Abstract
Budgeting and financial management are important aspects in the smooth running of any entity. The effectiveness of a management body depends on how efficient it is in using the available resources to increase the productivity of the organisation.
The state of Ohio has put various mechanisms and strategies in place to enable it continue to succeed in its programs. The Ohio state organisation has competent and skilled personnel with skills in budgeting and financial management. Information technology has also played a pivotal role in the organisation’s exemplary performance.
Introduction
There are different organisations and institutions around the globe. Every organisation has goals and objectives that it would like to achieve after a given period.
The success of these organisations depends on how they are organised and run. Budgeting and financial management is one area that determines the success of the organisation.
This paper delineates on Ohio state organisation in the United States of America.
Mission and goals of the organisation
Every local, state, or government organisation must have mission and goals that guide its operations. Ohio State organisation has the mandate of addressing issues and concerns of the local people. It therefore helps to deliver/bring services to the public.
Ohio State organisation has various departments that enhance its smooth operations. These departments have various missions and vision statements that guide them to achieve the overall functions and goals of the organisation.
For instance, the mission statement of Ohio department of information technology is “to improve the effectiveness and efficiency of Ohio government by providing statewide leadership, oversight, products and services for activities related to information technology” (Ohio Department of Administration Services, 2012, Para. 2).
The vision of the department of information and technology is “to be recognised as a leader for optimising Ohio’s investment in information technology through collaboration, policy, strategic planning and products and services development, and delivery” (Ohio Department of Administration Services, 2012, Para. 2).
The goals of Ohio State organisation include delivering effective and efficient government services to its citizens.
It is also aimed at maintaining and improving vital public services such as human services, health, and early care and education of the people at all levels to meet the people’s basic needs besides protecting the most vulnerable populations.
Other goals include amplifying the performances of the state by collaborating with fundamental service bodies to formulate leadership besides toughening technological acquisitions to nurture client concern and strategic designing action to establish a first class accompaniment organisation/institution.
Ethical considerations related to finance and budgeting within the organisation
The essence of fair reporting in financial statements and budgeting within Ohio state organisation is to prepare and maintain precise records that comply with the set standards and regulations. Some organisations employ tricks that misrepresent their financial statements and budgeting figures for varied reasons.
These reasons include pleasing the public on their performance by deceiving on the actual or real status of the business, to increase market capitalisation of the organisation or to avoid payment of dividends to shareholders, and to ease debt load that they face.
It is therefore imperative for Ohio state organisation to uphold fairness and accuracy in its preparation of financial statements and budgets. This makes the organisation appear sincere and honest hence increasing its chances of being granted loans and other financial assistance (Ostergren, & Stensaker, 2011, p. 150).
Ohio State organization is one of the US’ public institutions. Its source of financing is from taxes, revenues from the people, and its projects. There are established rules and standards such as Financial Accounting and standard Board that have to be used in the accounting of the organisation’s finances.
Every department under this institution must account or present its financial and budget statements in a required manner. Because of the rules set, Ohio state organization upholds to ethical consideration in its accountings.
The accounting standards used are verified with all books of accounts being audited by an independent body that ensures that all financial matters are always accounted. The statements are presented fairly with a lot of keenness on accuracy to represent the actual status of the states.
This ensures that funds are well utilised and managed to finance the activities of the organisation to achieve the goals while at the same time meeting the objectives of the organisation.
Technological considerations for improving the efficiency or effectiveness of finance and budgeting within the organisation
Advancement in technology has made it easy and effective for maintenance of finance records for this organisation. The correct application of technology is pivotal in improving the efficiency and effectiveness of finance and budgeting within any organisation (Ohio.Gov. 2012).
Various departments operating under the Ohio state organization have incorporated information and technology in their operations. The department of finance and budgeting has adopted technology in its accounting process.
This has enabled the organisation to ensure high standards of accountabilities of the funds and money generated and used by the organisation. The office of budget and management has policies that help in ensuring that the organisation achieves its goals.
Various decisions concerning technology are made after carrying out an extensive research to find the viability, suitability, and even sustainability of the project before it can be accepted.
The people operating the technology or using such technology in accounting or budgeting possess adequate skills in those areas, which ensure that there are high standards of accounting.
Applicable laws, regulations, and policies influencing the organisation’s financial and budgetary operations
The Ohio state organisation is run and managed by its own director (Ohio.Gov. 2012). The organisation has a derogative of establishing its own laws and regulations that can ensure or enable it achieve its goals.
The central department, which is headed by the chief of parties functions as the overall organ that unites or brings together all the other departments. Therefore, the organisation has the prerogative to adopt accounting standards and regulations, which will enable it reach its goals.
However, these regulations and policies in accounting or financing should be in tandem with the standards that are set by the government or state that is represented at the cabinet level agency in the executive branch of state government (Raghunandan, 2012, p. 110).
Therefore, all activities or decisions of the Ohio state organisation management are in tandem with the state government.
The Ohio budget management team therefore has to develop, coordinate, and monitor the departmental budgets and any other reviews and financial transactions made or carried out with the organisation’s funds.
The Ohio state organisation’s budgeting and financing planning must be of the required standards besides abiding by the rules, laws, and regulations in place.
Evaluation of the organisation’s budget process and revenue sources
Ohio budget management team conducts the budget of the Ohio state organisation. This team comprises of people with exceptional skills and relevant understanding of accounting and financial issues of organisation’s funds. The budget process is broken into various stages and phases.
The members of the team have to come up with a plan on how the budget process needs to be carried out. Enough time is given to liberate and debate on various issues such as projects that should be funded.
The members of the budget committee invest time in communication whereby they engage in discussion on the best investment options. The source of revenue for the organisation is diverse. These sources include taxes levied on the services it provides to the citizens.
It also gets revenue from individuals based on their incomes. Other sources include natural forests, national parks, and revenue form tourists. These are received from the fee charged on the recreational facilities among many others.
Internal factors impacting successful strategic financial planning
For an organisation to achieve its goals and utilise the available funds well, there is the need to adopt a strategic plan that it can use to achieve its objectives (Ostergren, & Stensaker, 2011, p. 149). However, some challenges may hinder or affect a successful strategic financial planning.
Some of the internal factors that are affecting successful strategic financial planning in the Ohio state organisation include the culture of the organisation and management differences in terms of leadership styles and knowledge.
These factors have often led to problems in the smooth running of the organisational affairs as other people or stakeholders have not been conforming to the culture of the organisation.
The organisation’s usage of cost-benefit analysis
Cost-benefit analysis is a mechanism or rationale that organisations use to assess the costs and benefits of their decisions. The Ohio state organisation is one of the organisations that use this analysis in their decisions specially those requiring investments.
The organisation has various departments where every department has its programs and projects that require funding from the organisation’s kitty.
Therefore, to reach or to decide on projects to be implemented and supported in terms of financial support, the organisation caries out a cost and benefit analysis, which provides an insight on whether the project is worthy undertaking or not.
Overview of the organisation’s cash management and investment strategies
The Ohio state organisation has put efficient cash management and investment strategies in place geared at ensuring that it achieves its set goals and targets. The institution has a well-established financial department that ensures that all money that is received is secured with details of the people paying it updated.
This has enhanced and promoted effectiveness and efficiency in the management of the organisation’s funds. The personnel dealing with issues of cash are accountable to any reported or alleged misappropriation of funds (Ostergren, & Stensaker, 2011, p. 149).
This has made it difficult for any person with ill intentions to engage in fraud or misappropriate the funds. The organisation has various investment policies that are geared towards ensuring that the state has enough funds to carry out its duties in a bid to expand its scope of jurisdiction.
The state has a range of strategies in its investments. Some of them include investing in bonds and recreational facilities among other avenues.
Assessment of the organisation’s overall financial condition
The overall financial condition of the Ohio state organisation is positive. The state has seen improvement in its revenues over the past years. The percentage of revenue has kept on recording a positive improvement. For instance, the estimated total revenue in 2012 recorded a 2.4 percent increase from 2011.
This revenue is expected to increase by 4.1 percent by the year 2013 (Ohio.Gov. 2012). This statistics shows that indeed the organisation is doing what it can to improve its sources of income. The organisation has eight departments that generate revenue through their operations.
These include the department of higher communication that extends services to primary and secondary education and others, health and human services, executive legislative and judicial, justice and public protection, transportation and development, and environment and natural resources.
These departments are required to present their books of accounts to account on how they spent their money. The books are forwarded to the Ohio Budget management for review and auditing.
The report presented by the organisation showed that funds are utilised well in line with the most fundamental things that the public wants.
Conclusion
In conclusion, budgeting and financial management are vey essential aspects in the smooth operation of any institutions whether private or public. Organisations, in one way or another, spend their funds to achieve their goals.
Such transactions needs to be recorded to ensure that any funds provided in the organisation is accounted. Ohio state organisation is one of the public institutions that have put sufficient measures in place to ensure proper management of funds.
Information technology is embraced in the organisation thus contributing towards effective and efficient accounting procedures and processes. Appropriate measures are considered before enrolment, embarking, or adopting a certain information technology procedure in the organisation.
An extensive research is conducted followed by a testing to verify the workability of an information technology before enrolling it. Therefore, Ohio state organisation is one of the institutions that have managed to achieve their goals through effective budgeting and financial management.
Reference List
Ohio.Gov. (2012). Government. Web.
Ohio Department of Administration Services. (2012). Mission, Vision, Goals and guiding Principles. Web.
Ostergren, K., & Stensaker, I. (2011). Management Control without Budgets: A Field Study of ‘Beyond Budgeting’ in Practice. European Accounting Review, 20(1), 149-181.
Raghunandan, M. et al. (2012). Examining the Behavioural Aspects of Budgeting with Particular emphasis on Public Sector/Service Budgets. International Journal of Business & Social Science, 3(14), 110-117.