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Accounting Management

Interpreting Budget Expenditures

The city of Milton has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each department. The annual budget is divided equally among the 12 months to provide a constant monthly static budget. On June 30, all unspent budgeted monies for the budget year from the various city departments must be “returned” to the General Fund. Thus, if department heads fail to use their budget by year-end, they will lose it. A budget analyst prepared a chart of the difference between the monthly actual and budgeted amounts for all departments in a recent fiscal year. The chart was as follows:

Write a memo to Stacy Poindexter, the city manager, interpreting the chart and suggesting improvements to the budgeting system.

Additionally, include in the memo:

• the concept of budgeting,

• its objectives

• its impact on human behavior

• describe the basic elements of the budget process

• the two major types of budgeting

• the use of computers in budgeting.

Your paper must be at least one full page in length. Adhere to APA Style when creating citations and references for this assignment.