Now that you have reviewed financial controls and the accounting issues and challenges that occur, please share your findings and opinions for the discussion. You often see news reports predicting the direction of the economy; the prediction is based upon one common internal control, the separation of responsibility for related duties about financial management practices.

Please review these two concepts and discuss the following questions.

  1. How accurate are these predictions and how should a financial manager of a state agency apply them?
  2. Why would separating responsibilities be an efficient or effective way to control money?
  3. What is the difference between “managing the financial system” and “using the financial system to manage the organization”?
  4. Which should a budget director of a nonprofit organization of a city or state agency spend more of his or her time on?

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