Budget evaluation is the last stage of the budgeting process where the planners asses the effective and appropriate use of public resources to support good governors. Evaluators often involve independent bodies that portray a high level of sufficiency in exploiting their resources to audit the budget performance (Rubin, 2017). To ensure that there is adequate oversight of evaluation, the National Audit Office in collaboration with civil society groups are mandated by the government to ensure requisite independence. Hence the public can use the findings from the evaluation process to analyses the magnitude of budgets in influencing legislative recommendations. The budget evaluation process of the South Carolina Emergency Management Division involves the preparation of the Annual Accountability Report that is a management tool which ensures that future budget process identify and maximize on the strengths, minimizes the weaknesses, exploits the opportunities, and counters the threats to improve its performance.
The budget process provides for community and other stakeholder input to the governing body prior to approval.
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Budgeting is significant in managing projects with significant social and environmental impacts that require mitigation measures aiming at addressing the opportunities and risks which the process presents. The vision of the South Carolina Emergency Management Division presents a relevant community based entity that uses state, army, and air operation to empower adjacent communities (South Carolina Emergency Division, 2018). In the SCEMD’s planning on capital improvements, the planners comprehensively involve the Capital Budgeting Unit that meets the obligation of coordinating contingency contracts.
Consulting with the stakeholders ensures that there is an initiated and sustained constructive relationship for a prolonged period with the community. The planners disclose information that supports consultation between the government entity and the public (South Carolina Emergency Division, 2018). Starting the process early ensures that there is a social license of operations in case the budget is approved. Information sharing includes presentation of information, addressing questions raised, inviting suggestions, and considering feedback.
Therefore, the process incorporates the Emergency Management Division which plans ahead to predict potential issues, identifies the individuals affected by the budget, and predicts answers for the questions raised. Federal entities use the Stakeholder Engagement Plan to design a multiple stakeholder platform that employs public participation principles. This is because the community has to be involved in decisions affecting their livelihoods to promote sustainable decisions, predict the potential risks, and ensure that these risks are mitigated at an early stage.
However, there is a risk in fulfilling the accountability role to the public through the exposure of the budget to the pressures of the interest groups (Rubin, 2017). Planners often have to close the process so as to reduce the direct influence of specific sections of the public. For instance, state governors often use their veto power to impose preferences after consulting with the legislative leadership. In this this case the centralization dimension of the process falls under the roles of independent actors. By immobilizing the decision making, they ensure that there is limited spending to mitigate futile lengthy sessions.
The budget provides information on differing revenue streams (tax revenue, grants and fees)
The planners classify the expenditures and the revenue statistics to outline how the revenue is channeled to different government structures so as to provide public service (Skol-Hessner et al, 2016). For instance, the SCEMD annually presents detailed payroll information including unadjusted accounts which are directly channeled to the Department of Revenue. . The budget includes the revenues from fiscal monopolies, licenses, and permits, sales of goods, property taxes, investment income, and insurance premiums. From personal income tax, the budget includes the revenues from unincorporated businesses and individuals, and capital gains whose proceeds are channeled to fund the entity’s operations. Other forms of tax in the budget include the corporation income tax which are occasionally placed on profits from corporations.
The main revenue generator, the pay roll tax is a percentage of the employee wages that is also classified as personal income tax (Executive Budget Office, 2018). From this category, social insurance plans are assigned for education, public pensions, transportation and health plans. Furthermore, the budget opts for state debt where the government borrows money to cover up the deficit to cover spending that exceeds the budget limit. The federal government offers grants in form of education, Medicaid, and transportation which accounts to up to thirty-one percent of the state funding. These funds are used in evaluating risks, training the community on potential catastrophes, and developing state emergency plans.
The budget provides information on collective expenditures, as well as the expenditures of each agency or program
Various company programs offer significant input in determining the positive outcome of a performing budget. By breaking down the agency’s budget into categories of salaries, fixed costs, and office expenses, the SCEMD presents accurate information on the agency’s expenditures (Skol-Hessner et al., 2016). The department of operations, finance, administration, mitigation, legal, and public information collaborate their information in detailing the total funding needed to support operation. Due to its role in allocating different actors assignments in the budgetary decision-making process, the influence on policy outcomes ensures that there is a standard competition level on the use of collective governmental resources.
Collective expenditures also include contribution to the various social welfare plans (Executive Budget Office, 2018). Such contributions include the insurance on employees, worker unions, non-autonomous pension plans, and the national covers that are mandatory to every citizen of a country. A good budget includes the procurement of goods and services as expenditure that ensures constant transactions of the government agency with the public. Such expenditures are documented in charges and fees rendered as a cost of business with either government subsectors, personal business premises, or individuals. They also entail rental costs, equipment acquisition, and supply of office materials, publications, printed material, buildings, and machinery. Expenditure on services include transportation, franchises, admission, tuitions, medical, debt guarantee fees, and personal licensing.
The budget provides clear metrics for expenditures, ideally based on some level of performance (output), not just factors like time and staffing levels (input).
Most states use outcome based budgeting models to measure the performance on previous budgets by laying out detailed structures for expenditure performance measurement (Bjornholt et al., 2016). Budget evaluations help to act as a benchmark for future successful budgeting processes and reduce the cost inefficiencies of unnecessarily expensive expenditure. Improving citizen satisfaction includes the adjustment of these expenditures to acceptable levels such that they is information that supports local government programs.
Furthermore, analyzing the output of expenditures is necessary in managing resource allocation. With most grant agencies requiring an accountability report on proposed government programs, budget planners conduct outcome evaluations on all expenditures considered in the final draft of the budget. Through the display of information on the improvement and progression of rendering public goods and services, the public can gain satisfaction on the input of government resources. The efficiency of the process is in cost effectiveness where it is measured through determining the ratio of total input to a significant outcome. On the other hand, effectiveness is where the level of public service is at per with the demands of the citizens. By using the least amount of expenditure to achieve the required standards of outcome, the budget become a benchmarking tool for the management in overseeing company operations.
The budget includes information on periodic monitoring and audits
The demand for public service is increasing with citizens demanding for government accountability and property relief on tax. The growing complexity of government structures makes it mandatory to develop periodic monitoring and audit programs that are designed to ensure that formulated budgets are cost efficient and there is easy access to supporting data that acts as a fund management tool. In the case of the South Carolina Emergency Management Division, the budget outlines that periodic monitoring and audits of the budget are conducted by the South Carolina Legislature (Executive Budget Office, 2018). The agency identifies the role of the budget as a tool for proper management of limited government resources rather than a control process that makes it underperform.
Auditing also ensures that the risk management and finance departments address the budget system weaknesses of volatile structures. By ensuring that the budget lays out specific monitoring processes carried out for effectiveness rather than as an expectation. For instance the personal income targets need to be consistent with the revenue generation of the employees,. Setting unachievable targets may lead to the failure of institutional structures due to inadequate funds or the overreliance on debt and grants. Audits raise awareness on the percentage ratio of expenditure as compared to the receipts and charges incurred by a company. Through the process, managers can identify loopholes that are ineffective and increase accountability amongst their employees.
Recommendations for improving the budget process
In order to improve the budgeting process, planners need to keep a rolling and flexible forecast so as to avoid the cost and time consumption involved in adjusting a rigid process. Additionally, managers can incorporate budgets in to existing revenue rather than on premediated grant acquisitions or potential loans (Bjornholt et al., 2016). Through early and prompt communication with stakeholders, agencies minimize the issues of alignment related with achieving organizational goals. Furthermore, the multiagency involvement ensures that budget implementation is through collaborative effort rather than facing internal and external conflict which often leads to failure.
Being detailed and accurate about the objective of the budgeting process ensures that all stakeholders have a clear forecast on the direction of the company operations. Clarity also includes the prevention measures in place in case unavoidable scenarios that present themselves as barriers to the success of the process. By tracking and monitoring its performance in a periodic manner, these obstacles can be easily tackled on a rolling basis to ensure smooth flow of operation.
References
Bjørnholt, B., Bækgaard, M., & Houlberg, K. (2016). Does fiscal austerity affect political decision-makers' use and perception of performance information? Public Performance & Management Review , 39(3), 560–580.
Executive Budget Office. (2018). Current Budget Plans- Office of the Adjutant General. Retrieved from: https://www.admin.sc.gov/files/E240%20-%20Adjutant%20General.pdf
Rubin, I.S. (2017) . The politics of public budgeting: Getting and spending, borrowing and balance (8th ed). The Thousand Oaks, CA: CQ Press, SAGE Publications
Sokol-Hessner, P., Raio, C. M., Gottesman, S. P., Lackovic, S. F., & Phelps, E. A. (2016). Acute stress does not affect risky monetary decision-making. Neurobiology of Stress , 5, 19–25.
South Carolina Emergency Management Division. (2018). Emergency Operations Plan. Retrieved 10 Nov. 2018 from http://www.scemd.org/em-rofessionals/plans/emergency- operations-plan/
