SFFMA 
                                    Volunteer Fire Chiefs
                                           Academy
                                            Session 2
                                  Administration Management
                                        Budget Concepts 
              Chief Chris Barron                                                                              Chief Bruce Woods
               Manchaca VFD                                                                      Texas A&M Forest Service 
                                                              Sponsored by 
           BUDGET DEFINITION
           BUDGET DEFINITION
      A PLAN OF FINANCIAL OPERATION  
      A PLAN OF FINANCIAL OPERATION  
   CONTAINING  AN  ESTIMATE  OF 
   CONTAINING  AN  ESTIMATE  OF 
   PROPOSED  EXPENDITURES  FOR  A 
   PROPOSED  EXPENDITURES  FOR  A 
   GIVEN PERIOD AND THE PROPOSED 
   GIVEN PERIOD AND THE PROPOSED 
   MEANS  OF  FINANCING  THEM, 
   MEANS  OF  FINANCING  THEM, 
   USUALLY FOR A SINGLE FISCAL
   USUALLY FOR A SINGLE FISCAL
     YEAR.
     YEAR.
    Objective Of Budgetary Controls
    Objective Of Budgetary Controls
  To ensure compliance with legal provisions contained 
  To ensure compliance with legal provisions contained 
    in the annual appropriated budget approved by a 
    in the annual appropriated budget approved by a 
          governmental agency or legal entity
          governmental agency or legal entity
         Regardless of the Size or Type of Fire 
         Regardless of the Size or Type of Fire 
   Department; all Fire Department’s need to have 
   Department; all Fire Department’s need to have 
         a budgetary control system in place 
         a budgetary control system in place 
   
   
                     Required by State Law 
                     Required by State Law 
         Political Subdivision Type                                 Who Approves 
     Municipalities                              County Commissioner Court
     County Government                           City Council 
     Emergency Services                          Emergency Services Board 
     Districts                                   Hospital District Board
                                                 MUD District Board
                                                               
                                                           nd
                                                          a
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            Wait Our FD                                 t      
            Wait Our FD                              es    om
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                isn’t a                           rv      F
                isn’t a                          e      g
                                                S     in
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               Political                     id     n
               Political                    v     Fu
                                          o     e 
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            Subdivision                      ei
            Subdivision                     c
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                                    Fire Department Boards  
                                  Types of Budgets 
                                  Types of Budgets 
        Balanced Budget: Has no deficit 
        Balanced Budget: Has no deficit 
        or surplus. The revenues coming 
        or surplus. The revenues coming 
        are equal to the expenditures.
        are equal to the expenditures.
                                          Line Item Budget: Simple to the point 
                                          Line Item Budget: Simple to the point 
                                          budget.  Minimal information 
            Need to Ponder                budget.  Minimal information 
            Need to Ponder  
              Completing a 
              Completing a 
           Needs Assessment               regarding purpose of the expense line 
           Needs Assessment               regarding purpose of the expense line 
                                          item.  
                                          item.  
    Majority of Volunteer Fire Departments use a Line Item Budget 
    Majority of Volunteer Fire Departments use a Line Item Budget