Exam 1 Study Guide
Exam 1 Study Guide SPH-R413
Popular in FISCAL MGMT LEISURE SVC ORGS
Popular in Public Health
This 8 page Study Guide was uploaded by Bri Perl on Friday September 18, 2015. The Study Guide belongs to SPH-R413 at Indiana University taught by Dave Williams in Summer 2015. Since its upload, it has received 87 views. For similar materials see FISCAL MGMT LEISURE SVC ORGS in Public Health at Indiana University.
Reviews for Exam 1 Study Guide
If Bri isn't already a tutor, they should be. Haven't had any of this stuff explained to me as clearly as this was. I appreciate the help!
-Gina Harris Sr.
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/18/15
Organizational Structures Approaches to nancial management vary greatly in recreation sport and tourism 0 Differ based on PublicNonpro tCommercial organizations 0 Government owned bene t community residents use is non discriminatory Goal Improve quality of life for residents 0 Main source of funding Taxes other source charge feesprivate sources Government agency looks everywhere to get supplementary funding ex Indiana putting in parking money to get more tax Federal and State government assign laws for collection and use of public funds Funds come from Taxes fees amp charges grants dona ons Public agencies are TAX EXEMPT Altruism Community Concern for the welfare of others 0 Financial Authority Elected governing body mayor city council trustees 0 Political Change can result in change to spending and budget priorities 0 Challenges 0 Funding big ticket projects 0 Under constant scrutiny by public politics and bureaucracy also problem 0 Marketing strategy 0 Based on need vs pro t potential 0 Targeting everyone in the community through program guides 0 Equity in service delivery ex Free swimming lessons 0 Budget Funding sources 0 General Fund operating budget Taxesproperty excise income 0 Special Revenue Fun NonReverting fees amp charges pool golf softball league program fee rentals 0 0 Projects Fund Major Projects Special taxes referendums grants bonds 0 Debt Service Fund long term debt obligations bonds 0 Identify with a CAUSE not government owned need to generate own 0 Can make a profit but pro t is not the goalleft over usually given to mission of the organization 0 Funds come from donations fundraising grants membership fees 0 Ex Salvation army goodwill Habitat for Humanity NFPs tax exempt tax laws encourage people to donate by giving tax deductions 0 Why do they exist 0 To meet social needs and causes or special interests 0 Financial MUST breakeven at least fundraisers and campains help 0 Indicators of success comparing achievements to goals social staying open 0 Financial Authority Appointed Board of Directors 0 Challenges 0 Reliance on volunteers 0 Lack of stafffunding 0 Board of directors strong opinioned bene t from organization Policies and directives come from the board NFP s must have reputable track record for managing donated funds 0 Budget Funding Sources 0 Earned Income user fees amp charges sales rentals 0 Gratuitous Income Grants donations bequests sponsorships 0 Investment Income Interest dividends 0 Contract Agreements Mgt of facilities special servicesP3 s Rely on Return On Investment 0 Purpose TO generate PROFIT 0 Cover own expenses and are required to pay taxes create jobs 0 Cover costs by charging fees selling goodsservicesinvest Ex Pro Sports resorts amusement parks 0 Private sector comes to public when they need something big like an arena 0 Social Role 0 Contribute to economic well being of community key to capitalist society 0 Target those who quotpaytoplayquot 0 Financial 0 Focus on nancial growth 0 Funds come from lenders stockholders security markets 0 Balance sheet pro tloss is primary tool quotFinancial Bottom Linequot 0 Financial Authority Owners Company Shareholders Challenges 0 Requires skilled workforce Budget Funding Sources 0 Earned Income user fees amp chargessales rentals progift shop sales 0 Investment Income Interest dividends capital appreciation 0 Contract Agreements Mgt of facilities amp special services Privatization Partnerships Financial Positions 0 Owners Establish cost goals determine freediscount services employee Administrators Implement decisions set prices determine program cost collect payments manage staff payroll Controller Records monitor manage nancial consequences of activities of the organization Treasurer AcquireCollect funds needed to operate the organization 0 Auditor Independent evaluation of the organizations nancial management systems and practices advises the nances investigates errors ensures compliance of laws Financial Structures 0 Financial structure of ANY organization must 0 De ne lines of authority 0 Differentiate between makers and nancial administrators 0 Develop policies to monitor control and report on nancial position Gentri cation Downside of economic development 0 Pushes people outside of homes because property value and cost of living goes up Things being built around home property tax goes up people who live there have to pay more Economic Principles Microeconomics o Smaller scale individual peoplecompanies responding to price change Macroeconomics 0 Large scale total output of a nation the way a nation distributes landlaborcapital to maximize production levels 0 quotWhere politics and economics mixquot Stock 0 Quantity of a product or resource Supply 0 Quantity of product or resource that the owner is willing to make avail 0 Quantity supplied productsservices that someone wishes to sell Higher the price greater the quantity of product suppHed Demand 0 Amount of product or resource WANTED at a given price 0 Demand based on 4 variables Price lncome Prices of other things consumer tastestrends PIPOCT 0 Price elasticity of Demand change in quantity consumed caused by change in price Equilibrium amount supplier make quantity consumer buys 0 Price above Equilibrium too much supply 0 Price below Equilibrium too much demand BudgeUng 0 Process of gathering organizing and reporting nancial facts and plans Budget 0 Document that represents the anticipated revenues and expenditures of an organization Reinforces goals plans and performance of organization helps in decision making 0 Types of Budgets Operating Current expenditures over a speci ed period of time 0 Categories 0 Personnel Costs Line 1 Fulltime employees and benefitsPartTime employees Workers amp Unemployment compensation Retirement 0 Materials and Supplies Line 2 FuelRepairsBuilding Supplies Consumables quotThe Bread amp Butterquot 0 Utilities and Services line 3 Utilities electric gas water sewer Contractual repairs and services Consultants Conference TRAINING AND TRAVEL Capital 0 BIG items landlease purchasesnew construction Big Cover long period of time funded for over a year funding isn t consistent 0 Capital line 4 Signi cant in scope and cost New construction projects Rehabilitation and repairs Equipment Purchases Lease Commitments The focus is on FUTURE needs 0 Capital Improvement Plan CIP 0 510 year period of time o Identi es major asset and project needs updated continually tracks capital improvement to date 0 Include ALL project costs 0 Capital budgeting o 1 Inventory of capital assets2 Needs analysis3 Cost analysis4Financing Pay as you go most conservative no debt funds up front Pay as you use most POPULAR those who use pay for it through taxes fees and charges BudgetContingency Transfers Budgets are an educated guess 0 Include a contingency of 510 0 Fiscal Year The one year budget period startend months vary 0 Encumbered Funds Funds committed to purchases that have not yet been paid to a vendorsupplier purchase orders 0 Expended Funds Funds paid out to vendors for services and items purchased leased and rented o The Budget Cycleprocess Preparation SubmissionApprovalExecutionReviewEvaluation Preparing Budgets 0 Factors to consider Consumer tastes Degree of competition Employee relationsturnover Technological trends Degree of nancial risk Marketing Pricing Financing needs Seasonal aspects 0 Object Classi cationLine ltem Lines 1234 most common 0 ProgramActivityl focusing on speci c program costs and revenue Emphasis is on measurable outcomes and resukts Program budget quotFocus on Outcomesquot De ned time line cost and responsibility centered emphasis on quantitative and qualitative data Organized around levels department division program 0 Zero Based Focus on actual costs and annual justi cation of the program Zero Based budget quotjusti cation for spendingquot Start each scal year at 0 justify work program reallocate funds from highlow priorities Responsive to changing needs fosters competition time consuming BASE IT ON CURRENT o RunningOpen Ended Adjust budget over the year based on revenue collected Running Budget quotAdjusting to changequot Changing revenue streams manage expenditures w limits spending decisions are on a scheduled basis Disadvantages inconsistent nancial support decisions based on revenue vs needs make big purchases early Responsive cut costsraise revenuestay out of Debt 0 Establish a budget goal early guidance project speci c 0 Essential information Directives growth at line reductions Priorities Organize Expenditures Estimate costs Contingencies plan for unexpected 0 Organization Work Plan Personnel costs INSURANCEll Ongoing functions NEW or Proposed functions One time functions BIGGEST CHALLENGE Balancing what you must do need to do and want to do within constraints of your budget 0 Line Item Budget focus is on exibility quotObject Classi cation Budgetquot Category based Most common Allows Budget Classi cation by type of expenditure 0 USED in public and private sector good level of detail 0 WE ARE USING THIS 0 Performance Budget focus on Efficiency Best format for repetitive outputs maintenance construction work Ongoing evaluation of performance Provides performancecost data 0 Liquidity o If you sold assets how much money you would get Solvency 0 Terms and De nitions Liquidity Solvency Fiscal Year FY Financial Decision Makers held accountable for nancial decisions Financial Administrators implement nancial policies and follow nancial management procedure preform transactions 0 Controller recording monitoring managing nancial consequences of past and current activities TreasurerAcquirecollect funds necessary to run the organization 0 Private banks stockholders regulatory agencies o Publictax collection Special assessments Assessor public assess property value for taxation purposes Auditor Purchasing Agent prepare speci cations purchases materials equipment and supplies Economics Economic Impact Economic ImpactFeasibility Studies Elasticity of Demand Stock BearBull Market 0 Bear market cautious about spending believes stock market will full 0 Bull aggressive buyers market Equilibrium ln ann Interest Depreciation Bankruptcy Budget General Obligation Bond Revenue Bond Walker Attracting future employment Why you want to look at a community Leisure based community 15 He gave his view of what economic development is 0 Increasing tax base improving Ife Public Private Partnerships Know concept and that it is a GROWING trend in leisure industry
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'