Chesapeake Transparency and Thoroughness in Financial and Budget Accountability (Case Study Sample)

Review of Chesapeake’s Transparency and Thoroughness in Financial and Budget Accountability
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Review of Chesapeake’s Transparency and Thoroughness in Financial and Budget Accountability
Financial and Budget Accountability is essential for private and public organizations since it strengthens the readability and transparency of reports released and helps stakeholders track the management and expenditure of organizations' resources. Transparency and thoroughness of financial reporting can be seen in terms of disclosure of relevant, timely, and accurate financial data, but can also be the overall accountable and thorough model, where all players face the consequences in case of falsified revelations. The report aims to review and provide an impression of the transparency and accountability of authorities in Chesapeake, Virginia. Chesapeake aims at slashing its spending by $29 million due to the coronavirus pandemic. The report will also reference any forthcoming public projects that require funding and the initiatives that would help raise revenues. Finally, the report will discuss how the agency involved can become accountable to citizens using public funds. The case study will provide a proper illustration of the various dimensions of accountable financial and budgeting in the public sector. Financial and budget accountability requires appropriate financial policies and practices, adherence to industry standards, proper structures, and enhanced capacity for public and private participation for transparency and thoroughness.
Chesapeake Financial and Budget Review
The City of Chesapeake, Virginia, has a Budget Department whose mission is to recommend the best approaches to allocate resources and accomplishing its mission. The coronavirus pandemic has led to many losses, necessitating the city's budget-slashing by a staggering $29 million (Rago, 2020). The city has suffered many losses, including thousands of job losses and the closure of multiple businesses. The revelations are part of the city's budget department reporting of spending, and the aim of slashing the budget is to make up for shortfalls when it comes to collecting revenues (Rago, 2020). The agency has made enough efforts to thoroughly and transparently reporting its financial and budgetary situation. The city has provided its rationale for slashing the budget and provided exact figures that improve financial and budgetary reporting transparency and accountability. There are some reported cuts to Chesapeake's expenditures. Significant budgetary cuts include pay rise for employees, while real estate taxes remain stable.
The City Council of Chesapeake approves the budget. For the fiscal year 2021, the city council approved a budget of $1.1 billion. However, the approved budget was characterized by many amendments in response to the coronavirus pandemic impacts. According to the report, the city estimated that the pandemic would result in a shortfall of about $46.5 million in revenue collection (Fearing & Hall, 2020). The City of Chesapeake is accountable to the citizenry when using public funding by getting approval from the city's representatives and availing yearly financial reporting to the public. Getting approval from the people's representatives is key to establishing financial accountability and transparency in the city. There are public hearings when establishing the budget for the next financial year. Due to the coronavirus pandemic, the city has scaled down most of its projects.
The upcoming events focus on reducing fiscal spending to help the city cope with the decrease in revenues. The financial year 2021 had been proposed before the pandemic occurred, and hence upcoming events focus on amendments to the budget to account for revenue reduction through reducing expenditures. The public hearings are part of the thorough and transparent process of the budget office accountability to Chesapeake's citizens. In the public hearing, citizens will get information on specific revenue allocation and expenditure cuts. The plan is to provide accurate figures, including the general fund reductions and the cuts to various departments within the city's governance structure. For example, the Budget Office reports general funds reduction of $37.31 million, representing a 6.1% revenue reduction (Fitzpatrick & Jenkins, 2020). The city has upcoming projects, for example, the purchase of public safety vehicles, and the funding would come from the reserves. However, the Budget Office recommends delaying the projects to avoid using reserves. The Budget Office offers alternatives to funding various projects, including a shift from dependence on reserves. Also, there is a summary of key figures to help the public understand why the city needs to reduce its budget for 2021.
Conclusion
Financial and budget accountability are critical to the success of institutions, especially public institutions. With thorough and transparent approaches to financial and budgeta