Sample Solution

The recent fiscal crisis has had a devastating effect on police, courts, and corrections organizations all across the nation. With government funding for public safety being slashed in an effort to reduce public spending deficits, many of these organizations have been forced to make tough decisions involving personnel reductions, cuts in services and programs, and even the closure of certain facilities (Kimmel et al., 2021). This has resulted in longer wait times for court cases due to fewer resources being available, reduced access to inmate rehabilitation programs as well as fewer preventive measures such as early intervention efforts or neighborhood patrols. These changes have a direct impact on the safety of citizens by reducing their ability to receive prompt help when needed.

A budget is an estimation of income and expenditure over a given period. It helps organizations plan ahead by predicting how much money they will need to cover expenses and put aside enough funds for it while also forecasting potential future revenue streams (Weygandt et al., 2021). Budgeting cycles are divided into four steps: planning/forecasting; preparation/execution; control/monitoring; and evaluation/adjustment (Gitman & McDaniel 2016). The first step involves setting goals that align with the organization’s mission statement while accounting for any external factors that may affect its operations such as those mentioned earlier. Second is preparing both long-term forecasts based off past performance alongside short-term estimates from current trends . Thirdly implementing internal controls over finances like reconciliations , dual custody , etc . Lastly evaluating progress against targets set during initial planning stages then making necessary adjustments going forward if required.(Harrison & Horngren 2019)

Overall, budgeting serves multiple purposes including tracking actual results vs projected outcomes so businesses can assess their financial health compared to what was planned at the start of the cycle . It also provides valuable insight between departments regarding where resources should be allocated . Additionally, having budgets regularly updated means organizations can modify them according to changing economic conditions this allows decision makers more flexibility than if they were relying solely on static plans which could quickly become outdated (Kimmel et al., 2021 ).