Presenting the budget

Presenting the budget

Introduction

Businesses owners mostly require planning carefully the finances of the business and reviewing them thoroughly. There are various forms that businesses use to measuring, identifying, evaluating and reporting their financial information. These accounting tools include financial statements, budgeting and forecasting, as they are important in managing financial information. Budgets mostly give detail overview of the business expenses in future and its revenues in future time. Various businesses prepare budgets annually to determine the cost needed for each of its department. By planning annual budget effectively, a business can reduce its time in maintaining and creating resources of capital. It also specifies or limits amount which company will be spending on specific items (Valenti, 2004). By preparing effective budget plan it creates a financial roadmap for spending. It is also helpful in future growth and expansion of business.

Question 1: Growth trends

After reviewing the financial plan of New York City it is found that total revenue is growing slower than total revenue. Growth rate of revenues and expenditures is given below in table with difference:

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

REVENUES

0.00%

0.68%

2.45%

5.98%

8.88%

EXPENDITURES

0.00%

0.68%

6.13%

10.57%

13.39%

Difference

0.00%

0.00%

-3.69%

-4.58%

-4.51%

It is found that growth rate for New York Coty in FY 2013 is same for expenditures and revenues. But in FY 2014 growth rate of expenditure is more than revenues which is 6.13% and 2.45% respectively with a difference of 3.69%. Same is found in FY 2015 and FY 2013 where revenues are growing at slow rate as compared with expenditures.

Question 2: Fast growing expenditures category

There are two main categories of expenditures which are personal service expenditures and other than personal service expenditures. After analysis, it is found that personal service expenditures are growing rapidly and findings are mentioned in below table.

EXPENDITURES

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Personal Service

54.68%

54.44%

52.67%

52.83%

52.99%

Other than Personal Service

41.77%

41.91%

39.99%

39.33%

39.01%

Personal Service (growth rate)

0.00%

0.23%

2.21%

6.81%

9.89%

Other than Personal Service (growth rate)

0.00%

1.00%

1.60%

4.11%

5.89%

It can easily be found that growth rate of person service expenditures category is rapidly growing as compared to other categories of expenses such as other than personal service expenses.

Question 3: Taxes

After analyzing the budget plan of New York City, following results are obtained:

REVENUES

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

General Property Tax

26.33%

26.89%

27.20%

27.20%

27.35%

Taxes

0.00%

3.78%

7.26%

12.05%

16.49%

It is found that general property tax comprises of almost 26% of total revenues generated by the plan. It is also analyzed that the composition of general property tax is approximately same in all years with a slight increase of 1 percent in all years. Taxes are growing at rapid pace with increasing rate across the plan.

Question 4: Budget Justification Proposal

Agency Name

Department of Social Services

Proposal Name

Job Training Program

Submitted By

Department of Social Services

Date

January 10, 2013

Costs:

Year

Total

General Fund

Federal Funds

State Funds

Other Funds

FY 2013

$ 200,000

$ 200,000

FY 2014

$ 175,000

$ 175,000

FY 2015

$ 175,000

$ 175,000

Introductory Summary: The NYC Department of Social Services proposes to organize a job training program by partnering with New York City. Through this training program Department of Social Services will provide job training workshops to various departments including; office administration, construction, security, and apartment ...