Some Governments and Most Not-For-Profit Entities Do Not Integrate Their

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The Answer is As a general rule, integrating budgets into accounting systems and encumbering for commitments are appropriate when the benefits of the added controls outweigh the costs (in dollars and inconvenience). Governments are more likely than not-for-profits to integrate budgets and record encumbrances because governments generally face greater penalties for overspending their budgets. This is especially so for the general fund and special revenue funds, whereas adequate controls may already be in place for capital projects funds and debt service funds. Governments with modern computer systems may be able to avoid the need for formal journal entries even for the general fund by 'loading" the budget into their computers. The computer may be programmed to issue a warning when actual expenditures and commitments exceed a specified percentage of budgeted expenditures.

Some Governments and Most Not-For-Profit Entities Do Not Integrate Their

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Some Governments and Most Not-For-Profit Entities Do Not Integrate Their

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