Showing papers in "Financial Accountability and Management in 1989"
TL;DR: An exploratory examination of certain aspects of the role played by the Annual Report in the communication process between UK Local Authorities and the general public is reported upon.
Abstract: The paper reports upon an exploratory examination of certain aspects of the role played by the Annual Report in the communication process between UK Local Authorities and the general public. The paper concentrates on one specific formal (as opposed to informal) communication channel and adopts a loose communication framework (as reviewed in Adelberg, 1983), focusing upon message encoding/decoding (readability); message destination (availability of reports) and message discovery and use.
52 citations
TL;DR: In this article, experiences from a longitudinal case study in the City of Bergen are reported based on data from the management control process, i.e., adopted budget data, prognoses during the accounting year, and actuals as reported in annual reports.
Abstract: The machine metaphor depicts organizations as if they were designed and operated like machines. Management control systems also build upon this metaphor. In this paper experiences from a longitudinal case study in the City of Bergen are reported. The study is based on data from the management control process, i.e. adopted budget data, prognoses during the accounting year, and actuals as reported in annual reports. The period studied is 1983–1987. From the reported data we can draw the following conclusions: (1) Decisions of future actions have little influence on the execution of future actions; (2) Data on past actions have little influence on decisions of future actions; (3) Data on past actions have little influence on prognoses of future actions; (4) Data on past decisions have some influence on prognoses of future actions; and (5) Data on actual prognoses have little influence on budgets for the next year. Consequently, we only observe elusive links between parts where the links are supposed to be strong.
46 citations
TL;DR: In this paper, the authors report results of a telephone survey of chief financial officers of 47 mission agencies (a census of multinational members of a trade association), with questions covering agency objectives, operating and capital budgeting practices, and long run financial planning practices.
Abstract: This paper offers new evidence of capital and operating budgeting practices from a group of pure nonprofit organizations, independent religious agencies. It reports results of a telephone survey of chief financial officers of 47 mission agencies (a census of multinational members of a trade association), with questions covering agency objectives, operating and capital budgeting practices, and long-run financial planning practices. Explanatory modelling links usage rates of sophisticated budgeting techniques to agency age, size, and the business education of the chief financial officer.
23 citations
TL;DR: In this paper, the authors summarise the history of dynamic effects in local government financial decision-making, and assesses their importance, including determination of future expenditure needs assessments and expenditure targets, qualification for rate-capping, and grant safety nets.
Abstract: Most discussion of local government financial decision-making takes a static viewpoint. Authorities are assumed to adopt specific levels of service provision in response to the current year's financial circumstances. Yet expenditure decisions of authorities in England have hitherto had implications well beyond the year in which they are made. Examples of such feedback include determination of future expenditure needs assessments and expenditure targets, qualification for rate-capping, and grant safety nets, all of which have at some time been based on previous levels of reported expenditure. This paper summarises the history of such dynamic effects, and assesses their importance.
13 citations
TL;DR: In this paper, the methodological and organizational problems which arise according to the expansion of performance audits are discussed, based on JBA's experiences, and a self-development approach is needed, added to the compliance approach.
Abstract: Performance auditing is a common interest in the Supreme Audit Institutions of the developed countries. In Japan, the Board of Audit (JBA) has been developed and has expanded performance audits since its establishment (1880). In this paper, the methodological and organizational problems which arise according to expansion of performance audits are discussed, based on JBA's experiences. As for methodological problems, a self-development approach should be needed, added to the compliance approach (that is, traditional auditing concept). And as for organizational problems, the function presenting feedback information to the Diet should be put in an important position in government auditing to avoid “unintended effects”.
10 citations
TL;DR: Comment letters commenting on Healthcare Financial Management Association Statement No. 8 were analyzed, and independent hospitals with relatively greater amounts of endowment income were found to be among those who lobbied against single fund reporting.
Abstract: Are comment letters submitted by nonprofit hospitals, as part of the accounting standard setting process, consistent with economic incentives as described by agency theory? In this study, thirteen identifiable hospital letters commenting on Healthcare Financial Management Association (HFMA) Statement No. 8 were analyzed in illustrating the association of economic attributes and lobbying positions within a segment of the healthcare industry. Independent hospitals with relatively greater amounts of endowment income were found to be among those who lobbied against single fund reporting, while larger, more profitable healthcare organizations with smaller endowments lobbied for single fund reporting. Although this small sample is not necessarily representative of the total input received by the HFMA in the formulation of Statement No. 8, the observations are consistent with the agency theoretic framework, and illustrate its potential usefulness in analyzing specialized industries such as healthcare.
10 citations
TL;DR: The authors surveys the recent accounting history of UK local authorities and concludes that an inclusive framework based on the concept of worldviews, recognising the variety of views and perspectives, would be more appropriate.
Abstract: A number of writers have bemoaned the lack of a conceptual framework for public sector accounting. This paper surveys briefly the recent accounting history of UK local authorities. It continues with an outline of a number of frameworks which are available and concludes that an inclusive framework based on the concept of worldviews, recognising the variety of views and perspectives, would be more appropriate. This is then applied to explain the current debate on capital asset accounting, suggesting that there has been a major shift in the worldviews of accounting policy makers from fiduciary stewardship towards performance evaluation. The need for further research is recognised.
10 citations
TL;DR: In this paper, the authors reviewed the special characteristics of development projects which give rise to problems and discussed ways of overcoming them, and proposed ways to overcome the problems of the accounts and financial management of these projects.
Abstract: Development projects are a major means of enhancing the economic capacity of developing countries, and of channelling multilateral and bilateral funds to them. While many aspects of development projects are covered by extensive literatures, their accounts are not. The accounts and financial management of development projects have been the subject of extensive criticism. This paper reviews the special characteristics of development projects which give rise to problems and discusses ways of overcoming them.
9 citations
TL;DR: In the municipal trading debate, which was the first major privatisation debate in this country, local government accounting was very controversial and the variety of treatments of central establishment charges was an important part of the controversy.
Abstract: During the municipal trading debate, which was the first major privatisation debate in this country, local government accounting was very controversial. The variety of treatments of central establishment charges was an important part of the controversy. In essence, the debate was a confrontation between the policy imperative, which required uniform accounting, including complete allocation, of central establishment charges across trading undertakings, with the theoretical doubts that this was unattainable. One aspect of the context of the debate was that policy-makers did not have (and/or did not choose to have) the power to enforce their policies.
8 citations
TL;DR: The need for better financial reporting by public sector entities as a means towards greater accountability has been widely canvassed and the development and application of accounting standards in Australia in this context is discussed in this paper.
Abstract: The need for better financial reporting by public sector entities as a means towards greater accountability has been widely canvassed. This paper discusses the development and application of accounting standards in Australia in this context. The responses of the accounting profession, through its standard setting process, and of the Commonwealth and several State governments are described and the conclusion reached that these developments will mean significant improvement in the information content of public sector financial reports.
8 citations
TL;DR: In this article, the role played by accounting information and that of the Treasurer in the construction of the budget of an English Police Authority is explored through a dramaturgical metaphor.
Abstract: Accounting information, when used in organizations for decision-making purposes, joins with other types of information to help define and interpret situations. In an effort to portray the role played by accounting information and that of the Treasurer in the construction of the budget of an English Police Authority, this paper explores through a dramaturgical metaphor the events which led to the setting of the budget.
TL;DR: In this paper, the authors explain why it was decided to introduce cash planning in 1982, and argue that that decision was a politically rational response to the imperatives of that strategy, and that the Treasury's ostensible and real aims in the abandonment of volume-planning and its preference for cash planning rather than cost planning in the context of the Conservative Government's politico-economic strategy.
Abstract: This article explains why it was decided to introduce cash planning in 1982 It analyses the Treasury's ostensible and real aims in the abandonment of volume-planning, and its preference for cash planning rather than cost planning in the context of the Conservative Government's politico-economic strategy, and the wide-rangipg debate on budgetary reform precipitated by the publication of the Armstrong Report It argues that that decision was a politically rational response to the imperatives of that strategy
TL;DR: In this article, an approach which might be broadly described as a CCA version of residual income is developed, from an awareness of the defects of current methods of capital accounting, an approach that is based on the CCA model and can represent the most significant change in local government accounting for many years.
Abstract: If the reform described in this paper is implemented, it will represent the most significant change in local government accounting for many years. From an awareness of the defects of current methods of capital accounting, an approach which might be broadly described as ‘a CCA version of residual income’ is developed. This paper has direct practical relevance as CIPFA has recommended that this major change should be adopted and experiments are currently taking place. Moreover, interest is heightened as the private sector has backed off from CCA.
TL;DR: The audit mandate of the Australian Commonwealth Auditor-General is similar to those of the Canadian and United Kingdom Auditors' Generators as mentioned in this paper, however, it is argued that this author's contention is, in practice, little different to that afforded to his Canadian and UK counterparts.
Abstract: Much confusion has arisen in recent years concerning the audit mandate of the Australian Commonwealth Auditor-General. It is this author's contention that this mandate is, in practice, little different to that afforded to his Canadian and United Kingdom counterparts. That is, he has a mandate that permits him to examine the economy and efficiency of operations as well as the effectiveness of management of departments and other Commonwealth bodies.
TL;DR: Despite Anand's comments (1988), this author still believes that there is much scope for employing naturalistic methods in the evaluation of public sector effectiveness, although he also recognises that it is also eminently sensible to try to develop new performance measures in statistical form where they can be shown to be appropriate as discussed by the authors.
Abstract: Despite Anand's comments (1988), this author still believes that there is much scope for employing naturalistic methods in the evaluation of public sector effectiveness, although he also recognises that it is also eminently sensible to try to develop new performance measures in statistical form where they can be shown to be appropriate. Look to the quotation at the end of the paper. Stoppard says it all!
TL;DR: In this paper, the feasibility and impact of obtaining a pragmatic measure of social income is attempted in a case study of the Ghana Food Distribution Corporation for the period 1983-1986, with the conclusion that reliance on the conventional accounting model is likely to be misleading for the purposes of assessing performance.
Abstract: The feasibility and impact of obtaining a pragmatic measure of social income is attempted in a case study of the Ghana Food Distribution Corporation for the period 1983–1986. Differences between conventional accounting income and social income are assessed with the conclusion that reliance on the conventional accounting model is likely to be misleading for the purposes of assessing performance. While the feasibility of measuring social income is demonstrated there is a need for more relevant information to be made publicly available and for consideration to be given to developing a broad range of financial and non-financial indicators of performance.
TL;DR: In this paper, the possibility of giving local authorities greater freedom provided they will exercise self-discipline and adhere to accounting prudential ratios has been considered in the academic accounting literature.
Abstract: In recent years there has been an increasing emphasis upon more central controls over local authorities. This paper develops the possibility of giving local authorities greater freedom provided they will exercise self-discipline and adhere to accounting prudential ratios. While proposals to date have been rejected by local authorities on pragmatic grounds, this suggestion has not been considered in academic accounting literature. Academics are encouraged to address this topic and join the debate.
TL;DR: In this paper, an appropriate control framework for public corporations must reflect the distinctive organizational features of this policy instrument, and the advantages of public production are unlikely to be realized where the control system involves a contractual-type arrangement between the government and the public firm.
Abstract: An appropriate control framework for public corporations must reflect the distinctive organizational features of this policy instrument. There are circumstances where it is desirable to undertake public production, and to do so through a corporate structure. But the advantages of public production are unlikely to be realized where the control system involves a contractual-type arrangement between the government and the public firm. Alternatively, too close direction may undermine the advantages of using a corporation rather than a government department. Both current discussion and current practice reveal an inadequate appreciation of the nexus between organization and control.