Florida Government Finance Officers Association

Section 4 - Budgeting Overview –

Budgeting is one of the most important activities undertaken by governments. The budget is a plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing them. The budget serves as the primary tool in allocating financial resources to programs and services. This process should involve all stakeholders – elected officials, governmental administrators, employees, citizen groups, and business leaders – and reflect their overall needs and priorities. A budget process that is well-integrated with the other activities of the government and involves those stakeholders will lead to a more efficient and accepted government. Specifically, the budget can serve as a policy making tool, a management tool, a financial tool, and a communication tool. The end result should be a balanced budget that has been well planned and communicated among all stakeholders.

A brief description of the budget cycle is as follows:
Input
a. Elected and appointed officials gather information from citizens, taxpayers and other sources about financial and non-financial priorities
b. Officials meet with staff and convey the goals, objectives, priorities and concerns that will guide the development of the budget.


Preparation
a. Revenues are estimated to determine how much financial resources will be available to fund operations
b. Expenditure requests and forecasts are prepared by the departments
c. The chief administrator submits a proposed budget that reflects the community needs and desires to the local government governing body for review.


Adoption
a. The governing body reviews the proposed budget
b. Proposed budget is approved by governing body
c. Changes are made according to the governing body’s recommendations and public comments
d. The budget is adopted.


Implementation
a. Revenues are collected and expenditures incurred in accordance with the budget
b. The budget may be modified or amended in accordance with procedures established by State law.
Evaluation
a. Internal reports may be prepared as needed for financial data, as well as for performance measurement
b. Other evaluation is done through internal audits, performance audits and external audits.