ABSTRACT
The rest of this chapter is concerned with controlling income and expenditure at an organizational level and is applicable in general terms to small charities right up to very large government departments. The third crucial internal control is bank reconciliation. Separation of duties means organizing operating processes so no single person carries out the whole of a financial process in order to have a check for errors and to prevent frauds. The delegation of budgetary control goes hand in hand with this so devolved financial management is common in the public sector. Midwinter identifies a slightly different aspect to this: that the efficiency savings plans being put forward by public organizations in Scotland 'fail to provide output baselines, while even some input baselines are not adequate. Levine identified a two-by-two classification of 'fiscal stress' depending on its duration is short or long term and its severity is high or low. Corruption is dishonest or fraudulent conduct by those in power.
