CREATING A VENUE OF ACCOUNTABILITY

PRESENTED BY

Rep. Tommy Stringer,

Mr. Steve Blake, CPA, CFE

“ . . . we might hope to see the finances of the Union as clear and intelligible as a

merchant’s books, so that every member of Congress and every man of any mind in the Union should be able to comprehend

them, to investigate abuses, and consequently to control them . . .”

Thomas Jefferson

Budget Transparency

With the advance of computer and internet technology, states now have the capacity to publish their yearly budgets on the internet. Since 2007 several states (including South Carolina) began implementing budget transparency legislation on an agency basis that established searchable online budget databases, online check registers, etc.

The New Reality

Hyper Media Exposure

News media outlets have real time access to data

if questions arise concerning budgetary or

spending problems. In addition, they can publish

news reports far quicker than a public institution

can respond.

 

The New Reality

Major Headache

Without Good Governance, Budget Transparency

And Hyper Media Exposure Can Combine to Create

A Financial, Political and Public Relations

Nightmare.

The New Reality

What Constitutes Good Governance?

• Governance Committee

• Conflict-of-interest Statements

• Comprehensive New-member Orientation

• Key Performance Indicator Dashboard

• Diversity

• “Best Practices”

Current Issues in Accountability

• COSO – Committee of Sponsoring Organizations.– Defines internal control in five specific areas.– Is now “Best Practices.”

• IRS governance issues.

• Sarbanes-Oxley is now “Best Practices.”

Board Culture

• The shared values and beliefs that delineate acceptable behavior.

Strategic Thinking

• Critical Reasoning Applied to What Matters Most to the Organization’s Future

Performance and Viability