Spending week 3 discussion 2
Identify costs which illustrate wasteful spending from either your personal
budget or your organizations budget. Articulate why these costs were
first then the individuals response list references tell good and bad of post
(Mar)Reducing waste full spending is not easy.
Even the most useless programs are passionately supported by the armies of
recipients, administrators, and lobbyists that benefit from their existence
(Riedl, 2009). One cost that illustrates waste full spending from an
organization could be programs that could be better performed by the private
sector. A good example of outsourcing would be prisoner transportation.
It is easier to pay a professional company to transport prisoners from court to
their detention facilities than it would for the agency to start a program and
have to worry about equipment and personnel. Wasteful spending can also
come in the form of fraud or mismanagement. This can be by purchasing because
low-quality supplies and materials can generally be delivered at lower cost
than can higher-quality supplies and materials, government contract
specifications require delivery of quality material. A contractor who provides
lower than specified quality (shoddy material) can thus profit at public expense
(Mikesell, 2011). In the law enforcement field shoddy material can cost
someone their life or produce additional waste in form of law suits or paying
more money to repair r repair the equipment.
In my opinion many of these costs are never
eliminated because the lack of oversight. Internal controls need to be in
place to regulate waste full spending. Financial managers are simultaneously
concerned with maintaining internal control, defined as the methods and
procedures within the agency established to safeguard assets, check the
accuracy and reliability of financial and other data, promote operational
efficiency, and encourage adherence to the prescribed policies and procedures
of the agency (Mikesell, 2011). In order to eliminate waist full costs in an
agency the decision makers need to incorporate the people who will be using the
equipment or material to ensure that it will be functional and practical.
Mikesell, John. Fiscal Administration, 8e,
8th Edition. Wadsworth, 01/2014. VitalBook file.