The Board of Aldermen of Fitchburg approved the appropriations budget for its General Fund for the year ending December 31,as shown below.
1)Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.
2)It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists.Does this legal rule assure good financial management for each government? Why or why not?

Question

The Board of Aldermen of Fitchburg approved the appropriations budget for its General Fund for the year ending December 31,as shown below.
  1)Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.
2)It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists.Does this legal rule assure good financial management for each government? Why or why not?

Quizplus · Accepted Answer

The Answer of The Board of Aldermen of Fitchburg approved the appropriations budget for its General Fund for the year ending December 31,as shown below.
  1)Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.
2)It is illegal for a government to spend money for any purpose unless a valid appropriation for that purpose exists.Does this legal rule assure good financial management for each government? Why or why not?

The Board of Aldermen of Fitchburg Approved the Appropriations Budget