Professional Documents
Culture Documents
and Accounting
Structure
Ideal Municipal Budget Structure
ABC Municipal Body
Own Sources New Loans Grants Part Deposits Part of Advances Part
Part of Capital Part of Capital of Capital Extra Ordinary of Extra-
Budget Budget Budget Budget Ordinary Budget
Receipt Payment
Receipt Payment
Receipt Payment
Receipt Payment
Receipt Payments Receipt Payment
Loan Repay
Municipal Budget - Structural Analysis
Vocabulary
Object Heads – The objects which an organisation has.
They are known as Budget Heads or Cost Centers. –
water, sewerage, public health, streetlight etc.
Subject Heads – These are generic heads found in any
organisation. They are generic accounting heads and
cut across all the object heads. Salary, electricity bill,
loan charges, revenue from own sources.
Function – It is variant of Object head. It can be any
function performed or geographical units or
administrative department of an organisation.
Municipal Budget - Structural Analysis
Vocabulary
Unified or Single Budget Format – Only one
document, divided into receipt and expenditure
parts at first level. Subject & Object heads
follow later on in matrix format.
Multi-Document Budget Format – More than
one budget document. Multiple documents are
prepared either following object or subject
classification at first and second level and each
budget document to have receipt and payment
sides at the end.
Municipal Budget - Structural Analysis
M u n ic ip a l B u d g e t S t r u c t u r e
S u b je c t & O b je c t H e a d s
M u n ic ip a l B u d g e t
S u j e c t ( A c c o u n t in g ) H Be au d sg e t ( O b j e c t ) H e S a ud b s j e c t ( A c c o u n t i n g ) H e a
R e c e ip t S id e C o m m o n f o r A l l B u d g e t Es x p e n d i t u r e S id e
R e v e n u e G e n . A d m in i R e v e n u e
L a n d & E s t a t e
T a x R e v e n u e E s t a b lis h m e n t
S t r e e t L ig h t
N o n - T a x M a in t e n a n c e
F ir e B r ig a d e
G r a n t s L o a n C h a r g e s
W a t e r S u p p ly
C a p it a l C a p it a l
S e w e r a g e
O w n S o u r c e P u b lic H e a lt h O w n R e s o u r c e s
L o a n s S o lid W a s t e L o a n s
G r a n t s R o a d & B r id g e G r a n t s
E x t r a - O r d in a r y G a r d e n s , Z o o E x t r a O r d in a r y
S t o r m W a t e r D r a
D e p o s it s D e p o s it R e f u n d s
P u b lic B u ld in g s
F u n d s N e w A d v a n c e s
P r im a r y E d u c a
A d v a n c e s A d ju . F u n d s U t ilis a t io n
Municipal Budget - Receipts Analysis
Tax Non Rev Rev own New Cap Cap Depo Fund Adva Extra Total
Rev Tax Grant Incom cap Loans Grant Incom sits s nces Ordi Receip
s e rece s e Rece ts
Gen Admi
WS
Sewerage
Roads
SWM
Streetlight
Pub Work
Health
Prim Edu
Basic Accounting Framework
Income
Income & Expenditure Account
Expenditure
Assets
Balance Sheet
Liability
Income & Expenditure Heads
Income Heads Expenditure Heads
1. Tax Revenue 1. Establishment Expenditure
2. Assigned Revenue & 2. Administrative Expenditure
Compensation
3. Operation & Maintenance
3. Rental Income from
Properties 4. Interest & Finance Charges
4. Fees & User Charges 5. Programme Expense
5. Sale & Hire Charges 6. Revenue Grants,
contributions, subsidies
6. Revenue Grants,
Contributions, Subsidies 7. Provisions & Write Off
7. Income from Investments 8. Misc. Expenses, losses,
refunds
8. Interest Earned
9. Depreciation
9. Other Income
10. Prior Period Expenditure,
10. Prior Period Income Transfer to Reserves
Income & Expenditure Heads
Liability Heads Asset Heads
1. Municipal Fund 1. Fixed Assets
2. Earmarked Funds 2. Accumulated Depreciation
3. Capital Work in Progress
3. Reserves
4. Investment
4. Grants Contributions Received 5. Stock in Hand
for specific purpose
6. Sundry Debtor (Receivables)
5. Secured Loans 7. Accumulated Provisions against
6. Unsecured Loans debtors (Receivable)
8. Cash & Bank Balances
7. Deposits Received
9. Loans & Advances and Deposits
8. Deposit Works with others
9. Other Liabilities/provisions 10. Accumulated Provisions against
assets, Pre-paid Expenses,
Miscellaneous Expenditure to be
10. Prior Period Expenditure, written off
Transfer to Reserves
Revenue and Capital - Concepts
Three way classification of receipts and payments of any organisation
Construct a building
Capital expenditure Sell the building
Capital receipt
Difference equals
surplus or deficit
Construct a crematorium
Capital expenditure
Charges of cremation
Operational expenses services
Revenue expenditure Revenue receipt
Difference equals
or
surplus deficit
Lower the cost of services the Perhaps not enough money for
following year operational expenses, Need money from
elsewhere in budget
Restructuring the data
Stage I - Sourcing Stage II - Assessment Stage III - Analysis