ABSTRACT
This chapter focuses on types of public budgets and the accountability measures inherent with each. For example, line-item budgets can be complicated to adjust because funds are parceled out by category; on the other hand, such budgets can also encourage wasteful spending in line-items with a surplus at the end of the fiscal year. The chapter draws readers' attention to professional standards in the nonprofit sector. It also focuses on existing checks and balances, including accounting standards, reporting requirements, and internal and external audits. Transparency entails more than simply making data available, however; the information also needs to be readily accessible and understandable. One downside to the strategy is the risk of overlooking potentially effective long-term initiatives that take more than a single budget cycle to become financially viable. Budget managers are faced with difficult choices to manage funds ethically.
