New local finance management / Local legislation

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Under the term new local finance management (NKF) in North Rhine-Westphalia or new local calculation and control system (NKRS) in Hessen is summarized all efforts to change those over so far according to the principle of the Kameralistik of led financings of the municipalities (cities and municipalities) to the principle the doping spades. The NKF/NKRS is the financialeconomical part of the new control model.

Here an illustration of resources consumption finds and - arise instead of. Local financial status is proven. A goal of the reform is it to change the controlling over of the municipalities from the input in such a way specified (orientation of the control at the resources employment) to output orientation (orientation of the administrative control at the result of the administrative activity). Economical elements are used such as contract management, budgeting or Controlling.

Elements

With respect to the NKF between standardized and unnormiertem household nature one differentiates:

The standardized household nature contains the components financial calculation, result statement and balance. It serves for to the better comparability and result orientation and is obligating. In the context of the financial calculation all deposits and disbursements of one period are seized, the result statement contain all yields and expenditures. Both the financial and the result statement precedes a planning.

The unnormierte household nature makes it possible to supplement additional components individually about to cost calculation or Controlling, in order to consider special needs.

Further the past separation of the "company ability" is waived into the core range on the one hand and the portions e.g. at self-companies and on the other hand.

Future local accounting

A resolution of the constant conference of the Ministers of the Interior of the countries from November 2003 plans a conversion of the Kameralistik to the doping spades until at the latest 2011 on local level.

In the Lands of the Federal Republic two procedural models are converted at present or are to be converted in the coming years. On the one hand those is prescribed doping spades as exclusive local record keeping method starting from a certain deadline, like already in North Rhine-Westphalia up to 01.01.2009. This proceeding is preferred about also by Lower Saxony or Rhineland-Palatinate.

On the other hand and/or the municipalities in some Lands of the Federal Republic a right to vote is between the doping spades and the extended Kameralistik in such a way specified is granted. In Hessen this right to vote is embodied already legally in the Gemeindeordnung, other countries such as Baden-Wuerttemberg or Bavaria plans a similar regulation.

In North Rhine-Westphalia and Hessen the novellas of the Gemeindeordnungen are final and discharged. Further Lands of the Federal Republic prepare legislative initiatives for the re-organization of the local household economy or are already in the phase of the law consultation.

However the complete conversion of the kameralen household to the doping spades in North Rhine-Westphalia was only carried out so far by the municipalities Hiddenhausen and Everswinkel. All other municipalities, which participated in a pilot project of the country North-Rhine/Westphalia, changed over only subranges of their households to the doping spades. Whether alone as basis for the law version of the country is sufficient is denied, by critics. On the other hand there is a so extensive practical testing in hardly a legislative procedure, as this was during the introduction of the NKF to North Rhine-Westphalia the case.

In Hessen already two districts and a municipality changed over their housekeeping completely to the doppischen reservation style, to the turn of the year 2005 further municipalities followed.

Evaluation

Statements about effectiveness and economy are to be supplied by the NKF more strongly possible and in particular the policy with control-relevant data on the basis of commercial criteria. In particular an improved consideration of the interests of following generations is to be achieved by the systematic collection of the fortune and the debts in a balance. This is an important contribution for the stabilization of the lastingness ("Sustainability") of public acting. In the Kameralistik in contrast to this a list took place actual and planned incomes and expenditures according to kinds, for example expenditures for the new building of a child daily mechanism. In the doping spades these costs are represented now in same height as disbursement in the financial calculation as well as additionally the annual writings-off as expenditure in the result statement and updated net assets. Thus the annual loads for the public household become - which the construction costses do not only cover - more clearly. At the same time net assets, its consumption and if necessary also its financing over outside capital in the account system are illustrated. Statements of this kind could be illustrated so far only over additional fortune and debt calculations or other auxiliary calculations. In order to represent also scheduled figures, those must be supplemented doping spades around a cost budget.

The Sinnhaftigkeit of the NKF is occasionally denied:

The public household is mostly coined/shaped by legal tasks such as juvenile welfare service and social security benefits. In these ranges an economy to reach and/or profits obtain, cannot be the primary goal of public acting. This criticism misjudges however that also and straight must come to the economic task completion a special attention with tasks of obligation, even if the financial volume is not so important. In particular however over the public household as complete an information as possible should be appropriate for the decisions to reason. This, and which cannot is denied, the Kameralistik is alone not to be supplied in a the position. The doping spades supplies to that extent comparison yardstick for the statement of economy, since at least inter+local comparisons become possible, which are also not many more expressive however - without cost calculation - as the household numbers.

The doping spades raises partially more numbers than being needed. Many decisions can be already supported by decision-referred calculations of production costs and measured data for organization (capacity and work load) sufficiently. A costing and a performance calculation runs without knowledge of meaningful application and delimitation danger permanently numbers to produce, without decision need is given.

The doping spades reveals numbers for local indebtedness, so that the scope of action of the policy can be restricted.

With the concept the doping spades is also connected that certain powers of decision will transfer from the policy to the administration are. Here the question arises whether the policy will bear it, how a shareholder to be treated, who gets only global numbers and no decisions and information to individual measures submitted or - by return of some authority at the advice the possibility is used of informing and the public comprehensively about the financial situation of the municipality.

The Kameralistik is to be marked today as plan calculation. Doping spades, which steps to the place of the Kameralistik, would be to be likewise laid out as plan calculation (financial plan, fortune plan and plan cost calculation), in order to be able to serve the same purpose as the Kameralisitik. Such a conversion becomes cost pregnant and time-consuming, even if substantial procedures know and also software from the proven system of commercial double record keeping with some adjustments taken over who that.

Literature

New local finance management - Haufe publishing house ISBN 3-448-05767-3

Local finance management North-Rhine/Westphalia - publishing house Bernhardt Witten ISBN 3-933-87056-9

E. brown: Goals in public administration and private enterprise. Comparison between public administration and private enterprise as well as an analysis of the operating conditions of economical planning methods in the public administration. Nomos publishing house company ISBN 3-7890-1438-9