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NCJRS Abstract

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NCJ Number: 69013 Find in a Library
Title: ACCOUNTING ASPECTS OF BUDGETARY REFORM - CAN WE HAVE MEANINGFUL REFORM WITHOUT SIGNIFICANT CHANGES IN TRADITIONAL ACCOUNTING PRACTICES?
Journal: GOVERNMENTAL FINANCE  Volume:7  Issue:3  Dated:(AUGUST 1978)  Pages:10-17
Author(s): K S CALDWELL
Date Published: 1978
Page Count: 8
Format: Article
Language: English
Country: United States of America
Annotation: BUDGETARY REFORM WHICH INCLUDES REVISION IN BUDGETARY ACCOUNTING AS WELL AS BUDGETARY PLANNING IS DISCUSSED.
Abstract: STYLES OF BUDGET PLANNING, SUCH AS THE PLANNING-PROGRAMMING-BUDGETING SYSTEM AND ZERO-BASE BUDGETING, CAN ONLY SUCCEED THROUGH THE DEVELOPMENT OF AN ACCOUNTING SYSTEM THAT CREATES ACCOUNT RECORDS ON A BASIS CONSISTENT WITH THE WAY THE BUDGET WAS DEVELOPED. THIS BUDGETARY ACCOUNTING HAS TWO DIMENSIONS: FINANCIAL ACCOUNTING, WHICH ACCUMULATES AND REPORTS FINANCIAL DATA WITHIN A FUND STRUCTURE IN COMPLIANCE WITH REQUIREMENTS; AND PROGRAM ACCOUNTING, WHICH DEVELOPS THE PROGRAM COST AND PERFORMANCE INFORMATION NEEDED FOR PLANNING, EVALUATING, AND MANAGING THE GOVERNMENT'S PROGRAMS, FUNCTIONS, AND ACTIVITIES ON A CONTINUING BASIS. MEANINGFUL BUDGET REFORM, WITH BUDGETARY ACCOUNTING PLACED IN THE PROPER PERSPECTIVE INVOLVES THE FOLLOWING KEY STEPS: (1) CREATE THE ACCOUNTING AND REPORTING FRAMEWORK NEEDED FOR EFFECTIVE PLANNING AND DECISIONMAKING; (2) DEVELOP THE BUDGET ON A COMPANION PROGRAM AND LINE-ITEM FORMAT; (3) DEVELOP A PROCEDURE WHERE THE ADOPTED LINE-ITEM BUDGET IS FORMALLY RECONCILED WITH THE PROGRAM BUDGETS; (4) FURNISH THE DEPARTMENT HEAD WITH BOTH THE LINE-ITEM AND PROGRAM BUDGETS; (5) REQUIRE EACH DEPARTMENT HEAD TO DETERMINE WHAT COST AND/OR PERFORMANCE MEASURES ARE NEEDED TO MANAGE PROGRAMS AND ACTIVITIES; (6) DETERMINE BY DEPARTMENT WHETHER THE PROGRAM COST ACCOUNTING AND PERFORMANCE MEASUREMENTS SYSTEMS SHOULD BE INTEGRATED WITH THE FINANCIAL BUDGETING, ACCOUNTING, AND REPORTING SYSTEM OR BE DEVELOPED INDEPENDENTLY; AND (7) MAKE SURE DEPARTMENT HEADS HAVE PROPERLY DEFINED ORGANIZATIONAL AND PROGRAM RESPONSIBILITIES. (RCB)
Index Term(s): Accounting methods; Budgets; Economic planning; Financial management; Reform
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http://www.ncjrs.gov/App/publications/abstract.aspx?ID=69013

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