From: Stephanie Copenhaver
Re: Accountability in Reporting Memo
To whom it may concern:
This memorandum is going to explain how increasing scrutiny and demand for
accountability by the public has influenced reporting for not-for-profit and
government entities. First, it must be understood on where the money is coming in
from to these types of entities. The not-for –profit sector receives money from the
government, pledges, contributions and donations. The government receives
money from taxpaying citizens and may be financed through bills or laws passed
through Congress and the Senate. In order to maintain integrity with these
entities, the people that the money comes from need to know where their hard
-earned money is going. There have been at least two boards set up: the
Governmental Accounting Standards board and the Financial Accounting Stand
Board. These boards have ...view middle of the document...
Each person that
reads a financial report will be able to easily understand where the funds came
from, how much money came in, and when and where the funds were spent. This
simplicity in reporting makes it very easy not to take items out of proportion and
they know exactly where each dollar came from and where it went or is going.
Without this increased scrutiny, the entities discussed would just be able to “run
wild” and do whatever they wanted with the money that has been received.
Citizens do not want to see an entity spend $500 on something that they could
easily get for $100 with the same quality. The increased scrutiny has been because
of spending such as the example just described. Citizens want to see their hard-
earned money spent responsibly. If it cannot be spent responsibly then they want
to be sure to hold the party accountable.
Overall, the scrutiny has led to very efficient management and optimal
deployment of the resources by each of the entities. They have grown efficient
and more transparent given the increased scrutiny and increased accountability.
Entities such as the two discussed in this memorandum now have accountability
on where the funds are going. The reports make it very easy for someone that
does not have knowledge in finance to ask the hard questions on where the
money is coming from and where it is going. There needs to be more
accountability like this in other agencies from the top down. Overspending in
today’s world is very easy to do. This accountability will make it more difficult and
make the parties be held accountable for what they have done.
Titard, P. W (2003). The Changing Landscape of Accounting Standards Setting. (cover story). CPA Journal, 73(11), 18. Retrieve from EBSCO on October 26, 2014
Williams , J L (Summer 1992 . New audit standards for audits of entities receiving federal financial help . Outlook , 60 , n2 ..51 (1 . Retrieved October 26, 2014 General One via Gale : http /find .galegroup .com /ips /start .do ?prodId IPS http /find .galegroup .com /ips /start .do ?prodId IPS Steinberg , R M Johnson , R N (August 1991 . Implementing SAS no . 55mo.docx