An appropriation target figure is given to each department manager. This amount represents the maximum funding that each department can expect to receive in the next fiscal year.

Upon final budget approval by the legislature, the controllers staff allocates the appropriation to the various departments on instructions from the division manager. However, a specified percentage of each departments appropriation is held back in anticipation of potential budget cuts and special funding needs. The amount and the use of this contingency fund are left to the discretion of the division manager.

Identify four defects and suggest ways to correct them