Case study Example | Topics and Well Written Essays - 750 words - 38

Case Study Example The budget the manager intends to submit for the financial year is $4,900,000 which exceeds the expected expense by $700,000. Submitting a budget higher than the expected cost to be incurred is a misuse of the power and authority vested in the management position. This is taking advantage of the position to mismanage public funds which is not ethical at all. Public officers are expected to conduct themselves in an ethical manner encouraging transparency in carrying out their duties. Submitting of a budget higher than the expected costs equals betrayal of the public trust in the role of the management in the city’s waste management. Furthermore, submitting a higher budget will strain the city’s finances especially with the reduction in tax collections. As a result, the city may not have enough funds to process waste in the near future. Inadequate fund in the future will mean that not all the waste is processed thus causing pollution to the environment. Therefore, submitting a higher budget will seem good in the short run to manage the department but with long term effects that may paralyze the operations of the department. Though the manager expects a cut on the budget by 10%, this does not justify the increase in the budget from $4,200,000 to $4,900,000. That is an increase of $700,000 which is way above the expected increase. Given that the total cost of the department will amount to $4200000, reducing it by 10% will amount to reduction of: The manager does not justify for the excess amount of $280,000 after the expected reduction of 10% by the city controller. Lack of accountability for this amount creates loopholes for corruption. By having submitted a higher budget, the department will rarely take back any excess amount since the manager does not want to disclose their actions. This results in misuse of public funds. Moreover, the expectation of increased cost of labor and the amount of waste is not enough reason also for the inflation of the budget