Budgetary Control System and Management of Public Funds Research Proposal Paper
Budgetary Control System and Management of Public Funds
Organizations work into a disciplinary manner. Through the people’s past experiences in working in an organization, clearly, they understand that control in important in every aspect of their everyday business transactions. A business leader has the natural characteristics to take control in different business matters. Ideally, the essence of control should be also applied by different associates to improve the business’s performance.
Background of the Study and Problem Statement
Within the managerial control, it is expected that people work together in achievement of the optimal solution. Businesses such as the manufacturing business needs acquisitions of the newly type machines or the establishment of another plantation. In terms of the expansion and acquisitions, the financial managers’ usually handles and take over the control on the allotted budget. As the main topic of the study, the relationship of the importance of the budgetary control system and management of the public funds are bound to be assessed.
The study identifies its contribution on different business industry that attempts to fill the gaps of the expansion and recreation. Therefore, the first objective is focused on the importance of the budgetary control and its management. Second is to establish the different types of management control on the financial resources. And third is to maintain the influence of the budgetary control and management to avoid different future business’s risks.
The study keeps its ground on paying attention on the budgetary control and management and so that, the research presented several questions which will serve a great help in the outcome of the study.
1. What are the primary activities involved in the budgetary control system and management of the public funds?
2. What are the objectives of the control and management on the budget and public funds?
3. What are the core characteristics of a good financial officer?
The control over the budget is also related on the management of it which comes in different type of controls. In assuring that the funds are clearly budgeted, the managers’ conduct auditing procedures and financial reporting to observe it there is any evidence of its misuse or to seek the call for additional budgetary allowance. Through the approach on different effective communication, the managers and its subordinates can have a better understanding about the mission and their purpose which is considered as another way to avoid the different risks (Havens, 2000). Different risk and assumptions can be established if there was no internal control on the financial aspect of the business. The resources can be wasted, be inefficient in the completion of the project, fraud, inaccurate and erroneous accounting records, and the failure to produce timely and reliable financial and resource management information. All of these risks will lead to the downfall of the organization (OECD, 2000). Controls are implemented in the aid of the management activities of the company’s public fund. In auditing, the assessment of the controlled units is verified and identified the earlier said risks. The result may provide information on the decisions of the leaders and might trigger to the high level of approach of the internal control (Larsson and Madsen, 1999).
The applied method of the study is through the use of the interviews. The participants are the officers of a strong business industry. The participants have a relation in terms of their nature of work. The interviewees are mixture of junior and senior officers. Their age, number of years employed, and position are also determined for it will effect on the way or how they answer on the questions of the budgetary control and management.
Management controls, auditing and evaluation are utilized in every organization in which its design is to assure that the allotted budgets are being utilized or processed of the operations. The leaders understand its functions and the benefits the organization can get through the management control on the budget. Furthermore, the budgetary control and management allows them to generate different policy decision, have an idea on the future outcome of the problem and realize the efficiency upon its execution.
The relationship of the budgetary control system and management over the public funds are well-organized and emphasized its functions in the internal system of the organization. The control and management is the heart of the budgetary aspect of the organization. Aside from the fact about the control and management, the organizations are guided towards the success in the industry.
Havens, H., 2000. Management Controls, Audit, and Evaluation. [Online] Available at: http://www.adb.org/documents/manuals/govt_expenditure/Chap9.PDF. [Accessed 11 Feb 2010].
Larsson, K., & Madsen, J., 1999. Protecting the Financial Interests of the State and of the European Union. Public Management Forum, Vol. 5, No. 6. [Online] Available at: http://www.oecd.org/dataoecd/40/19/1830035.pdf. [Accessed 11 Feb 2010].
OECD, 2000. Internal Control and Internal Audit, Organization for Economic Co-Operation and Development. [Online] Available at: http://www1.worldbank.org/publicsector/pe/befa05/OECDChapter10.pdf. [Accessed 11 Feb 2010].
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