Who should hold leaders accountable for failures in financial reporting and budget discipline? (Week 5 Discussion)
Accountability is one of the most critical aspects of budgeting and financial reporting in the public and private sectors. In the public sector, criminal justice plays the role of ensuring all legal obligations are met. At the same time, stakeholders maintain the mandate of setting expectations and ensuring leaders are held accountable for their misconduct (Week 5 Discussion).
Besides, shareholders are responsible for setting clear policies and guidelines that leaders ought to adhere to when conducting the operations assigned to them and preparing budgets and financial reports (Boatright, 2011). Thus, if a leader fails to observe those guidelines and regulations, the shareholders have the right to exercise their mandate of firing or suspending the leader.
How can an agency mitigate damages from an unethical monetary situation?
All public sector agencies operate under specific policies set by either the shareholders, the government, or distinct professional bodies. Thus, for an agency to mitigate damages resulting from an unethical monetary situation, it would be required to follow specific set government policies (Boatright, 2011). This would ensure that the public sector agency’s operations align with that of the government’s expectations (Week 5 Discussion).
Also, public sector agencies’ employees must stick to a specific code of conduct that governs their operations in their professions. For instance, an accountant must observe the Generally Accepted Accounting Principles except when directed otherwise by the organization in which he/she is reporting and preparing the financial reports. Coupled together, these factors help mitigate the damages that come from an unethical monetary situation.
How does an agency build trust after poor public stewardship of monies?
Public sector agencies are required to be good stewards of public finances and meet public needs and expectations. However, if the agency has gained a reputation for poor public stewardship of the public finances, it would be difficult for the agency to regain the trust of both the public and other primary stakeholders (Week 5 Discussion).
However, trust can be established after poor stewardship of money by laying down some measures that can help ensure there is no public money embezzlement (Boatright, 2011). The measures may include ensuring transparency in financial reporting, and there are adequate measures in internal control. Also, they should ensure there is responsible planning and dependable and accurate accounting (Week 5 Discussion).
Boatright, John. (2011). Ethics in Finance. 10.1002/9781118266298.ch1
Sevilla, J. (2006). Accountability and control of public spending in a decentralized and delegated environment. OECD Journal on Budgeting, 5(2), 7-21.