CGFO-2

CGFO BUDGETING QUESTIONS AND ANSWERS What does NACSLB stand for? National Advisory Council on State and Local Budgeting Components of Budgeting Best Practices 4 elements 12 principles 4 elements of Budgeting 1. Establish goals 2. Develop Approach 3. Develop Budget 4. Evaluate Principle One Establish broad goals to a guide government decision making Principle Two Develop approaches to achieve goals Principle Three Develop budget consistent with approaches to achieve goals Principle Four Evaluate Performance and make adjustments What are the Elements of Principle One Elements One, Two, and Three Element 1 Assess community needs, priorities, challenges, and opportunities. Element 2 Identify opportunities and challenges for government services, capital assets, and management. Element 3 Develop and spread broad goals What are the elements of Principle 2? Elements 4, 5, and 6 Element 4 Adopt financial policies Element 5 Develop programmatic, operating, and capital policies and plans Element 6 Develop programs and services that are consistent with policies and plans Element 7 Develop management strategies What are the elements of Principle 3 Elements 8, 9, 10 Element 8 Develop a process for preparing and adopting a budget Element 9 Develop and evaluate financial options Element 10 Make choices necessary to adopt a budget What are the elements for Principle 4 Elements 11 and 12 Element 11 Monitor, measure, and evaluate performance Element 12 Make adjustments as needed The Four Principles of Budgeting 1. Establish broad goals 2. Develop Approaches to achieve goals 3. Develop a budget 4. Evaluate Principle 1 - Establishing Goals is also known as? Strategy Plan Element One Assess community needs, priorities, challenges and opportunities What is a recommended practice by GFOA to assess community needs? Public hearings Surveys Interaction and Communication Element Two Identify opportunities and challenges for government services, capital assets, and management What are things to consider for opportunities and challenges of Element two? Issues and trends External factors Studies Community Dynamics Element 3