Assignment task: Government & Nonprofit Budgeting
Select either a state or local government agency or a nonprofit organization. Locate the operating budget for this organization.
Based on your review of the operating budget, develop a response to the following:
1. Understanding sources and uses of funds:
- What are the top 3 sources of income or revenue?
- What percent of total revenue is provided from its top 3 revenue sources?
- What are the top 3 expenditures (either by line item - i.e. salaries, debts services, rent, etc. or activity - i.e. parks, security, roads, etc.)?
- What percent of total revenue is provided from its top 3 revenue sources?
2. Budget Decision Making:
- If you selected a state or local government agency: In the formal budgeting process, what entities or individuals make the final decisions about how (and how much) revenue will be raised in the public sector? What are 2 important factors that affect how these decisions will be made (e.g. public opinion on what types of taxes are least popular)
- If you selected a nonprofit agency: In the formal budget process, what 2 entities or individuals would be the most important decision-makers in determining how the agency generates revenue and how that income is spent?
3. Management Lessons:
- What do you think are the 3 most important skills or knowledge a budget manager should possess to ensure their agency has sufficient funding to effectively operate and advance its mission? Specifically, in your response, you should address what a manager would need to know and do to ensure:
- The organization has adequate revenues
- Important priorities or programs receive adequate funding
- The organization can meet its short-term financial obligations