Professional Standards and Recognition Committee

BUDGET REVIEWER’S GUIDE Fiscal Year 2014/15

1 Dear Reviewer: The beginning effective date of the SECTION A Thank you very much for your document or series of documents participation in the CSMFO cannot be more than one year old A1. Is there a table of contents? Budget Awards Program. This at the time of application. Are the document’s pages Reviewer’s Guide was prepared to numbered? assist you in reviewing the OPERATING & CAPITAL  The table of contents should documents you are being AWARDS be accurate. Check a few requested to review. Even if you references in the Table of are a seasoned reviewer, please For the Operating and Capital Contents to make sure the take the time to read through it. Budget Awards, the following Table agrees with the The CSMFO Professional general guidelines apply: document. Standards and Recognition  All pages should be numbered Committee is trying to bring more The criteria in Section A is what including blank pages, pages consistency into the program. CSMFO has determined is marked “this page This guide is designed to further the minimum that should be intentionally blank”, logo that effort. included in a budget pages and picture pages. (not document. Section A: tabs) General Guidelines  If a couple of pages are not  Has a total value of 20 numbered, you should still This guide is organized by award points. award the point. The main category. There are two  All 20 points must be goal is: Can the document be award categories in the awarded by both reviewers navigated? program as follows: to earn either Meritorious or Excellence Award. A2. Does the budget contain  Operating Budget  If one reviewer awards 20 transmittal letter/ budget  Capital Budget points and the other does message? not, a third review will be  This is usually from the If an Organization has received the provided to resolve the Organization’s Executive Excellence in Budgeting Award in difference. Officer (EO) and touches on a specific category from either the highlights of the budget. CSMFO or GFOA over the last CSMFO has determined criteria in  Can be a letter signed by EO three consecutive years, then the Section B to be additional items and a message written by the budget will receive only a single that, if enough points are earned, person preparing the budget. review. will result in an Excellence Award. Section B: A3. Does letter/message highlight Tips for Reviewers policy/ economic/legislative Your role is to help the  Has a total value of 80 issues facing the jurisdiction Organization being reviewed points. and recommend actions to understand what is required. If  An average of 50 points resolve these issues? you do not award all of the points must be awarded to earn the  Do you get a clear picture of for a question, explain, 1) Why Excellence Award. what issues are being you did not award all the points,  A third review is addressed by the and 2) What would you expect to sometimes necessary to Organization? see to award all the points? resolve differences.  Are recommendations made Reviewers should return reviews  This section does not to address the issues? by the due date to help the budget have to be completed if award process flow more applicant is opting only for A4. Does letter/message highlight smoothly. the Meritorious Award. major changes in budget from OPERATING current year regarding service The document or series of and/or funding levels? documents must stand on their BUDGET  Is there a discussion of the own and not include supplemental AWARD addition/reduction of or attached material not considered personnel? a part of the document or series of  Are new programs being Each question in Section A and documents. For example, the introduced or old ones phased Section B will be discussed below. Capital Improvement Programs for out and are they discussed? The discussions are numbered A1 the Capital Award need to be a  If this is status quo, – A20 for the 20 questions in stand-alone Capital Improvement Organization should so state. Plan, not part of the Operating Section A and B1 – B23 for the 23 Budget. questions in Section B. 2 A5. Does letter/message highlight  Should include all funds major organization priorities A10. Is the basis for assumptions included in the document and and their funding sources? for key revenue estimates jurisdiction-wide totals.  Is there a discussion about described? what’s going on in the  This should focus on major A14. Is there a summary schedule community (the hot items)? revenue sources. of expenditures, by  Can be a discussion of the  Describing the revenue source department, organization, Organization’s goals and how does not meet this criterion. program or function, and does they will be funded.  How were the amounts it display at least the proposed developed and by whom? Did budget year(s) and the two A6. Is the basis of budgeting the information come from the prior years? defined? State or from an in-house  Make sure it includes 3  For example, modified calculation based on required years. accrual/cash/or accrual, etc. Is CPI/other basis or from a  Should reflect how the the basis of budgeting the fee/rate-based revenue Organization does business. same as the basis of projection?  Should be a summary, not accounting and if not, are the detail. differences described? A11. Does the budget include at  Bottom line should equal  Referring to the funds within least the General Fund, bottom line for summary the Organization or the budget special revenue funds, and provided for A13. process does not meet criteria. enterprise funds of the  Could be in the budget jurisdiction, and a listing of all A15. Is there a fund balance message, as an appendix or other funds used in the summary schedule, by fund, elsewhere in the document. jurisdiction? (Such as internal showing changes from the service funds, debt service projected beginning balances A7. Is the jurisdiction’s Prop 4 funds, capital project funds, or through the end of the budget (Gann) Appropriation Limit trust and agency funds.) year(s)? included?  Could include a List of Funds  Make sure it has a beginning  Could include resolution or by type. and an ending number, with the calculation page or both to  May be found in the changes shown in between. meet this criterion. Appendix.  Should include everything  If the Appropriation Limit that affects ending balances, does not apply to the A12. Is there a summary schedule such as transfers and organization, should state, of revenue, by fund, and does adjustments, if applicable. “Does not apply” on the it display at least the proposed  Could provide “available” application. Award the point, budget year(s) and the two fund balance for some funds especially for Special prior years? or “working capital” for Districts.  Make sure it includes the 3 enterprise funds. required years. A8. Is the budget process  Should fit on one or two A16. Do the budget detail pages explained? pages. describe the department,  Should discuss the role of the  Should be a summary, not organization, program or departments, any meetings detail. function in question? that are held throughout the  Should include all funds  Does the description tell the process, workshops, citizen included in the document, reader what these individual involvement. plus jurisdiction-wide totals. departments do or what  This is where the services are performed? Organization can give credit A13. Is there a summary schedule for the hard work of others in of expenditures, by fund, and A17. Does the budget describe the the organization and/or does it display at least the level of budget control community. proposed budget year(s) and exercised by the jurisdiction  Could include a timeline. the two prior years? and is that level included in  Make sure it includes the 3 the budget document? A9. Is a jurisdiction-wide required years.  Level at which departments or organization chart included?  Should fit on one or two Organization’s EO can make  May include functions of pages. changes without the departments, if room permits.  Should be a summary, not Organization’s governing  Does not have to include detail. body approval. every position in your  Must be described somewhere organization. in document. 3 and this question is looking  Internal Service Funds are a A18. Is there a summary of for more comprehension. start. Should discuss how the personnel (headcount) by  Must include basis for costs are allocated back to the organization, fund or estimates. How was the other funds including the basis department for the proposed number developed? for determining the budget year(s) and the prior allocations. year? B3. Does document contain a  Indirect Cost formulations  This should include all jurisdiction profile; review of could be identified. positions or full time community demographics, B7. Is there a description of equivalents compared from location, economy? 6 pts. financial/budget policies one year to the next, subtotals  Look for comprehensiveness. which govern finance or and a grand total. This is a 6 pointer, the more budget development such as  Can be sorted by fund, info provided the more points for reserves, debt department or function. you should award. management, CIP, revenue  Should be in summary form.  Could include population, a projections? 6 pts.  Governing body should be map, the economy of the area,  Look for comprehensiveness. able to tell if positions are some historical data, pictures,  May include actual policies being added or deleted. etc. typically found in appendix or  What is the community most transmittal letter. A19. Is the budget clearly enough known for? When was it organized and presented as a established? How did it grow B8. Additional prior year(s) document? and when? revenue, expenditure, and  Has common sense been used fund balance history. to make the document easy to B4. Does document include actual (Beyond A12, 13, and 14) (1 navigate? budget adoption point per year, maximum 2  Is the information clear and resolutions/ordinances points). 2pts. organized in a way to make it enacted by the Organization’s  Additional columns to A12, understandable? governing body? 1 pt. 13, and 14 may be one way to  Adopting document must be earn points. A20. Do the budget numbers and included in the budget  Provide partial points for format appear to be accurate document, not as an partial information. If only and consistent throughout the addendum, to earn this point. one year of prior revenue and document? expenditures is included  Do the numbers flow and B5. Are implications of Prop 4 without fund balance, for balance? limit discussed and/or future example, you may award only trends analyzed? 3 pts. 2/3 point.  Must include more than the SECTION B calculation and/or the B9. Additional future years of resolution. (more than A7) forecasted revenue, B1. Does the document display an  Look at the past to determine expenditure and fund balance effective use of graphics, the future. (1 point per year beyond artwork and charts? 8 pts.  If you have such a wide budget year, maximum of 5  Start with the cover - Is it margin between your points). 5 pts. meaningful. Is a description of proceeds of taxes and your  Summarized information the cover provided? appropriation that you’ll never qualifies.  Look for scope, clarity, and have to worry, show some  Provide partial points for originality. historical data to support that partial information. If only  Has creativity been used? trend. one year of future revenue and  Does it give the reader a  For Special Districts this item expenditures is included flavor of the community? does not apply, so award full without fund balance, for example, you may award only  Could the reader know a lot points. 2/3 point. about the budget just from these items? B6. Does the document B10. Is there additional budget demonstrate the use of cost B2. Is there an in-depth accounting and/or allocated detail describing highlights of recent accomplishments? 4 description of revenue sources costs? 4 pts. and basis for estimates? 6 pts.  Number of points awarded pts.  Look for scope and clarity.  Look for comprehensiveness should reflect the degree to beyond A10. A10 is looking which cost accounting has  This goes along with for “major” revenue sources been implemented. communicating what

4 departments or programs do, B16 Is there a description of B23. Does document display may be goals accomplished. staffing level changes? 1 pt. exceptional clarity of format  What have they accomplished  Could be in the transmittal and presentation in the past? letter. effectiveness? 6 pts.  This could be the interesting  Should describe the change,  Is the document easy to “story” part of the budget. don’t just give the numbers. navigate?  Is the document put together B11. Is there additional budget B17. Is there a discussion of logically and does it flow detail that describes goals for employee compensation and well? program/department/ benefits? 1 pt.  Has it been easy for you to function? 4 pts.  Could be in the transmittal find what you need in order to  What are the goals within letter or budget message. score the document? each department, program or  Should include a discussion, function? don’t just give the numbers. SECTION C  How do they tie to the Organization’s overall B18. Is there a description of Reviewer, if you don’t award all of objectives? budgeted debt obligations? 2 the points for a question, explain pts. why. What you would expect to B12. Is there additional budget  Could describe why the debt see to award all the points? Please detail including performance was issued. be thorough. Applicants rely on measures re: workload,  Could describe the debt your feedback to improve their efficiency or effectiveness? 6 service schedule in general document in the future. pts. terms and the source of funds  Be sure these are really for repayment. performance measures and not just goals/objectives. B19. Is a List of Acronyms used Capital Budget Award  Must be measurable. included and are the acronyms defined? 1 pt. B13. Are performance measures  Maybe a stand alone list or MUST BE A SEPARATE directly linked to stated goals? could be combined with the DOCUMENT OR SERIES OF 4 pts. Glossary Section. DOCUMENTS. Could be two  How do the performance capital documents, not including measures help the B20. Is there a glossary of terms? operating budget. This award is Organization meet its stated 1 pt. designed for those long-term, goals?  A Glossary is an alphabetized stand-alone capital documents.  Must include an indication of list of terms that includes the link for reviewer to be able definitions. Must not be supplemental or to determine if the  An Index does not earn this attached data or documents. (All performance measure is point. material must have been adopted linked. by the governing body.) If agency B21. Does document include included their capital budget in B14. Is personnel/staffing levels financial trend indicators? 5 their operating document, it does listed for each detail budget pts. not qualify for this category but level (department, division,  Look for scope of analysis, does qualify for the Operating function, program)? 1 pt. number of years analyzed, and Category.  Could include historical and use of per capita or constant future. dollar analyses. The level of SECTION A  Must provide reader with comprehensive should staffing level for each detail determine the number of A1. Is there a table of contents? budget level where costs are points awarded. Are the document pages indicated for staffing. numbered? B22. Is there a comparison of  The table of contents should B15. Does document include financial status and other data be accurate. Check a few departmental organizational to other jurisdictions? 2 pts. references in the Table of charts? 1 pt.  May include major revenue Contents to make sure the  Could be imbedded in overall sources, population growth, Table agrees with the organization chart if room crime rate, employees per document. permits. capita, etc.  All pages should be numbered including blank pages, pages marked “this page 5 intentionally blank”, logo  This is where credit can be  Should include a brief pages and picture pages. (not given for the hard work of the description of the project. tabs) various departments.  May explain why the project  If a couple of pages are not  Could include timeline and is a priority. numbered, you should still responsibilities of departments award the point. The main and divisions. A11. Does each project have goal is: Can the document be  Could include a discussion specific revenue sources navigated? about deliberations of governing identified? body.  For multi-year projects, A2. Does budget contain  Could include a discussion should identify specific transmittal letter/ budget about master planning funding source for all years. message? document considerations.  Should differentiate “transfers  This is usually from the from other funds” from other Organization’s EO and A7. Is there a summary schedule revenues. touches on the highlights of of capital revenue sources, by the budget. fund? A12 Are prior year appropriations  Can be a letter written by EO  Should include revenue or expenditures shown where and a message written by the sources for the entire period applicable for each capital person preparing the budget. covered by the document. If project? it is a five-year plan, what are  If this is in the continuation of A3. Does letter/message highlight the revenue sources for the a project that was started in policy/economic/ legislative full five years? prior years, should include issues facing the jurisdiction  May include only one fund. costs incurred prior to the affecting the capital budget  This could be a table or in the budget year. and are recommended actions form of a graphic such as a  For ongoing projects, such as to resolve these issues line graph or a stacked bar. overlay, you might simply included? identify the annual average  Do you get a clear picture of A8. Is there a summary schedule spent over the last five years. what issues affecting the of capital expenditures, by capital budget are being fund? A13. Does each capital project addressed by Organization?  Should include expenditures reflect appropriations or  Are recommendations made for the entire period covered estimated expenses for at least to address the issues? by the document. If it is a the budget year(s)? five-year plan, what are the  If project will be recorded in A4. Does letter/message highlight projected expenditures, by more than one fund, should so major organization priorities fund, for the full five years? state. and their funding sources?  May include only one fund.  Should include all years  Should be specific and focus  This could be a table or in the covered by the document. on Capital Improvement form of a graphic such as a Program or projects. line graph or a stacked bar. A14. Does each capital project  May talk about long-term reflect appropriations or funding for long-term A9. Is there a summary schedule estimated expenses in the projects. of capital expenditures, by future through its proposed  Could include policies that major type of improvement? completion? help develop priorities.  If project is expected to go  Examples of major types of beyond document year(s), A5. Is the basis for key capital improvement include water, should identify projected revenue estimates described? sewer, street, landscaping, expenditures in future year(s).  Should discuss key funding public buildings, etc.  For ongoing projects, may sources.  This should encompass all simply state that the  This is not just a description years included in the jurisdiction typically expends of the key capital revenue; this is document. a certain $ amount annually. a discussion of the basis of the  This could be a table or in the estimates. Where did the form of a graphic such as a A15. For multi-year projects, is numbers come from? line graph or stacked bar. total cost for the project  Providing only the numbers  May be only one page and identified? does not meet this criteria. should be a summary.  This information gives the governing body the “big A6. Is the jurisdiction’s capital A10. Are specific projects picture” of the total costs of budgeting process explained? identified in the document? the project.

6  For ongoing projects, such as  Look to see that the document showing which areas will be overlay, may identify makes sense and is accurate. improved. philosophy of including Check a sampling of numbers. appropriations each year. B5. Does each project narrative SECTION B discuss project status and/or A16. Does the document include contain a timeline for project operating cost impacts? B1. Is there an in-depth completion? 5 pts.  This is critical for the description of how the capital  Should discuss project governing body to understand projects program meets the completion dates and the implications of their jurisdiction’s goals and/or reasoning for targeting those decisions to either approve or financial/ budget policies? 5 dates. not. pts.  May discuss possible delays  May be found with the  May be in the transmittal and consequences. description of each project. letter.  To meet this criterion, only  Should include brief B6. Does each project identify the the amount need be provided. description of goal/policy. person or department acting as  May include policy in project manager? 1 pt. A17. Is the capital budget appendix.  Who or which department accounting method consistent  If policies are not adopted, would someone call if they with generally-accepted should include informal wanted to find out more about accounting principles? policies. the project?  A good place for this discussion is in the transmittal B2. Does document includes a B7. Does each project narrative letter. description of the rating or discuss operating budget  A statement such as, “this ranking process to prioritize impacts and/or contain document was prepared in projects? 4 pts. estimates of future annual O accordance with generally  Should describe how projects & M costs. 5 pts. accepted accounting were determined and  Look for narrative beyond principles” could be included. prioritized. question A16, not just  May discuss governing body numbers. A18. Does the execution of the deliberations.  How were the numbers for the document appear consistent  May discuss master planning impacts developed? with the audience and purpose tools and modeling. B8. Are individual project to which it is directed?  How did this particular group  Attempt to determine if the of projects end up in the costs/appropriations broken down by major objects or document meets the program? Organization’s needs. types? 4 pts.  May include a brief discussion B3. Are individual capital projects  Have elements of each project in the transmittal letter or adequately described? 4 pts such as design, construction and contingencies been budget message.  Should include description of each project. identified? A19. Is the budget organized and  May discuss purpose of the B9. Have alternative funding presented clearly enough as a project. document, taking into account sources been explored for  May describe project in individual projects, where the jurisdiction’s size and specific terms such as length resources? applicable? 2 pts. of roadway to be improved,  Have alternative funding  Look for clarity. square footage of public sources been explored?  Is the document easy to building to be constructed and navigate? purpose of building (how  Should probably be found with the description of each  Is the organization of the many employees the project document logical? will accommodate). project.  Keep in mind the size & resources of the Organization. B4. Does each project have a B10. Are project costs based on current year dollars, with location map, where A20. Do the budget numbers and applicable? 3 pts. future appropriations increased by inflationary format appear to be accurate  Should make it easier to index? 3 pts. and consistent throughout the visualize project.  Have future increases in document?  If citywide, such as overlay, construction costs been could include citywide map

7 considered in developing the  A Glossary is an alphabetical budget in future years? listing of terms, including  Could identify source of definitions. future increases.  Index does not meet this criteria. B11. Is there a summary of individual projects listed by B17. Is document generally funding source? 2 pts. readable and attractive in  This should balance with format and presentation? 5 other summaries. pts.  This should include all years  Is the document easy to of the plan. navigate?  Is it put together logically? B12. Is there a summary of  Have they paid attention to individual projects listed by matching and contrasting major type of improvement? 2 fonts? pts.  Is it all either landscape or  This should include all portrait orientation? projects and balance to other summaries listing all B18. Is there a good use of expenditures. graphics, artwork, maps,  This should include all years charts. 5 pts. in the plan.  Look for scope, clarity and originality. B13. Is the debt issuance  Have they demonstrated supporting the capital creativity? program clearly identified? 1  Black & white pictures are pt. better than no pictures, where  If debt is issued to pay for appropriate. projects, the debt should be  Architectural or design identified. concepts are good to add.  Could identity the type of debt, the debt service in B19. Has current computer general terms, the source of technology been used in payback. document development and production? 5 pts. B14. Have additional future years  Could discuss Geographic of revenues and project Information System, if used. expenses been provided? (2 (How were the maps points for each year after 1st developed?) budget year). 20 pts.  Could discuss software and  Could be in category format, hardware budget development rather than by specific project. tools.  If only expenditures or  Could discuss computer-aided revenue have been provided, analysis that may have been worth 1/2 point per year. used to detect need for improvement.  Could discuss computer B15. Does document contain an models. index? 2 pts.  An index is usually alphabetical, indicating page item can be found.  Table of Contents or Glossary does not meet this criteria.  Should be cognizant of the need to reference multiple pages.

B16. Does document contain a glossary of terms? 2 pts. 8 SECTION C Reviewer, if you don’t award all of be thorough. Applicants rely on the points for a question, explain your feedback to improve their why. What you would expect to document in the future. see to award all the points? Please

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