Q3

2,900

Q5

2019

Question #1 (a)

A Goal Driven Budget

Use your response to Question 1 in the other files to develop and prepare a line item budget for implementing your hypothetical medium-sized Agency. Your proposed budget must cover two fiscal years, namely; 2021 and 2022. Your estimated dollars must reflect entirely the mission, goals and objectives of the proposed Agency. Assume the fiscal year is uniform for everyone and runs each year from January 1 through December 31. Importantly, provide a rationale for the proposed budget estimates. Furthermore, add a ✓ justification section in support of your overall budget strategy. (17 points)

Public Budgeting Exercises

Problem 1

a) The mission is to create an enormous, positive impact in our area by providing assistance to uplift the lives of impoverished people.

b) Create an inclusive, fair, and welcoming culture at the organization.

Assist through financial or other means to help people live a happier and better life.

Increase the awareness about the issues faced by the impoverished community and how donations have a more significant impact than what most people assume.

Increase the accessibility to healthcare and education.

c) Short Term Objectives:

· Recruit people from various backgrounds in the upcoming hiring season.

· Increase the number of people that can access healthcare and education by 5%.

· Arrange three mega charity events in the upcoming year to raise funds and donations.

· Reduce expenses by 5%.

Long Term Objectives:

· Introduce more employee-friendly policies to increase motivation and efficiency.

· Increase the entire fund by 40% in the next five years.

· Increase the reach by creating awareness, and the number of people helped by 20%.

d) Major activities required should include a more significant number of people that are aware of these issues and willing to sponsor or donate for the cause. We should also be able to organize more charity and fundraising events. We could also find out more ways to generate funds, such as by making and serving a few snacks and drinks on occasions. Extensive research about the people that need assistance as well as about how it can be provided without any problems.

e) Consistent and efficient human capital will be required to ensure the procedure is executed smoothly. Funds would be needed to purchase equipment, such as computers, and pay for wages.

Problem 2

The government is responsible for a lot of things, such as providing services or building infrastructure that requires spending substantial money. There are three broad types of government funds that the government can use to pay for its activities.

The first type of fund is the governmental fund, which is used to fund the typical activities of any government. This can include providing an adequate level of police, fire, healthcare, education, and emergency services. These funds are also used to construct or upgrade infrastructures or undertake other projects, like roads, parks, or other capital projects. Moreover, this fund is also used to service and pay off debt. This fund is funded mostly by taxes and any additional subscriptions or fees earned by the government for providing any of the services mentioned above.

The second kind of fund is called a proprietary fund, which operates in a way that is similar to a business. It is used to provide for person-to-person services, which are essential such as water and sewage facilities. This fund is also used to pay for internal costs of operations as well as all other funds for the government.

The third kind of fund is fiduciary funds, where the government holds money in trust to benefit others. This can include agency funds (investment and returns for short periods), investment trust funds, pension, and employee benefit funds, and any private-purpose trust fund. It helps to generate money and pay the other parties as and when needed.

Problem 3

2,900

Growth Rate Formula: [(Value N2)/(Value N1)] – 1

Problem 4

1) 12,500,000 – 1,500,000 – 2,500,000 = $8,500,000

2) 10,800,000 + 2,500,000 = $13,300,000

3)

68,000,000 – 10,800,000 + 1,500,000 = $58,700,000

Problem 5

2010

2019

Growth Rates

Average Growth Rate (Growth Rate ÷ Years)

Public Safety

12,500

26,500

112%

12.4%

Transportation

10,500

22,500

114%

12.7%

Drug Enforcement

19,000

28,600

51%

5.6%