Statistics are provided with regard to the number of States requiring budgets for muncipalities and counties. Examples are then given of budgeting -- the tax practices, focusing on the main weapon used to enforce budgeting-the tax levy (used in Iowa, North Carolina, Oregon, and Washington). The more detailed regulations regarding municipal budget estimates in Indiana and New Mexico are outlined. Provisions that Illinois and Oregon specify with regard to budgets are also outlined. States' accounting procedures are discussed, with special attention to those used in Michigan, Texas, New Jersey, Connecticut, Massachusetts, Kansas, Colorado, and California. Auditing practices, which entail the greatest amount of State supervision, are described in regard to Idaho's extensive law embodying features aimed at improving audits, to Connecticut's annual audits of all municipalities (except school, sewer, and fire districts), Massachusetts' local audit units, and Virginia's combination of auditing duties by the State audit department and by independent accountants. Audit procedures in other States and nationwide are also briefly examined. Finally, reporting, an accounting process that shows the highest degree of uniformity among the States, is examined and descriptions are included of reporting systems in New Jersey, Massachusetts, and Indiana. Included are 39 footnotes.