1. Fire and Emergency Services Company Officer — Lesson 27 Fire and Emergency Services Company Officer, 4 th Edition Chapter 27 — Administrative Programs

2. Fire and Emergency Services Company Officer 27–1 Learning Objectives 1.Select facts about developing policies and procedures. 2.Develop a fire service policy or procedure. 3.Define the term budget. (Continued)

3. Fire and Emergency Services Company Officer 27–2 Learning Objectives 4.Identify the three functions that a budget fulfills. 5.Define the terms budget system and budget type. 6.Select facts about various budget systems. (Continued)

4. Fire and Emergency Services Company Officer 27–3 Learning Objectives 7.Compare and contrast operating and capital budgets. 8.Identify the stages of a budget cycle. 9.Identify various revenue sources. (Continued)

5. Fire and Emergency Services Company Officer 27–4 Learning Objectives 10.Select facts about the budget-development process. 11.Develop and justify a project budget. 12.Select facts about the steps in the purchasing process.

6. Fire and Emergency Services Company Officer 27–5 Developing Policies and Procedures Written policies and procedures Company officer’s responsibilities Steps for determining new policy/procedure

7. Fire and Emergency Services Company Officer 27–6 Budget Preparation and development Budget — Planned quantitative allocation of financial resources for specific activities Fire Officer II must be able to develop a project or divisional budget

8. Fire and Emergency Services Company Officer 27–7 Functions of Budgets Describe/identify relationships Provide assistance Clarify political power

9. Fire and Emergency Services Company Officer 27–8 Budget System and Type Budget system — Model or format to which the budget process conforms Budget type — How costs or revenues are divided between capital and operational purchases

10. Fire and Emergency Services Company Officer 27–9 Various Budget Systems Line-item Zero-based Matrix Program Planning programming budgeting system

11. Fire and Emergency Services Company Officer 27–10 Operating and Capital Budgets Managing company officers responsible for preparing requests Division request involves updating previous year’s budget Requests from various projects/ groups combined

12. Fire and Emergency Services Company Officer 27–11 Capital Budget Includes projected major purchase Multiyear capital improvement plans or projects can be used to fund major investments. Revenues may come from a variety of sources.

13. Fire and Emergency Services Company Officer 27–12 Operating Budget Used to pay for recurring expenses of day-to- day operations Largest item in most career organizations is personnel costs Non-personnel items

14. Fire and Emergency Services Company Officer 27–13 Reasons for Separating Capital and Operating Budgets Funding Decision-making Planning and implementation time frames

15. Fire and Emergency Services Company Officer 27–14 Stages of a Budget Cycle Identifies major events or activities Four stages –Formulation –Enactment –Execution –Auditing/Assessment Usually annual Three cycles in North America

16. Fire and Emergency Services Company Officer 27–15 Revenue Sources Primary revenue sources Secondary revenue sources Tax revenues (Continued)

17. Fire and Emergency Services Company Officer 27–16 Revenue Sources Property taxes Sales taxes Personal income taxes Special purpose tax levy Fees Trust funds Enterprise funds (Continued)

18. Fire and Emergency Services Company Officer 27–17 Revenue Sources Restricted funds Sinking funds Bonds Grants Foundations Fund-raisers

19. Fire and Emergency Services Company Officer 27–18 Budget-Development Process Six steps –Planning –Preparation –Implementation –Monitoring –Evaluating –Revising

20. Fire and Emergency Services Company Officer 27–19 Purchasing Process Personnel who may be responsible Large organizations may have internal purchasing capabilities Small organizations may rely on centralized purchasing department Required characteristics (Continued)

21. Fire and Emergency Services Company Officer 27–20 Purchasing Process Purchasing process steps: –Determine needs. –Conduct research. –Evaluate equipment. –Review product data. –Conduct purchasing process. (Continued)

22. Fire and Emergency Services Company Officer 27–21 Purchasing Process Purchasing process steps: –Determine funding sources. –Create bid specifications. –Evaluate and score proposals. –Award purchase contract.

23. Fire and Emergency Services Company Officer 27–22 Summary The company officer must be familiar with the concepts of the budgeting and purchasing functions. The company officer must know the authority having jurisdiction’s specific policies and procedures for budgeting and purchasing. These functions are as important and as necessary as those encountered at emergency scenes.

24. Fire and Emergency Services Company Officer 27–23 Discussion Questions 1.Why should policies and procedures be considered dynamic documents? 2.Why is it important for all managing company officers to have a substantial knowledge of the budget process that applies to their organizations? 3.Explain why the purchasing function is as important as the functions encountered at emergency incidents.