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Monitoring Single‐Source Revenue Funds throughout the Budgeting Process
Author(s) -
Nelson Ray D.,
Cornia Gary C.
Publication year - 1997
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.01099
Subject(s) - revenue , process (computing) , agency (philosophy) , revenue assurance , computer science , control (management) , exploratory research , revenue model , state (computer science) , business , operations research , finance , engineering , philosophy , epistemology , algorithm , artificial intelligence , sociology , anthropology , operating system
Unexpected revenue shortfalls that occur during budget execution create serious problems for public agencies and programs. This is especially true for agencies and programs that rely upon a single source of revenue. This article implements a revenue monitoring process that combines ideas from statistical process control and exploratory data analysis into a spreadsheet environment. The methodology builds on principles used to monitor manufacturing processes. This simple application helps public managers detect revenue surpluses and deficits early enough in the budget execution process to take corrective action. The methodology also adapts to the data problems and avoids many of the pitfalls that arise when using “real world” budget data. An example of the benefits of this methodology is offered using an example of a state agency funded by a single revenue source.