During lunch, the director of the Streets and Parkways Department of Thor City made the following comment: “For the past 10 years, I have deliberately overstated my labor and equipment needs by 20 percent when preparing my budget request. I figure that the city council will cut it by 10 percent, and I can use the other 10 percent as slack. If there is money left over, I can always find a way to spend it.” Do you consider this behavior to be ethical? If not, what steps might you, as budget director, take to cut down on this “ padding”?
Answer to relevant QuestionsRex, a budget officer, conducted a class for nonaccounting managers and program directors on the subject of budgets. Rex began the class discussion by asking, “What are some of the uses of a budget?” One manager replied, ...State which category of funds (governmental-type, proprietary-type, or fiduciary-type) would be used by a state government for each of the following purposes:1. To construct a new highway2. To pay salaries of personnel who ...Identify the types of budgets prepared by state and local governments. Visit the web site of a state or local government to review its latest Comprehensive Annual Financial Report (CAFR). (You can generally start at www.statelocalgov.net, then select the government, then select the official or ...Under what circumstances is Debt service Funds used?
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