Home > VIRGINIA COMMONWEALTH UNIVERSITY THE L. DOUGLAS WILDER SCHOOL OF GOVERNMENT AND PUBLIC AFFAIRS PADM 609 FINANCIAL MANAGEMENT IN GOVE
VIRGINIA COMMONWEALTH UNIVERSITY
THE L. DOUGLAS WILDER
SCHOOL OF GOVERNMENT AND PUBLIC AFFAIRS
PADM 609
Instructor: Blue Wooldridge Spring 2007
923 West Franklin St. Rm 305 Fax: 827-1275
Richmond, VA 23284-2028 Tel. 828-8037
Website: www.people.vcu.edu/~bwooldri
PAD
609 is concerned with the general concepts, principles and techniques
of financial management as they are applied in governmental units and
agencies. Traditionally the study of public financial management
is approached from an economic viewpoint. In this course, efforts
will be made to approach this subject from the point of view of the
public administrator. The political, behavioral, environmental
and social, as well as the economic significance of each of the main
areas of study will be demonstrated.
GOAL OF THE COURSE
The
goal of this course is for you to develop knowledge of the financial
management system in your own or another government agency and for you
to develop knowledge, comprehension, skills and attitudes that will
enable you to improve the utility of that public financial management
system. Specifically, you should be able to analyze various components
of a governmental financial management system and make recommendations
for improvement. You will be able to identify opportunities for
promoting Social Equity through the public budgeting and financial management
system and make specific recommendations to do so. You will be able
to conduct specific financial management calculations using an electronic
spreadsheet, conduct an assessment of the financial condition of a government,
and will become familiar with both national and local reports/documents
describing financial status and financial management practices and procedures.
In addition, you will be able to communicate using E-mail and an electronic
bulletin board and be able to conduct research using computerized library
databases, the Internet and the World-Wide Web.
For
your guidance, Bloom's Taxonomy of Educational Objectives suggests that
Knowledge (K) can be defined as: to describe, to recall, to define
to name to recognize, to list etc.
Comprehension/analysis/evaluation (C) can be defined as: to understand,
to have insight into, to distinguish, to categorize, to analyze, to
discriminate, to contrast, to select, to support, to compare.
Application (A) can be defined as: to apply, to demonstrate,
to use, etc. It is my opinion that
usually learning takes place in the K-C-A sequence.
GENERAL OUTLINE OF THE COURSE
The
first session will provide an overview of the financial management system
and describe the interrelationship of the elements of such a system.
Since it is suggested that "budgeting is the heart of financial
management" the first session will also discuss the history of
modern budgeting.
Sessions
II & III will begin our trip through the "budget-cycle,”
examining each stage in detail with the purpose of identifying opportunities
for improvement. The term "budget cycle" aptly emphasizes
the periodicity of budgeting. It is, of course, true as a cliche has
it that "budgeting is a continuous process". Budgeting
is not, or at least should not, be a "one-shot" annual affair.
Attention to the budget and budgetary formulation should influence the
day-to-day decisions of management at all levels. At the same time,
however, this continuity is marked by specific phases of a cyclical
character. The phases of the budget cycle can be generally identified
as: (1) executive preparation and submission (2) legislative consideration
and authorization (3) budget execution and control and (4) audit or
budget evaluation. In this session, we will focus on the executive preparation
part of the cycle. This is an important topic since the utility of the
budget process and resultant budget document is dependent on the quality
of this phase.
In Session IV we will discuss the many purposes that public budgeting
can serve and include a review of several examples of current budgets.
The types of information that is required to achieve each purpose will
also be explored. We will examine the link between budgeting and the
planning hierarchy, and the role of program/performance measures in
public budgeting. We will also discuss the types of information that
might be included in the budget document to promote Social Equity.
Session
V will be concerned with the different formats that the actual budget
can assume; the different types of program information that each format
contains and the advantages and disadvantages of each budget format.
Sessions
VI and VII will deal with important issues in capital budgeting. The
characteristics of capital budgets, the appropriate linkage with the
operating budget, and the funding of the capital budget will be the
topics of Session V. Key concepts of debt management will also be included
in this session. Capital budgeting involves deciding from among different
alternative possible expenditures. Economic techniques for analysis,
such as the Net Present Value (Worth) will be demonstrated in Session
VII.
Usually
by this time we are behind in our sessions, so we will use Session VIII
to “review and catch up.”
Next,
we will discuss the next phase of the budget cycle- legislative consideration
and approval. Description of this phase and strategies for improving
it will be the focus on Session IX.
In
Sessions X and XI the course will examine the purpose and actual functions
of a budget execution and control system. These are also the sessions
where the topics of government accounting and internal control will
be discussed. Budget execution and control is the one stage of
the budget cycle that affects each member of an organization.
It is also a vastly, underutilized activity that fails to meet the needs
of most organizations.
Auditing
is the phase of the budget cycle that has grown both in scope and importance
over the past few years. This topic will be the focus of Session
XII.
In
the next session (XIII), we will begin our examination of revenue planning
and management.
There
are four major steps in the revenue planning process:
l. Review the Existing Revenue Program
2. Identify criteria for assessing revenue
sources
3. Identify all available revenue sources
4. Recommend a revenue program for the next
fiscal year.
We
will examine each step in detail. Also in Session XIII
we will develop and use a methodology through which we can review a
typical revenue program with a detailed description of the sources of
revenue now being used and significant trends over recent years.
In Session XIV we will establish and justify a list of criteria that
can be used in assessing an existing revenue program or in the selection
of a new source. Part of Session XV will involve a discussion
of a revenue source that has developed increased significance to governments.
This revenue source that will be discussed is User Charges.
The other part of Session XV will be devoted to a discussion of another
revenue source used by governments, that of Intergovernmental Fiscal
Assistance. The issues identified with this concept will be described
and examined.
In Session XVI
we will focus our discussion of principles and procedures in cash management.
This will conclude our study of Financial Management in Government.
SPECIAL RESOURCES THAT WILL
BE USED IN THIS COURSE
Text (Available in the Hibbs
Bookstore):
Arenson
& Schwartz: Management Practices in Local Government Finance
5th Ed.
International City/County Management Association: Evaluating Financial
Financial Conditions
Wooldridge: Strategic Planning , training package under Course Documents on
Blackboard.
Supplemental Readings* can be accessed on Blackboard, on
reserve in the Cabell Library and on Electronic Reserve. Useful
Books
on reserve include:
Petersen & Strachota: Local Government Finance: Concepts
and Practices
Mikesell:
Fiscal Administration 6th edition.
*
The textbook and even the other readings are light on several topics
important in Governmental Financial Management, such as the Role of
the Legislative Branch in the Budget Process, Governmental Accounting
and Public Sector Auditing. You will need to go to journals online
and supplement the assigned readings. Several of the other journals
listed below are online.
Class participants are urged to
read the daily papers and other current journals for relevant articles.
Materials of importance should be brought to class for discussion. Students
should make themselves aware of the various journals of interest published
by the professional associations and universities. Examples include:
Public Administration Review Public Policy
The American Political Science Review Policy Sciences
Administrative Science Quarterly Policy Analysis
Government Accountants Journal Public Interest
National Tax Journal Public Management
State Government Government Finance Review
Advisory Commission on Intergovernmental Relations
Reports
Urban Finance Quarterly Municipal Yearbook
American Economic Review
Government Finance/City Government Finance/County
Government Finance (all by the US Bureau of the Census)--Tax Facts (VA Department of Taxation)
Annual Comptroller's Report (VA
Department of Accounts)
BE SURE TO BE FAMILIAR WITH THE ENDNOTES & REFERENCES
IN YOUR READINGS
I
am sure that you will find the various computerized databases in the
library, such as InfoTrac (social sciences & management literature),
Lexis/Nexis (news and law), PsycInfo (psychology), ERIC (education journals),
Dow Jones (newspapers & business journals), PAIS (public administration),
Dissertation Abstracts (all topics) and Congressional Universe (Congress),
useful in carrying out your research. The Social Sciences Citation Index
component of the Web Of Science database is also a useful research tool.
Be sure to discover the resources in the
Government Documents section of the library as well --on the web at
<http://www.library.vcu.edu/jbc/govdocs/govhome.html>
To access my Electronic Reserves for this course, you must type in
my last name in the electronic reserves dialogue box, clicking on
“W” on the keypad will not bring up my reserves.
I
have arranged training sessions on the library databases and the use
of the Internet/WWW. The one for PADM 609 is scheduled for our Session
II during regular class hours. It will be held in the Library computer-training
room, on the 3rd floor of Cabell during the first half of the class
on January 23th. We will meet in the
library’s training room at 4 pm.
You
also need adequate electronic spreadsheet skills. Please obtain these
as early as possible during this semester.
PARTICIPANTS' RESPONSIBILITIES
You
should be alert to the fact that sixteen (16) three hours sessions are
scheduled for this course. All of these sessions are equally important
to achieving the educational objectives of this course. If for any reason
(weather or professional trips on my behalf) a session must be postponed,
this session will be made up. I know that
least two sessions will need to be rescheduled due to professional
commitments on my part. Please bring your calendars to class on
the second session so that we can find a Saturday to meet.
Since
it is expected that you will actively participate in the class discussion,
it is necessary that assigned readings be completed prior to class time.
YOU SHOULD DEVELOP QUESTIONS THAT WILL HELP YOU BETTER UNDERSTAND THE
READING MATERIAL. Class sessions will be spent responding to your questions
and presenting new material. You are advised to use the syllabus as
an aid in doing the readings. I might even throw in a "pop quiz"
just to see if the readings are understandable. The results of such
a quiz will not count towards your grade. I also recognize that there
is a large amount of reading required and that the educational value
of this experience to you is a function of your preparedness so please
read each assignment closely. SINCE THE GRADED ASSIGNMENTS WILL REQUIRE
REFERENCES TO THE LITERATURE YOU MIGHT FIND IT USEFUL TO TAKE COMPLETE
NOTES AS YOU DO THE READINGS.
Class
participants must be aware that two supplemental goals of this course
are the enhancement of writing skills and of library and electronic
research skills. Therefore, participants can expect to spend considerable
time in the library during research for the five written assignments.
Experience of previous classes leads me to expect that you will probably
spend, at least, an average of 8-12 hours per week doing the work for
this course. I would like feedback from you as to the amount of
time required to successfully complete the work for this course so please
keep track as you do the assignments/readings.
Please
make sure that you are clear as to the expectations of in-class and written
assignments and that you obtain adequate feedback on your performance.
Since an additional goal of this class is the fostering of adequate
communication skills, you are urged to examine your written work for
deficiencies in clarity of presentation. Specific minimum learning objectives
have been identified for each class session. You should achieve those
objectives through the readings, class discussions, lecture or any other
means. Let me know if you feel that these objectives have not been met.
IT
IS EXPECTED THAT CLASS PARTICIPANTS WILL ATTEND EVERY SESSION. ABSENCE
FROM A SIGNIFICANT PORTION OF ANY CLASS SESSION WILL BE COUNTED AS A
FULL ABSENCE.
Unexcused
violation of this attendance policy before the mid-point of the class
will result in a student being administratively withdrawn. If this policy
is violated after the withdraw deadline a failing grade will be issued.
An excused absence can be discussed, in advance, with me.
After
teaching at VCU for nineteen and one half years I have identified three
characteristics of those course participants that experience difficulty
in my PAD 609:
a. They
do not do the readings before the appropriate class session.
b. They
miss class sessions (even for good reasons) and do not make plans to
record the session or at least get class notes
before the next session.
the first night we begin to discuss the topic but rather wait until the weekend
before the assignment
is due.
If
you have doubts about the speed and
comprehensiveness of your note taking, please feel free to
record the class sessions. I like to think that each session
contains many "golden words of wisdom."
Assignments
There
will be five (5) written graded assignments:
Assignment I. Review of Agency Budget Development Process
-Due Session
V 20%
Assignment II. Review of Agency Budget Document
-Due Session VII 20%
Assignment III. Problem Set Due Session IX 10%
(Using Electronic Spreadsheet)
Assignment IV. Best Practices in Budget Execution and Control
-Due
Session XIII
10%
Assignment V. Evaluating Local Government Financial Condition
(Using
Electronic Spreadsheet) -Due Session XVI
35%
Assignments
#1 & 2 can be adequately addressed in approximately 15-18
double spaced pages each. Assignments #3 & #4
can be responded to adequately in approximately half-a-dozen
pages each. #5 can be adequately addressed in approximately 20-25
double spaced pages.
Detailed descriptions of the assignments are provided at the end of this course syllabus. ALL ASSIGNMENTS EXCEPT FOR #5 MUST BE TURNED NO LATER THAT TWO DAYS AFTER THE SESSION INDICATED. ASSIGNMENT #5 MUST BE TURNED IN THE NIGHT OF THE LAST CLASS. LATE PAPERS WILL BE PENALIZED. Since each of these will require time to complete, you might find it useful to begin the assignment as soon as you receive it. Each of these five written assignments should reflect graduate level work. That is, the written work meets the objectives of the assignment, is in clear correct English and shows conceptual understanding of major issues with pertinent points discussed in a way that demonstrates some creativity or originality (rather than merely stringing together a series of quotes). There should be a good grasp of reading material evidenced and quoted in the written assignments. These assignments will require research into materials additional to the assigned readings. If you discover you have used one source more than twice consecutively, you probably do not have enough resources or have not used them effectively. IT IS EXPECTED THAT EACH ASSIGNMENT WILL USE BOOKS, PROFESSIONAL JOURNALS, RESEARCH ARTICLES AND THE WORLD WIDE WEB AS REFERENCE MATERIALS. These written efforts should reflect the writing style, tone and approach of such professionally-orientated journals as the Public Administration Review, Public Productivity Review, Budgeting and Financial Management and/or Public Personnel Management.
SPECIAL NOTE
I
strongly urge you to use, during this course, such computer communication
technologies such as e-mail, the Internet and the World Wide Web. You
must, however, be aware of the possible invasion of your personal privacy
while and after using these technologies. E-mail can be stored and reviewed
by others. Visiting some "Web" sites can result in "cookies"
being implanted in your computer which would allow others to know other
web sites you have visited and even read other computer files on your
hard drive. Many recent articles have been published on this subject
in the popular press and I urge that you become familiar with these
possible dangers. Certainly become familiar and comply with the
Universities "Ethics Policy on Computing," which can be found
in the latest issue of the VCU Resource Guide.
Class
participants should develop a standard "Manual of Style",
such as the American Psychological Association, and use its suggested
format in all written work. Please indicate on the assignment
the "Manual of Style" you are using.
After
the first assignment, ANY WRITTEN ASSIGNMENT THAT, IN MY OPINION, DOES
NOT REFLECT GRADUATE-LEVEL WRITING PERFORMANCE INCLUDING THE USE OF
A "MANUAL OF STYLE," WILL BE RETURNED
UNGRADED. THE REVISED SUBMISSION WILL BE CONSIDERED LATE.
IN
ADDITION EACH PARTICIPANT WILL BE EXPECTED TO CHECK THEIR VCU EMAIL
DAILY, READ THE CLASS BLACKBOARD SITE AS FREQUENTLY AS POSSIBLE, AND
AT LEAST TWICE A WEEK, CERTAINLY BEFORE EACH CLASS SESSION AND TO POST
A MESSAGE AT LEAST ONCE EVERY TWO WEEKS. I will use the Blackboard site
to communicate with class participants about changes in class schedule/requirements,
useful resources, current events, etc, and as a medium to facilitate
communication between class participants. You access Blackboard
through its URNL address: Http://blackboard.vcu.edu, your
VCU e-mail login (VCU e-mail address up to the
“@”) is to be used, as is your
VCU e-mail password. Blackboard contains an on-line student
manual, which you should master as soon as possible.
If you don’t already have a VCU e-mail account, you must immediately
go to the VCU website (www.vcu.edu), click on
“Information Technology” then “students” and follow the instructions
to create an account. If you also don’t have a VCU Onecard,
I would assume you need to follow the instructions for
“incoming students.” E-mail me if you still have problems.
I will use Blackboard to bring to your attention current events relevant
to this course, post lecture notes, and bring to your attention other
required resources. I want you to share useful information. Since I
might send either individual or group e-mails to you using Blackboard,
you should make it a point to read your VCU e-mail daily
At
the current VCU Resource Guide, which can be found on the VCU Website,
under “Students” is a description of the University's Honor System.
It describes "Pledged" and "Unpledged" assignments.
Just to confuse you, the assignments in this course will be a hybrid
of these two concepts. You are encouraged to share useful resources
and to discuss your potential responses to these assignments and to
both offer and to receive assistance in using the electronic spreadsheet
in completing assignments two and four.
However cheating, plagiarism,the facilitation of academic dishonesty,
abuse of academic materials, stealing, or lying will be considered violations
of the VCU Honor System.
Please
be aware of VCU’s Sexual Harassment Policy, and
“Disruptive” Student policy, which can be found in the
Resource Guide.
I
am discouraging the use of "Incompletes". Please make
every effort to complete all of the assignments before the end of the
grading period. If, for some unavoidable reason you must request an
"Incomplete" you must notify me in advance
and complete the necessary paper work. However, when the incomplete
assignment is turned in, it will be considered Late, unless there is
an approved excuse such as illness.
Unless written approval from me for an extension is granted, all
incompletes must be satisfied within 30 days of the end of the semester.
Likewise, if you decided to withdraw from this course you must do it
before the tenth week of class, and after completing the necessary paper
work.
Special
Note: If you would like to demonstrate your mastery of the
course objectives by some means other than one or more of the five graded
assignments please discuss with me what you would like to do. This discussion
must take place before the assignment is due.
Again,
I would like to have feedback as to the relative "benefits/costs"
associated with each assignment. Please make a mental note as you complete
the assignment and report your perceptions to me at the end of the course.
FACULTY RESPONSIBILITIES
I
will be responsible for leading a discussion in depth and to provide
clearly articulated learning objectives on each subject area; to furnish
class participants with adequate bibliographies and electronic sources
covering the field and to counsel you in regard to preparation for the
assignments. I will be delighted to review drafts of your work before
final submission. Participants can "re-do" up to two of the
assignments if they wish. The final grade will be the mean of the two
efforts. I will also provide feedback on your performance after each
graded assignment and be available to meet with you at a mutually convenient
time.
My
office hours are posted on our course Blackboard (2:00-3:00
and 7:00-8:00 T/W, 3-4 on Thursdays
and by appointment). I am frequently on campus on Fridays as well
and can be available by appointment. I can be available for appointments
at these times, and before and after the class sessions. You can take
your chances on "dropping in" on at the specified times, but
even at those times it would be better to call ahead since there are
often committee meetings, etc. I am delighted to meet with you and,
in addition, will guarantee to return your calls and e-mail messages.
As
an instructor, I am concerned about the equality of access to education.
Also Section 504 of the Rehabilitation Act of 1973 and the Americans
with Disabilities Act of 1990 require Virginia Commonwealth University
to provide academic adjustments or accommodations for students with
documented disabilities. Students seeking academic adjustments
or accommodations must self-identity with the Coordinator of Services
for Students with Disabilities on the Academic Campus. After meeting
with the Coordinator, students are encouraged to meet with their instructors
to discuss their needs, and if applicable, any lab safety concerns related
to their disabilities. To that end, I am happy to work with students
to make reasonable accommodations in instruction and testing.
If you have a documented disability of any kind that requires accommodation,
please inform me in writing before the end of the second week of this
class.
COURSE OVERVIEW
AND SCHEDULE
Session I INTRODUCTION TO FINANCIAL MANAGEMENT IN GOVERNMENT
1/16/07 ELEMENTS OF A GOVERNMENT FINANCIAL MANAGEMENT SYSTEM
THE HISTORY OF
MODERN BUDGETING
Session II THE BUDGET CYCLE-EXECUTIVE PREPARATION
1/23/07
Assignment I—Due Session IV
WE MEET IN THE CABELL TRAINING ROOM, 3rd FLOOR THE FIRST
HALF OF THE
SESSION AND THEN MEET IN REGULAR CLASSROOM
Session III THE BUDGET CYCLE: EXECUTIVE PREPARATION (Con't)
1/30/07
Session IV THE MULTI-FACETED NATURE OF MODERN PUBLIC BUDGETING
2/07/06 INTEGRATING SOCIAL
EQUITY INTO THE BUDGET
Session V EXECUTIVE PREPARATION-FIVE BUDGET FORMATS-LINE
ITEM-PERFORMANCE-PROGRAM-ZERO BASE-COMPREHENSIVE
Assignment II--Due Session VII
Session VI CONCEPTS AND ISSUES
IN CAPITAL BUDGETING
Session VII ECONOMIC TECHNIQUES FOR CAPITAL PROJECT SELECTION
Assignment
III --Due Session IX
Session VIII REVIEW AND CATCH-UP
Session IX LEGISLATIVE REVIEW
AND APPROVAL
Session X BUDGET EXECUTION AND CONTROL
Assignment IV--Due Session XII
3/13/07 NO CLASS SPRING BREAK
3/20/07 NO CLASS --IASIA
BOARD OF MANAGEMENT MEETING
Session XI BUDGET EXECUTION AND CONTROL
3/27/07
Session XII THE BUDGET CYCLE: AUDITING
4/3/07
Session XIII REVENUE PLANNING AND MANAGEMENT: REVIEWING THE
4/10/07 EXISTING REVENUE PROGRAM-EVALUATING FINANCIAL
CONDITIONS
Assignment
V--Due Session XVI
Session XIV REVENUE PLANNING AND MANAGEMENT: CRITERIA FOR
4/17/07 ASSESSING REVENUE
SOURCES
Session XV REVENUE PLANNING AND MANAGEMENT/ALTERNATIVE REVENUE
4/24/07 SOURCES: USER CHARGES/ INTERGOVERNMENTAL FISCAL
ASSISTANCE
Session I INTRODUCTION TO FINANCIAL MANAGEMENT IN
GOVERNMENT-ELEMENTS OF A GOVERNMENT FINANCIAL
MANAGEMENT SYSTEM-THE HISTORY OF MODERN
BUDGETING
Elements of the Financial Management System
Evolution of Modern Budgeting
Milestones in the development of
budgeting
Objectives:
At
the end of Session I, participants will be able to:
l. Describe the general objectives of this course, the
course requirements, and the relationship between
the sessions of this course.
2. Describe the elements of a state or local financial
management system and how social equity could be manifested in each
element.
Readings:
Wooldridge. “Social Equity, Fiscal Stress and Public Financial Management,”
Blackboard.
Aronson & Schwartz Chp. 1.
Wooldridge: “Exemplary Practices in Local Government Finance,”
Electronic Reserve
Petersen & Strachota: Chps. 1 & 3. (Suggested Readings)
Mikesell
Chp. 1. (Suggested Readings)
Session II THE BUDGET CYCLE-EXECUTIVE PREPARATION/
BUDGETING AND THE PLANNING HIERARCHY-THE ROLE OF
PROGRAM MEASURES IN PUBLIC BUDGETING
Phases of the Budget Cycle
Budgeting and Administrative/Strategic Planning
Relationship of program measures
to budgets
Objectives:
At
the end of Session II, participants will be able to:
1. Describe the phases of the budget cycle and
understand the relationship between each phase.
2. Describe the steps involved in the executive
preparation phase of the budget cycle and
appreciate the role of each step.
3. Analyze a given agency's budget preparation
procedures, compare with a set of desired procedures and make
recommendations for improvement.
4. Discuss the significance of the location of the budget responsibility.
5. Distinguish between different program measures
and have insight to their roles
in budgeting.
Readings:
Wooldridge: “Strategic Planning.” pp 1-50. Blackboard.
Aronson & Schwartz Chp. 7.
Axelrod: “Setting the Stage for Annual Budgeting” “Budgeting at the Center” ER
Mikesell Suggested Readings: Chps. 2,3, & 4.
www.oecd.org under
“by topic/budgeting, management, accountability” Survey on Budget
Practices and Procedures.
Session III THE BUDGET CYCLE:
EXECUTIVE PREPARATION (Con't)
Session
IV THE MULTI-FACETED NATURE OF MODERN PUBLIC BUDGETING
Purposes that budgets can serve and the in-
formational requirements
Small Group Exercise
Objectives:
At
the end of session IV, participants will be able to:
Describe, discuss and understand the several
purposes a budget can serve and recognize the
subsequent informational requirements.
How and what information that could promote Social
Equity could be integrated into
the budget document.
Readings:
Wooldridge & Cherry: “Improving the Utility of Library
Budgets” Electronic Reserve
Petersen & Strachota: Chp. 4 (Suggested Reading)
Marilyn Rubin's and John Bartle's article on 'Integrating Gender into Government
Budgets: A New Perspective" in the May 2005 issue of Public Administration
Review.
(accessed through Infrotrac Online, then Synagey subscription.
Session V EXECUTIVE PREPARATION-FIVE BUDGET FORMATS-LINE
ITEM PERFORMANCE-PROGRAM-ZERO
BASE-COMPREHENSIVE
The Object of Expenditure/Line Item Budget
The Performance Budget
The Program Budget/PPBS
The Zero Base Budget
The Comprehensive Budget/Performance
Based Format
Objectives:
At
the end of Session V, participants will be able to describe the characteristics
of each of the above budget types. They will be able to describe the
advantages and disadvantages of each of the budget types and to describe
the relationship of each to the purposes of
budgets described in Session IV. They will be aware of the typical
obstacles encountered when trying to implement budget reform.
Readings:
Wooldridge: “Line Item/Performance Budgeting” Electronic Res.
Aronson & Schwartz Chp. 7
Wooldridge & Alpert: “Identifying Obstacles to the Implementation of
Budgetary Reform in Government,” Electronic Reserve
Wooldridge & Alpert: “Improving the Implementation of the Budgetary Reform
In Local Governments: The Use of an Implementation Feasibility Analysis,”
Electronic Reserve.
Axelrod: Chp. 10. (Suggested Readings)
Mikesell Chp.
5
Session VI ISSUES AND CONCEPTS
OF CAPITAL BUDGETING
Definition of Capital Budgeting
Linkage between the capital and operating
budgets
Funding of the Capital Budget
Issues in Debt Management
Objectives:
At
the end of Session VI participants will know the definition and characteristics
of a capital budget and to appreciate the necessary linkages between
the operating budget and the capital budget. Participants will
also be able to describe the usual funding of the projects on the capital
budget and be able to describe and discuss the important issues in long
term debt management.
Readings:
Aronson & Schwartz Chapters 6 & 14.
Petersen and Strachota: Chps. 5, 14 & 15. (Suggested Readings)
Mikesell:
pp. 233-245, & Chps. 15. (Suggested Readings)
Session VII ECONOMIC TECHNIQUES OF CAPITAL PROJECT SELECTION
Life Cycle Costing
The time dimension of money/discounting
Economic Technique for selecting capital
projects: Net Present Value Analysis
Sensitivity Analysis
Small Group Exercise
Objectives:
At
the end of Session VII participants will be able to:
1. Describe the purpose of discounting and discuss the several
methods of selecting the discount rate.
2. Determine the equivalent values of several streams of costs
and benefits.
3. Define and discuss the terms of:
Equivalency
Net-Present Value
4. Use the appropriate methods to rank alternatives in
terms of economic preferability.
5. Define and be able to use the concepts of Life-Cycle-
Costing.
6. Define and be able to use the concept of Sensitivity
Analysis.
Readings:
Wooldridge: “Strategic Planning,” pp. 51-83. BlackB.
Mikesell pp. 245-276. (Suggested Readings)
GFOA: “Net
Present Value” Blackboard.
SESSION VIII REVIEW AND CATCH-UP
Session IX LEGISLATIVE REVIEW
AND APPROVAL
Purpose of the Legislative review phase
Various approaches to legislative review
Management's role in the legislative review
phase.
Objectives:
At
the end of Session VII, participants will be able to:
l. Describe and discuss the purpose of the legislative
review phase of the budget cycle.
2. Describe and contrast the various approaches used
by legislatures in reviewing the proposed budget.
use
during the legislative review phase.
Readings:
Handouts
Session X BUDGET EXECUTION
AND CONTROL
=Elements of a Comprehensive Budget
=Budget Execution and Control System.
=Simple Budget Execution and Control
Systems
=Purposes of a simple budget execution and
control system
=Components of a simple budget execution
system
=Management monitoring and control systems
=Purposes and key concepts in monitoring
=Components of a monitoring and control
system
=Linking budgeting and accounting
systems
Objectives:
At
the end of Session X participants will be able to:
1. Describe the purposes and components of a
Comprehensive Budget Execution and Control System.
simple budget execution system
3. Describe the components of a program monitoring and
control system
4. Explain the types of components that might be used
in a budget execution system and describe the
factors that would influence their use
5. Understand the need for integrating budgeting and
accounting systems
6. Be able to design an accounting system linked to the
budgeting system
7. Be able to
analyze a government's budget execution system and make recommendations
for improvement.
Readings:
Wooldridge, “Towards the Development of an Integrated Financial
Management Information System.”
Electronic Reserve.
Session XI BUDGET EXECUTION
AND CONTROL
Governmental Accounting Systems
Governmental vs commercial accounting
Purpose of governmental accounting
Key features of governmental accounting
Obstacles in implementing financial
management information systems (FMIS).
Elements of an Internal Control
System
Objectives:
At
the end of this session participants will be able to:
1. Distinguish between governmental and commercial
accounting.
2. Describe the purposes of a local governmental
accounting system.
3. Know the definitions of important government
accounting terms
4. Describe obstacles encountered in the
implementation of changes in a FMIS.
Readings:
Aronson and Schwartz Chp. 8
Petersen & Strachota: Chp. 11. (Suggested Readings)
Session XII THE BUDGET CYCLE:
AUDITING
Key issues in public sector auditing
The changing role of the government
auditor
Pre-audits and post audits
Expanded scope auditing
Small Group Exercise
Objectives:
At
the end of this session, participants will be able to:
1. Describe the changing role of the government
auditor
2. Explain the differences in the types and
locations of post-audit activities
3. Describe the characteristics of the three
types of post-audits and explain their impli-
cations for state and local governments
4. Analyze a government's audit activities and
make recommendations for improvement.
5. Describe and discuss the Single Audit Act.
6. Be able to estimate the unique capabilities
required for performance auditing.
Readings:
Aronson and Schwartz pp. 221-222.
Petersen & Strachota: Chp. 12 (Suggested Readings)
Purview the GAO Website at www.gao.gov
Purview the website of the Joint Legislative Audit and Review Committee of the
Commonwealth
of Virginia
Sessions XIII REVENUE PLANNING MANAGEMENT: REVIEWING THE
EXISTING REVENUE PROGRAM-EVALUATION FINANCIAL
CONDITIONS
The need for a Systematic Approach to
revenue planning
Steps in the revenue planning process
Evaluating Financial Condition
Objectives:
At
the end of this session, participants will be able to:
l. Describe the steps in the systematic approach
to revenue planning
2. Analyze a government's existing revenue
program.
Readings:
Petersen & Strachota: Chp. 2. (Suggested Readings).
Aronson & Schwartz: Chps. 3 & 4.
Wooldridge: “Financing Local Government for the 1980s,” Electronic Reserve.
ICMA: Evaluating Financial Condition
Wooldridge & Weistroffer: “Capturing the values/insights of key stakeholders:
an exploration into the utility of a delphi/decision-support system approach to
local
revenue planning” Electronic Reserve
Sessions XIV REVENUE PLANNING AND MANAGEMENT: CRITERIA FOR
ASSESSING REVENUE SOURCES
Objectives:
At
the end of these sessions, participants will be able to describe the
following criteria and understand their use in analyzing a revenue source:
l. Legality
2. Administrative Feasibility
3. Social and Political Acceptability
4. Productivity
5. Equity, Horizontal and Vertical
5. Elasticity/buoyancy
6. Stability
7. Regulatory/Neutrality
8. Certainty
9. Overlapping, Horizontal and Vertical
10. Compatibility with the community strategic plan
Readings:
Williams and Wooldridge “Criteria for Evaluating Revenues
Options: A Comprehensive View.” Electronic Reserve;
Weistroffer, Wooldridge & Singh: “A Multi-Criteria Approach to
Local Tax Planning.” Electronic Reserve.
Aronson & Schwartz Chp. 10 & 11.
Petersen & Strachota: Chps. 6. 7. & 8. (Suggested Readings).
Mikesell: Chp.
7-10 & 12. . (Suggested Readings).
Session XV REVENUE PLANNING AND MANAGEMENT/ALTERNATIVE REVENUE
SOURCES: USER CHARGES/INTERGOVERNMENTAL FISCAL
ASSISTANCE
Trends in the Use of User Charges
Purposes that User Charges can Serve
Reducing Regressivity of User Charges
Establishing User Charges
Objectives:
At
the end of this Session, participants will be able to describe and explain
trends and current concepts and issues concerning user charges.
Also at the end of this session, participants will be knowledgeable
about trends in intergovernmental fiscal assistance as well as the various
instruments available for distributing such funds
Readings:
Wooldridge: “Protecting Equity While Reinventing Government.”
(on my personal website under Social Equity).
Arenson & Schwartz Chp. 12.
Mikesell:
Chps. 11; (Suggested readings).
Session XVI ALTERNATIVE REVENUE SOURCE: CONCEPTS AND ISSUES IN
CASH MANAGEMENT AND THE INVESTMENT OF
TEMPORARILY IDLE FUNDS
Goals of a Cash Management System
Criteria for assessing a Cash
Management Program
Elements of a Cash Management System
Objectives:
At
the end of Session XVI participants should understand the elements of
and the purposes of a cash management system and be able to recognize
the need for:
--a cash budget for a public organization
--an analysis of the availability of temporary idle funds and
decisions concerning the required financing
--an analysis of their organization's cash mobilization
procedures and be able to make improvements where required
--to describe the available money markets and the
characteristics of potential investments opportunities and
-- be able to select the most appropriate for their
organization.
Readings:
Wooldridge: Cash Management: A Training Package (Blackboard)
Aronson & Schwartz Chp. 16.
Petersen & Strachota: Chp. 13 (Suggested Readings)
Mikesell: Chp. 16. (Suggested Reading).
Petersen
& Strachota, Chp. 8 (Suggested Reading).
FINAL COURSE EVALUATION
All Rights Reserved Powered by Free Document Search and Download
Copyright © 2011