WATCHING AND COUNTING - A SURVEY OF STATE ASSISTANCE TO AND SUPERVISION OF LOCAL DEBT AND FINANCIAL ADMINISTRATION

• NCJ Number: 64181
• Author(s): J E PETERSEN; L A COLE; M L PETRILLO
• Date Published: 1977
• Length: 83 pages
• Grant Number(s): APR7517227
• Sponsoring Agency: National Science Foundation
• Corporate Author: National Conference of State Legislatures
• Sale Source: National Technical Information Service
• Publication Type: Survey
• Language: English
• Country: United States of America

Annotation

THE PRINCIPAL FOCUS OF THIS STUDY IS ON HOW STATES ASSIST LOCAL GOVERNMENTS IN THE MANAGEMENT OF THEIR DEBTS, SINCE LOCAL GOVERNMENT FISCAL PROBLEMS ARE USUALLY CONNECTED WTH THE SALE OF DEBT TO THE INVESTING PUBLIC.

Abstract

LOCAL GOVERNMENT CAN BE VIEWED AS COMPLEX AND INTERLOCKING FINANCIAL ENTITIES FOR WHICH THE ACT OF BORROWING IS ONLY ONE PART OF THE DECISIONMAKING PROCESS. THUS, SUPPORTING THEMES IN THIS REPORT ARE REVIEWS OF EXISTING STATE MECHANISMS TO SUPERVISE, MONITOR, AND ASSIST LOCAL GOVERNMENT BUDGETING, ACCOUNTING, AND AUDITING PRACTICES. MOST OF THE INFORMATION WAS GLEANED FROM A SERIES OF SURVEYS COUDUCTED IN LATE 1975 AND 1976 BY THE MUNICIPAL FINANCE OFFICERS ASSOCIATION AND THE NATIONAL CONFERENCE OF STATE LEGISLATURES. STATE INVOLVEMENT IN LOCAL GOVERNMENT BORROWING PRACTICES RANGES FROM THE TRADITIONAL LEGAL CONSTRAINTS PLACED ON LOCAL INDEBTEDNESS AND ISSUING PRACTICES THROUGH AFFIRMATIVE PROGRAMS DESIGNED TO PROVIDE INFORMATION, ASSISTANCE, AND DETAILED GUIDANCE IN LOCAL BORROWING DECISIONS. IN ADDITION, MORE GENERAL INVOLVEMENT OF STATES IN OVERALL LOCAL GOVERNMENT FINANCIAL MANAGEMENT IS ILLUSTRATED WITH EXAMPLES OF DIVERSE STATE PROGRAMS IN NORTH CAROLINA, VIRGINIA, LOUISIANA, OREGON, AND OTHERS. VARIOUS STATE REQUIREMENTS AND SUPERVISORY ACTIVITIES AS THEY RELATE TO LOCAL GOVERNMENT BUDGETING ARE INVENTORIED AND DESCRIBED. STATE REGULATIONS OF LOCAL GOVERNMENT ACCOUNTING, AUDITING, AND REPORTING PRACTICES ARE NOTED, AND STATE ASSISTANCE TO LOCAL GOVERNMENTS IN FINANCIAL EMERGENCIES AND OVERSIGHTS OF SHORT-TERM BORROWING ARE REVIEWED. THE COLLECTED DATA ARE ORGANIZED AND PRESENTED IN SEVEN TABLES ARRANGED IN AN EASILY READABLE MANNER FOR A STATE-BY-STATE COMPARISON. APPENDIXES SHOW A FULL STATE-BY-STATE SUMMARY, A DIRECTORY OF THE RESPONDENTS TO THE QUESTIONNAIRES, A LISTING OF AGENCIES INVOLVED IN THE STATE COLLECTION AND DISSEMINATION OF LOCAL GOVERNMENT FINANCIAL INFORMATION, AND TWO QUESTIONNAIRES ON WHICH DATA WERE BASED. (MRK)