Exam 1: Section 5: Concepts, Definitions, and Notions of Public Accountability - Learning Objectives

Government Accountability - Meaning/Purpose (S5.A)

Purpose

Levels of Government

Inspector General (IG) Act

Chief Financial Officers (CFO) Act

Purpose: In a democracy citizens have both a need and right to know government operations

Levels of Government

Local governments maintain accountability through direct contact with citizens

State/National government maintain accountability through mechanisms/policies

Inspector General (IG) Act: Independent body created to hold accountability through review of government operations

Chief Financial Officers (CFO) Act: Position created to hold accountability through audited financial statements and effective internal controls

Government Accountability - Levels of Accountability (S5.B1)

Legal Base

Organizational Structure

GASB Guidance - Five Levels of Accountability

Legal Base

National/State: Constitutions/Statutes

Local: Charters/Ordinances

Organizational Structure: Clear definitions of roles and training to support accountability

GASB Guidance - Five Levels of Accountability

1. Policy

2. Program

3. Performance

4. Process

5. Probity (honesty)

Government Accountability - Stakeholders (S5.B3)

Primary Stakeholder

Branches of Government

Levels of Government

Investors

Future Generations

Primary Stakeholder: Public (voters, taxpayers, service recipients)

Branches of Government

Legislative Branch: Holds executive branch accountable for executing programs created by legislative branch

Executive Branch: Holds legislative branch accountable for appropriating necessary funds to run programs created by legislative branch

Judicial Branch: Holds both executive and legislative branches accountable for following laws

Levels of Government

National: Agencies hold state officials accountable for using program funds

State: Hold local officials for fiscal solvency, delivering services and staying compliant

Local: Hold state officials accountable for eligibility determination for programs

Investors: Hold government officials accountable for staying compliant with debt covenants

Future Generations: Holds government officials accountable for promoting the long-term economic security of assets

Government Accountability - Accountability Elements (S5.B2)

Finances (Budgeting/Accounting)

Policy

Operations

Reporting

Finances

Budgeting: Accurately budgeting for programs/operations and complying with legally adopted budget

Accounting: Accurately tracking finances coming in and out to generate accurate reporting

Policy: Creating policies and procedures that meet the needs of government operations

Operations: Properly operating to meet program objectives efficiently

Reporting: Accurately reporting on outcomes in a timely manner