GFOA Website’s Best Practices and Advisories
1. Identify the first assigned best practice and advisory
Category: Budgeting and Fiscal Policy
Title: Budgeting for Results and Outcome
2. Summarize the major provisions of this document
The document has established the principles necessary for effective budgeting, which include setting of broad goals, development of strategies and financial policies, designing a budget that will support the goals and strategies set, and focusing on the necessity of continuous evaluation of government performance. The document observes the difference between the conventional budgeting and the budgeting done by GFOA by noting that GFOA concentrates on outcomes and not on the structure of the organization. It recommends that the government should budget practically by focusing on the results, and it establishes steps that the government can follow to ensure that it has the ability to do this. Some of the steps include knowing the amount of money available, prioritizing the results, identifying the most significant programs and activities, and communicating the performance results to the internal and external stakeholders. In addition, the document identifies the roles that budget professionals can play when budgeting for results.
3. How does this practice contribute to sound budgeting?
This practice is essential for sound budgeting because it has ensured that the government does not waste any money on unnecessary programs and activities. It requires the government to identify the most necessary programs to include in the budget. In addition, it has ensured that the government does not spend money that it does not have. Furthermore, this practice increases accountability on the part of the government because it requires it to communicate the results to all the stakeholders.
4. Identify the second assigned best practice or advisory
Category: Debt Management
Title: Debt Service Payment Settlement Procedures
5. Summarize the major provisions of this document
The document notes the responsibility of government debt issuers in ensuring that debts are paid accurately and on time. It notes that debt issuers have the responsibility of using funds for the benefit of the government. The document further notes how the governments move in using electronic payment has benefited different stakeholders by reducing credit and liquidity risk, standardizing payment streams, improving efficiency, and reducing loss of funds. It makes several recommendations to the state and local governments to guarantee that interest payments and debt principal are paid on time.
6. How does this document contribute to sound budgeting?
The document contributes to sound budgeting because it reduces the risk of losing funds. Debt payment and payment of interest are crucial in budgeting because they contribute in determining the amount of revenue available for the government. It reduces any chance of fraud and other modes of corruption, which might occur in the transfer of funds. Without the necessary revenues, the government is not able to fulfill all of its obligations.
7. Identify the third assigned best practice or advisory
Category: Retirement and Benefits Administration
Title: Strategic Health-care Plan Design
8. Summarize the major provisions of this document
The document notes the challenges faced by plan sponsors when providing health-care benefits, and it observes that these challenges prevent the sponsors from implementing their long-term plans. It highlights the need for plan sponsors to increase their effectiveness in service delivery. It recommends that the sponsors follow a strategic long-term plan, which includes principles and objectives that will help in managing costs. It recommends that plan sponsors should consider using analytical tools to measure the health risk factors, data warehousing, define cost objectives, and determine the necessary cost containment measures needed.
9. How does this document contribute to sound budgeting?
This document is essential for sound budgeting. The government spends a lot of money on healthcare since there are many costs involved. This document contains principles that ensure education for all the people involved. Through this, people are able to know the limitations of benefits, employer and employee costs and the benefits of retirees and employees. The people will become more conversant with these education initiatives, and they will be able to make better decisions regarding their healthcare.