Discuss what is involved in each of the four steps of a budgeting cycle
What will be an ideal response
• Budget formulation: planning, anticipate expenditures (based on the previous year)
• Budget approval: plan must be approved by the city.
• Budget execution: (1) to carry out the organization's budgeted objectives for the fiscal year in an orderly manner, (2) to ensure that the department undertakes no financial obligations or commitments other than those funded by the city council, and (3) to provide a periodic accounting of the administrator's stewardship over the department's funds.
• Budget audit: after the close of each budget year, the year's expenditures are audited to ensure that the agency spent its funds properly. Budget audits are designed to investigate three broad areas of accountability: financial accountability (focusing on proper fiscal operations and reports of the justice agency), management accountability (determining whether funds were utilized efficiently and economically), and program accountability (determining whether the city council's goals and objectives were accomplished).
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