Q1. Government unit budgeting process terms:
Appropriations: Appropriation is when funds are set aside for a specific purpose. Government appropriations are done to a lot of funds for the necessity for its operations. For the American federal government, appropriation is done by Congress via different committees. For example, the Defense and Security department can appropriate funds for the purchase of special military equipment ( Foster & Fozzard, 2009) .
Encumbrances: An encumbrance is a section of a budget that is set aside for spending that is required by contract or law. Encumbrance is a project that is ongoing and not a reality. If the existing conditions continue as they are, then encumbrance becomes expenses. A perfect example of encumbrance is when a government borrows Housing and Urban Development loans from the banks. The government has to pay back this loan to the bank when it is due, reducing the amount of tax it collects (Kittredge, 2013).
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Expenditures: An expenditure in the budgeting process is a disbursement or a payment. Governments can make expenditures for various reasons, including expenditure on assets, reducing liability, and making payment on bills or expenses.
Budgetary fund balances: Budgeting is the process of deciding the current and future expenditures to streamline the process of expenditure (Shah et al., 2007). The government units conduct their respective budgets to keep track of their income and expenses. Budgeting serves as a controlling and mounting approach to manage government finances. When developing a government budget, fund balances are the leftovers of the end of the financial year after all the incomes have been accounted for and all the expenditures noted down against the lawful appropriation of the period of budgeting.
Q2. Received Cash Revenues
| DR | CR | |
| Property Taxes | $ 800,000.00 | |
| Fines and Forfeits | $ 73,000.00 | |
| Intergovernmental | $ 300,000.00 | |
| Cash | $ 1,173,000.00 | |
| TOTAL | $ 1,173,000.00 | $ 1,173,000.00 |
Q3. Purchase Orders
| DR | CR | |
| General Expenses | $ 285,000.00 | |
| Streets | $ 50,000.00 | |
| Public Safety | $ 670,000.00 | |
| Appropriations | $ 1,005,000.00 | |
| TOTAL | $ 1,005,000.00 | $ 1,005,000.00 |
Q4. Fulfilled Orders
| DR | CR | |
| General Expenses | $ 280,000.00 | |
| Streets | $ 50,000.00 | |
| Public Safety | $ 660,000.00 | |
| Cash | $ 990,000.00 | |
| TOTAL | $ 990,000.00 | $ 990,000.00 |
References
Foster, M. & Fozzard, A. (2009). Aid and Public Expenditure: A Guide.
Kittredge, W. (2013). Public Budgeting & Performance Measurement. 10.13140/RG.2.1.4389.4649.
Shah, A., Jones, R., Larson, C., Mccue, C., Prier, E., Miller, G., Hildreth, B., Hughes, J., Baltaci, M., Yilmaz, S., & Bac, A. (2007). Local Public Financial Management.
