FINANCIAL RESPONSIBILITY FOR MUNICIPALITIES IN MISSISSIPPI THE IMPORTANCE OF BUDGETING AND AUDITS
INTRODUCTION • Good Afternoon, everyone. My name is Larry Day and I’m honored to discuss an essential topic for Mississippi municipalities: financial responsibility.
• Today, we will focus on two pillars of this responsibility: budgeting and audits.
THE IMPORTANCE OF BUDGETING • Budgeting is the backbone of financial management.
• It helps municipalities:
• - Plan resources
• -Allocate efficiently
• - Manage community needs
KEY COMPONENTS OF BUDGETING •Key Components:
•- Revenues:Taxes, grants, fees
•- Expenditures: Operating costs, debt service
•- Reserves: Emergency funds
BENEFITS OF EFFECTIVE BUDGETING •Benefits:
•- Ensures financial stability
•- Builds transparency and trust
•- Enhances eligibility for grants and loans
MUNICIPALVS. PERSONAL BUDGETS •Municipal budgets are like personal budgets:
•Why Budget?
•- Cover essential expenses
•- Save for emergencies
MUNICIPALVS. PERSONAL BUDGETS •Challenges:
•- Seasonal/bulk revenues
•Solutions:
•- Careful planning ensures sustainability year-round.
THE ROLE OF AUDIT REPORTS •Audits ensure accountability and transparency by verifying funds are spent appropriately.
WHAT ARE AUDIT REPORTS? • Audits are independent evaluations of financial records.
• Key Purposes:
• - Ensure compliance with laws
• - Identify inefficiencies
• - Maintain public trust
IMPORTANCE OF AUDITS •Audits are essential for:
•- Securing loans and grants
•- Demonstrating fiscal responsibility
•- Building confidence with stakeholders
BENEFITS OF REGULAR AUDITS •
Key Benefits: •- Increased funding opportunities
•- Public trust and transparency
•- Improved operational efficiency
CASE STUDY: HARVEY, ILLINOIS •What Happened?
•- Financial mismanagement
•- Skipped audits
•- Mounting debt and frozen accounts
CASE STUDY: HARVEY, ILLINOIS •Resolution:
•- Reinstated audits
•- Improved financial practices
•- Restored services and rebuilt trust
CASE STUDY: HARVEY, ILLINOIS •Lessons Learned:
•- Audits are not optional.
•-They identify problems and ensure accountability.
TOOLS FOR BUDGETING AND AUDITS •KeyTools:
•- Budgeting software
•- Financial management platforms
•- Independent audit firms
BEST PRACTICES FOR BUDGETING •Best Practices:
•- Set realistic goals
•- Monitor expenditures regularly
•- Build emergency reserves
BEST PRACTICES FOR AUDITS •Audit Practices:
•- Schedule audits annually
•-Address findings promptly
•- Ensure transparency with stakeholders
COLLABORATIONWITH STAKEHOLDERS •Engage:
•- Local governments
•- Financial advisors
•- Community members
CONCLUSION • KeyTakeaways:
• - Budgeting and audits are critical pillars for financial responsibility.
• -They ensure resources are used effectively and build public trust.
• Let’s work together to build stronger municipalities in Mississippi.
1. Bruno &Tervalon LLP**
- Location: Jackson, MS
- Phone: (601) 714-0306
-Website: (https://www.btcpas.com)
2.Tann, Brown & Russ Co., PLLC**
- Location: Jackson, MS
- Phone: (601) 354-4926 -Website: (https://tbr.cpa)
QUESTIONS AND DISCUSSION •I’m happy to answer any questions or discuss further.Thank you for your attention!
