Date of Award

Spring 1957

Document Type


Degree Name

Master of Science


Business Administration


The Commission on Organization of the Executive Branch of the Government, better known as the Hoover Commission, in its Report on Budgeting and Accounting to the Congress of the United States in February, 1949, reported that the Federal Budget was poorly organized and improperly designed to serve its major purpose which was to present an understandable as well as a workable financial plan for the expenditures of government. The report further indicated that some or the fiscal procedures and concepts of the federal government came down from the. time of Alexander Hamilton resulting in an accounting system which was outmoded and cumbersome and which did not indicate what services were provided for the funds expended. The budget for all divisions or the federal government had increased each year. However, the framework and method of presentation had not changed in many cases. As a result of this study the Commission made the following recommendation: "That the whole budgetary concept of the federal government should be refashioned by the adoption of a budget based upon functions, activities and projects; this we designate as a performance budget.

This was the beginning of the concept of performance budgeting and resulted in wide-spread interest and investigation by public officials in the possible use and application of these concepts in local and state financial administration . Although there has been gradual growth of this type of budgeting, the actual development and extended application of the principles involved are still in an evolutionary state . Officials in many areas clearly realizing the need for more efficient management and administration in government have partially or completely adopted the performance approach to govern­ mental budgeting. Other officials want more information and proof of benefits to be derived before making any drastic changes in their present pattern of budget organization.