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Search box – – Contact: (202) 502-7362 • • • • • • • A major element of financial data activity rests in the act of budgeting. Budgeting is the process of allocating finite resources to the prioritized needs of an organization. In most cases, for a governmental entity, the budget represents the legal authority to spend money. Adoption of a budget in the public sector implies that a set of decisions has been made by the governing board and administrators that culminates in matching a government's resources with the entity's needs.

Program-based budgeting is a budgeting structure where money is distributed by program or functional area and based on the nature of the. Definition of Program Budget. Planning, Programming and Budgeting System. PPBS is an answer to the need for an economic allocation of resources and the undertaking of government policy, program analysis, and cost utility analysis to improve the policy decision process of government. Planning, Programing and Budgeting System. Planning, programing, and budgeting. Please select a reason for flagging this definition.

As such, the budget is a product of the planning process. The budget also provides an important tool for the control and evaluation of sources and the uses of resources. Using the accounting system to enact the will of the governing body, administrators are able to execute and control activities that have been authorized by the budget and to evaluate financial performance on the basis of comparisons between budgeted and actual operations.

Thus, the budget is implicitly linked to financial accountability and relates directly to the financial reporting objectives established by the GASB. Geographic Transformation Pdf. The planning and control functions inherent to any organization, including schools, underscore the importance of sound budgeting practices for the following reasons: • The type, quantity, and quality of goods and services provided by governments often are not subject to the market forces of supply and demand. Thus, enacting and adhering to the budget establishes restrictions in the absence of a competitive market. • These goods and services provided by governments are generally considered critical to the public interest and welfare. • The scope and diversity of operations in an organization make comprehensive financial planning essential for good decisionmaking. • The financial planning process is critical to the expression of citizen preferences and is the avenue for reaching consensus among citizens, members of the governing board, and staff on the future direction of the governmental unit's operations.