Kelsey City Budget Report

Kelsey City Budget Report

Introduction

Budget plays a vital role in every organization for the effective and efficient use of resources that would help in running the system more smoothly. In the same manner making unbiased budget report in government organization helps in determining its current and future policies and goals. In order to have a better understanding, it is important to know the functions and purpose of budgetary system. But before this, what is budget that is also important to understand. A budget is said to be a financial plan that consists list of revenues and expenses that are planned. Through the help of budget, spending, borrowing and most importantly savings are mapped for the betterment of society and country (Sullivan & Steven, 2003).

Discussion

Changes and affects in fiscal cycle and budgets

This paper will discuss those budget cuts that are made by the officials of Kelsey city that has affected the fiscal cycle of the city's budgets. The mayor of Kelsey city has given the task of reviewing and performing of cuts in the budgets of police department of Kelsey city because of a public safety tax of 15%. The officials of the city are planning to hire less number of police officers and to build more prisons.

The current budget report of Kelsey city shows that the department of police has an annual budget of $16,177,678. After the budget cut of 15% made in the annual budget of police department that has been requested by the mayor of the Kelsey city, the renewed annual budget is now $14,236,356 which means a decrease of $1,941,322 has occurred.

The notable decrease in the employing of police officers is the core change that will occur and will affect the fiscal cycle of the Kelsey city current budget year. Six (6) police officers who were serving in the police department of Kelsey were about to retire and four (4) other police officers who still had time in their retirement but still were looking to find new employment and leave the police force led the police department to hire ten (10) new police officers that was currently in progress. But now due to a budget cut of 15%, the police department will not be filling these vacant positions which will help in saving of amount $1,200,000 annually by the city.

As a result of not hiring of new officers, purchasing of new vehicles and maintenance cost of those vehicles in future will also decrease. The manager of Kelsey city agreed upon to allot $15,000, in the previous fiscal year, for purchasing of five (5) new vehicles and also for cost that would be incurred for their maintenance in respect for those police officers that would be newly hired.

Budgeting approach as budget director

Now as a budget director, a recommendation was made to the police union to either perform a 10% cut in the salaries of the police officers or to freeze their salaries until the next fiscal year comes. If this step is taken, then ...