...Project to Improve Financial Reporting and Auditing (PIFRA)”, a World Bank Pakistan project. The objectives of PIFRA is improvement of governance in fiscal management sphere to achieve the vision of strengthened Integrated Financial Management System (IFMS) of the country. • I ensured that each project and i worked in “GO LIVE” on PIFRA platforms and managed all of that through the following: • Assessing the Hardware and software requirements for the project implementing entity. • Updating the Project Accounting system with New Accounting Manual(NAM) Codes. • System and data mapping. • Test Runs • GO LIVE Provided with a computer terminal that is directly linked to the PIFRA transaction server of the Controller General of Accounts establishment (i.e. AGPR, AGs, DAOs and Treasuries). The project’s non-lapsable budgets is loaded into the system at the project implementing entity by the project’s Finance Manager. A sub-account of the consolidated fund shall be established for each donor-funded project, representing the project’s Designated (Special) Account. Each time a payment is processed through the system by the project implementing entity, the transaction will be charged against the sub-account of the consolidated fund of the government and defaulted as a charge against the Bank account of the project. This Bank account will be denominated as the sub-account of the consolidated fund. The project manager at the implementing entity shall also be accorded the powers of a...
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...INTRODUCTION BUDGETING Budgeting is one of the most important skills that an organization can have. Creating and implementing budgets are the most important activities a public administration can undertake. No public program can exist without fund. Budgeting was defined as "a valuation of receipts and expenditures or a public balance sheet, and as a legislative act establishing and authorizing certain kinds and amounts of expenditures and taxation" (Schiesl, 1977). Budgeting is a collective process in which operating units prepare their plans in conformity with corporate goals published by top management. This means budgeting is a number of activities performed in order to prepare a budget. A budget is a quantitative plan used as a tool for deciding which activities will be chosen for a future time period. A budget is a document that shows how a government agency or public organizations intend to spend resources on activities that accomplish public purposes. A budget is a critical document in the operation of any modern public organization. It has an explicit meaning and it has several expected components. In simple terms, a budget is a financial plan that carries forward the financial implications of carrying out a particular planned response to the anticipated operating conditions in a future period, normally a year. The budgeting process is an essential component of management control systems, as it provides a system of planning, coordination and control...
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...Capital Budgeting Ashford University Government Budgeting PPA603 June 16, 2014 Capital Budgeting The main principle of the capital budget is to channel the total distribution of state expenditures for public services. To present the greatest possible outline of current and planned capital investments and assure state governments’ ability to borrow will not increase nor decrease. This paper will discuss how the debt capacity of state is established and then discuss and assess the effect of repaying or reorganizing current debt commitment. This paper will also discuss different funding substitutes that can be used to support debt commitment. This paper will utilized the City of Toledo, whose capital budget is a 4 year plan, which focuses on roads, modernization and police hiring (City of Toledo, 2014). Capital budgeting is the development process used to regulate which of an organization’s extended term assets are worth following according to Devoy & Wise (1979). City of Toledo has one of the most comprehensive capital budgets, encompassing all new construction, including roads and public safety. The City of Toledo policy and process identifies the fiscal year for the City beginning on the first day of January and requires that on or before the fifteenth day of November of each year, the Mayor must prepare a balanced budget estimate of the expenses of conducting the affairs of the City for the following fiscal year (City of Toledo, 2014). While the capital budget...
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...The Operating Budget Dr. Marion Lee PAD 505- Public Budgeting and Finance May 4, 2014 Abstract This paper will give the Operating Budget for the City Of New Orleans. It will provide the agencies mission, goals, objectives, departments and strategic plan. It will describe the budget of the agency by addressing the Financial Summary, including revenue expenditures, department budgets, funding, capital projects and debt administration. This paper will also perform a Cost Analysis which will include fixed cost, step-fixed cost, and variable cost. It will identify one to two challenges a Budget Analyst will have in managing the budget. This paper will recommend two to three strategies the agency should review regarding new initiatives and budget cuts over the next five years. Introduction With roots spanning all the way back to the 1700’s, The City of New Orleans is the Largest Metropolitan city in the State of Louisiana. It is a port city, which had a population of 343, 829 as of the 2010 U.S. Census (Bureau, 2012). The mission, goals and objectives of the city are to have more public safety, more job creation, more recreation for the youth, and to reduce blight in the city. New Orleans is still in a transition stage. Even though it has been 9 years after Hurricane Katrina, one of America’s Deadliest Hurricanes, the city is still rebuilding, still restructuring and actually still growing. Hurricane Katrina affected the city’s economic wellbeing. The city has several...
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...DEPARTMENT OF ECONOMICS –UDOM 1. INTRODUCTION 1.1 Background to the Study Problem Sound Economic Governance is essential for the achievement of the desired reduction in poverty levels and improvements in economic growth in Tanzania. Good Public Financial Management (PFM) is important for efficient, effective and equitable utilization of scarce national resources (REF). Whilst the extent to which policy makers are held accountable to their constituents is an excellent indicator of good governance. Accountability and transparency go hand in hand in developing open and participatory decision-making processes. In 2005, the government of Tanzania reviewed the financial management practices and processes at the central government level. In 2006, the focus has shifted to local government, which now accounts for an increasing proportion of expenditures and is primarily responsible for service delivery in sectors such as primary education and primary health (URT, 2004). This kind of study is therefore wanting to provide a snapshot of how the resource allocation, resource management and control, resource utilization and accountability processes take place in primary schools of Tanzania and to make recommendations for improving the local Public Expenditure management (PEM) framework, institutional performance and capacity building(URT,2010) In February 2004, Cabinet decided to move towards a formula-based system of sectoral block grants, where the level of grants that each local government...
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...1. Introduction and Background of Budget The Capital Budget of the public sector or sometimes also known as Public Budget concerns how the government plans its revenues and expenditures at the Federal level, State level, and Local government level, to carter for the needs of its development programs and projects. In a democratic society, the division of resources between the public and private sectors is roughly determined by the desires of the electorate. But because it’s such a complex and time-consuming task to acquire adequate political information, the electorate is chronically ignorant. Since the Revolutionary War, democratic system of governance has forever been looking for better ways to inform the public and to design more sophisticated techniques for deciding how best to allocate scarce public resources. Despite the good sense it makes to “budget to a plan”, public expenditures are frequently approved based on who supports what, rather than on a clear understanding of what exactly the expenditures will accomplish. Public Budgeting is not about numbers; it is about making Democratic governance work. During the debates leading to the creation of the American Constitution, taxation and public expenditures were one of the driving forces leading to the creation of our peculiar and complex system of separation of powers and checks and balances. Our various state and local democratic constitutions give the executive branch the power to propose a budget and collect...
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...Department of Accounting,Faculty of Management Science,University of Port-Harcourt, Port-Harcourt Oyadonghan Kereotu James (Aca) (Corresponding Author) Lecturer, Department of Accounting and Finance Niger Delta University, Wilberforce Island, P.M .B 071, Yenagoa, Bayelsa State, Nigeria ABSTRACT: In public sector accounting, government ministries and parastatals operate a cash basis of accounting which is believed to be simple in operation and understanding by staff that may not simply have a rigorous training in accounting. A great disadvantage is that it does not recognise assets, debtors and liabilities. This principle negligence is capable of introducing negligence into proper record keeping of how much value of infrastructural assets are being developed in the pass fiscal years, their state of activity and possibly resulting to a repetition of projects, poor monitoring of budget implementation and misappropriation of fund. The authors took a frank analysis of the implications as they relate to the consistent problem of poor budget implementation in Nigeria. This study was based on empirical analysis of one hundred and thirty (130) questionnaires distributed to 130 public servants in the civil service of Bayelsa, Delta and Rivers States of Nigeria. The researchers used version 19 of SPSS to analyse the data using paired sample “t” test with the result that cash basis has a positive effect on budget implementation and fair presentation of the financial position of...
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...WP/05/104 Reforming the Russian Budget System: A Move to More Devolved Budget Management? Jack Diamond © 2005 International Monetary Fund WP/05/104 IMF Working Paper Fiscal Affairs Department Reforming the Russian Budget System: A Move to More Devolved Budget Management? Prepared by Jack Diamond1 May 2005 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. The Russian federal government has recently initiated a fundamental reform of its budget system, encompassing important policy, procedural, and institutional changes. This paper reviews this reform agenda with reference to the experience of industrial countries that over the past two to three decades have followed a similar reform path toward a more devolved budget management system. From this perspective, the importance of the strength of existing public expenditure management systems to accommodate increased devolution and the scope for employing decentralized agencies is explored. An assessment of the present Russian reform plans in light of this review reveals a number of concerns. First, the speed of the reforms contemplated appears overly ambitious when judged by the experience of other countries. Second, the preparedness...
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...Bryan Kimmell How do CFOs make capital budgeting and capital structure decisions? Introduction A comprehensive survey is gone that describes the current practice of corporate finance. The survey will give us a betting understanding of where the theory and practice of corporate finance are consistent and areas where they are not. The survey conducted is based on two parts, capital budgeting and capital structure. The survey goes deeper and tries to find out what causes capital budgeting and structure decisions in firms. The survey consists of 100 questions to explore capital budgeting and structure decisions in depth. The original sample for the survey was 4,440 firms but only 392 CFOs responded to the survey, making the response rate a dramatic 9%. The results of the survey were analyzed based on firm characteristics. The responses given by the executives are compared in relation to the firm size, P/E ratio, leverage, credit rating, dividend policy, industry, management ownership, CEO age, CEO tenure, and CEO educational attainment. Comparing the responses to all these variables gives the results a more meaningful explanation because it is able to test various finance theories. The responses to the capital budgeting portion of the survey follow academic advice and use present value techniques to evaluate new projects. But when it comes to capital structure, firms rely on practical, informal rules and pay less attention to academic advice. Survey Methodology Before the...
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...objectives of state budget-------------------- a) State budget definition.----------------------------------- b) The role of the state budget, and its process.--------- c) Importance of state budget.------------------------------ d) Budget deficit.--------------------------------------------- 3. State budget process in United States.----------------------- 4. State budget process in Egypt.-------------------------------- 5. Budgeting approaches with pros and cons of each. 6. Conclusion.------------------------------------------------------ 7. References.------------------------------------------------------ 1. Introduction: It is important for every...
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...critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves must promote this culture by walking the talk. This paper is an attempt to show how the talk can be walked, and goes through the preparation and steps necessary to fulfill this important journey. As a basis, there must be clarity of concepts, and an understanding of their distinctiveness. This is to avoid confusion, so that we all proceed from a common basis of understanding. As most court...
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...Research Paper Albert Amos Sr. Fiscal Administration in Law Enforcement LEA432 Prof. Zachary Steward May 4, 2014 One of the most expensive services that local governments provide is police service. As is the case in many local government agencies today, police departments are being asked to provide more services than ever before with less resources available to fund these new initiatives. As it becomes apparent that there is not enough money available to fund necessary programs, and the funding is not forthcoming, local governments have been forced to reexamine themselves to find new ways to provide the essential services that they are obligated to provide. In the age of budget cuts that we live in today, performance management is being used more and more to help organizations effectively meet their objectives in an economically responsible manner. 1.) The impact of a recession on a law enforcement agency’s ability to plan a budget Parlow, Matthew J., "The Great Recession and Its Implications for Community Policing" (2012). Faculty Publications. Paper 607. http://scholarship.law.marquette.edu/facpub/607 When the economy was flourishing, local governments were able to pay for services to any jurisdiction. The Great Recession has forced localities to think critically about whether they can sustain these practices given budget cuts. Sweeping reductions put law enforcement on pace for its first job decline in 25 years. The effects of the economic downturn on law...
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...critical foundation on which the future of judicial effectiveness lies. Ladies and Gentlemen: I have been requested to talk about Financial Management, Management of Courts Budgets and its Challenges. I am sure you will agree with me that anyone requested to talk about this topic, can do so for the whole day or two or even a week. I am saying so precisely because financial Management, Management of Courts Budget and its Challenges are extensive and to sum this up in 30 minutes is in itself a challenge. INTRODUCTION It is said that if managers expect their subordinates to adopt any of their wishes or characteristics, such as frugal qualities in the workplace, managers themselves must promote this culture by walking the talk. This paper is an attempt to show how the talk can be walked, and goes through the preparation and steps necessary to fulfill this important journey. As a basis, there must be clarity of concepts, and an understanding of their distinctiveness. This is to avoid confusion, so that we all proceed from a common basis of understanding. As most court...
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...Student’s Name Institution Instructor Date Budget Deficit Budget Deficit Budget is an estimate of the income and expenditure for some country for some set period of time say one year. Budgeting is vital in an economic perspective for the economy that desires to meet the needs of its people. Budgeting also aids an economy to hypothesise and attain the best output and revenue from the dealings in the production process. As such budgeting and forecasting serve the basic role of the economic progress of the economy based on the operations of the countries to attain the millennium development goals. Basically, the budgeting approaches used by the economy may create the deficit or at some point result in the surplus. Reduction in tax payments, increased unemployment, poor planning, increased military spending and poor projection and underestimations result in the budget deficit. During periods of economic recession in some country budget deficit is also likely to be experienced. Expansionary fiscal policy may lead to budget deficit since it involves increase in government spending. Such condition is very challenging to the economic growth and development and may also increase the rate of borrowing of a country to surpass its budget (Aaron, 2014, pp. 1). Budget deficit can be explained as the difference between the government revenue and the government expenditure calculated over some set period (one year). It occurs when the expenditure has exceeded the income for some set...
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...Executive Summary Budgetary Control within public sector entities can be a difficult task due to the complexity of the system. A budget is a financial plan that contains expected revenues and proposed expenditures for a period of time. Every public sector entity needs an operating budget, which is prepared by an executive board and then approved by legislature. One the approved budget is adopted; it becomes a law and cannot be changed. If an entity exceeds its budget, it can be forced to pay hefty fines. The funding for public sector budgets is usually from taxes, loans, revenues, fines, inflation, donations and grants. When controlling revenues, it is important to record revenues as when they are earned. Unearned estimated revenues should remain as unrealized revenues. Budgetary control over expenditures follows the logical cycle: appropriations are recorded, and then encumbrances are recorded, followed by the expenditures, and then payment is disbursed. Public sector entities face both advantages and disadvantages of budgetary control. It is a challenge for such entities to operate within their proposed budgets due to budget cuts, budget surprises, and unforeseen costs, such as emergencies. This is evident in cities such as Detroit, Michigan; Atwater, California; and Fresno California. The most relevant implication of budgetary control was seen in the government shutdown, which occurred on October 1st, and last 16 days. This paper examines the importance of budgetary control...
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