Which sequence correctly matches the budget cycle stages with responsible parties?

Which sequence correctly matches the budget cycle stages with responsible parties?

• A. Preparation: department heads and finance staff; Adoption: elected council; Execution: city manager; Audit: external auditors.
• B. Preparation: city council; Adoption: department heads; Execution: budget office; Audit: council.
• C. Preparation: department heads and finance staff; Adoption: elected council; Execution: city manager; Audit: external auditors or internal audit staff.
• D. Preparation: elected officials; Adoption: voters; Execution: budget office; Audit: internal auditors

Answer: (C)

Understanding who is responsible for each stage of the budget cycle helps ensure authority and accountability. In the preparation stage, department heads and finance staff compile needs, estimate revenues and costs, and draft the proposed budget because they have the detailed program knowledge. In adoption, the elected council has the authority to approve the budget and set policy directions. In execution, the city manager oversees implementation and day-to-day spending, with the budget office supporting monitoring and controls. In the audit stage, independent verification is provided by external auditors or internal audit staff to check accuracy and compliance. The other options misplace these roles—for example, preparation by elected officials or voters, or adoption by department heads, or execution by only a budget office, or auditing solely by the council—so they don’t align with typical governance practice.

Understanding who is responsible for each stage of the budget cycle helps ensure authority and accountability. In the preparation stage, department heads and finance staff compile needs, estimate revenues and costs, and draft the proposed budget because they have the detailed program knowledge. In adoption, the elected council has the authority to approve the budget and set policy directions. In execution, the city manager oversees implementation and day-to-day spending, with the budget office supporting monitoring and controls. In the audit stage, independent verification is provided by external auditors or internal audit staff to check accuracy and compliance. The other options misplace these roles—for example, preparation by elected officials or voters, or adoption by department heads, or execution by only a budget office, or auditing solely by the council—so they don’t align with typical governance practice.