Slide 17 of 84

The budget is also a mechanism for accountability. Authority and responsibility to spend resources are established in appropriation acts. The acts include language sections that set forth certain policy statements and expectations on the part of the legislature. The acts also include reporting requirements with which agencies receiving appropriations must comply. Appropriations are law, and not guidelines. They are expected to be followed explicitly. Agencies are held accountable through statute and the legislative audit process, to comply with the mandates in the appropriations acts. Generally the appropriations process in the state of Michigan and in other states is more structured than in private business and in most local units of government.