall school districts.

2.1.4 Program Budgeting

The Planning, Programming, Budgeting System (PPBS) are also known asPlanning, Programming and Budgeting (PPB).

PPBS method is used as a systems approach that requires a review of theplans, objectives and budgets periodically and annually.

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In these approaches, program objectives are set and then managers develop aplan budget to achieve them.

Effectiveness evaluation, apply the achievement of programs objectives notto specific target performances.

An organisation using this method may require the development of severalprogram plans with objectives and budgets.

In these cases, managers at different levels of hierarchy review the proposals.

Higher-ranking officials then decide which programs or combination ofprograms to fund or recommend.

The weaknesses of this method are :

(i) Difficulties with presenting clear goals and objectives that everyoneagrees on;

(ii) Creating an adequate database;

(iii) Having a staff with a high level of technical ability;

(iv) Developing objective measures of performance; and

(v) Threatening power bases created by those holding the purse strings.

To overcome this problems of manipulation, which might occur, Caldwelland Spinks (1988) provide an account of their attempt to establish a totally

objective method of financial planning in a school context.

They argue that the costing of the component parts of the institutionscurricular offer can be an evident to making informed decisions aboutpriorities to be adopted by that organisation.

They also outline the way in which this might be done.

They suggest that if each element of the total programme is coasted andsubject to collaborative prioritisation, then the collegiality of the, institutionwill be enhanced and the power politics will be shifted to the capacity wherevarious people have to influence their colleagues.

There are seven major steps to program budgeting:

(i) The school district identifies and defines its mission, goals, and objectivesand clarifies its desired outcomes;

(ii) Alternative approaches or programs for achieving these outcomes arespecified;

(iii) The alterative programs are translated into fiscal and non-fiscalrequirements. This includes planned expenditures and proposed revenuesources for a program. Ideally, this is done for a multi-year period andnot for a single budget cycle;

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(iv) Each alternative approach is analysed to determine its cost effectiveness;

(v) With this information, it is possible to select the best combination ofprograms and establish the optimum course of action for the district;

(vi) Once implemented, each program is reviewed and an assessment of thedegree to which desired outcomes were achieved is made; and

(vii) The evaluations are cycled back into the system at the beginning of anew budget cycle.

2.1.5 Pragmatic

Pragmatic is useful approach, when schools are taking responsibility for theirbudget for the first time.

It firmly bases the new budget upon the old one and so, is low-risk andeconomical in time and effort.

However, it does attempt to improve the previous budget and make savingsthat can be used another time.

2.1.6 Incremental

This involves adjusting the previous years budget with increments for any

changes in volume such as cases with decrements.

It is difficult to justify because it involves no thinking analysis, planning orlinking of the budget to objectives and priorities.

Which is the best?

Tim Simkins and David Lancaster (1987), suggested that each school needs toadopt a system that fits its own needs and saw a wide range of possible criteria:

(i) Respond equitably to needs of different subject areas;

(ii) Take account of priorities;

(iii) Promote achievement of the schools objective;

(iv) Encourage innovation;

(v) Facilitate long term planning;

(vi) React rapidly to environmental change;

(vii) Facilitate evaluation of sub-unit;

(viii) Take account of patterns of power and influence;

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Figure 2.10: Basic steps developing a school budget

(ix) Take account of differences in ability to spend wisely;

(x) Avoid incurring substantial time or other costs; and

(xi) Be easily understood and widely accepted.

ACTIVITY 2.1

Discuss with your friends, the advantages and disadvantages of ZeroBudgeting approaches with Program Budgeting approaches. Also statethe exampless

2.3 BUDGET PREPARATION

There are five basic steps in developing a school budget. It is illustrated in Figure2.10.

SELF-CHECK 2.2

1. What are the six features of a good budget?

2. State how many approaches are there in budgeting. Illustrateyour answers.

3. What are the five steps in the zero budgeting approach?

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2.3.1 Development Guidelines

Building a budget is a complex task that takes substantially longer than a yearand requires participation of school staff at many levels in the organisation.

There are some aspects that we have to consider when we develop a schoolbudget.

It is illustrated in Figure 2.11.

Figure 2.11:Aspects to consider

Hack & Walter (1998), notes that message from headmasters, budget calendar,budget hearing, budget form and budget format should be included in the

budget guidelines shown in Figure 2.12 below.

A message from headmaster describes the fiscal context for the year. Thiswould include available funding, increases or reductions in revenue for theyear and any important changes in priorities from one year to the next year.

Figure 2.12:Budget guidelines

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A budget calendar is with a timeline for important steps in the process. Thiscalendar includes the time to prepare, implement and evaluate the budget andas a result starts nine to 12 months before the fiscal year and ends as much assix months after the fiscal year for which the budget is being prepared.

A budget hearing guidelines for staff and community participation at thedistrict and school level, including procedures for public hearings as requiredby the law and as desired as part of an individual districts budget process.

Budget forms that need to be filled out and submitted by schools and districtdepartments.

Budget format of information on the school accounting structure or code

that is to be used in preparation of the budget and in tracking revenues andexpenditures during the fiscal year.

2.3.2 Preparation Document

Suggested materials that should be included in the budget document are:

Letter of transmittal

Statement of introduction, especially relating to the school philosophy

Justifications of:

(a) Curriculum review, by unit, divisions and departments;

(b) Audited statements of funds; and

(c) Bonding schedule.

Recapitulations of sections in the budget

Salary schedules

Statistical summary of salary program

(a) Statistical summary of other pertinent data;

(b) Enrolment, showing trends and projections;

(c) Numerical sufficiency of staff;

(d) Pupil-teacher ratio in instruction;

(e) Per pupil costs by budget categories;

(f) Enrolment by curriculum in the high school;

(g) State-aid condition indicating changes;

(h) Property tax;

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Expenditure and revenue items for two to three previous years

(a) Policy statements mandating expenditures;

(b) Items mandated by new laws or official directives;

(c) Inventory report; and

(d) Budget transfers during previous year.

2.3.3 Modifications Original Budget

If expenditure estimates exceed revenue projections, the school administration

must make adjustment in one or both sides of the equation.

Typically, it is easier to reduce expenditure than to increase revenue.

Reductions in expenditures often mean limited compensation for employeesor elimination of some programs.

2.3.4 Obtaining Approval

Once a balanced budget has been developed, the districts school board mustapprove it.

The timing of this process, along with the required documents that must be

submitted and the time in which the public may comment on the budget aregenerally set by state law.

In general, however, the manager submits the budget to the school board,makes copies available to the public and helps the board schedule publichearings on the budget document.

At this time, the board may further modify the budget to reflect its policiesand goals.

2.3.5 Manage Budget

The adopted budget serves as a guide for expenditure allocations throughoutthe year.

Since it is impossible to estimate all expenditure needs perfectly duringthe budget process, it is important to continually monitor revenues andexpenditures to make sure they are in line with budget projections.

If there are changes either in the revenue available to die district, or in theexpenditure needs of the district, modifications to the budget document mustbe approved by the school board.

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Such modifications may be the result of an unexpected arrival of students,requiring more teachers and classroom space, or a change in the revenuereceipts for one or more programs.

At all times, the district administration and school board must strive to keepthe budget in balance, reducing expenditures if revenue projections fallshort and increasing expenditures to meet the needs of a growing studentpopulation.

In short, the budget becomes an important management tool to help ensurethat educational resources are focused on the priorities established at thebeginning of the budget cycle.

ACTIVITY 2.2

Why do you think a budget cycle is important in the budgeting ofschool finance? Discuss.

SELF-CHECK 2.3

1. What are the five basic steps in developing a school budget?

2. Give five examples of documents that we have to include inbudgeting.

2.4 BUDGET CYCLE

School administrators realise that effective budget building must be acontinuous process.

They recognise a need to follow a specific budget preparation calendar asshown in Table 2.1.

The details to be followed and the actual time to be assigned to budgetpreparation depend on the size of the school district, the number of staffinvolved in budget preparation and the degree of difficulty encountered inobtaining three-sided balance in the budget triangle.

On the day the current years budget begins, the administration startsplanning for the next year.

The details involved in the preparation of a new budget will not be the samein all districts, since the legal requirements and the number of staff membersresponsible for budget planning will not always be the same.

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The budget cycle calendar should be organised to include certain minimumrequirements.

Table 2.1:Budget Cycle Calendar

Months 1 & 2 Budget year begins

Month 3 Quarterly revision

To incorporate accurate revenue and enrolment figures (presentbudget).

Month 4 Population (enrolment) projections

Staff needs projections

Program changes and additional

projections Facilities needs projection

Month 5 Staff requisitions - supplies capital

outlay preliminary requests

Month 6 Budget revisions (present budget)

Central staff sessions on needs

Maintenance and operations requests

Month 7 Rough draft of needs budget

Month 8 Meet with staff and principal to establish priorities

Citizen committees reports and reviews

Central staff and board of education budget sessions

Month 9 Budget revision (present budget)

Month 10 Working budget draft

Meet with staff and community groups to revise workingbudget

Month 11 Final draft of working budget

Month 12 Budget hearings and adoption of working budget

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According to Caril, Walter, John & Dewey (1984), a budget cycle involves theseaspects:

Formulation Defining the issues of concern, clarifying the objectives andlimiting the problems.

Search Determining the relevant data and seeking alternativeprograms of action to resolve the issues.

Explanation Building a model and using it to explore the consequencesof the alternative programs, usually by obtaining estimatesof their cost and performance.

Interpretation Deriving the conclusions and indicating a preferredalternative or course of action. This may be a combinationof features from previously considered alternatives or theirmodification to reflect factors not taken into account earlier.

Verification Testing the conclusion by experimentation. Rarelyis it possible to carry out this step until a program isimplemented. A program plan should call for evaluationsthat can provide after the fact verification.

Structuring of theproblem, designof the analysis and

conceptual framework

The correct questions must be asked and the problemmust be properly structured. The objectives of the policiesand programs must be clearly stated in policy terms, the

relevant population must be defined and the alternatives forevaluation must be selected. The two principal approachesare the fixed output approach, where, for a specified levelof output, the analyst attempts to attain the output atthe lowest possible economic cost, and the fired budgetapproach, where the analyst attempts to determine whichalternatives are likely to produce the highest output withinthe given budget level.

ACTIVITY 2.3

1. Interview the headmaster of a school and ask him/her whetherthe budget has undergone changes in the last few years.

2. Is an accounting system required by the state?

3. What are the effects of using a computer in school accounting andbudgeting practices ?

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2.5 BUDGET IMPLEMENTATION

The budget implementation can be included in some aspect of the schooladministration. For example, distribution of funds to the school site, technology,maintenance and operation, risk management, food services and purchasing.

2.5.1 Distribution of Funds to the School Site

School districts in Malaysia typically use a set of formulaic ratios to direct re-sources to school sites.

For instructional personnel, teachers are typically provided to a school sitebased on the number of students at the school, for example, one teaching po-sition for every 25 students.

Other personnel are generated on a variety of similar formulaic ratios basedon numbers of students, other staff, or school characteristics.

2.5.2 Technology

The most expensive item schools need to purchase is computers which entails

the cost of maintenance, repair and updating of instructional technologytools.

The cost of placing computers and Internet connections in classrooms or incomputer labs is substantial.

Once the investment in equipment has been made, the expense of maintainingthat equipment must be considered.

It also is expensive to provide technical training and support for teachersso that they make maximum use of the technology and a plan must beestablished to keep both the hardware and the software up to date.

Providing equity for schools in making these purchases and then maintaining

their investment is complicated, unless schools are able to carry over fundsfrom one year to the next.

It may never be possible to establish a fund large enough to purchase enoughcomputers.

2.5.3 Maintenance and Operations

The school facilities need to be maintained and repaired however, the costis much lower as it involves only things like roof repairs and replacement ofboilers.

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It is important that either allocation rules consider these differences or school-site decision makers have the foresight to establish reserves to pay for theseitems when they are due.

2.5.4 Risk Management

For expenses on insurance and medical benefits, large risk pools are helpfulin keeping costs down.

There are some advantages to co-operative purchasing programs, acrossschools or districts.

The advantage to letting school sites purchase their own benefit and insurancepackages is that they can adapt their programs to meet the needs of their staffand students.

The downside is that in smaller risk pools, the potential of one lengthy illnessmaking future insurance very expensive is much greater.

Thus, programs that provide more autonomy at school sites need to bestructured very carefully so that these functions do not take away from fundsavailable for direct instruction.

2.5.5 Food ServicesIn some schools, federal assistance pays for meals of low-income children.

It is called Rancangan Makanan Tambahan.

It is unlikely, that a school principal or staff will have the skill and expertise tooperate a food services program efficiently.

Although school sites could consider contracting out food services, again,there may be benefits of scale in allowing the district to handle this.

2.5.6 Purchasing

For many years, districts have operated large purchasing operations, buyingsupplies in large volume and then distributing them to school sites.

Although there are substantial savings in the purchase price of materials, thecosts of maintaining inventory and distribution are significant.

Today, many districts have eliminated the cost of inventories and thewarehouse thought the decentralised of many office supplies.

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2.6 EVALUATION OF BUDGET

This is the last stage of the budgetary process. It comprises three aspects:

1. Financial efficiencyComparing the out-turn budget with the start of year estimate.

2. Resources efficiencyLooking at what the money was spent on.

3. EffectivenessAssessing whether the expenditure has achieved the outcomes as hoped.

Budgetary evaluation is in two stages as shown in Figure 2.13:

1. Functional evaluation of financial and resource efficiency, carried outannually.

2. Strategic evaluation, occurring as part of the schools normal evaluationprocess.

ACTIVITY 2.4

Give five examples of the areas in budget implementation.

Figure 2.13: Stages to evaluate school budget

One of the important lessons school administrators learn is that the budget isthe business of all the people in the district, not just the official concern of themanagement and the school board.

This concept has been a long time practice which is well-received.

School patrons cannot be expected to support financial claims against themwithout some degree of understanding of purpose.

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In reality, budget critics often become budget defenders when theyunderstand the objectives the school is attempting to achieve and the financiallimitations under which it operates.

The school administration is responsible for keeping the board of educationinformed about the operation and the effectiveness of the budget.

The school administration usually issues financial reports to the board ona regular basis, showing total expenditures to date, balances in the chiefaccounts and anticipated problems in keeping within main budget itemlimitations.

They determine the extent to which the budget has been effective, what

improvements should be made in the next budget, what imbalances havebeen created between programs that are over financed compared withthose that are underfinanced and other necessary subjective and objectiveevaluations of budget performance.

The school administration must takes special note and reports from timeto time to the board concerning the ever present problems of protecting theschools funds against dishonest, unethical, or careless handling by schoolpersonnel.

ACTIVITY 2.5

Discuss with your friends what is the difference between funcitionalevaluation with strategic evaluation in budgeting evaluation.

SUMMARY

Categorisation of approaches in budgeting:

1. Base Budgeting

2. Limited Plan

3. Zero Budgeting

4. Program Budgeting

5. Pragmatic

6. Incremental

Describing the preparation of budgeting:

1. Development guidelines

2. Preparation document

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3. Modifications original budget

4. Obtaining approval

5. Managing budget

Explaining the budget cycle

1. Budget calendar

Discussing the implementation of budget

1. distribution of funds to the school site

2. technology3. maintenance and operation

4. risk management

5. food services

6. purchasing

Generalising of evaluation in the budget.

1. Functional evaluation;

2. Strategic evaluation.

Budget balance sheet

Budget calendar

Budget cycle

Budget hearing

Budget income statement

Budget Triangle

Cash budgetCapital expenditures budget

Clarity

Cost of goods sold budget

Form of power

Functional evaluation

Future predictions

Future statement

Incremental

Limited Plan

Operating expenses budget

Past record

Pragmatic

Program Budgeting

PublicityPurchases budget

Regularity

Sales budget

Site-Based Budget

Strategic evaluation

Unity

Zero Budgeting

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REFERENCES

Caldwell, B. J., & Spinks, J. M. (1998). The Self-managing School. London: FalmerPress.

Campbell, Roald F., Luvem L. Cunningham, Raphael O. Nystrand, & MichaelD. Usdan. (1990). The Organization and Control ofAmerican Schools. (6th ed.).Columbus, OH: Merrill.

Candoli, I. Carl. (1990). School District Administration: Strategic Planningfor Site

Based Management. Lancaster, PA: Technomics Publishing.

David E. Weischadle, Why Youll Be Hearing More about Zero-Base Budgetingand What You Should Know About It, American School Board Journal,September 1977, pp. 33-34.

Garner, C.W (2004). Educational Finance For School Leaders: Strategic Planning andAdministration. Boston : Allyn & Bacon

Guthrie, J. W., W. I., & Pierce, L.C. (1998). School Finance and Educational Policy:Enhancing Educational Efficiency, Equality and Choice (2nd ed.). UpperSaddle River, NJ : Merrill/ Prentice Hall

Hack, Walter G. et al. (1998). School Business Administration: A Planning Approach.(6th ed.) Boston: Allyn and Bacon.

Horngren, C. T., Harrison, W. T. & Robinson, M. A. (1995). Accounting. NewJersey: Prentice Hall

I. Carl Condoli, Walter G. Hack, John R. Ray, & Dewey H. Stoller. (1984). SchoolBusiness Administration: A Planning Approach. (3rd ed.). Boston: Allyn andBacon.

Knezevich, S.J. (1973). Program Budgeting (PPBS). Berkeley, CA : McCutchan

Leon Ovsiew & William B. Castetter. (1960). Budgeting for Better Schools.Englewood Cliffs, NJ: Prentice Hall.

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17115447 Topic 2 Budgeting

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