Category: Budget

Introduction

A budget gives a roadmap of how an individual or organization plans to spent resources in a specified period of time. The budget usually contains financial projections the organization or individual estimates to spend on various items of expenditure in the given period (Rubin, 2006). This paper provides and analysis of the operation and maintenance section of the 2008 financial year of the department of defense. The department of defense is charged with an enormous responsibility of maintaining security to the nation. In discharging this responsibility, it requires a well planned budget to cater for; activities relating to atomic energy, military activities and defense to the federal agencies.

Overview of Research and Development in DoD

The Research and development department plays an important part in the military wing. The department is charged with the responsibility of searching and availing information that is relevant to ensuring federal security. The modern era criminal activities are conducted in the most sophisticated ways which require the department of defense to keep updating their skills in order to curb them (Schick, 2000). Terrorism activities which are top on the agenda of the department of defense are currently executed through highly intelligent operations that require an equally intelligent defense team to thwart its effort.

Information gathered from research and development activities is stored in the comptrollers system database. The information is provided on an annual basis to the congress oversight committee on defense and shared to the public through the office of the assistant secretary. The department of defense is divided into; the army, the navy, air force and the defense agencies. The research and development department is also responsible for testing and evaluation of the various defense equipment and methodologies. Testing and evaluation is important to ensure that the equipment and defense methodologies are relevant for their intended purpose. Evaluation information helps to inform the defense department whether its procedures are appropriate and identify the weak areas that need to be reinforced.

Financial Allocations per Service in the Financial Year 2008

The total budgetary allocation to the department of defense in 2008 amounted to $75 billion less one billion the previous year. The biggest share of the amount went to the air force receiving $26 billion, followed by the defense agencies, the navy and the army bagging $ 10 billion. The bigger allocation to the air force is to cater for expensive research and development of equipment and personnel training in new operations in the air force. The research arm of the defense department is divided into basic and applied research. In the 2008 financial year, the defense department cut spending on science and technology by 22% to $ 11 billion. Science and technology is the umbrella research body that comprises of basic research, applied research, medical research, and technology development (Schick, 2000).

According to Schick (2000) the 6.7 % allocation to the air force was meant to cater for the space and secret arms expansion program. This amount was set to go up when the supplemental finances are awarded. The chemical and biological department was also set to receive more money from the house; estimated to about $ 1 billion. There was a decline of about $ 640 million in the defense department budget from the previous year. This was because congress had failed to reflect on the $ 2. 6 billion that had been requested as a supplemental conflict package fund. This meant that the decline would be settled in the later part of the year when congress finally approves the supplemental fund.

Of all the federal government agencies, the department of defenses research and development program receives the largest allocation. The department of defense receives nearly half of the total research and development allocations of the federal government. Besides the federal funds, the DoDs research and development arm receives funding from the US department of energy (Rubin, 2006). The money policy is an important aspect of implementing the department of defense budget. Congress needs to fast track the legislation process on policies that will encourage the growing innovation in the military. The bills should be ascended to by the president into law to govern the perceived gains that the budget projects to achieve.

Basic research funding in the three services was reduced substantially as compared to the previous year. Even the university research initiative which funds researchers on a competitive basis at university level was cut by 14% to $ 246 million. The largest beneficiary of the basic research funds was the National Defense Education Program (NDEP), receiving a total of $ 44 million (Rubin, 2006). Except the aerospace research programs and the chemical and biological defense program, funding to all other applied research services were reduced as well.

Medical research suffered the biggest blow of all the services, receiving 61% less funding than the previous year. The program had been allocated $ 348 million in 2007, but ended up with $ 134 million in 2008. Besides the $ 348 million allocation in 2007, the program also received a total of $ 218 million as a grant to be awarded competitively for breast and prostate cancer research.

Reference List

Rubin, I. (2006). The Politics of Public Budgeting (5th ed.). Washington D.C.: Congressional Quarterly Press.

Schick, A. (2000). The Federal Budget: Politics, Policy, Process (Revised). Washington D.C.: Brookings Institution Press.

Introduction

It is the prime duty of every government in the world to ensure its country puts in place a balanced budget. A balanced budget is the one that addresses all the crucial issues especially the ones concerning the public. Countrys priorities differ from country to country and so their policies (Peters, 2010). This may be partially due to countrys stage of development.

United States Policymakers

The policy makers in United States are actively involved in formulating crucial decision-making programmes concerning the nations progress. Bearing in mind that the country is the world superpower and so despite creating policies tackling their domestic issues, it must also formulate foreign policies regarding other countries. The US budget mostly tackles issues concerning security, economy, education, energy, social welfare among others (King, 2009). In the given scenario, the available funds cannot adequately cover all the required areas. Therefore as a policymaker, important areas that cannot be left behind have to be looked into. In US, anything to do with strengthening of the countrys economy is always given a priority since the nation gives financial aid to may countries and in particular third world nations. The country has to maintain its financial status quo of being the worlds largest economy (Bickers & Williams, 2001).

The other crucial area is the security and defense. The countrys defense system is equally important like its economy. This is because the country ought to have strong security and military equipments due to potential threats posed by the leading terror groups and its position for endless fight against global terrorism. Besides, the country sends its military troops to several countries for peacekeeping mission and other specialized activities, therefore having huge military and sophisticated military equipments is very important.

The implication of the given Scenario

As a policymaker, social security and other prior obligations have to be fully catered for since this concerns the well-being of US civilians. The peoples welfare is a priority therefore the amount totaling $1636 billion has to be accounted for. Again, national defense funds have to be provided to enhance the countrys security, which is a mandatory in the United States (Greenblatt, 2009). In situations of budget deficits, non-priority items can be ignored and their attention awaits the next fiscal year.

Therefore, non-discretionary payments for national debts for national debt of $260 billion can be ignored and instead the amount be diverted to presidents proposal for discretionary domestic programs. The domestic programs, though not a key priority is considered significant for the countrys progress. However, this amount cannot be fully catered for and it will have to be reduced to a greater extend up to a level where the budget is balanced i.e. the total revenues equals the total expenditures. Achieving a balanced budget is not easy. There are only few countries in the world with surplus budgets and such economies are usually referred to as Tiger economies for example China (Greenblatt, 2009).

From the economic point of view, having surplus or balanced budgets is not advisable since it implies that the government is getting more from the taxpayer than it is spending. The deficits should therefore not be so great. The predicted deficit will result from the expected request for the Afghanistan and Iraq in which the United States is obliged to fulfill according to US policies. This is aimed at restoring international peace and security through fighting terrorism and the government has to set aside funds for such purposes (Henderson, 1998).

Conclusion

Proper planning and prioritization is very essential in achievement of the governments objective of having a balanced budget. However, since balancing the total revenues and expenditures may not be possible the policymakers must ensure that the deficits are as small as possible. The United States budget is a unique one in the sense that it must incorporate some aspects tackling foreign affairs of other countries unlike other nations that only plan for their own domestic affairs (Su, Kamlet & Mowery, 1993).

References

Bickers, K. N., & Williams, J. T. (2001). Public policy analysis: A Political Economy Approach. New York, NY: Cengage Learning.

Greenblatt, A. (2009). State Budget Crisis. A Journal of CQ Researcher, 19(31), 11-15.

Henderson, E. A. (1998). Military spending and poverty. Journal of Politics, 60, 503-520.

King, S. (2009). US policymakers playing with fire as the dollar continue to tumble. Web.

Peters, B. G. (2010). American Public Policy: Promise & Performance. 8 Edn. Washington, D.C.: CQ Press.

Su, T., Kamlet, M. S., & Mowery, D. C. (1993). Modeling U.S. budgetary and fiscal policy outcomes: A disaggregated, system wide perspective. American Journal of Political Science, 37, 213245.

Introduction

A budget is a financial expression that is used to plan for future operations; it involves allocations of funds to various activities in order to achieve the projected outcomes. Budgets differ depending on the timelines and functions (Shim & Siegel 2009). As a result, there are budgets that cover a short period and budgets that cover a long period. The period used in the budgeting depends on the objective and strategic goals of the organization.

The fundamental pillars of budgeting entail planning, coordinating, directing, evaluation, and controlling. According to Conboy (2010), budgets provide the link between daily operations and the plans that have been put in place. Budgets provide a financial viewpoint to guide an organization to accomplish its goals. The following is a quarterly budget report for the production department that I presented to the companys director.

Production Department Budget. For the three months ending June 30, 2015.

Budget Justification

The budget is based on the past and the prevailing trends in the business. The budget includes the cash outflow for a projected period of three months. According to Conboy (2010), a budget provides practical skills for the use of money. It serves as a journal that guides the expenditure. Shim and Siegel (2009) noted that a budget acts as principal financial freedom because it aligns goals to the money. In order to meet the projected goals for the company, the cash required for the three months is $ 178,500.

The cash is required to finance the key requirements for production. The requirements include servicing the payroll and the purchase of the inventory. The quantification of the cost of the inventory is based on the current consumption, and the trends observed in the business, and the anticipations for the three months. The anticipation determines the probable finances that would be required to achieve the set goal (Shim and Siegel, 2009). In line with the assertions by Shim and Siegel (2009), the budget is based on the capacity of the factory and the cost of the inventory. The inventory level is also based on the companys projected sales for the period.

A comprehensive budget should be based on the needed inputs that include the equipment, the required material, and the personnel that that is tasked with the coordination of the processes (Siyanbola, 2013). The factors are key determinants of the units that can be produced and sold. As such, the amount provided for the expenses is based on predictive production and the level of inventory. The primary objective of the company is to increase sales by 10% over the three months period.

Therefore, it is projected that production capacity should be increased to cater to the increased need for the goods. Based on the current operations, the predictive cost of direct expenses is projected to increase by 2%; hence, $2000 is projected for each month. During the quarterly production period, the other direct expenses that the department is to incur include administrative expenses, travel, servicing of the plant. Therefore, the estimates provided for the expenses are based on the goals of the company to increase sales and the current market trends.

A budget entails the outline of the activities that are needed to achieve the strategic goals (Conboy, 2010). Based on the organizational goal to achieve a 10% increase in sales, the production department estimated the cost of production would consequently increase by 2%. The allocation of the direct expenses of the inventory, the payment of the personnel, and the other direct expenses are factored in the 2% increase. In addition, the $ 10, 000 will be used to cater for the advertisement for the three months. The advertisement will aid in ensuring that the company remains competitive.

In the budgetary allocations, the noncyclical occurrences should be factored, and allocations made to cater to the costs. The company intends to modify the production line; the modification will increase the costs required in the design process and commencement of the new product line and the subsequent services. The predicted costs for the modifications that will aid the company in achieving its goals are $ 600 for each month. In the preparation of the budget, the projections for aggregate expenditures should be based on a broad economic category (White, 2002). The budget is thus based on the fiscal objective of the company.

Though the direct expenses are for the three months projections, the review for the costs will be made on monthly basis. Thus, there is the probability of the figures to fluctuate upwards or downwards. To cater to the fluctuations, the costs are based on a flexible margin that will ensure that the overall costs at the end of the three months are within the budgetary limits.

Conclusion

Shim and Siegel (2009) retaliated that a budget should be based on the capital needs, the requirements of the personnel, and the financial status of the firm. Based on the provisions and the departmental objectives that are aligned with the overall company strategic goals, the department requires the projected amounts in order to operate efficiently. The provisions are short term and thus a review of the projections and actual budget will be carried out after the end of the three months.

References

Conboy, K. (2010). Project failure: a study of loose budgetary control in ISD projects. European Journal of Information Systems, 19 (3), 273-287.

Shim, J, and Siegel, J. (2009). Budgeting basics and beyond. Hoboken, New Jersey: John Wiley & Sons, Inc.

Siyanbola, T. (2013). The Impact of budgeting and budgetary control on the performance of the manufacturing company. Journal of Business Management & Social Sciences Research, 2 (12), 8-16.

White, J. (2002). IRSs budget justification. Washington, DC: U.S. General Accounting Office.

Introduction

The main objective of public budgeting is to accomplish the government goals and objectives within a given time frame (Guillermo & Rodrigo, 2008).

Therefore, public budgeting centers on the prediction of government expenditure, establishing the link that exists between the financial and human resources with the objective of realizing the goals, representing the governmental activities in monetary terms and recording the results of the struggle at the expense of political preferences.

Basic description of each budget

The government budget can take various forms at different levels of government such as operating, capital, proposed and departmental government budgets.

The operating budgets at the state and local levels usually govern the plan of approach regarding the expenses and revenues.

Operating budgets at the state level usually take charge of expenditures like appropriations in public educations, part operations at the state, government operations at the state appropriations for operations associated with economic development at the state level.

Capital budgets are used in financing long-term projects associated with infrastructure innovation and construction.

Proposed budgets are prepared at the state, federal and local levels of government as a predictor of the budgetary needs for the government at that particular level (Epstein & Thomas, 2000).

At the federal level, the budget proposal is prepared by the US president and the Office of Management Budgets.

At the state level, budget proposal is prepared by the state governors and the state budget officers.

The budget proposal at the local level is prepared by either the mayor or the officials who have been appointed to undertake the process of budgeting to be applicable within the local level of government.

The power to develop a proposed budget is usually considered as a vital agenda-setting power, implying that budgetary allocations usually prioritize the urgency at that particular level rather than the national directives.

Differences between Federal, State and Local budgets

The federal budget can be used to influence currency circulation through the Federal Reserve while the state and local governments cannot monitor the irculation of money using their budgetary allocations and capabilities (Smith & Lynch, 2003).

The federal budget can be used in regulating the national economy through the use of interest rates in order to keep track of inflation and stimulate the economy , while the state and local budgets cannot make use of their budgetary tools to control and monitor the interest rates, meaning that their budgets cannot have a direct impact on the economy compared to the federal budget.

The federal budget can deploy deficit expenditure to realize eider economic goals and microeconomic policies while the state and local budgets cannot use this concept to influence the economy.

Federal budget is applicable with matters of national defense, the state and local budgets on the other hand are applied on a smaller scope revolving around state and local issues respectively.

Sources of revenue for Federal budget

• The federal budget relies mostly on the federal taxes, which comprises of:
  1. Individual and corporate taxes;
  2. Excise taxes;
  3. Social security taxes;
  4. Inheritance and estate taxes and capital gains tax.
• Individual income taxes and payroll taxes are the primary source of revenue for the federal budget.
• The following figure shows the contributions to the federal budget for 2011.
• Other sources of revenue for federal budget include government borrowings such as treasury bonds and user charges (Tax Policy Center, 2011).

Sources of Revenue for State budget

The primary source of revenue for the state governments include intergovernmental transfers, state taxes, licenses, lottery and borrowing such as state bonds (Baumol & Alan, 2006).

State taxes includes individual and corporate taxes, sales taxes, fuel taxes, inheritance and estate taxes and special taxes that are imposed on particular commodities such as alcohol and tobacco (Smith & Lynch, 2003).

The following chart indicates the revenue contribution for local budgets for the fiscal year 2008.

Breakdown of the federal, state and local revenue and how the budget fit within each of their domain

Federal revenue usually contributes the largest portion of the total national revenue.

Tax Policy Center reports that federal revenue comprised 50 cent of the total national revenue, state contributed approximately 30 percent while the local government contributed the remaining 20 percent.

The federal budget can be adjusted in order to meet the macroeconomic policies adopted at the national level, mandatory expenditure and entitlements at the national level (Guillermo & Rodrigo, 2008).

Changes in Government Revenue in Future

A reduction of the tax revenues, global recession and financial crisis have had negative implications on state and local budgets, which has compelled the states and local governments to set up strict measures in order to maintain their budgets.

Loans and grants from the federal government has played a significant role in maintaining the revenue levels for the state and local government budgets.

The budget appropriations under the federal government have also been increasing at a modest rate; an increase in the federal revenue also means an increase in the revenue for the state and local government budget (Bovaird & Loffler, 2000).

In cases where the federal aid has proved inadequate to help in stabilizing the revenue for state and local budgets, governments at this level are deploying strict policies in order to meet their financial goals and objectives.

It is projected that taxes are bound to increase in future depending on the policy scenarios that will be implemented by the future governments.

The following graph shows high the tax burden is likely to increase in the United States given the current state of policies that have been implemented by the government.

References

Baumol, W., & Alan, B. (2006). Macroeconomics: Principles and Policy. New York: Thomson South-Western.

Bovaird, T., & Loffler, E. (2000). Public management and governance. Oxon: Routledge.

Epstein, G., & Thomas, F. (2000). Monetary Policy, Loan Liquidation and Industrial Conflict: Federal Reserve System Open Market Operations in 1932. Journal of Economic History, 44, 56-60.

Guillermo, P., & Rodrigo, L. (2008). Fiscal policy, stabilization, and growth: prudence or abstinence? Washington DC: World Bank Publications.

Smith, R., & Lynch, T. (2003). Public Budgeting in America. New York: Pearson/Prentice Hall.

Tax Policy Center. (2011). Tax Topics. Web.

Background

Governments cannot stabilize their economies if they do not work with financial institutions and investors to establish a lasting solution to inflation and other economic challenges. The purpose of involving all economic stakeholders in discussions regarding development is to establish policies that will create a healthy business environment for all players and consider the rights and needs of consumers. Some governments borrow money to finance their projects and recurring expenses, and this means that they expose themselves to bad debts (Coyle, 2010). Central banks and other key financial institutions should always be ready to take drastic measures to cushion their governments from unreasonable borrowing and spending. Governments collect taxes and use the money to finance their projects and expenses. The central banks play a significant role in ensuring there is a reasonable supply of money in the economy to avoid inflation. Therefore, central banks should work together with governments to cushion their economies from inflation and other economic challenges. This essay uses the IS-LM model to examine the impacts of cutting on expenses, increasing taxes, and liquidity of the banking sector to reduce budget deficits.

The IS-LM Model

This model was developed by John Hicks and Alvin Hansen in 1937. It explains the interaction between interest rates and output. The initials stand for investment and savings while LM means liquidity preference and the money supply. Therefore, this model explains the relationship between investments and savings and how this affects the liquidity preference and the availability of money in the economy. The chances of stabilizing an economy are high when the equilibrium brings a balance amongst all the factors in the economy. In addition, it explains the movement of the aggregate demand curve and shows the stability of the economy when different stabilization policies are established.

Application of the IS-LM Model to Reduce Budget Deficits

A budget deficit is a situation where the government is forced to spend more money than what was allocated to various projects. This means that a budget becomes contained and is unable to meet its targets because it does not have money to sustain and finance its projects (Goolsbee, Levitt, and Syverson, 2013). Borrowing loans from international financial institutions and grants from donors is a viable solution that governments may use to solve this problem. However, these solutions are not always available whenever they are required, and this means that they are unreliable. Moreover, politics has a significant impact on the success of these approaches to stabilize an economy and reduce the budget deficit (Harford, 2006). Therefore, internal mechanisms like reducing government spending and increasing taxes are more effective in managing budget deficits. Moreover, the central bank can increase the liquidity of the banking sector by releasing more funds and advising commercial banks to lower their interest rates.

An increase in taxation means that the government will collect more money from the public. Taxation is a government policy where citizens and corporations pay money as tax to enable the government to offer public services. The government uses different approaches to determine the amount that citizens and corporate pay. Taxes may be paid directly through a deduction of some percentage of an individuals earnings and requiring the registration of businesses or indirectly by increasing the prices of goods and services (Levitt and Dubner, 2005). The money raised is used to finance various projects and ensure public services are offered without hitches. This is an effective and long-term solution that enables governments to manage budget deficits. It discourages investors because they have to pay high taxes to start their businesses, and this may affect their profit margins (Coyle, 2010). Moreover, it exposes the public to heavy spending on basic needs and constrains the economy, and limits investment levels. High taxation means that investors will spend a lot of money to establish their businesses, and this discourages development.

Cutting on expenses is a quick-fix solution to the budget deficit, but this practice may be applied to ensure governments live within their means. Most public resources are wasted by irresponsible servants. Issues like corruption and negligence expose governments to unnecessary spending, and this means that there will be few development projects (Harford, 2006). Some governments spend a lot of money on unnecessary activities like foreign trips, parties, and expensive lifestyles. These activities do not generate income; therefore, they waste resources and force governments to look for money to finance their development projects and meet the recurrent expenses (Levitt and Dubner, 2005). A reduction of government expenses is a sure way of reducing the budget deficit.

Lastly, the central bank may help a government to reduce a budget deficit by increasing the liquidity of the banking sector and undertaking expansionary open market operations. Central banks have fiscal policies that control the lending of money to the public, and this determines the amount of cash in circulation (Levitt and Dubner, 2005). These operations attract investors to borrow money and invest in various projects. Governments can issue tenders to private investors, and this means they will not have to finance their projects until when they are completed. The banking sector may establish friendly policies like low-interest rates, long repayment periods, and attractive earnings on fixed deposits to attract investors (Goolsbee, Levitt, and Syverson, 2013). These practices encourage the public to borrow and invest in income-generating projects. Therefore, the gross domestic product (GDP) of a country increases because there is a high rate of income generation. The money in the publics hand is supposed to circulate as many times as possible to ensure it generates more income (Frank, 2008).

When the IS curve moves to the right, it raises the equilibrium interest rate and national income to achieve an aggregate demand. Therefore, the government will collect more money from the public and corporate to reduce its budget deficit. In addition, the trend will cause an increase in liquidity and expansion of open market operations (Levitt and Dubner, 2005). Therefore, it becomes easier to obtain bank loans and invest in income-generating projects. However, this may limit the long-term growth of the supply side because it causes discourages private investments.

The second figure shows that there will be an increase in exogenous investments and consumer and export spending. People will spend less on imports and this means that money will circulate within the countrys economy, and more will be generated through exports (Frank, 2008). Sometimes, the LM curve moves downward and to the right, if the central bank initiates open market operations and increases liquidity, and the government collects more money through taxation. This act lowers the interest rates and raises the equilibrium national income because more people will generate wealth through investing in business activities. Moreover, the move causes a change in the liquidity preference that shifts the LM curve downwards causing an increase in income and a decrease in interest rates.

References

Coyle, D 2010, The Soulful Science: What Economists Really Do and Why It Matters, Princeton University Press, New Jersey.

Frank, R 2008, The Economic Naturalist: Why Economics Explains Almost Everything, Virgin Books, New York.

Goolsbee, A, Levitt, S and Syverson, C 2013, Microeconomics, Worth/Macmillan, New York.

Harford, T 2006, The Undercover Economist, Oxford University Press, Oxford.

Levitt, S, and Dubner, S 2005, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, Allen Lane, London.

The National Intelligence Program (NIP) covers a wide range of activities, projects, and budgets that support the goals and decisions of the Intelligence Community (IC). Currently, the Director of National Intelligence (DNI) manages thirteen key NIP programs. The present arrangement is that budgetary allocations for non-NPI intelligence are controlled and monitored separately using a process called planning, programming, budgeting, and execution (PPBE). According to Mamandi and Yari (2014), such a framework results in a complementary budgetary procedure that is incapable of supporting or improving the effectiveness of the Department of Homeland Security (DHS).

The outstanding weakness is that the DNI and the Under Secretary of Homeland Security should collaborate to ensure that both military and national intelligence programs complement each other. Although this strategy supports the targeted security objectives, a number of challenges continue to affect the objectives pursued by the IC. The proposed idea is that funding for non-NIP intelligence projects within the DHS should be transferred to the NIP (Irons & Lallie, 2014). This decision will empower the DNI to manage such activities and combine them with the current NIP programs, including Justice NIP, Consolidated Cryptologic Program (CCP), Central Intelligence Agency Program (CIAP), Special Reconnaissance Program (SRP), and General Defense Intelligence Program (GDIP).

Since the major intelligence activities pursued by the Department of Homeland Security are not funded by the NIP, it becomes impossible to have a common procedure for prioritizing, pursuing, or completing specific programs depending on their projected benefits. This is also the same case with the missions undertaken by local and state governments across the United States. Marion, Cronin, and Oliver (2015) believe that the existing gap makes it impossible for those involved to make superior decisions that can support the nations security goals.

The management of DOD NIP programs is undertaken in such a way that positive results are recorded within a short time. The presented recommendation will ensure that funding procedures for both NPI and non-NPI intelligence activities are combined to mitigate potential weaknesses. Such a move is also expected to have a bifurcating effect, thereby streamlining the management authority over all components of DHS. This change will also ensure that a seamless budgetary procedure is available or utilized for every activity pursued within the DHS. The DNI will be in a better position to manage all programs budget using the Intelligence Planning, Programming, Budgeting, and Evaluation System (IPPBE) intended for all IC components.

The projected bifurcating effect will support every DHS agenda and eventually protect American citizens. A uniform resource management approach will also ensure that timely, relevant, innovative, and informed decisions are made. The management authority over all DHS components will tackle emerging challenges, monitor timelines, and maximize performance (Zamora, 2014). Such a strategy will also be put in place to prioritize the most appropriate intelligence activities in the country. Consequently, both DOD NIP and non-NIP programs will emerge successful. The proposal can also be a powerful opportunity for reducing wastes, restructuring agency-specific requirements, prioritizing activities, and managing available resources.

In conclusion, there is a need for different policymakers within the IC to consider the importance of moving all non-NIP DHS component (and other intelligence-related) funding to the NIP. Such a decision will have the effect of bifurcating as it is the case with all DOD NIP programs (Philpott, 2015). The outstanding outcome is that the country will achieve its intelligence objectives and protect every American citizen.

References

Irons, A., & Lallie, H. S. (2014). Digital forensics to intelligent forensics. Future Internet, 6(3), 584-596. Web.

Mamandi, K., & Yari, S. (2014). A global perspective on cybercrime. Humanities and Social Sciences, 2(2), 33-37. Web.

Marion, N. E., Cronin, K., & Oliver, W. M. (2015). Homeland security: Policy and politics. Durham, NC: Carolina Academic Press.

Philpott, D. (2015). Understanding the Department of Homeland Security. Lanham, MD: Bernan Press.

Zamora, M. F. (2014). Intelligence failures: Matters of homeland and national security. Journal of Homeland and National Security Perspectives, 1(1), 1-12.

Admittedly, the modern competitive world makes companies reduce budgets. Companies have to develop products in less time using fewer resources (Project Management Institute, 2011). Different companies address these problems differently.

Agere Systems made several successful decisions that enabled the company reduce budgets significantly (Marchewka, 2009). One of these decisions was to involve the business units. Thus, Agere managed to obtain comprehensive information from various departments which enabled them to prioritize projects. This, in its turn, led to proper allocation of resources both financial and human resources.

It is important to note that the tools used to develop proper plans could not meet an important requirement. The tools could not prioritize projects, which was extremely important in terms of budget tightening. Executives could not make proper decisions as they did not see the complete picture.

However, involvement of business units enabled the executives to obtain the necessary information. Such integration also enabled unites to share responsibilities concerning IT portfolio. This positively affected project management in the company.

Business unites could provide comprehensive information on on-going projects. Every project could be analyzed in terms of its efficiency and cost. Basically, this information is enough when prioritizing projects.

It is important to note that involvement of business units was also an effective strategy as these units could be more precise when developing their projects. Thus, every unit tried to make projects efficient. Every project was also analyzed in terms of its fitness to the companys objectives. This precision contributed greatly to the quality of project management in the company.

Many researchers claim that using a project management software tool is beneficial in many cases (Marchewka, 2009; Project Management Institute, 2011; Schwalbe, 2010; Wysocki, 2011). Such tools can help project managers develop a thorough plan on the basis of some information. Admittedly, these tools save a lot of time as project managers should simply key in certain information.

Thus, when it comes to some project which is not crucial for the company or the projects which do not involve many stages, project management software tools are irreplaceable (Schwalbe, 2010). These tools can help project managers to create a proper plan in a short period of time. It is also important to note that this can help project managers to focus on more important projects.

However, when it comes to more difficult projects, i.e. projects which require analysis of considerable amount of data and prioritizing, project management software tools cannot be enough. Thus, Wysocki (2011) claims that it can be more effective to use more conventional tools like discussions or even moving sticky notes across a whiteboard (p. 154).

In fact, when tackling voluminous projects, it can be effective to combine the two types of project management tools (software and manual). It is also important to note that project managers should be really precise when using software tools. For instance, Schwalbe (2010) provides several examples when project managers made mistakes which led to poor projects.

It is essential to key in all the necessary data and to reveal ties between different stages and minor projects (Schwalbe, 2010). It is also necessary to check on the plan provided. It can be effective to launch some sort of discussion involving executives, units representatives, and project management specialists. Thus, it is important to choose the most appropriate strategies and tools when developing important projects.

Reference List

Marchewka, J.T. (2009). Information technology project management. Hoboken, NJ: Wiley.

Project Management Institute. (2011). A guide to the project management body of knowledge. Newtown Square, PA: Project Management Institute.

Schwalbe, K. (2010). A guide to the project management body of knowledge. Boston, MA: Cengage Learning.

Wysocki, R.K. (2011). Effective project management: Traditional, agile, extreme. Indianapolis, IN: John Wiley & Sons.

A new CEO is appointed to a large regional chemical production company. The business focuses on producing a variety of chemicals and polymer materials used in numerous products, including orders from the military. The company has a traditional corporate and shareholder structure, but the owner is a business magnate holding the majority stake in the enterprise. Effectively, his decisions have lowered the companys profitability and competitiveness in the industry. A new CEO was brought in to restructure the company and focus on cutting costs.

The owner and the board have strongly indicated the areas of the firm that require curtailment of spending. After careful examination, it is evident that the budget reduction will affect several critical aspects of the business, including its quality. Overall, the board is asking the CEO to implement a budget that cuts corners instead of properly assessing the firms financial capabilities. Also, safety is put at risk as protective equipment, machinery, and storage containers will be used past the recommended utilization date. The company will follow regulations to the very minimum or attempt to showcase compliance to the government regulators who are lenient in attempts to support central regional business.

This is an ethical issue since the budget cuts are aimed at the areas critical to the company functioning and can affect lives or safety. In an attempt to rapidly curb expenditure, the stakeholders are affected. Employees working in hazardous conditions are placed at a direct risk due to cuts in safety equipment. Customers of the company products will be faced with a low-quality product that will impact goods produced from these chemicals and polymers. For clients such as the military, a malfunction due to poor quality can result in lost lives. The government is responsible for the regulation of industrial production, specifically regarding chemicals. If there is a major safety accident due to a violation of safety protocols, a federal investigation must occur. Finally, if any of these events occur due to the owners attempt to force budget cuts, his company may face downfall, heavy fines, and possible criminal investigations. Essentially, there is little benefit to anyone in a situation like this. The board may benefit by preserving high salaries and bonuses at the cost of quality and safety. However, the company itself does not benefit from the numerous possibilities of negligence and the lack of constructive financial restructuring.

It is unethical for a CEO to enforce such budget cuts due to the possibility of consequences for the safety and lives of employees and clients. If it is necessary to reduce costs, they should be implemented properly and aimed at unnecessary spending. The CEO becomes responsible as well if he chooses to act on the recommended direction by the board. It is his responsibility to act for the companys benefit and follow the duty of protecting its employees. Personal integrity becomes obsolete if a person chooses an action that may result in harm. It is critical not to bow to pressure and risk losing the CEO position instead of making a negligent decision.

A final ethical decision would be not to implement immediately recommended budget cuts. Instead, the CEO can work with the CFO and analyze methods to properly lower costs and develop a strong, sustainable strategy for the company. It is a good decision since it uses a logical approach that considers the companys future and its employees safety. Meanwhile, non-compliance and insubordination to the recommendations of the board may result in the termination of the CEO. The decision essentially comes down to either following basic human ethics or focusing on ones career.

Budget planning is a crucial aspect of any organizations successful work. A budget is an official document containing the companys perspectives and expectations regarding the achievements of financial character within a set period of time (Clowes & Scriven, 2011). The budgeting process comprises a set of actions that need to be established and carried out in order to reach financial success. These operations involve:

• assessing and predicting;
• planning;
• getting ready the budget records;
• handing out the documents and putting the budget into action;
• comparing actual results to the expectations (Clowes & Scriven, 2011).

The purposes of budget planning may vary, and they are contingent on the companys structure and types. The budget may perform the following functions:

• stimulating the organization to make a plan for the nearest future;
• reinforcing coordination between different departments of a firm in order to make them work as a single mechanism rather than separate elements;
• creating an instrument for resource allocation between the sections;
• promoting governance over the companys operations by establishing the criteria for the assessment of actual outcomes;
• providing help in analyzing who is responsible for particular tasks and arranging the conditions for encouragement and appraisal of the accountable persons (Clowes & Scriven, 2011).

Budgeting is one of the crucial components of any organizations strategic planning (Smith, 2017). Management comprises a variety of activities such as organizing, planning, controlling, and stimulating (Clowes & Scriven, 2011). When performing any of these steps, a manager needs to take into consideration the companys budget. Strategic planning, as well as budget planning, includes several elements, which are of utmost importance for the organizations. Prior to creating a strategic plan, it is necessary to analyze the market situation and evaluate ones companys competitive advantages and disadvantages (Smith, 2017).

Then, the manager should analyze the organizations team of employees and the prospective customers. The next phase of strategic planning is setting the goals and objectives of ones work. At this point, the mission and vision of the company are established. A mission statement describes the current work of the company whereas a vision statement demonstrates the future expectations and aspirations (Smith, 2017). Along with these two types of statements, it is necessary to outline the core values, which include the beliefs and preferred types of conduct of a company (Smith, 2017). Additionally, the company should develop the strategies, which it will pursue.

An extremely significant element of strategic planning is SWOT analysis, which comprises a thorough investigation of the organizations strengths, weaknesses, opportunities, and threats (Smith, 2017). With the help of outlining these four concepts, the manager will be able to see the most advantageous features of the companys work as well as the limitations that may cause problems for the company. Strengths are the features that provide and maintain the successful work. Opportunities are the issues that may bring more success and profit in the case if they are implemented successfully. Weaknesses are current problems that should be resolved as soon as possible to eliminate losses. Threats are the issues that may cause failures in the future if they are not prevented (Smith, 2017). SWOT analysis is an important phase in creating a strategic plan for any organization.

Budget planning and strategic planning are invaluable components of any companys work. Managers should pay attention to create their budgets with the consideration of market fluctuations. In strategic planning, it is also necessary to be cautious and not miss any opportunity for achieving the organizations goals.

References

Clowes, R., & Scriven, V. (2011). Budgeting: A practical approach (2nd ed.). Frenchs Forest, Australia.

Smith, R. D. (2017). Strategic planning for public relations (5th ed.). New York, NY: Routledge.

Budget And Cash Flow Analysis

Budget details the expected sources of income and the incurred expenditure (Helfert, 2001, p. 7). A budget enables an individual to forecast the amount of money to be realized upon the execution of a given undertaking (Sullivan, 2003, p. 16). This paper provides a detailed budget for the Jonesboro Newspaper Annual Awards Picnic. Approximately 600 people are expected at the event. It means that the budget will have to cater to all the attendants. The company will provide 50% of the anticipated budget expenses while the rest will be sourced from other income-generating activities.

For the success of an event such as a picnic, funding is very critical. In this case, cash flow analysis will be important in determining when the money will be required and how it will be released. An effective cash flow analysis plays a significant role while developing a good budget (Wild, 2005, p. 16). Upon evaluating the flow of cash, it becomes easy to know when to adjust the budget. Also, cash flow analysis is useful for effective projections. It will enable both the company and the Jonesboro Newspaper to make the right decisions.

Company Picnic

To attain a high level of efficiency in conducting the picnic, all the money required will be paid in advance. It will ensure that the necessary equipment and facilities for the picnic are available. To achieve effective planning, there is a need to undertake an effective cash flow analysis. The table below gives an illustration of the sources of income and expenses to be incurred in the event.

Budget

A part of the income from the company will be used to cater for pre-event analysis. This decision was arrived at after because some of the income-generating activities may take time to realize the necessary funds. Therefore, relying on these income-generating activities might result in ineffective planning. Other full payments will be done one week to the event. Food and beverages shall account for a significant proportion of the total budget, as illustrated below.

Food and beverages

• Snacks $ 5,000
• Lunch $ 5,000
• Drinks $ 10,000

Detailed information on income-generating activities

Income-generating activities will provide more avenues through which the company will acquire additional revenue. Even though the event is organized by the company, all the employees need to be involved. Such an approach will enable employees to develop a feeling of appreciation in the process. As a result, they will be committed to ensuring that income-generating activities succeed. The main income-generating activities include the sale of tickets, raffles, T-shirt sales, and pre-event fundraisers. To maximize returns from the sale of tickets, their price will not be set above $ 2.00. The table below illustrates the amount of money that will be generated from the various income-generating activities.

Details

• Ticket sales $ 2.00 * 600 people $ 12,000
• Raffles $ 8,000
• T shirt sales $ 6,000
• Pre-event fundraisers $ 10,000
• Total $ 36,000.

Pre-event fundraisers will be done after the staff has been involved in small contributions.

Reference List

Helfert, E. (2001). The nature of financial statements: The cash flow statement. New York: McGraw-Hill.

Sullivan, A. (2003). Economics: principles in action. New Jersey: Upper Saddle River.

Wild, J, P. (2005). Fundamental Accounting Principles. New York: McGraw-Hill Companies.