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Pages:
4 pages/≈1100 words
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APA
Subject:
Accounting, Finance, SPSS
Type:
Research Paper
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English (U.S.)
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MS Word
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Arkansas Department of Workforce Services Budgeting and Cumulative Report (Research Paper Sample)

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Details the Arkansas Department of Workforce Services Budgeting and Cumulative Report source..
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Arkansas Department of Workforce Services Budgeting and Cumulative Report Student’s Name: Professor’s Name: Course Title: Date: Introduction Budgeting is critical to every organization as it helps in the running of operations. Typically, a budget helps an organization to track its financial resources as well as understanding the priorities. The most demanding areas of the organization tend to receive the highest share with the expectation being that there will be returns from the same department. At the Arkansas Department of Workforce Services (ADWS), budgeting process is as important as it is to every other organization. As is the case elsewhere, it is imperative to keep analyzing the budget to identify the shortcomings and responding to the same accordingly. Therefore, the following is an evaluation of the ADWS budgeting and cumulative report that culminates in the recommendations of the areas in which the agency ought to improve the process. Budget overview The ADWS is an independent government agency whose major role to prepare a workforce whose skills can compete in the competitive global environment. As a result of its independence, the agency’s operations are, therefore, free from government interference provided they are within the law. Nonetheless, the agency relies primarily on the federal and state government for its funding, though other organizations extend the funding through grants. As per the rules, the ADWS budget requests are assessed and approved or rejected by a committee. At the moment, the Appropriation Subcommittee on labor, health and human services, education, and related agencies has the jurisdiction over the ADWS budget requests. Concerning the agency’s operations, all the current programs fall in a particular functional classification of the federal budget. For instance, the ADWS offers Unemployment assistance services which is classified in the Income Security during the federal budget. Additionally, the agency has a Career Certification program that is meant to ensure employees are well-equipped for employers. The federal government’s budget classifies such activities in the Education, training, employment, and social services category. Also, the Veteran’s services program is prioritized at ADWS and is covered in the Veterans benefits and Services category by the federal budget. In the classification, the federal government covers the income security, education and training, and health services for the veterans. In addition, the ADWS also runs the Temporary Assistance for Needy Families (TANF) and Discretionary Grant programs that fall in the community and regional development and Health classes ("Functional Classification”, n. d.). As for the budget authority, the ADWS budget authority and authority was $226 million and 223 million respectively for the year 2012. However, the actual budget authority and outlays for the same year was $204million and $181 million respectively ("Annual Report", 2012). The budget has enabled the agency to effectively carry out its activities, though some areas still require improvements. Budget assessment In the US, spending is classified into discretionary and mandatory spending. In the latter case, the spending is as per the enacted laws. Some of the areas where mandatory spending is applied are Medicaid, Medicare, and social security benefit programs. Conversely, discretionary spending is as per the discretion of Congress. As a result, one major political influence on ADWS is that some of its programs fall in the category of discretionary budgets, meaning their funding is influenced solely by the Congress. Additionally, there is no influence the agency can have over the amount allocated since there is no legal basis to address the same. Therefore, the program administrators have a duty of ensuring that programs achieve their intended purpose to secure continuous funding. Analysis of Budgeting Plans and Actual Expenditures. The budgetary decisions at ADWS are influenced by three main intergovernmental agencies. First, the Budget committee wields the greatest influence as it "provides for consideration of appropriation bills and budget proposals" (Arkansas State Legislature, 2016, par.1). That is to say, the Budget committee’s opinion would have an impact on the budget at ADWS. Secondly, the Arkansas Department of Finance and Administration (DFA) is equally influential in the budgetary process. The agency has been tasked with the administration of the deficit-prohibition law as well as preparation of Biennial budget. The implication of this mandate is that ADWS is expected to operate within its budget or at least manage the deficit. In case the deficit rises exponentially, the DFA would intervene to analyze the situation. Thirdly, the Arkansas legislative council (ALC) plays an important part in the budget process and can indeed influence it. Presently, the ALC works with DFA, upon direction by the budget committee, to study the fiscal and budgetary needs of various agencies in the state of Arkansas. Unless changed in the future, these are the main agencies that would influence ADWS budget. In essence, the DFA, budget committee, and ALC are the main intergovernmental agencies whose influence affects budgetary decisions at ADWS. Implications of Foreign Policy. The US is one of the countries with a strong foreign policy. The government spends a considerable portion of its budget in funding other programs all in a bid to strengthen its international relations. While the initiative is important for the country, it affects the budget allocation of some agencies. In 2014, the US government spent almost $6 billion in foreign military financing but the figure could rise exponentially to $34 billion in 2017 (Thompson, 2015). One implication that could result from this policy is that agencies such as ADWS may receive smaller portions of the discretionary funding. Since discretionary budgets use the Congress discretion, ADWS might miss out on some allocations. Nonetheless, the policy could also benefit the organization as foreign companies import workforces from the agency thus raising its revenues. Budget Request and Recommendations. The steps that ADWS takes in the next fiscal year (FY) ought to be informed by the principles of budgeting. One such a principle is that budget-planning ought to be informed by the "performance, evaluation, and value for money" (Costello, 2011, p.63). The principle calls for the assessment of deliverables as well as the creation of expenditure programs. In light of the above statements, ADWS needs to engage more in the business-type than governmental activities. Though it is not entirely possible to shun the governmental activities, the ADWS has to devise ways to reduce claims and increase revenues. The second robust step for ADWS to take pertains to the management of a sound fiscal policy. According to McBeath (2013), budget-management ought to be clear, credible, and predictable as per the fiscal policy. In short, organizations ought to have fiscal policies that avoid unsustainable debts. Furthermore, such policies need to utilize favorable economic period to strengthen their resilience against difficult times. Also, the policy needs to have clear objectives as well as the top-down budgetary management that aligns policies with resources. Since the ADWS receives additional funding from other organizations, it has to create a buffer to mitigate hard times that might occur in the future. In addition, the agency has to create a clear fiscal policy that avoids unnecessary debts. Re...
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