The Analysis And Solutions To The Budget Management Problems Of Agency LA

The budget of a government department, a highly integrated statement of the entire income and expenditure of the department, involves every aspect of its administrative functions and reflects its development plan and administrative efficiency. In recent years, as the regulatory reform goes further in fiscal, budgetary, and treasury management, budgetary management improves and every budgetary office explores innovation, tries to establish an appropriate system that manages the budget in a scientific approach and serves an agency for better functional performance.Agency LA is the local agency appointed by a competent ministry by the authority of the State Council. Its operating funds are covered by the central budget and subject to centralized management. The flaws in its budgetary management, such as the unsoundness of preparation, looseness of review process, absence of efficient enforcement monitoring, and separation of asset management and budgetary management, serve as a typical case. In this paper, the author follows the steps of presentation, discovery, analysis, solution, and comparison in simulated conditions, studies the budgetary management practice of this Agency and explores some new mechanism that is scientifically rational and feasible for the reference of Agency A and other government departments alike.This paper can be divided into three parts, namely, Part Ⅰ:Introduction and Literature Review-the description of the significance, ideas and methodology of this research project, as well as a literature review, an explanation of the structure of this paper, and others; Part Ⅱ (chapters3to5):Core Part-in this part, the author describes the current practice and situation in Agency LA and compares the budgetary and final statements of2010to expose the problems, e.g. poor preparation, enforcement monitoring, and performance management, and the separation of asset management and budgetary management; then analyzes the reasons behind in the aspects of preparation, enforcement, performance assessment, and asset management before introducing the Zero-based budgeting, performance budgeting and other budgetary management approaches to design a solution to the problems:Agency LA shall make more efforts in working out a scientifically rational budget, building a sound enforcement monitoring mechanism, designing a performance assessment mechanism, and performing better budgetary management of assets, and meanwhile, shall adjust and improve its budgetary management in general; Part Ⅲ (Chapter6):Conclusion-The author puts his suggestion into practice and redoes a simulated budgetary statement of2010and compares the data with the final statement for his conclusion.In this paper, the author combines the theory of overall budgetary management with the practice of Agency LA, exposes and analyzes the problems, and recommends a scientifically rational and feasible budgetary management system. This project would benefit similar government agencies in improving their budget management, capital efficiency, internal control, and asset management. As one’s knowledge has limits, the author might fail to achieve in-depth understanding or make an elaborate presentation of some issues. The author is encouraged to continue her research on this topic in further professional practice.