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Discussion Resp (FAM)

29/08/2020 Client: happyw Deadline: 7 Days

First response-Lida


One of the federal budget differences in the budget process, which was created in 1974 in efforts to lay out a formal framework and enforce the budget resolution. The process follows the following steps,



  • The executive office of Management and Budget prepares the budget

  • The president submits it to Congress (the budget should be submitted on or before the first Monday in February)

  • Congress should respond with spending appropriation bills to the president by Juan 30th

  • After receiving the budget, the president has ten days to reply (Amade, 2020).


When the appropriations bills are not passed in time, the president must sign a continuing resolution to provide stopgap funding for affected agencies and discretionary programs (Unknown,2020). In case that the appropriations bills are not passed, and the president has not signed a continuing resolution the affected agencies will shutdown causing a furlough


Another difference is that most private budget goes with the calendar year while the federal government fiscal year goes from October 1 to September 30. Also, The federal budget is not developed to maximize profit is based on having enough resources to serve the community.


References,


Amade, K. (2020, July 1). Secrets of the federal budget revealed. The Balance. https://www.thebalance.com/u-s-federal-budget-breakdown-3305789


Unknown. (2020, April 2). Policy basics: Introduction to the federal budget process. Center on Budget and Policy Priorities. https://www.cbpp.org/research/policy-basics-introduction-to-the-federal-budget-process


Second response-lisa


 


One of the most significant differences in the Federal Budget is that the government operates on a Fiscal year. (October-September). Most corporations function financially on a regular calendar year (January – December). The federal budget process is seemingly more complex than your average company because of the laws and time it takes to govern its formulation and consumption.


Typically, it takes a couple of years, sometimes more to formulate a budget for one fiscal year, and during this process, “federal agencies must deal with three different fiscal years at the same time” (Heniff Jr., Lynch, & Tollstrup, 2012). The current fiscal year, the subsequent year, and the following year. Again, though many companies depend on forecasts, they don’t go out nearly as far. Especially if they must consider inventories.


Lastly, another principal difference in the federal budget is that it infrequently factors in Key Performance Indicators (KPI’s). Like with the Swedish Bank of Handelsbanken, where the cost to income ration and return on equity is essential (Bogsnes, 2020), this is not an element to consider in the federal budget building process. In fact, KPI’s become more critical at the contracting or obligation phase.


Overall, I think these are the dynamic differences that make the federal budget so complicated.


I should add that until now, I’ve never heard of any organization operating by “kicking out the budget” (Bogsnes, 2020).


Felisha


References


Bogsnes, B. (2020, June 1). Financial Management. Retrieved from The Art of Managing Cost Without a Budget: https://www.fm-magazine.com/issues/2020/jun/how-to-manage-cost-without-a-budget.html


Heniff, Jr., B., Lynch, M. S., & Tollstrup, J. (2012, December 3). Introduction to the Federal Budget Process. Retrieved from Congressional Research Service: https://fas.org/sgp/crs/misc/98-721.pdf

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