Deduce The Viability Of Collaboration And Coordination Theor ✓ Solved

Deduce the viability of collaboration and coordination theories

Upon completion of this unit, students should be able to deduce the viability of collaboration and coordination theories related to financial accountability and agency transparency in public agencies. Consider how public agencies are accountable to the citizenry when using public funding.

Welcome to Unit VI. The goal of this unit is to help you understand that the art of financial management must be a transparent process that reflects accountability and control. The government financial field requires special attention from public leaders because the negative implications will occur from poor financial decisions. Financial accountability is required due to the factors listed below. Local and state governments are a major part of the overall U.S. economy. The government provides integrated support services to schools, public safety, and transportation.

This unit will also review the different principles of financial accountability, explain why transparency is required when using different taxes to fund public programs, and explain why earmarks, public expenditures, and deficits are important components when managing funds that sustain the U.S. economy. The accountability theories for financial management encompass the important concepts of accountability and transparency. One example of this historical stance first started with the Boston Tea Party in 1773. The tea that was thrown overboard and landed at the bottom of Boston Harbor represented a cardinal value. The notion of “no taxation without representation” set a precedent for financial accountability in the early years.

This action provided a strong future message that public spending is a function agreed on and sanctioned by public leadership. The end result, which is now established in the U.S. Constitution, references that the legislative branch must represent the will of the public. Yourish and Stanton advocate that this design process purposely has several principles in place that assure financial accountability.

Principles of Financial Accountability

The principles are listed below:

• Democratic permissions: Only elected officials take part in decision-making for public projects.
• Impartiality: Treating all citizens fairly, without favoritism in public spending.
• Accountability: Citizens should preview government gains and spending.
• Integrity: Spending resources must represent the citizenry.
• Discretion: Public leaders need to weigh spending decisions carefully.
• Transparency: Audit procedures should ensure all government spending is reviewed.

All too often, these concepts are overlooked and sometimes abused or traded for favoritism and/or political reasons of partiality. The government can incur substantial loss due to overpriced products or contracted services. Other than certain intelligence services, government spending should be an open-door process.

Public Financial Management and Transparency

The primary functionalities of public expenditures fall into three categories: saving, spending, and taxing. Some states do not spend all of the allocated budget because contingency funds are not utilized. Budget-makers must be prudent and realistic by not painting an overly optimistic picture of continuous economic booms, thus planning public projects that exceed financial reasoning.

The different types of taxes produce limited choices for financing government functions:

• Direct tax: Paid directly to the government (e.g., federal income tax).
• Indirect tax: Paid to a third-party who then pays the government.
• Grants: Money received from other levels of government.
• Profit: Derived from selling government resources.
• Borrowing: Deriving funds from issuing treasury bonds or notes.
• Earning interest: From loans issued (e.g., student loan programs).
• Public-private partnerships: Funded by businesses.

Moreover, federal budget processes illustrate the significant challenges of balancing a government budget. The debate often centers around the effectiveness of earmarks and expenditures, which are critical in managing budget deficits.

Earmarks and Expenditures

Earmarking can often sidestep public scrutiny, leading to questions about its appropriateness in allocating taxpayer money. Critics argue that these funds may not benefit the citizenry but rather special interests. Understanding spending categories, such as mandatory (e.g., Social Security) and discretionary funding, illuminates the complexities and political dynamics involved in fiscal decision-making.

Budget Deficits and Economic Implications

Budget deficits often arise from economic downturns and can complicate fiscal policy. As economist John Maynard Keynes posited, deficits can be beneficial if they inject money into the economy and create demand. However, economic challenges often yield a contentious atmosphere surrounding budget allocations. The distinction between budget deficits (annual) and federal debt (cumulative over years) also highlights the importance of fiscal awareness among public leaders.

Conclusion

In summary, financial accountability is paramount in the management of public funds. Leaders must comprehend the sources and rules governing public financing. The principles of transparency and accountability are critical in fostering trust and efficiency in governance. Public leaders are challenged to make informed decisions that reflect the will of their constituents while managing the fiscal constraints of the economy.

References

• Amadeo, K. (2018). Current U.S. federal budget deficit. Retrieved from [source]
• Boston Tea Party. (n.d.). In Encyclopedia Britannica. Retrieved from [source]
• Posner, R. (2009). How I became a Keynesian. The New Republic. Retrieved from [source]
• Skeeze. (2012). Full moon over Washington D.C. [Photograph]. Retrieved from [source]
• Types of taxes. (n.d.). Retrieved from [source]
• Yourish, K., & Stanton, L. (n.d.). A guide to the federal budget process. Washington Post. Retrieved from [source]
• Caiden, N. (1981). Public budgeting amidst uncertainty and instability. [Article reference]
• U.S. Congressional Budget Office. (1993). Using performance measures in the federal budgeting process. [Article reference]
• Annenberg Learner. (2012). Using fiscal policy to stabilize the economy. Retrieved from [source]
• Associated Press. (2019). President Obama presents record-breaking budget. Retrieved from [source]