After barely avoiding bankruptcy, New York City established one of the most sophisticated budgeting and reporting systems of any municipality. The Integrated Financial Management System (IFMS) “clearly identifies managers in line agencies and correlates allocations and expenditures with organizational structure. . . . In addition, managers have more time to take corrective measures when variances between budgeted and actual expenditures start to develop.” (FE—The Magazine for Financial Executives, 1, no. 8, p. 26.)
Discuss how a responsibility accounting system such as IFMS can help manage a municipality such as New York City.