Please Help!!! With Questions 1-5! i appreciate it!!

Performance :udgeting are necessary to produce the activities. These are the activities. For instance, the $36,200 required the "items" in a line-item budget or the "inputs" by the playground maintenance category had that correspond to the "outputs," All of the com-_ appeared in the line-item budget (Table 12.1) as modities that an organization buys should be allo- parts of four different lines: $16,000 for maintecated, in whole or in part, to one of the activities in nance, $14,300 for seasonal maintenance, $4,600 the performance budget. Obviously, this is not for equipment maintenance, and $1,300 for grass done randomly. In compiling a performance bud. seed and fertilizer. This gives us a budget that tells get, one seeks to assign all the costs-and only us not just what things we plan to buy but what those costs-that actually go into performing an specific activities will be accomplished by our To illustrate this process. Iet us reexamine the expenditures. activities represents the first step in the process. For each court-hour. that the costs of the programs are as presented idea, of course, is to identify meaningful measures inTable13.1.Table13.1representsthebarebonesofaper-organizationsoperations.Itaccomplisheslittletothatmanagerscanusetojudgetheefficiencyofthe formance budget for the Department of Parks and Recreation. Note that all of the cost data from the of the agency's programs. Table 13.2 provides at a Recreation. Note that all of the cost data from the of the agency's programs. Table 13.2 provides a original line-item budget (Table 12.1) have been more complete version of a performance budget for reassigned to the various activity classifications. Ihe Department of Parks and Recreation, including How exactly was this done? Although for the unit cost information. purposes of this illustration the calculations are It should be emphasized that the techniques not shown here, we simply determined which of performance budgeting are used not simply to disexpenditures were necessary to complete each of play data in budget requests. A good performance Table 13.2 Program and Unit Costa: Department of Parks and Recreation \begin{tabular}{lrr} \hline Activity & FY 20052006 & FY 2006-2007 (Request) \\ \hline 01. Administration & $54,000 & $62,000 \\ Cost per citizen & 1.08 & 1,23 \\ 02. Playground Maintenance & 33,500 & 36,200 \\ Cost per acre & 42.66 & 46.12 \\ 03. Adult Softball & 11,000 & 11,500 \\ Cost per player & 25.04 & 25.00 \\ 04. Arts and Crafts & 21,300 & 23,000 \\ Cost per child & 87.22 & 106,18 \\ 05. Colf Course Maintenance & 37,675 & 38,700 \\ Cost per round played & 7.35 & 7.82 \\ 06. Tennis Court Management & 15,800 & 21,400 \\ Cost per court-hour & 5.67 & 6.73 \\ 07. Swimming Pool Operations & 66,125 & 69,700 \\ Cost per user-hour & 4.21 & 5.09 \\ TOTAL & $239,400 & $262,500 \\ \hline \end{tabular} budget is used to control costs as well as to estimate FURTHER READING future expenditures. If we find, as Table 13.2 seems to indicate, that the arts and crafts program is cost- One of the classic texts in performance budgeting ing markedly more over time for each child taught, is Jesse Burkhead, Government Budgeting (New wemaywanttoinvestigatewhyunitcostsarerisingsoprecipitously.Conversely,onceweareYork:Wileg,1956).Alsoofinterestisthesympo-siumonperformancebudgeting,"Performance risingsoprecipitously.Conversely,oncewearesiumonperformancebudgeting."Performanceabletoidentifyastablepatternofunitcosts,weBudgeting:HastheTheoryWorked?"inPublic can use estimates of demand for compiling our Administration Review 20 (Spring 1960). The symbudget requests. If we know that it costs approxi- posium material, together with other articles of mately $25 for each adult who participates in interest on performance budgeting, is reprinted in the softball program and can estimate that 460 Albert C. Hyde and Jay M. Shafritz, eds., people will sign up for the leagues next year, we Covernment Budgeting: Theory, Process, Politics ( Cak Park, IL. Moore, 1978). know our budget request must be $11,500 for (Oak Park, IL.: Moore, 1978). the program. the program. of a new lease on life in recent years in the guise of Thesecalculationshavebeensimplifiedforthepurposeofthisillustration.Mostperformancebudgetsdistinguishbetweenfixed"productivitybudgeting."See,forinstance,JackProductivity,"PublicProductivityReview10 and variable costs. Fixed costs are those that remain constant (Spring 1987). This journal in general publishes regardless of the level of the activity performed; variable cosss many articles related to the topic of monitoring and ating a public swimming pool, for example, even if very few seo- measuring the performance of government. Also ple use it: Insurance and utiltities must be paid; centain basic pool maintenance must be undertaken; basic lifeguard costs mus be absorbed. Other costs vary with the number of users: Additionat lifeguards must be hired or more chlorine must be purchased. worth consulting is Michael Connelly and Gary Tompkins, "Does Performance Matter? A Study of State Budgeting," Policy Studies Review 8 and so on. Overview of Exercise The Adams County Library has now been function- on Form 62. Note any modifications you think ing for one year. Although the Board of Supervisors necessary. (Hint: Is "personal services" an activity?) is generally pleased with the results of the merger, there have been undercurrents of dissatisfaction, especially among some library-oriented citizen Step Two groups who have charged that the new system is Using the data provided on Form 63 , together with inefficient, that money that could have bought new the budget data you compiled in Exercise 12 , books has been wasted on administrative overhead. recast your FY 1 budget into a performance format In fact, a group that calls itself the Friends of the on Form 64 . This is mainly a process of deciding Clear Creek Library has begun circulating a petition how to allocate line-item costs to performance that asks Clear Creek's mayor either to renegotiate categories. Be sure to include appropriate perforthe merger or to explore ways to reestablish the line-item budgets prepared in Exercise 12 can difvillage library unilaterally. line-item budgets prepared in Exercise 12 can difto demonstrate the advantages of the consolidated different numbers in this exercise, unless your library, Budget Director Johnson has again asked instructor chooses to rep skillsasabudgetanalyst.Yourtaskthistimeistoprovidetechnicalassistancetothelibrarysadminis-trativestaffindevelopingaperformanceformatforthelibrarysnextbudgetsubmission.StepThreeCompleteForm64bypreparingbudgetprojectionsmakeyourestimates.Assumea3percentincrease in all staff salaries and a 5 percent increase in supply, utility, and maintenance expenses. Assume no increases in average book prices. Step One Review the preliminary activity classification devel. Step Four oped by the library administrative staff as presented Answer the questions on Form 65. FORM 62 Budget Request Form Administrative Unit: Adams County Library Activity 01. General Administration 02. Acquisitions 03. Cataloging 04. Circulation 05. Reference 06. Special Programs 07. Personal Services - At the time of the merger, the Adams County Library system had total holdings of 1,652,000 volumes. In FY1, 18,000 additional volumes were acquired. It is anticipated that 21,500 volumes will be acquired in FY 2 . - In addition to cataloging all new volumes, the library system has met and expects to continue to meet its goal of recataloging 10 percent of its holdings each year to convert to the Library of Congress system. - The combined circulation figures (in volumes) for all branches of the system are as follows: FY 1, 752,000; FY 2,776,000 (anticipated). - In FY 1,421,000 patrons used the library system (including repeat visits). It is expected that 423,400 visits will be recorded in FY 2 . - In FY 1 , the reference departments of all library branches answered 67,800 patron questions. It is expected that the reference departments will handle 71,500 questions in FY 2 . - Twenty-four special after-school programs were conducted by the system in FY 1, attended by 1,200 elementary and secondary school pupils. The same figures are expected for FY 2 . In addition, 12 of the system's branches conducted Great Books discussions for adults over a 10-week period in FY 1, with a total participation of 127; this program will be discontinued for FY 2 . A Sunday film series at three of the branch libraries attracted 4,500 viewers in FY 1 . Approximately 6,000 are expected in FY 2 . - Total staff levels in the library system have remained constant since the merger, with no changes in the distribution of job classification (i.e., you can assume that the figures from Form 59 are still accurate). - A recent time study of library employees indicated that branch librarians spend 35 percent of their time on general administration, 25 percent on reference, 20 percent on special programs, 15 percent on acquisitions, and 5 percent on circulation. Assistant librarians devote 30 percent of their time to cataloging, 25 percent to reference, 25 percent to circulation, and 20 percent to special programs. The director of county libraries devotes all his time to general administration, as do his secretaries and administrative assistant. Pages and circulation clerks spend 100 percent of their time on circulation, reference librarians 100 percent of their time on reference. - It may be assumed that maintenance, supply, and utility costs are borne equally by all library activities in proportion to their share of staff costs (as measured by salaries). FORM 64 Budget Request Form Administrative Unit: Adams County Library Activity FY 1 FY 2 (Request) 1. What, if anything, was wrong with the activity classification on Form 62 ? If you found something wrong. what modifications did you make? 2. Do your unit cost calculations indicate that the Adams County Library is becoming more or less efficient? Is this true of all programs? What might account for this pattern? 3. What additional measures or statistics would be useful to have to assess the performance of the Adams County Library? 4. Assume that you are a member of the board of supervisors. What questions would come to your mind as you reviewed this performance budget? Is there any information you would like to have that this budget does not contain? 5. In general, what are the strengths and weaknesses of the performance format? Performance :udgeting are necessary to produce the activities. These are the activities. For instance, the $36,200 required the "items" in a line-item budget or the "inputs" by the playground maintenance category had that correspond to the "outputs," All of the com-_ appeared in the line-item budget (Table 12.1) as modities that an organization buys should be allo- parts of four different lines: $16,000 for maintecated, in whole or in part, to one of the activities in nance, $14,300 for seasonal maintenance, $4,600 the performance budget. Obviously, this is not for equipment maintenance, and $1,300 for grass done randomly. In compiling a performance bud. seed and fertilizer. This gives us a budget that tells get, one seeks to assign all the costs-and only us not just what things we plan to buy but what those costs-that actually go into performing an specific activities will be accomplished by our To illustrate this process. Iet us reexamine the expenditures. activities represents the first step in the process. For each court-hour. that the costs of the programs are as presented idea, of course, is to identify meaningful measures inTable13.1.Table13.1representsthebarebonesofaper-organizationsoperations.Itaccomplisheslittletothatmanagerscanusetojudgetheefficiencyofthe formance budget for the Department of Parks and Recreation. Note that all of the cost data from the of the agency's programs. Table 13.2 provides at a Recreation. Note that all of the cost data from the of the agency's programs. Table 13.2 provides a original line-item budget (Table 12.1) have been more complete version of a performance budget for reassigned to the various activity classifications. Ihe Department of Parks and Recreation, including How exactly was this done? Although for the unit cost information. purposes of this illustration the calculations are It should be emphasized that the techniques not shown here, we simply determined which of performance budgeting are used not simply to disexpenditures were necessary to complete each of play data in budget requests. A good performance Table 13.2 Program and Unit Costa: Department of Parks and Recreation \begin{tabular}{lrr} \hline Activity & FY 20052006 & FY 2006-2007 (Request) \\ \hline 01. Administration & $54,000 & $62,000 \\ Cost per citizen & 1.08 & 1,23 \\ 02. Playground Maintenance & 33,500 & 36,200 \\ Cost per acre & 42.66 & 46.12 \\ 03. Adult Softball & 11,000 & 11,500 \\ Cost per player & 25.04 & 25.00 \\ 04. Arts and Crafts & 21,300 & 23,000 \\ Cost per child & 87.22 & 106,18 \\ 05. Colf Course Maintenance & 37,675 & 38,700 \\ Cost per round played & 7.35 & 7.82 \\ 06. Tennis Court Management & 15,800 & 21,400 \\ Cost per court-hour & 5.67 & 6.73 \\ 07. Swimming Pool Operations & 66,125 & 69,700 \\ Cost per user-hour & 4.21 & 5.09 \\ TOTAL & $239,400 & $262,500 \\ \hline \end{tabular} budget is used to control costs as well as to estimate FURTHER READING future expenditures. If we find, as Table 13.2 seems to indicate, that the arts and crafts program is cost- One of the classic texts in performance budgeting ing markedly more over time for each child taught, is Jesse Burkhead, Government Budgeting (New wemaywanttoinvestigatewhyunitcostsarerisingsoprecipitously.Conversely,onceweareYork:Wileg,1956).Alsoofinterestisthesympo-siumonperformancebudgeting,"Performance risingsoprecipitously.Conversely,oncewearesiumonperformancebudgeting."Performanceabletoidentifyastablepatternofunitcosts,weBudgeting:HastheTheoryWorked?"inPublic can use estimates of demand for compiling our Administration Review 20 (Spring 1960). The symbudget requests. If we know that it costs approxi- posium material, together with other articles of mately $25 for each adult who participates in interest on performance budgeting, is reprinted in the softball program and can estimate that 460 Albert C. Hyde and Jay M. Shafritz, eds., people will sign up for the leagues next year, we Covernment Budgeting: Theory, Process, Politics ( Cak Park, IL. Moore, 1978). know our budget request must be $11,500 for (Oak Park, IL.: Moore, 1978). the program. the program. of a new lease on life in recent years in the guise of Thesecalculationshavebeensimplifiedforthepurposeofthisillustration.Mostperformancebudgetsdistinguishbetweenfixed"productivitybudgeting."See,forinstance,JackProductivity,"PublicProductivityReview10 and variable costs. Fixed costs are those that remain constant (Spring 1987). This journal in general publishes regardless of the level of the activity performed; variable cosss many articles related to the topic of monitoring and ating a public swimming pool, for example, even if very few seo- measuring the performance of government. Also ple use it: Insurance and utiltities must be paid; centain basic pool maintenance must be undertaken; basic lifeguard costs mus be absorbed. Other costs vary with the number of users: Additionat lifeguards must be hired or more chlorine must be purchased. worth consulting is Michael Connelly and Gary Tompkins, "Does Performance Matter? A Study of State Budgeting," Policy Studies Review 8 and so on. Overview of Exercise The Adams County Library has now been function- on Form 62. Note any modifications you think ing for one year. Although the Board of Supervisors necessary. (Hint: Is "personal services" an activity?) is generally pleased with the results of the merger, there have been undercurrents of dissatisfaction, especially among some library-oriented citizen Step Two groups who have charged that the new system is Using the data provided on Form 63 , together with inefficient, that money that could have bought new the budget data you compiled in Exercise 12 , books has been wasted on administrative overhead. recast your FY 1 budget into a performance format In fact, a group that calls itself the Friends of the on Form 64 . This is mainly a process of deciding Clear Creek Library has begun circulating a petition how to allocate line-item costs to performance that asks Clear Creek's mayor either to renegotiate categories. Be sure to include appropriate perforthe merger or to explore ways to reestablish the line-item budgets prepared in Exercise 12 can difvillage library unilaterally. line-item budgets prepared in Exercise 12 can difto demonstrate the advantages of the consolidated different numbers in this exercise, unless your library, Budget Director Johnson has again asked instructor chooses to rep skillsasabudgetanalyst.Yourtaskthistimeistoprovidetechnicalassistancetothelibrarysadminis-trativestaffindevelopingaperformanceformatforthelibrarysnextbudgetsubmission.StepThreeCompleteForm64bypreparingbudgetprojectionsmakeyourestimates.Assumea3percentincrease in all staff salaries and a 5 percent increase in supply, utility, and maintenance expenses. Assume no increases in average book prices. Step One Review the preliminary activity classification devel. Step Four oped by the library administrative staff as presented Answer the questions on Form 65. FORM 62 Budget Request Form Administrative Unit: Adams County Library Activity 01. General Administration 02. Acquisitions 03. Cataloging 04. Circulation 05. Reference 06. Special Programs 07. Personal Services - At the time of the merger, the Adams County Library system had total holdings of 1,652,000 volumes. In FY1, 18,000 additional volumes were acquired. It is anticipated that 21,500 volumes will be acquired in FY 2 . - In addition to cataloging all new volumes, the library system has met and expects to continue to meet its goal of recataloging 10 percent of its holdings each year to convert to the Library of Congress system. - The combined circulation figures (in volumes) for all branches of the system are as follows: FY 1, 752,000; FY 2,776,000 (anticipated). - In FY 1,421,000 patrons used the library system (including repeat visits). It is expected that 423,400 visits will be recorded in FY 2 . - In FY 1 , the reference departments of all library branches answered 67,800 patron questions. It is expected that the reference departments will handle 71,500 questions in FY 2 . - Twenty-four special after-school programs were conducted by the system in FY 1, attended by 1,200 elementary and secondary school pupils. The same figures are expected for FY 2 . In addition, 12 of the system's branches conducted Great Books discussions for adults over a 10-week period in FY 1, with a total participation of 127; this program will be discontinued for FY 2 . A Sunday film series at three of the branch libraries attracted 4,500 viewers in FY 1 . Approximately 6,000 are expected in FY 2 . - Total staff levels in the library system have remained constant since the merger, with no changes in the distribution of job classification (i.e., you can assume that the figures from Form 59 are still accurate). - A recent time study of library employees indicated that branch librarians spend 35 percent of their time on general administration, 25 percent on reference, 20 percent on special programs, 15 percent on acquisitions, and 5 percent on circulation. Assistant librarians devote 30 percent of their time to cataloging, 25 percent to reference, 25 percent to circulation, and 20 percent to special programs. The director of county libraries devotes all his time to general administration, as do his secretaries and administrative assistant. Pages and circulation clerks spend 100 percent of their time on circulation, reference librarians 100 percent of their time on reference. - It may be assumed that maintenance, supply, and utility costs are borne equally by all library activities in proportion to their share of staff costs (as measured by salaries). FORM 64 Budget Request Form Administrative Unit: Adams County Library Activity FY 1 FY 2 (Request) 1. What, if anything, was wrong with the activity classification on Form 62 ? If you found something wrong. what modifications did you make? 2. Do your unit cost calculations indicate that the Adams County Library is becoming more or less efficient? Is this true of all programs? What might account for this pattern? 3. What additional measures or statistics would be useful to have to assess the performance of the Adams County Library? 4. Assume that you are a member of the board of supervisors. What questions would come to your mind as you reviewed this performance budget? Is there any information you would like to have that this budget does not contain? 5. In general, what are the strengths and weaknesses of the performance format