Governmental Accounting In Montana

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Authors

Romine, Patricia

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1980-04-01

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As of 1968, the systems and procedures for budgeting, accounting and reporting financial information in Montana had evolved from over a century of administrative practices. Most were developed to solve isolated administrative problems. There were approximately 180 single-entry systems of accounting in use. Therefore, there was no comparability or uniformity of accounting information in state government. As a first step toward correcting this situation, the Seattle accounting firm of Touche, Ross, Baily and Smart (hereafter referred to as Touche, Ross) was engaged in 1968 to do a study of a possible integrated budgeting and accounting system for Montana. The report was submitted to the Governor and the Legislature for consideration in the legislative session of 1969. The problem, simply stated, was that the people of Montana were demanding more and better public services without increasing taxes. One solution to such a problem was to improve the quality and quantity of financial information in order to achieve operating efficiency and also improve the reliability of decisions made regarding alternative uses of resources. The same problem existed in other states, and several tried to solve it with systems oriented toward fiscal control. Most of those states encountered difficulty with such a system, because they did not provide sound budgeting and accounting systems for measurement of functional operating costs and other information which is essential for planning and efficient operation.

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