Recent progress has outmoded many traditional standards of financial administration of governmental units. Among the more significant changes in concept are (1) greater recognition that financial management must be an integral part of total management at each level to be effective; (2) greater emphasis on the inter-relationships of programming, budgeting, accounting and reporting, and (3) greater awareness and acceptance of the need for variable patterns of accounting compatible with assignments of managerial responsibility and the type of operation being conducted. This proposed statement is an effort to express in broad terms the current accounting and related standards of governmental financial administration. Preparation of a budget for a governmental unit should begin with a determination of the work to be done and the expenses of doing it. Such a cost-based budget and the cash requirements stemming therefrom should be submitted to the legislative branch as a basis for appropriation action. After legislative action, cost-based budgets should be used to control work being done. The cost-based budget is the standard against which the actual costs incurred are to be measured. Responsibility for review, appraisal and action rests on supervision at every level. An independent financial examination and review of operations should be made.

H. W. Singer, Gerald M. Meier, The Terms of Trade and Economic Development: Comment, The Review of Economics and Statistics, Vol. 40, No. 1, Part 2. Problems in International Economics (Feb., 1958), pp. 85-90