Public expenses are centered towards those products or service that the government provides for its citizens. These include education, healthcare, parks and other utilities.

Tracking public expenditure involves validating financial accounts. This is important in order to monitor qualitative research and utilization of funds. These include processes like interviews of people using public services. Asking questions about the users’ experiences and assessing the quality, cost and accessibility is a recommended best practice. Moreover, expenditure tracking must also be verified at sub-national levels. These apply at the local and district levels.

Sometimes, utilization of funds is trailed at the highest stratum of the government, through the various layers of financial beneficiaries. For example, one can begin from the State Treasury to final beneficiaries, and the final consumer of any public service. This requires best practices in coordination and resource allocation. This could extend from national level to grass-root levels.

Recently, the Public Expenditure Tracking Surveys (PETS) concept was adopted by the World Bank. This was aimed at engaging researchers at a national and grass-root level. For accuracy, both technical reviews and interviews were uses to trace fund flow from the source to the destination.

How to Implement Public Expenditure Tracking

1. Scope and Purpose: The purpose may be to identify the source of corruption, non-performance or inefficiency in the enterprise. This could be in a specific department, faculty or in any government service. Determining the scope and purpose of public expenditure tracking is important. That is because it affects the stages, people and resources involved in the whole process.

Depending on the scope of monitoring, the entire sector (like health for pregnant women) or geographic area (like a district) or a public service provider (like a hospital) can be targeted. Sector wide tracking of public expenses will require higher resources and expertise.

1. Partners and Stakeholders: There will be need to gather partners and stakeholders to pool funds. It will be important to identify credible and capable partners willing to derive assistance for best practices involves in tracking public expenses. Resources will be needed to target audiences; partners and stakeholders will help fund this.
2. Plan the Survey: After determining the scope of the project the next best practice will be to plan the stages according to the resources available.
3. Data Collection and Analysis: Data collected during the survey must be analyzed and evaluated. For best practices hiring expert or trained researchers is recommended. Assessing causes for dysfunctional practices or inefficiencies at every stage. Factors contributing to corruption must also be evaluated. This will require best practices like time management, budget control, human resource constraints, and administrative processes.

In order to satisfy social wants of the general public, the government must implement the best practice of monitoring public expenses.

A well established corporate governance system improves the structure of the organization. It works in a way that benefits the entire organization. This is because individuals employed, stakeholders and key personnel ensure compliance with ethical standards. They also comply with formal laws that are important for the success of the business.

Recently, there has been an increase in focus on corporate governance. That’s because high profile standards have been abused. This has impacted corporate power due to increased criminal activity involving corporate officers. Therefore, there must be criminal or civil prosecution of those who refuse to comply with legal acts and ethical standards. To ensure this, corporate governance models have been designed.

Corporate Governance Models

In The UK and the US: These countries ensure compliance with the “Anglo-American Model” to achieve corporate obedience. This system is also known as “The Unitary System”. It requires the establishment of a single Board of Directors. This must comprise of executive directors that are expected to hold key positions in the business institution. These posts must execute best practices like auditing and compensation of employees or clients.

The UK and the US have one aspect that differs with regards to corporate governance. For instance, in the United Kingdom, the CEO doesn’t have the same designation as the chairman of the board. On the other hand, in the United States the CEO has dual roles to play. This has a huge impact on corporate governance in the US. Hence, the impact is seen in banking and other financial enterprises.

Moreover, US business institutions and banks are directly governed through compliance with state laws. At the same time, federal legislations govern security best practices. This is the main reason behind the adoption of “Model Business Corporation Act” by most states in the US. However, Delaware has the most dominant state law complied within the US.

Ensuring compliance with Delaware serves as the governance strategy in most publically traded corporations. In most companies, shareholders cannot face limitations. They are not allowed to introduce changes in corporate charter, though they can introduce changes in corporate bylaws.

Therefore, the basics of corporate governance involve compliance with the Anglo-American Model. This empowers stakeholders to elect a director of the board through just and fair best practices.

Here is some advice from a standard regulator – the FDIC (Federal Deposit Insurance Corporation) to help banks evaluate, review and improve their business operations. These five suggestions include:

1.     Evaluation of Obedience

This ensures best practices in fair lending, fulfillment of risk management and efficient services in banks. Through evaluation of obedience and competitiveness, a proper program can be developed.

2.     Reviewing Industry Trends

There is need to review and adopt emerging industry trends that ensure standard practices in consumer protection. There is need for special attention on bank regulations and policies based on public comments about bank services.

3.     Monitor Social Media and Internet

Comments about services and reviews serve as an insight into customer satisfaction. On social media, the bank’s reputation is the key to success. Therefore, the challenge is to maintain good practices to protect the bank’s reputation over the internet.

4.     Maintain Consumer Complaint System

Appropriate personnel in the bank must review and investigate consumer complaints. The findings must be reported to senior management personnel who can take the appropriate action.

5.     Support for Effective Observance

There must be support for audit functions that identify risks. The system must be capable of dealing with the complexity and magnitude of the risk. It must have intensity and frequency to match the need of obedience with policies and regulations. Audit functions will include practices like: documentation of reviews, management of reporting and continuous monitoring systems which ensure corrective action.

According to the FDIC, it seems community banks are faring well with an intensive regulatory environment. They have maintained consistency in compliance management and maintaining their responsibilities effectively.

Based on these observations made by the FDIC, community banks provide a lead for regulators on what is required as best practices. These practices are meant to be offered by federal regulators, professionals and consultants. The recommended practices highlight the importance of consensus, communication and coordination.

Challenges for Community Banks

1. Community banks must create a compliance culture: Through internal compliance committee banks can incorporate best practices that become a culture.
2. Monitor Employees’ Acquiescence with Policies: The updates on conformity with regulations must be monitored. Reports on performance must facilitate accountability by employees.
3. Staff Training: Making sure that the staff is trained is important.
4. Ensuring Consistency: Reviewing what is acceptable and ensuring that terms and policies are regulated can be very challenging.
5. Risk Management: Banks must determine if the right people are handling risk management or not.

These are only a few key compliance best practices for banks. There are many more that are constantly changing.

Functions of SOA Governance Software

The software assists enterprises through the following:

ü  It ensures that the services designed, identified and created are relevant to the objective of the company. These services must be compatible with Microsoft, SAP and IBM.

ü  It creates services from applications working on any platform that are compliant with the policies of the enterprise. These services are audited and enforced across different platforms.

ü  It promotes, formalizes and ensures consistency between customers’ demand and supply of services.

ü  It facilitates planning governance by breaking down the entire system into distinct areas. It makes sure that the process of Development of Governance is effective.

By integrating SOA governance, enterprises can ensure best practices like application, integrity and usability of assets. The whole process of ensuring compliance is broken down into operational governance, development governance, planning governance, policy governance and lifecycle governance.

Best Practices SOA Promotes:

• Automation of Governance: SOA manages workflow through lifecycle management. It implements compliance with building permit, integrated provision, interdepartmental negotiation and contract management and lifecycle management.
• Standardization of Policy Management: SOA ensures proper policy governance and uniform lifecycle.
• Meta-Data Federation: It ensures best practices like heterogeneous SOA Governance, security management, and integration of policies in the architecture of the enterprise.
• Virtualization of Services: This promotes reliability and performance standards, to support governance.
• Trust in Management: It facilitates operability across disparate partners and platforms. It mediates threat prevention systems across disparate partners.
• Compliance and Validation: SOA Governance software implements and enforces policies at various stages of the enterprise.
• Mitigate Impact of Change: Governance changes management strategies and impacts processes for analysis that are integrated with workflow. SOA mitigates the impact on workflow.
• Consumer Contract Terms: This software offer better service access, policy contracts, SLA and capacity. It provides options to improve customer contract Terms. These include, request, negotiation and approval workflow terms and conditions.

Adopting SOA Governance Software for best practices is highly recommended for most enterprises.

Initiation Process: It is logical to say that a project becomes official when specific requirements are fulfilled. There has to be funding to support execution of the project. Additionally, there must be well defined goals and objectives. Most importantly, every project has unique features, but share common features. These features govern the potential for the success of the business.

• Defined Scope to be achieved within the defined time
• Agreed deadline for outcomes
• Availability of resources and the anticipated outcomes must be defined.
• There must be a project owner responsible for all costs related to the project. This includes managing investments, time management and safety liability.
• Experienced team working on the project to match the complexity of the project.

Managing time, quality and budget of the project are the three most important best practices that are important for a standard public tender.

Procurement Strategy: Procurement means the act of acquiring resources/supplies, services and the work. Work can be achieved from a public body that can place contracts for large projects. The process involves utilizing public money to accomplish a job for the interest of the public. Procurement begins with the need for a job, and ends with completion of the contract.

Procurement strategy involves best practices for making important decision. It also involves the effect of associated events/processes to acquire goods, services and the other supporting aspects for the business. These decisions must be made before the tender is placed, as is best described as the pre-tendering procurement strategy. Therefore, depending on the project and nature of the job, the procurement strategy must comprise of the following best practices:

• Define the list of things to be purchased
• Identify the source of deliverables
• Determine an appropriate and accurate procurement method
• Draft terms and conditions of the contract in the tender document
• Evaluate the bids that must be organized
• Details must be presented in standard format in compliance with audit-proof  ways

Evaluation and Contract Award: This best practice requires verifying the eligibility of the applicant for the tender. This also required fulfillment of the criteria needed for the evaluation, according to the Public Procurement Directorate. The tender is awarded after the applicable legislations have been provided. These must be in accordance to the framework required in order to acquire the tender. The contracting authority can decide to cancel or suspend the announcement of the tender procedure. This happens if requirements have not been satisfactorily fulfilled.

Negotiation Process: The contracting authorities must cooperate with economic operators. This best practice ensures that officials are familiar with national and community legislatures. Thereby, it makes specialized technical, financial and legal assistance available.

Contract Implementation: After all these best practices have been successful, the public tender is issued and work begins.

Best practices in public tender improve chances of success for contractors.

Adoption of improved safety standards has become compulsory to ensure compliance with wide-ranging sustainability measures. These safety protocols include instructions on where foreign employees are allowed to go while they are in Africa. Sensitive areas are to be off-limits. Besides, depending on the political conditions of the African country, there may be need for provision of armed security to protect US employees.

For US healthcare NGOs and other companies investing in Africa, respecting the government policies is a recommended best practice. They must be up-to-date with policies and acts in order to ensure compliance with business terms. Hiring a lawyer in the African country to protect the company’s employees, assets and interest is also a recommended best practice. Moreover, hired locals must be enlightened about the company’s regulations and other best practices.

In cases of accidents, the company must ensure that the victim gets medical attention. They must, abide by laws governing compensation of the family of the victim if there is death. For US healthcare and pharmaceutical companies in Africa there are defined guidelines on best practice which must be strictly adhered to. Failure of compliance can lead to legal issue involving international judiciary bodies. This can be bad for the business at an international level.

Most countries have governments that prefer to deal with companies that are registered within their country. This is considered normal there because African governments see the need to consolidate the mining industry within the boarder. This boosts the economy and value of mining projects. This is as a result of the business benefits attached and establishment of supporting industries.

Investing in industrialization in Africa serves as an opportunity to create jobs. This impacts the economy of African continents through significant growth. Though, resource-rich countries like Nigeria have the most benefits to reap. Being a crude oil rich country, when US companies invest in Nigeria, there is significant focus on investing in health care, infrastructure and other social development programs.

With developments in industrialization and increased employment, training of employees also becomes mandatory. This increases technical know-how and rate of production with safety measures. Moreover, other industries that choose to support their business through stocking also have to adopt best practices. There are issues with preservation and security that must be taken into account.

For companies that have shareholder, sending regular reports about their best practices and progress is very important. This will allow the company’s owners to provide necessary measures to improve the safety standards of the company in African countries. This is not just for mining companies, but for healthcare providers in Africa as well.

Company owners must acquaint themselves with governance best practices and transparency for investment in Africa.

Documentation for Best Practices

Documentation of information related to the loan is very crucial. Therefore, financial institutions and banks lending money must ensure compliance with the following administrative documentation:

• Business Loan Application: There must be proper documented application stating that the person in question applied for a specific loan.
• Personal Financial Statement: Before a loan can be given, lenders must be presented with a financial record. The record will be used for the best practice of evaluating risk associated with lending to the applicant. (The credit bureau issues at least one copy free for all lenders in the US.)
• Three Year Record on Personal Tax Returns: There must be proof of payment of taxes for at least three years.
• Three Year Record on Business Finances/Taxes: If the applicant for loan is a business organization, there must be proof of at least three years of business tax payments.
• Business Debt Schedule: There must be an updated record of the current business debt status.
• Environmental Assessment Form: Depending on the purpose of the loan, there may be need for an environmental assessment.
• Rental Property Feedback Form: If the property where the applicant is located is a rented building, the lender will need more details. The information needed will be asked in a questionnaire.
• Declination Letter: If the information needed for approval of the loan is unsatisfactory, then the lending organization will have to send a declination letter. Informing the applicant about the reason for declining the application is an important best practice.

In addition to these best practices, there may be need for additional information. This can include:

• Business Credit Card Application: This may not be applicable in some circumstances. The need varies according to the target audience.
• Questionnaire for Religious Organizations: If a religious organization is asking for the loan, this questionnaire will be needed to obtain specific details.

The information requested helps lenders to keep track of the creditor. They issue coding, booking and servicing for best practices. The NAICS code and the Financial Statement Expiration date are recommended for in lending and loan administration.

Documentation must be organized and well maintained. Keeping separate filing systems for credits and collaterals documents is a recommended best practice. These ensure management of cases in the pipeline. Additionally, through documentation, lenders can anticipate loan problems and take necessary measures immediately.

Conclusively, best practices in lending and loan administration are very important. Lapses in documentation lead to great losses for lenders (banks and lending institutions).

In addition to this, according to the Audit Act 1994, Section 16AB business enterprises must submit a report of their audit to the parliament. In order to ensure compliance with this, the government sector has two recommended budgeting processes. These include:

• State Budget Process: This requires the government’s estimate of expenditure and revenue for the entire budget year, combined together. This process is also known as the “External Budget” and offers appropriations to departments to encourage delivery of products and services.
• Internal Budget Process: This is best described as a “Departmental Budget Setting Process”. It is an important best practice, included in the department’s financial management system. It is important for business planning, performance management and resource allocation.

State Budget Process:

This process is hinged on the submission of budget tenders or bids. These bids are submitted to the government by the budget development department of the organization. This is a two step process:

Step 1: The best practice of updating forward estimates every November in order to input it in budget planning. As part of best practices, the treasury and finance department must seek information to assist with the process.

Step 2: The treasury and finance department must present a brief to the government about its output (products and services). It must also include assets in the reports. This will facilitate the government to consult with special interest groups and broader communities before concluding its stand on the proposed budget.

The final decision is dependent on cabinet approval, which depends on annual state budget and departmental budgets.

Internal Budget Process

When an audit department focuses on internal budgeting, it must focus on the level of training and education of employees. In addition to these business best practices, auditors must focus on the following:

1. Integrate business planning and internal budgeting process
2. Develop and manage the internal budget
3. Monitor and review budget performance

Recommended Best Practices

Here are some recommendations for budget development and Management within departments:

1. The training and infrastructure department must ensure the following best practices.

• Align internal budgets with output delivery cost targets.
• Modify financial management systems and information best practices so that they show budget and actual outcomes against output delivery targets.

1. The department responsible for training employees must whether budget centers are performing responsibly. This involves the best practice of assessing cost of maintenance and accountability of the budget centers.
2. The advisor budget management system must meet the requirements outlined by managers.
3. There must be a benchmark for internal budget to guide development processes. This best practice will enhance efficiency or a wide range of departmental processes.
4. The infrastructure of the department must review variations between budget estimates and actual results mentioned in the annual budget report.

Conclusively, compliance with these practices involved in budget development and management within departments, is compulsory for a professional business setup.

Definition of Usury

Usury is defined as a practice in which one charges excessive and unreasonable interest. The rates are often too high and therefore usury is considered illegal. Creditors are often unable to pay-off their loans when usury is applied. Often, this has an unfavorable impact on the economy of countries as well. However, there have been times when regulations on usury were bent for economic reason.

Back in time, churches had banned usury because it simply meant charging an interest. Any rate charged on borrowed money was considered illegal and against religious teaching. Usury was once known as “Ribbit” which corresponds with the Arabic word “Riba”. Today however, there is no business that can be done without charging an interest. However, it should not be mistaken as a best practice.

Usury Ruling in the US

Each state in the Unites States of America has its own ruling on usury (interest). Each state has a charge that must be used by anyone before it can be called unlawful or usurious. When a lender or business institution charges an unlawful interest, the court will take action against the lender. If a creditor defaults and the case is presented in the court, the lender will be sued for charging usury. This makes it important for financial institutions and lenders to comply with the state regulation on usury.

However, there have been times when separate rules were applied to most banks across the US. In 1978 the Supreme Court in US allowed compliance with the National Banking Act of 1863. The act allowed chartered banks to charge high usurious rates as part of best practices. The same was experienced in 1980 due to inflation when the Congress passed the Monetary Control Act. This over-ruled local and state laws on usury. To preserve best practices in governance this regulation has been over-ruled a number of times.

Usury Ruling in Canada

The Canadian government permits an interest rate of 60% per annum. To ensure compliance with this best practice, there are written legislatures. Canadian courts are authorized to intervene whenever any ambiguity is reported.

Punishment for Usury

When usury is proved with evidence in the court of law, the debtor can face a range of penalties. These could include forfeiting the debt, criminal prosecution and time behind bars or other penalties.

Therefore, as a form of risk management best practice avoiding usury is highly recommended. This is especially important for banks and lending agencies.

Local SEO Empowerment

Google’s Search Engine Result Page (SERP) presents a list of Google Places when one enters keywords. The results on the screen also show places that Google users use frequently. This has become possible after SEOmoz did some research to make Google better and logical. Therefore, if your business setup depends on local listings, you must increase your ranking at Google Places. This can be achieved through the following best practices:

• Citation: Make sure that your business gets listed in as many sources on the internet. Remember that consistency is the key to SEO. They keyword you use on Google Places must be the same one used on other listings. This will make sure your page is among the top ten search results using your keyword.
• Google Places Optimization: Ensure that your page is optimized using Search Engine Optimization (SEO) best practices. This includes making sure that the categories match, and direct the user to city-specific landing page.
• Reviews: Reviews from Google about your business will be the only ones displayed on Google. Therefore, using other services like Superpages, Yelp and others is helpful. It will increase the ranking of your business drastically.

Social Networks

Without social media, there is no SEO. It is the latest trend nowadays. Using Twitter, Facebook and others influences SEO ranking. The recommended approach for this is to include social cues into your web page. This increases information sharing which improves SEO. Google and other search engines will pick up your keywords much quicker.

People Also Use Keywords

There are robots that use keywords, but it is a recommended to focus on the fact that humans also use keywords. You must anticipate questions people ask and use your keywords accordingly. This ensures that search engines show your page, when questions related to your business are asked.

Content Works Magic

It is important that you should focus on the content rather than spam links. These best practices have a long-term effect on SEO. Make sure the writing is good enough to be spread across the internet. Write target blogs to match your area of expertise.

Backend

It is recommended to use a simple and precise backend that matches your niche. The backend can tell search engines what your website is about. This increases its ranking when the matching words are typed by search engine users.

Use KPIs

Making sure the data comprises of keywords is an important practice. However, using Key Performance Indicators is also important for improving SEO ranking. KPI tells the number of landing pages, bounce rate and number of keywords driving the traffic to specific landing pages. Use this data to improve your ranking.

These are the most recommended SEO best practices for every business enterprise.