Accountability and Budgets

Article Abstract:

Comparisons of the budgeting process of the local governments in West Germany and in the United States with that of the United Kingdom point out some interesting differences. A major difference is the openness and public involvement in budgeting in both countries compared to the United Kingdom, which is only beginning this. In the United States, budgets are prepared by politicians as opposed to accountants. Some United States budgets are open to vote on, in the local government. A criticism of United States local budgeting process is this involvement of politicians as there is the opportunity to fudge the figures. Accrual accounting is not used as the votes would not back up the more negative picture provided by them. There is no basis for comparison of actuals to promised. The United States is facing a crisis which is forcing them to look at GAAP-based budgets as local governments in the United States, unlike those in the United Kingdom, can go bankrupt and some have. The politicians (and others who draw up the budgets) agree with the need for comparable budgets, but want them to be cash basis, not any type of accrual. In West Germany, there is detailed legislation regarding preparation of the budgets. West German budgets require a large narrative introduction and explanation to be used and understood by the public, who have the right of inspection. Accountability is no problem as all budgets and accruals are reported on cash basis. United Kingdom budgets are comparably closed. If open, comparison would be no problem, but power of officers would be diminished.

Evaluation, Accounting, Local government

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Modelling Salaries and Wages Budgets

Article Abstract:

A modeling technique, using a computer to assist in budgeting for salaries and wages, was developed for the Southern Health and Social Services Board in Northern Ireland. Each district is allocated a specific budget which it must divide among staff groups. A regular pattern was developed which could be used as a pattern for the computer modeling program. The data on the files would include such items as facility number, pay scale, allowance data, and holiday and weekend duty, overtime, staff numbers and absence percentages. With this, a modeling program can analyze effects that certain changes might have on the budget. Pay awards, cost projections and growth fund projects are some of the activities than can be computed according to the model. Comparisons can be drawn. The application is flexible and user-friendly. It interfaces with sales and wages expenditure modeling. While initially based on IBM Corp's 'CALL' time- sharing service, it is now running on Microdata mini computers. It is fully operational within the board.

Models, Computers, Digital computers, Compensation and benefits, Finance

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Budget Auditing in Governmental Organizations Financed by Taxation

Article Abstract:

External auditing of governmental organizations financed by taxation (GOFT) is a proposal for taxation and planning, as well as external purposes as an explanation of taxation levels. Budgets also serve as a yardstick against which actual accomplishments can be measured. The practice of external auditing is meant to insure the accuracy of financial statements. A survey in two English municipalities showed that people were generally in agreement on the need to publish budget information, but were mixed on the need to audit GOFTs.

United Kingdom, Auditing, Surveys, Administrative agencies, Government agencies

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