c What types of budgetary amounts ie column headings are req

c. What types of budgetary amounts (i.e., column headings) are required in an annual budgetary comparison statement? Governments that present a budget variance column in the annual budgetary statement are disclosing the variance between the actual amount and which budgetary amount?

Solution

ANSWER:

In an annual budgetary comparison statement, the types of budgetary amounts (i.e., column headings) are original budget, final or revised budget and the actual budget. It allows the comparison to be made on the same basis of accounting as adopted for the budget, even in case there is a different basis from the basis adopted for the financial statements. It also requires a disclosure of an explanation of the causes for differences among the original and final budget, inclusive of whether those differences arise from reallocations within the budget or other variances such as natural disasters, policy shifts, or other unforeseen events.

The original budget column is inclusive of only first completed appropriated budget; and does not include any columns for interim or short term budgets under the comparison schedule. On contrary final budget includes original budget that has been adjusted. Adjustments can be of allocations, reserves, transfers, supplemental appropriations, and any other applicable changes to the current fiscal year. Thus by this way the governments present a variance in final budget from the original budget. The adjustments are listed in the final budget as well as on the reconciliation page which is separate from the actual statement