Journal of Government Financial Management 2004: Vol 53 Index

2004·1.4 MB·English

2004 Journal Index
Spring 2004 currently chairs the Institute of Internal Improving Performance Reporting Glenn Thomas, MBA, CGFM, is a
Auditors’ International Government for Government: New Guidance and financial systems consultant specializing
Preventing Organizational Ethical Relations Committee Resources in federal agency implementations for
Collapse SAP Public Services, Inc. For more than
C’Anne Daugherty, MBA, CPA, CIA, is
14 years, he has worked with federal
an assistant city auditor, City of Austin, TX.
agencies to improve their financial
She is committed to improving
As the corporate scandals of the past management processes, including five
measurement and reporting of
two years have unfolded, we shook our government performance Beginning in 1989. GASB published the years with the General Accounting Office.
heads at WorldCom's $9 billion capitaliza- first in a series of research reports on Shyam Jajodia, CPA, is director of Public
tion of ordinary expenses, Enron's 3,000 Construction Contract Auditing in Local service efforts and accomplishment Services at Labyrinth Solutions Inc. a
off-the-book entities, and HealthSouth’s Governmental Entities reporting (now commonly referred to as consulting company specializing in ERP
financials spun from whole cloth and performance reporting). These research implementation in the public sector.
wondered, “Where were their minds and reports defined types of performance
what were they thinking when they made measures and provided examples for 12 Municipal Financial Reporting on the
these choices and decisions?” Many cities, counties and other local service areas. In 1994, GASB issued World Wide Web—A Survey of Financial
Marianne iV. Jennings, JD, is professor government entities enter into contracts Concepts Statement No. 2, Service Efforts Data Displayed on the Official Websites
of Legal and Ethical Studies at the WP for the construction of buildings, stadiums, and Accomplishments Reporting, which of the 100 Largest U.S. Municipalities
Carey Schoof Bousilnes s. She is the roads, utility delivery systems, mass contained the conceptual background for
author of many books including, Business transit systems, etc. Often these projects performance reporting. However, even
Tale: A Story of Ethics, Choices, Success involve large outlays of public dollars and with the work that GASB and many other
and a Very Large Rabbit, published in 2003. require extended periods of time to researchers had done, and the work of The Internet has created the ability for
A regular speaker at AGA conferences, complete. Because of the money and many experimenters with performance entities to disseminate various types of
she is a member of the Association's complexity involved, construction reporting, preparers of performance information, including financial, almost
Speaker Hall of Fame and received AGA contracts pose a significant financial risk reports still have many questions about immediately to anyone who has access
National Author Award for the second to local governments. This article presents the communication of performance Businesses have been quick to take ad-
time in 2004, in recognition of this article. the findings of a study on the state of information including the appropriate vantage of this medium, displaying their
construction contract auditing in local content and format for performance annual reports on their websites and
Auditing Ethics...imagine That government entities. reports. This article examines these using the Internet to interact with share-
James D. Cashell, Ph.D., CPA, is a issues and looks at AGA‘s new Certificate holders. The SEC through its EDGAR
professor of accountancy at Miami of Excellence in Service Efforts and program has facilitated both online report
University. He is active in the IIA at both Accomplishments Reporting Program filing and easy Internet access to these
Ethical decision-making is an integral the local and international level and has Jay Fountain, CGFM, a member of AGA’s reports by the public
pparrotf eosfs iao ngaolv'es rncamreenert. aWchcioluen tciondge s of written several articles related to Bridgeport Chapter, recently retired as the JamesE . Groff, Ph.D., CMA, is a
efotrh iaccs copurnovtiadnet ss otmo eg og ubiedyaonncde , coitd iess v itaanl d inGteeronragle auRd.i tAilndgh.i zer Ill, Ph.D., CPA, CIA, amsesnitsatla nAt ccdioruencttiorn go fS rteasnedaarrcdh,s BoGaorvde.r n- pofr oTfeexsasso ra to fS aanc cAonutnotniinog aantd T hper evUinoiuvesrlsyi ty
develop thought processest o help guide is an associate professor in the Calloway Terry Patton, Ph.D., CPA, CGFM, a taught at Oklahoma State University.
themselves through complex ethical School of Business and Accountancy at member of AGA’s Ft. Worth Chapter, is Marshall K.P itman, Ph.D., CPA, CMA, is
situations. This article discusses the Wake Forest University. He has written the research manager, Governmental an associate professor of accounting at
concept of moral imagination and explains several articles related to internal Accounting Standards Board The University of Texas at San Antonio.
how thinking imaginatively and creatively auditing.
Harold |. Steinberg, CGFM, a member of
criagnh t hcehlopi caecsc. ountants make the Accounting for internal Use Software AtGecAh’nsi cNaolr tdhierercnt orV irfgoirn iAaG AC’hsa ptCeErA, R isa tnhde WForormk fDluoswt yT oNoolts:e bPorookc etdou Wreesb -EBnatseer da
Lawrence M. Metzger, Ph.D., CPA, CMA, SEA Programs. He is the retired deputy New Era
CFM, is professor of accounting and The Federal Accounting Standards controller, Office of Federal Financial
director of accounting programs at Loyola Advisory Board's (FASAB) Statement of Management, U.S. Office of Management
University, Chicago. His areas of teaching Federal Financial Accounting Standard and Budget.
include government and nonprofit (SFFAS) number 10 Accounting for Good standard operating procedures
accounting, managerial accounting Internal Use Software became effective Summer 2004 enforce performance standards, instruct
and financial statement analysis for fiscal year 2001, and with agencies new employees, serve as an invaluable
engaging in an accelerated pace of Commercial-Off-the-Shelf Enterprise reference mechanism, and win the hearts
Auditing Ethics—Make Them an Offer Enterprise IT system software Resource Planning Software of opining auditors. So why do so few
They Can't Refuse development and renewal efforts, we will Implementations in the Public Sector: organizations maintain good procedures?
find that the issues associated with the Practical Approaches for Improving The answer is usually some variation
financing and accounting for these large Project Success of “they're too expensive, no one uses
scale IT software development efforts will them, or they're too hard to keep up-to-
Using proven methodologies, auditors take on more prominence in agency date.” This article shows how a
can demonstrattheat positive financial financial statements. well-designed system can win over the
and administrative impacts can result A growing number of federal, state and harshest skeptics
from the presence of a strong ethical Steven J. Berkowitz, MBA, CPA, a local government organizations are either
climate. The Austin Office of the City member of AGA’s Montgomery/Prince implementing or planning to implement Greg Ulans, MBA, CGFM, a member
Auditor has done just that in its February Georges Chapter, is the assistant director commercial-off-the-shelf (COTS) Enter- of AGA’s Washington, D.C. Chapter,
2002 citywide ethics audit. Convinced, city for CFO and Central Services Operations, prise Resource Planning (ERP) systems is deputy program manager for
management is implementing a centrally NIH, HHS. In addition, he is an adjunct These projects are undertaken to replace Digicon Corporation
managed, comprehensive ethics initiative. professor of accounting and finance at aging systems and to re-engineer Carolyn Sherman, MA, is vice president
Colleen G. Waring, CIA, CGAP. a member the Florida Institute of Technology and the operational processes for greater of The Murawski Group, a consulting firm
of AGA’s Austin Chapter, is the deputy city University of Phoenix. cost-effectiveness, efficiency and specializing in business and technical
auditor, City of Austin, TX. She has worked improved service to constituents communications
for more than 20 years in government
auditing, for state and local entities. She
62 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT SPRING 2005
2004 Journal Index
Spring 2004 currently chairs the Institute of Internal Improving Performance Reporting Glenn Thomas, MBA, CGFM, is a
Auditors’ International Government for Government: New Guidance and financial systems consultant specializing
Preventing Organizational Ethical Relations Committee Resources in federal agency implementations for
Collapse SAP Public Services, Inc. For more than
C’Anne Daugherty, MBA, CPA, CIA, is
14 years, he has worked with federal
an assistant city auditor, City of Austin, TX.
agencies to improve their financial
She is committed to improving
As the corporate scandals of the past management processes, including five
measurement and reporting of
two years have unfolded, we shook our government performance Beginning in 1989. GASB published the years with the General Accounting Office.
heads at WorldCom's $9 billion capitaliza- first in a series of research reports on Shyam Jajodia, CPA, is director of Public
tion of ordinary expenses, Enron's 3,000 Construction Contract Auditing in Local service efforts and accomplishment Services at Labyrinth Solutions Inc. a
off-the-book entities, and HealthSouth’s Governmental Entities reporting (now commonly referred to as consulting company specializing in ERP
financials spun from whole cloth and performance reporting). These research implementation in the public sector.
wondered, “Where were their minds and reports defined types of performance
what were they thinking when they made measures and provided examples for 12 Municipal Financial Reporting on the
these choices and decisions?” Many cities, counties and other local service areas. In 1994, GASB issued World Wide Web—A Survey of Financial
Marianne iV. Jennings, JD, is professor government entities enter into contracts Concepts Statement No. 2, Service Efforts Data Displayed on the Official Websites
of Legal and Ethical Studies at the WP for the construction of buildings, stadiums, and Accomplishments Reporting, which of the 100 Largest U.S. Municipalities
Carey Schoof Bousilnes s. She is the roads, utility delivery systems, mass contained the conceptual background for
author of many books including, Business transit systems, etc. Often these projects performance reporting. However, even
Tale: A Story of Ethics, Choices, Success involve large outlays of public dollars and with the work that GASB and many other
and a Very Large Rabbit, published in 2003. require extended periods of time to researchers had done, and the work of The Internet has created the ability for
A regular speaker at AGA conferences, complete. Because of the money and many experimenters with performance entities to disseminate various types of
she is a member of the Association's complexity involved, construction reporting, preparers of performance information, including financial, almost
Speaker Hall of Fame and received AGA contracts pose a significant financial risk reports still have many questions about immediately to anyone who has access
National Author Award for the second to local governments. This article presents the communication of performance Businesses have been quick to take ad-
time in 2004, in recognition of this article. the findings of a study on the state of information including the appropriate vantage of this medium, displaying their
construction contract auditing in local content and format for performance annual reports on their websites and
Auditing Ethics...imagine That government entities. reports. This article examines these using the Internet to interact with share-
James D. Cashell, Ph.D., CPA, is a issues and looks at AGA‘s new Certificate holders. The SEC through its EDGAR
professor of accountancy at Miami of Excellence in Service Efforts and program has facilitated both online report
University. He is active in the IIA at both Accomplishments Reporting Program filing and easy Internet access to these
Ethical decision-making is an integral the local and international level and has Jay Fountain, CGFM, a member of AGA’s reports by the public
pparrotf eosfs iao ngaolv'es rncamreenert. aWchcioluen tciondge s of written several articles related to Bridgeport Chapter, recently retired as the JamesE . Groff, Ph.D., CMA, is a
efotrh iaccs copurnovtiadnet ss otmo eg og ubiedyaonncde , coitd iess v itaanl d inGteeronragle auRd.i tAilndgh.i zer Ill, Ph.D., CPA, CIA, amsesnitsatla nAt ccdioruencttiorn go fS rteasnedaarrcdh,s BoGaorvde.r n- pofr oTfeexsasso ra to fS aanc cAonutnotniinog aantd T hper evUinoiuvesrlsyi ty
develop thought processest o help guide is an associate professor in the Calloway Terry Patton, Ph.D., CPA, CGFM, a taught at Oklahoma State University.
themselves through complex ethical School of Business and Accountancy at member of AGA’s Ft. Worth Chapter, is Marshall K.P itman, Ph.D., CPA, CMA, is
situations. This article discusses the Wake Forest University. He has written the research manager, Governmental an associate professor of accounting at
concept of moral imagination and explains several articles related to internal Accounting Standards Board The University of Texas at San Antonio.
how thinking imaginatively and creatively auditing.
Harold |. Steinberg, CGFM, a member of
criagnh t hcehlopi caecsc. ountants make the Accounting for internal Use Software AtGecAh’nsi cNaolr tdhierercnt orV irfgoirn iAaG AC’hsa ptCeErA, R isa tnhde WForormk fDluoswt yT oNoolts:e bPorookc etdou Wreesb -EBnatseer da
Lawrence M. Metzger, Ph.D., CPA, CMA, SEA Programs. He is the retired deputy New Era
CFM, is professor of accounting and The Federal Accounting Standards controller, Office of Federal Financial
director of accounting programs at Loyola Advisory Board's (FASAB) Statement of Management, U.S. Office of Management
University, Chicago. His areas of teaching Federal Financial Accounting Standard and Budget.
include government and nonprofit (SFFAS) number 10 Accounting for Good standard operating procedures
accounting, managerial accounting Internal Use Software became effective Summer 2004 enforce performance standards, instruct
and financial statement analysis for fiscal year 2001, and with agencies new employees, serve as an invaluable
engaging in an accelerated pace of Commercial-Off-the-Shelf Enterprise reference mechanism, and win the hearts
Auditing Ethics—Make Them an Offer Enterprise IT system software Resource Planning Software of opining auditors. So why do so few
They Can't Refuse development and renewal efforts, we will Implementations in the Public Sector: organizations maintain good procedures?
find that the issues associated with the Practical Approaches for Improving The answer is usually some variation
financing and accounting for these large Project Success of “they're too expensive, no one uses
scale IT software development efforts will them, or they're too hard to keep up-to-
Using proven methodologies, auditors take on more prominence in agency date.” This article shows how a
can demonstrattheat positive financial financial statements. well-designed system can win over the
and administrative impacts can result A growing number of federal, state and harshest skeptics
from the presence of a strong ethical Steven J. Berkowitz, MBA, CPA, a local government organizations are either
climate. The Austin Office of the City member of AGA’s Montgomery/Prince implementing or planning to implement Greg Ulans, MBA, CGFM, a member
Auditor has done just that in its February Georges Chapter, is the assistant director commercial-off-the-shelf (COTS) Enter- of AGA’s Washington, D.C. Chapter,
2002 citywide ethics audit. Convinced, city for CFO and Central Services Operations, prise Resource Planning (ERP) systems is deputy program manager for
management is implementing a centrally NIH, HHS. In addition, he is an adjunct These projects are undertaken to replace Digicon Corporation
managed, comprehensive ethics initiative. professor of accounting and finance at aging systems and to re-engineer Carolyn Sherman, MA, is vice president
Colleen G. Waring, CIA, CGAP. a member the Florida Institute of Technology and the operational processes for greater of The Murawski Group, a consulting firm
of AGA’s Austin Chapter, is the deputy city University of Phoenix. cost-effectiveness, efficiency and specializing in business and technical
auditor, City of Austin, TX. She has worked improved service to constituents communications
for more than 20 years in government
auditing, for state and local entities. She
62 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT SPRING 2005
Cost Management in the Public Sector. Fall 2004 Asia & Pacific Region, at th Case Study for the National
A Case for Functional Cost Analysis Aeronautics and Space Administration:
Inter-Country Public Sector Comparisons International Corruption: The Republic of The move from a paper-intensive,
and Harmonization of International Indonesia is Strengthening the Ability of multi-source cost management system
Accounting, Auditing and Regulation its Auditors to Battle Corruption to an integrated, paperless solution
In this article functional cost analysis is
discussed as a Cost management tech-
nique applicable to the public sector. An
example is usedt o illustrate how function- The international effort to align Within the past five years, the National
al cost analysis can be used to evaluate accounting and/or auditing standards Corruption touches the Aeronautics and Space Administration
the cost of a public good and to provide across sectors of the economy and every citizen of Indon NASA) Langley Research Center has
information for identifying and developing different levels of government is gaining collusion and nepotisr made a concerted push toward
cost reduction strategies momentum. One of the challenges is Indonesia byt he acronym KKN, continues ntegrating its procurement and financial
dealing with the different standards to have a deleterious impact on the . management systems through the
Robert Kee, DBA, CMA, is professor of among levels of gevernment within coun- which each ofI ndonesi agency's Integrated Financial
accountancy in the Culverhouse School tries as well as the multiple differences and the way they will cc Management Program (IFMP) initiative.
Aofl aAbcacmoau ntancy at the University of adcerboastse ncaotnitoinnaul esb orodveerrs . theM eeafnfwehcitlivee,n esa s ucnolmebsast mcaojrorru pitniitoina tiavnesd aerl iminate a it tThhee ipmrpilmeamrey ntfaotciuosn ofo ft hkies ye fsfoofrtt whaarse been
Walter A.R obbins, DBA, CPA, Cr.FA, is of the system in Australia and New Corruption in this Southeast Asiar modules, including Core Financial
professor of accountancy in the Culver- Zealand, where thies rjuset o ne standard- democracy of more than 200 million his study provides a clear example of
house School of Accountancy at the settfeorr th e public and private sectors peoisp inlsideiou s, dev ting and has v NASA is already reaping benefits
University of Alabama While progress has been impressive had a brutal, quantifiable effect on om its implementation of Core Financial
since the early 1990s, it is still uncleaasr t o Indonesia’s economy. An through improved cost arrangement of
Final installment in the Four-Part whether international harmonization will prevent and eliminate corri vendor contracts. NASA Langley has
Performance Series: be achieved in the future improve the way every Indc moved from a legacy environment of
eliminating or at least reducing multiple systems and supporting
Performance Budgeting in Federal, Wanda A. Wallace, Ph.D, CPA, CMA, economic and physical pain f spreadsheets, to an integrated solution on
State and Local Government CIA, is the John N. Dalton Professor of with it. One of Indonesiz one system made possible by the Core
Business Administration of the college of hasr ecenttlakyen signif st Financial environment
William and Mary in Williamsburg, VA strengthen its abiltio tcoymb e
Wallace has authored more than 40 Robert E. Maitner Jr, CGFM, an at-large
The premise of performance budgeting books, the most recent of which is a Safaat Widjajabrata, C AGA member, is managing consultant,
is simple: resource allocation should primer on \nternal Control and Auditing chairman oft he Jakarta Chat IBM Business Consulting Services
Indonesian Accounting Insti
follow achievement in efficiency and Crucial to Government and the Economy. Jorge Otero, CGFM, a member of
effectiveness of service delivery. Most published by AGA, and more than 200 AGA’s Los Angeles Chapter, is chief of
public managers would agree that a articles in journals. She was the recipient CM, a member of AGAS the Financial Accounting and Analysis
performance approach to budgeting is of AGA's 2002 Cornelius Tierney/Ernst & Chapter, was assistant regio Branch, Langley Research Center,
useful. In fact, we assert that public budg- Young Research Award in GAO's New York Office. He National Aeronautics and Space
eting systems often have a performance Should Financial Reporting Standards be international consultar Administration
component. Some systems are formal, in South and Central America, t
Established for Budget Reports in the
encompassing most agencies and Caribbean, Europe, the South Paci
departments; others are informal, applying Public Sector? North and South Africa, Sout Winter 2004
only to selected programs. Budget a and the Middle East Getting Beyond Green: A Practitioner's
nalysts routinely consider how well a Perspective
program has performed in the prior and Public Sector Corruption in Bolivia
The Public Sector Committee of the
current years of operation when they offer
International Federation of Accountants
a recommendation for the next fiscal year. )btaining an unqualified opinion on
recently issued a research report on
Senior administrators also consider annual financial statements only
performance, including how programmat- budget reporting. The primary objective Public sector administrators establishes a basefolr wiorlnd-celas s
ic goals align with the organizationwide was to determine if an international Public perceptions of corruption federal financial management. The ability
nission when they review budget Sector Accounting Standard (IPSAS) elicited to study the eff to use financial information to inform
recommendations. We know less about should be issued on budget reporting. The probabilities of detection a 1 punishment decision-makers and help agencies
tOfhfei cdiaellsi,b ebruatt iivte s epermosc esrse asofo nealbelcet edt o vraerpioortu s alassop elcisttse d orf ebcuodmgmete nfdoartmiuolantsi ono,n the tohn e cpoerrrcuepti vebdeh apvrioobra.b ilRiestuyl tsof inddeitceacttieo n tahnadt oulpteirmaattee egfofailc ieonft lwyo ralndd- cleaffsesc tfievdeleyr ali s the
agsesrummaen e thtaot itp rogram performance is erexpeocrutt iwoans apndr epraeproerdt infgo.r iAnltetrhnoaulg hd istchiuss - lpouwn iasnhdm etnhta t oaf ccuolrtruurpet oafc tisn sitni tBuotliiovniaal izies d financial management
sions by the international standard-setting corruption may exist Steven J. Berkowitz, MBA, CPA, a
William C. Rivenbark is an assistant body, the recommendations, if adopted, member of AGA’s Montgomery/Prince
professor in the School of Government could have broad implications throughout David S. Murphy, Ph.D., CGFM, CPA, CFS, Georges County Chapter, is a senior
at the University of North Carolina at the world. This article looks at each of a member of AGA’s Roanoke Chapter, is manager with BearingPoint.
Chapel Hill. these recommendations for application in associate professor of accounting and
Janet M. Kelly is the AlbertA .L evin the United States parnodg rEacmon ocmoiocrsdi,n atLoyrn,c hSburcg hColoolfe gBoeu,s ilnaens ds is The Certificate of Excellence in
Professori nt he Maxine Goodnian Levin Jesse W. Hughes, Ph.D., CGFM, CPA, a regent with the Association of Certified Accountability Reporting (CEAR)
Program: Six Years of Success
College of Urban Affairs at Cleveland CIA, a member of AGA’ Virginia Fraud Specialists
State University. Peninsula Chapter, is an international
consultant specializing in governmental
AGA has completed the sixth year of the
financial management issues
Certificate of Excellence in Accountability
Ronald Points, CGFM, CPA, a member of Reporting (CEAR) Program. Eighteen
AGA’ Virginia Peninsula Chapter, is agencies asked AGA to review and
manager, Financial Management for East recommend improvements for their
F GOVERNMENT FINANCIAL MANAGEMENT 63
2004 Journal Index Continued
Fiscal Year 2003 Performance and Act's concerns in the private sector mirror Congressional Budget Office (CBO) has Raymond McKenzie Jr, CPA, CFP is a
Accountability Reports (PAR). Ten of the those about federal agencies’ internal projected deficits will total $1,893 trillion staff accountant with the Internal
agencies were awarded the Certificate controls. Previous attempts to address between 2005 and 2014. This article looks Revenue Service's Office ofF inancial
of Excellence in Accountability Reporting these concerns have been only partially at what all government finance Reporting. During his 26-year careerh e
The quality of all the agencies’ reports successful. The writers indicate that professionals need to know about the served as a senior tax manager at
continues to improve substantially. To Sarbanes-Oxley is, from one perspective, federal budget and the growing deficit Pricewaterhouse bers and as the
fulfill the growing interest in the CEAR already de facto federal financial chief financial officer of aW ashington,
G. Edward DeSeve is director,
Program, this article has been prepared management policy, and that the federal D.C- based corporwaitth ianonuna l
Management Finance and Leadership
to reiterate the history and purpose of the financial management community has an revenue in excess of $100 million
Program, School of Public Affairs,
program, describe how itis conducted, opportunity to take the lead and ensure
present this year's results and suggest that the government's financial manage- University of Maryland. He is the State Budget Update: Have States Turned
improvements for future years’ reports. ment processes meet future needs former deputy director for Managemen the Comer?
oft he U.S. Office of Management and
Harold |.S teinberg, CGFM, CPA, a Cornelius E. Tierney, CGFM, CPA, a Budget (OMB)
member of AGA’s Northern Virginia member of AGA’s Washington, D.C. During the pas hree years states have
Chapter, is the technical director of Chapter, is a director with Kearney & IRS Accrual Process hadt o make ant reductions in their
AGA’s CEAR and Certificate of Excellence Company. budgets in response to declining
FitO(nfheS fedESi eAecrr)reea v tlRiio rcefeFep dMi o nraEadtfnneifcaponiruggatt esly Pm arMecnoanogdnntr ta raAgomcalesclnm.eodr e m,n SpBttulOe,difi fgsniehbcUtm.eeS er.oagn f nt diss is &aC h EmaCdpeowtmmeabprr,ead nr yi sF. o a Kf e pAaaGrrAnt’ensye ,r WwaisCthGhiF nMKg,e taoCrnPn,Ae, y D .C. 0AM1gaI-nen0 n9rad egasaenp mdo(e nPsntMhetAe )tP aor nretdesh qieudB ieuUrn.ditSgn.'ge s t O afMfc(aicOcneMela Beg)orfe a mtbeeudlnl tet in rshdpeeurafvgoviegsennep iusetsetcetssltay. r tftiecrhR dae cger odwgie1tng,sg hstothaaawengt edaevil neop.frn irg,n- oTathgnriecrsree mvas aem rntsauiir ecsels e
a retired KPMG LLP partner. Roldan Fernandez, CGFM, CPA, a quarterly and year-end completion of still relatively uncertain
member of AGA’s Washington, D.C. financial statements, estimation methods
Audit Federal Financial Controls: Sooner Chapter, is a partner with Kearney & and techniques must be developed. Most Don H. Cha erlain, DBA, CGFM, an
Rather Than Later? Company. federal agencies and departments are at-large AGA nember, is professoro f
wondering how they will be able to meet accounting and ¢ air at Murray State
Would Sarbanes-Oxley benefit federal The Case for New Federal Budget the new deadlines, especially the University. He r viously served as
financial management? Concepts and Benchmarks November 15, 2004 cut-off for completing direc tor of the budget at Murray State
financial statements for the fiscal
year-end September 30, 2004. Several
Actions by the federal government- agencies have already closed their books
both Congress and the Bush and received a clean opinion for the fiscal
The Sarbanes-Oxley Act requires public Administration—over the last several year ended September 30, 2003 within
companies to assess the effectiveness of years demonstrate the lack of fiscal 45 days, so it can be done. However, the
internal controls and have them independ- discipline that has led to a 2004 deficit planning process for your agency or
ently audited. This article shows how the projection of $477 billion. The department must start now
Letter to the Editor
To the Editor,
Regarding the article, “Getting Beyond Green: A Practitioner's
Perspective,” (Winter 2004), Mr. Berkowitz states his view that “the
difficulties federal agencies face in overcoming material weaknesses and
reportable conditions are caused by poor or improperly designed financial
and mixed systems, and insufficient investments in financial analysis tools
and techniques.” He then makes the point that “administration and
congressional leaders enable these root causes by barely using the
information in financial statements.”
Since | don’t work in the federal sector | don’t really know whether this
assertion is correct but it certainly seems plausible.
Assuming it to be true, a logical next question is whether changing this
behavior would produce useful results. If yes, what would it take to change
this behavior? That seems a useful topic of conversation at all levels of
government. | suspect part of the problem is that while the financial piece
is important, it gets lost in the process, especially when the focus, and
properly so, may be more on the future. Thus, past financial information
may not be considered particularly relevant, especially when it is not
presented in a format or context that integrates in a useful way into the
political decision-making process. | be'‘eve this article is useful in
advancing the cause, but we as financial mangers should consider how
we can help produce the change.
Thomas J. Sadowski, CGFM
Columbia, MO
64 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT