Tag: accountability

Manage Accountability

Introduction

While the allocation of resources is an I, prant duty of the management, there are many pitfalls to accountability that the management of any project can find itself ins when there are no proper structures for allocating, managing, and controlling the funds allocated for any project. On the other hand, it is the management’s duty to ensure that the benefits accruing from the project override the cost associated with the project lest the project be declared a waste of resources. One major way by which the management of a find can ensure that the funds allocated are spent well is through control structures and benchmarks that must be specific to the project at hand.

It is always ideal for management to have an ideal Management Accountability Framework that includes statement that outlines the expectations of then oversight authority of the of the project. The list of management expectation in the framework is immigrant, as it also helps attain high organizational performance. However, this call for Accountability and Citizen Focused Services, other principles such as Governance and Strategic Direction, Innovation and Change Learning, People, Policy and Programs, Results and Performance, Risk Management and Stewardship, Public Service Values.

 The main types of expenditures include the operating expenditures such as Employee salaries or wages and overheads, rental and utility costs, employees travel and other training expenses, communication, consultancy fees. On the other hand there are a number of capital expenditures includes , machineries and other production equipment, Vehicles, stores, furnishings, IT systems, office furniture’s  and other items with depreciable values (Kelly, &, Rivenbark, 2010).

Budgetary procedures

1. Determining a corporate strategy in which the management team review the strategy
2. The budget analyst then issues the Revenue Budget Materials based on the historical report, this indicates the revenues by regions, and month, and then the budget is reviewed and adjusted
3. The budget analyst the Issues Expense Budget Materials that indicates the expenses
4. The initial budget iteration is the compiled by the budget analyst into the team’s budget model
5. The budget analyst team then completes the subsequent iteration and a day is set for reviewing the budget. In this meeting the notes are compared especially the historical results, the key ratios, step costing, and other change points. One other important part in this meeting is the discussion of area is the possible impacts of bottleneck on operations
6. The CEO approves the budget.
7. The final budget that has been approved is loaded into the accounting system

Lump sum budgeting,

While the project will rely entirely on lamp sum budgeting based on the source of funds and the frequency of funds allocation, it is important to note that the project would also have access to other streams of cash flows that will be used mainly for financing the daily operation over the entire life of the project (Breul, 2007).

Object-of-expenditure budgeting,

Performance budgeting.

Meyers, &, Philip, (2005) states that this system of budgeting recognizes and presents the purposes for which a budget is prepared and the purpose for the groups requires funds. It also entails listing the cost of the project and the related activities geared towards achieving these objectives. This system is considered ideal as it outlines the expected output and the. It is advisable to ensure that a comprehensive performance budgeting system quantifies the total results based chain.

Costing

            Costing during the project will e based on various units cost. Example, mechanized clearing will be Mechanized Clearing time will be dependent on the tractors size and the area to be cleared. Therefore, clearing time, Tc, based on the machine hours per square miles.

1. Mechanized clearing
2. Merchandised pilling
3. Earth work
4. Grading
5. Surfacing

Economic Cost benefit analysis

 The conventional economic cost-benefit analysis is important for analyzing the economic profitability of the highway.  The two phases of the project will include upgrading of the key causeway and finally, completion of the main highways. Then the second phase will include completion and commissioning of the project to the stakeholders. Dessau Soprin International and the alignment and technical requirements that were expressed in the Functional Planning Report will base the cost on the Class “C” estimate that was primed.

            Randall, (1982), argues that the procedure is important s it is the only procedure that is used to structure and examine infrastructure projects in order to determine the efficiency concern and the probability of economic growth that the projects are likely to generate. The concept of facilitating choice and the allocation of available resources are the key objectives of the ECBA. The project will use a base case and compare the perforemcne of the project against it is important to note that the techniques is commonly used to determine or appraise the publicly funded investment project such as highways. This helps in the allocation of resources in a way that the society will benefit. The main objectives of the cost benefit analysis is to set a monetary value form the benefits accruing from the public project

Liquidity ratios are classes of financial metrics that are used determine the ability of a company to discharge the short term debt obligation that it accumulates. This also indicates a company’s margin of safety

Solvency ratios:  the solvency ratios on the other hand, are used to measure the ability of corporate body to meets the long-term debt obligations associated with its daily operations. This shows how long a company can meet its debt obligation. This includes the after tax income that a company has realized and excludes any non cash depreciation expenses size of a company’s after-tax income

Profitability ratios:  solvency ratios are alas of metrics that companies can use to assess their abilities to generate continued income against expenses and related relevant costs over specific duration of time

Reference

Randall, Ronald (1982) “Presidential Use of Management Tools: From PPB to ZBB.”

Presidential Studies Quarterly 12(2): 186-194.

Meyers, Roy T. and Joyce, Philip G. (2005) “Congressional Budgeting at Age 30: Is it worth

Saving?” Public Budgeting & Finance (Winter Supplement) 25: 68-82.

Breul, Jonathan D. (2007) “Three Bush Administration Management Reform Initiatives: The

President’s Management Agenda, Freedom to Manage Legislative Proposals and the

Program Assessment Rating Tool.” Public Administration Review (January/February)

67(1): 21-26.

Kelly M. &, C. Rivenbark (2010). Performance budgeting for State and LocaGovernment. 2nd Edition. M.E. Sharpe