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Home > Accounting & Audting > Local Government Budgeting: A Practical Approach for Fiscal Management
Prerequisite
Government Financial Reporting
Knowledge Level
Intermediate
Copyright 2008

Publication Date
February, 2008
Local Government Budgeting: A Practical Approach for Fiscal Management
Introduction Organization Learning Objectives Author Bios

Title: Local Government Budgeting: A Practical Approach for Fiscal Management
Prerequisite: Governmental Financial Reporting
Advance Preparation: None
Knowledge Level: Intermediate
Subject Matter Area: Governmental Accounting
Date of Publication: February 2008
Copyright © 2008 by Bisk Education, Inc. All rights reserved.
Recommended CPE Credits: 8 QAS/Registry (50-minute hour)
Expiration Date: One year from date of receipt to complete program and submit quizzer to obtain credit
Passing Grade for Quizzer: 70 percent or higher


At the local government level, budget planning and adoption provides the primary financial management analysis for determining which programs and services will be delivered. Elected officials struggle with the perennial pledge of "no tax increases" against the public's increasing demands for service. This program outlines practical issues for financial planning, program priorities, and communicating with the constituents.


This program is divided into six (6) chapters.

Chapter 1 gives a general overview of the legislative process of developing a government budget.

Chapter 2 reviews the different alternatives of budget planning.

Chapter 3 explains revenue forecasting.

Chapter 4 describes expenditure planning.

Chapter 5 emphasizes the use of the budget as a vital communication tool.

Chapter 6 discuss the importance of monitoring.

Helpful Guidance

Throughout this publication, the user will find explanations and discussions regarding some of the issues that often face practitioners. In order to enhance the user's comprehension of the material and highlight important practical considerations, this publication includes the following designations:

A Biskpoint presents analysis or commentary that attempts to explain or clarify authoritative guidance.

A Bisktip provides practical advice that may be used to help improve client service or service to the practitioner's organization.


Upon successful completion of this program, the user should:

  • Be able to explain the importance of integrating the government's strategic planning into the financial plan outlined in the budget document

  • Be able to outline the significant issues for your government to demonstrate accountability for public resources

  • Be able to define the legal and contractual requirements for your government's budget process

  • Be able to discuss relevant issues for public participation in your government's budget process

  • Be able to describe the characteristics of the performance budgeting approach

  • Be able to explain the principles of the zero-based budgeting concept

  • Be able to outline the development of an outcome-focused budget

  • Be able to identify the potential risks of revenue losses and safeguards to address shortfalls

  • Be able to explain how the various budgeting models may affect the priorities for government spending

  • Be able to describe the relevant cost analysis issues for developing expenditure estimates

  • Be able to highlight the significant planning criteria for maintaining sufficient capital assets to support government services

  • Be able to describe the requirements for the GFOA Distinguished Budget Presentation Award

  • Be able to use legal requirements for budget notices and publications to enhance your government's public communications

  • Be able to define the budget amendment process for your government

  • Be able to identify significant benchmarks to evaluate budget performance from financial and stakeholder perspectives



Betty King, CPA (KY), CGFM, is a local government consultant in Kentucky. In her 25-year career in local government finance, she has served as Local Government Advisor Chief for the Kentucky Department for Local Government, chief financial officer in several Kentucky cities and audited local government entities from the public accounting sector. In addition to her financial management and auditing responsibilities, she has provided training and technical assistance to local government officials and CPAs who audit governmental entities. Ms. King has also developed training for governmental auditing and accounting continuing education. She has served on the AICPA Governmental Accounting and Auditing Committee, as well as several other committee and Task Force positions with the AICPA. She is a frequent discussion leader for national conferences and training sessions. (Author/ Speaker)

Lucinda V. Upton, CPA (KY), CGFM, is a Program Analyst for Kentucky's Legislative Research Commission. In her 21-year career in state government auditing and accounting, she has held the positions of Assistant Director of Audits in Kentucky's Office of the Inspector General, Financial Manager in Kentucky's Medicaid Program, and others. In addition to her auditing and financial management responsibilities, she has provided training and technical assistance to state audit staff, local government officials, and CPAs who audit governmental entities. Ms. Upton has developed training in governmental auditing and accounting. She is the Education Coordinator for the Southeastern Region of the Association of Government Accountants (AGA) and is a past President of the Central Kentucky Chapter. She has authored courses for Bisk Education, Inc., Sheshunoff Publishing, AICPA Continuing Education Division, and the AGA. She has also been a discussion leader for national conferences and training sessions. (Author)

John L. Norman, Jr., JD, is an attorney in private practice in Washington, D.C., where he specializes in closely held business organizations, as well as estate and financial planning. He is the former National Director of Taxation for the accounting firm Pannell Kerr Forster, and the former chair of PKF's International Tax Committee. He is also a member of the International Tax Planning Association. Previously, he was the Director of Tax Policy for Potomac Electric Power Company. He also taught at the College of William and Mary and George Washington University. Mr. Norman is a noted speaker and author of several publications in the area of federal taxation and he is a regular contributor to CPE Network. (Speaker)

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