Showing papers in "Financial Accountability and Management in 2010"

Is e‐government leading to more accountable and transparent local governments? an overall view

Abstract: This paper seeks to assess to what extent e-government enables accountability and transparency in EU local governments. It also provides an overall view about how local governments are implementing ICTs initiatives to bring citizens closer to governments. Although the mere capacity of the Internet for the dissemination of information improves accountability and makes benchmarking easier, our results show that the expected benefits are far from being achieved because e-government projects are still in the early stages. The results also show that, at present, ICTs have not had a dramatic impact on EU local government accountability.

Mind your accruals: perceived usefulness of financial information in the australian public sector under different accounting systems

Abstract: This study examines the usefulness of three accounting systems (cash, Generally Accepted Accounting Principles (GAAP) accrual, and Government Finance Statistics (GFS) accrual) for public sector decision-making. From a survey of internal users, external users, and preparers in Australia, we find that GAAP accrual information is perceived to be relatively more useful and understandable than the other two systems for most decisions examined. The relatively higher ratings for GAAP accrual information differ from earlier studies and may reflect an experience or familiarity effect whereby perceptions of usefulness are enhanced because respondents have become more used to the system. This effect might also explain the lower ratings for GFS accrual.

Examining the practical orientation of public sector management accounting research

Abstract: Concerns exist that practical relevance is becoming devalued as accounting scholars respond to signals about what sort of research ‘counts’. We categorize public sector management accounting papers in six leading journals according to two criteria: the practical orientation of the research objective(s), and whether the conclusions communicate issues of practical relevance. The findings reveal that most of the papers are directed towards understanding or critiquing the use of management accounting techniques, while other practically oriented research objectives are largely absent. Although half of the papers identify practical research implications, few suggest guidelines for practice. Reflections are offered on the role of leading journals in shaping how practical relevance is valued in accounting research.

Using ideas to advance professions: public sector accrual accounting

Abstract: This study investigates a contest of ideas that took place between public sector accrual accounting (PSAA) and Government Finance Statistics (GFS) in the Australian state of New South Wales. The debate, its context and its course is historically analysed from a neo-institutional theory perspective, employing both documentary and oral history sources. Important in PSAA's win over GFS were: phantom images of PSAA success; a dominant politician; discourse control directing attention to the balance sheet; and, normative isomorphism from professionally qualified public sector accountants. Understanding public sector accounting change requires analysis beyond technical change; in this case the actors and their motives overwhelmed the technical.

Examining accountability dimensions in state-owned enterprises

Abstract: This paper examines accountability in the context of New Zealand's state-owned enterprises (SOEs), and considers an accountability framework which extends beyond traditional (upward and outward) dimensions. While traditional accountability dimensions are clearly detailed in the legislation, less clear are the dilemmas and contradictions faced by SOEs, balancing multiple interests, and at times, conflicting objectives. These issues are explored through interviews conducted in two phases over a two year period with senior executives from 12 of the then 17 SOEs operating in New Zealand. Findings reveal a number of dimensions of accountability that extend beyond current conceptualisations of accountability in the public sector, often including multiple directions of accountability. Implications suggest the need for a more explicit framework of accountability relevant to the SOE context, which may serve useful in identifying potential pathways to conflict mitigation.

Local governments, unexpected depreciation and financial performance adjustment

Abstract: Prior management and manipulation of financial accounting information research has overwhelmingly been focused within a private sector setting. This study adopts a public sector focus in empirically examining the use of a specific discretionary accrual (i.e., depreciation) to adjust the financial performance of New South Wales (Australia) local governments. Findings indicate a significant positive association between absolute unexpected depreciation and absolute local government income before capital contributions, and a significant positive association between absolute unexpected depreciation and capital contributions. Overall, the results make significant contributions to various literature streams with implications for various stakeholders interested in local governmental financial performance.

Performance reporting by malaysian local authorities: identifying stakeholder needs

Abstract: The concept of public accountability promotes the need for a comprehensive set of performance-related information to satisfy the information needs of a diverse stakeholder interest group. However, literature concerned with the scope of information to be disclosed, and in particular within the context of a developing country, is limited. This paper identifies the information set which stakeholders of Malaysian local authorities consider relevant in the monitoring and assessment of local authority performance. Stakeholders indicated strong interest in performance information that is not traditionally disclosed in the financial statements: non-financial information particularly performance measurement of outputs, outcomes, efficiency and effectiveness. Disclosures in the Statement of Revenue and Expenditure and forward-looking information are generally regarded as the most important disclosures. The results of the study also indicate differences amongst stakeholders as to the level of importance that they place on certain items especially items related to internal policies and governance and financial position of the local authorities. The findings will be of significance to policy makers interested in improving the performance reporting of Malaysian public sector entities, particularly local authorities.

Performance Auditing and the Narrating of a New Auditee Identity

Abstract: In this paper we argue that performance auditing is involved in the shaping of organizational identities in the public sector, but that this process involves tension at different levels. In itself, this may not be surprising. Several studies have shown how new accounting practices produce changes in the identities of public sector professionals such as doctors (Kurunm¨ 2004), officers of the defence (Skaerbaek and Thorbjornsen, 2007) or state auditors (Gendron et al., 2001 and 2007; and Skaerbaek, 2009). However, there has been little focus on the question of how performance auditing influences the organizational identity of the audited organizations ‐ the so-called ‘auditees’ and, generally, very little empirical work has focused on what Power calls: ‘the growing population of auditees’ (Power, 2000, p. 115). The aim of this paper is to shed light on the processes through which performance auditing partakes in the construction of the auditee’s organizational identity by redefining organizational accountabilities and responsibilities. Based on a case study of the Danish Ministry of Transport’s (MoT) encounter with government performance auditing, we discuss how the performance audit reports may be seen as important mediators (Latour, 2005) that are involved in the

Npm reforms and the perception of budget by hospital clinicians: lessons from two case-studies

Abstract: This paper investigates how clinicians perceive managerial budgeting and how this affects clinical practice. To this end, case-studies were conducted involving two Italian public hospitals. The results show that clinicians' commitment to organizational objectives was strongly enhanced by the use of the budget as a means to evaluate and reward clinicians' performance. One of the main lessons learned from this study is that aligning existing institutions to organizational objectives is the only way forward for effective reform implementation. Consequently, the challenge for future reforms is to deal with the search of balance between efficiency goals and existing institutions.

Organisational commitment in the police service: exploring the effects of performance measures, procedural justice and interpersonal trust

Abstract: This study aims to investigate whether, and how, the use of performance measures, procedural justice, and interpersonal trust interact to affect organisational commitment of police officers. Drawing on a survey based on a sample of 57 senior officers within a single police force, we find that the use of performance measures, procedural justice, and interpersonal trust are positively associated with organisational commitment. Further analysis reveals that trust between officer and superior mediates the relationship between the use of non-financial measures and organisational commitment, but procedural justice does not have a mediating effect on commitment. These findings are further explored through selected interviews with respondents.

E-governance as strategy of public sector reform: peculiarity of japanese it policy and its institutional origin

Abstract: As the cases of public sector reform and e-governance projects have shown, e-governance can play a role in public sector reform. This paper describes Japanese e-governance policy and its status, focusing on the issues affecting the government and the public. Japan has implemented a series of political and administrative reforms in order to improve accountability. NPM reforms utilize various strategies to manage public policies, and e-governance is a public policy that directly affects other policies and brings about change. Its characteristics as public policy are different from those of other policies, especially in relation to public accountability.

e-Government service innovation in the Scottish criminal justice information system

Abstract: Some of the 1990s initiatives designed to improve efficiency and equity in publicservices are demising or have demised: internal markets, performance culturetargets and privatisation; whilst other initiatives including e-government remainat the forefront of public policy (West, 2006).As part of the eEurope initiative, in 1998 the EU

Local authority e‐government partnerships in england: a case study

Abstract: This paper uses a case study of an e-government partnership of ten local authorities to consider how governance structures, financial arrangements and performance management systems may promote or inhibit successful collaborative working. The case is considered within the contexts of continuing new public management reforms including the balance between formal performance measurement indicators imposed by higher authorities and the scope for dialogue in the development of performance management systems. The case supports a view that collaborative working can benefit from a governance structure supporting a consistency of objectives of the partners operating within similar political and regulatory environments. Externally imposed performance indicators are significant to the partner authorities but their influence does not exclude the possibility of more dialogue-driven performance management systems being developed within the partnership. Sustainability of the partnership is never assured and tensions develop as a result of developing priorities of individual authorities, the possibility of local government reorganisation and changing national policy initiatives.

Multilevel framing: an alternative understanding of budget control in public enterprises

Abstract: This paper addresses the question as to why there tends to be recurring budget deviations in public sector service organizations In the public sector, budgets and actuals are loosely coupled, and budgets may serve other institutional functions than control purposes However, little research has addressed how the framing of budget information may explain the different functions of the budgets as control devices The paper argues that the valence of budget deviations varies between organizations, and that organizations that have a positively oriented valence towards budget surpluses have a propensity to underspend the budgets Consequently, organizations that have a positively oriented valence towards budget deficits tend to overspend the budgets The empirical part analyses the budget situations in the Central Bank of Norway and in a large university hospital in Norway In the case of the Bank, it was found that underspending of budgets was framed as performance measures indicating high organizational efficiency The Hospital, on the other hand, showed a different picture as budget deficits were the situation during all years studied One main finding was the key actors’ roles as translators of the society's expectations as to the fulfilling of the organizations’ missions These translators function as mediators between the institutional context and pressures, the organizations’ goals and the internal budget processes The conventional wisdom that the budget also acts as a means of communication and as symbols and ritual acts that reflect the institutional contingencies of the organizations, is further developed by describing how organizations’ goals valence the role of budgets

Vision and practice of e‐government: an empirical study

Abstract: Over the past two decades, governments widely advocated the idea that information and communication technology (ICT) could be a means for enhancing the functioning of the public sector and for the delivery services in ways that are much more convenient for the public (West, 2005). Unlike the traditional delivery of services, on line delivery systems are non-hierarchical and nonlinear; they are interactive and available twenty-four hours a day, seven days a week. These characteristics enable the public to get information at their convenience and are an acknowledged way for improving the effectiveness of service delivery and for enhanced public satisfaction. In the long run, this could lead to an enhancement in the relationship existing between public and government, and greater satisfaction in government might lead to an increased degree of trust and confidence in governmental policies and operations (Welch et al., 2005). Thus, the promise offered by the potential of the adoption of technologies have led most governments to include e-government strategies in their reform agendas since the 1990s (Gore, 1997; Heeks, 1999; and Holmes, 2001). To date, studies assessing the current status of the adoption of e-government for service delivery in the USA have found limited and, at times, counterintuitive findings (Coursey and Norris, 2008; Moon, 2002; Norris and Moon, 2005; Reddick and Frank, 2007; and Walker, 2006). In particular, the diffusion of digital delivery systems providing on line services is still very limited in terms of the number and type of services. Their implementation requires permanent changes in the service delivery processes and a degree of organizational commitment above and beyond the adoption of technologies and new information systems (Fountain, 2001; and Tat-Kei Ho, 2002). The purpose of this paper is to empirically explore the extent of e-government endorsement among the larger municipalities in Italy. We do so by looking at the degree of incorporation of the e-government agenda in their strategies (e.g., the

Current npm research: digging deeper and looking further

Abstract: Basically New Public Management (NPM) has advanced the introduction of ‘economic rationality’ in the public sector and the use of ‘businesslike’ styles and instruments. Whether NPM has had positive effects on the functioning of the public sector and on the quality of the services as experienced by citizens, and to what extent, remains controversial (see, e.g., Lapsley, 2008 and 2009; and Seddon, 2008). However, this does not alter the fact that NPM has played an important role in the field of public management and is still very influential. NPM can be considered as a rather loose ‘container’ term. Although Hood (1991, pp. 4-5) has mentioned common elements which indicate some main characteristics, it cannot be considered as a theory or set of guidelines which has been fully elaborated. The primary characteristics of NPM vary from country to country and have developed over the course of time, during which certain elements have been added or have faded into the background (Pollitt and Bouckaert, 2004, pp. 74-96). Sometimes it is argued that the influence of NPM and in particular its emphasis on economic rationality and efficiency have diminished, and that there has been a shift to, e.g., ‘new public governance’ or ‘public value’. In several cases one actually speaks of a ‘Neo-Weberian State’ model instead of NPM (see, e.g., Moore, 1995; Pollitt and Bouckaert, 2004, p. 99; and Osborne, 2006). These approaches pay more attention to aspects such as service delivery processes, the meaning of democratic processes, the interests of citizens, and the final outcomes of government activities. However, without having the intention to start a discussion about the precise meaning of these recently signalled trends, one might carefully suggest that the use of (sometimes more ‘soft’) businesslike methods and techniques is still an important element in them. In that sense, they can probably be regarded as more recent developments within the container term NPM, or at least as developments that are related to NPM.

The Healthcare Voucher: Emergence, Formation and Dissemination

Abstract: Market-inspired healthcare reforms have been introduced in Sweden: Freedom of Choice in Healthcare in 1989 and the National Healthcare Guarantee in 2005. After the general election 2006 the idea of the Healthcare Voucher has followed. Built on a theoretical framework composed of Foucault's concept of 'discursive formation' supported by Butler's concept of the ‘performativity of discourse’ the purpose is to analyse the emergence, formation and dissemination of this idea into healthcare in Sweden. The Voucher is disseminated in a form reminiscent of a chain linking a series of texts, referring to each other and building on each other's formulations strengthening each other's messages. It circulates under designations such as healthcare voucher and money and seems to be disseminated by being combined with 'freedom of choice' forming the theme customer choice. The Healthcare Voucher then becomes a means of being able to realise an idea of a political nature, building markets in healthcare. The paper offers a way of analysing how ideas influence the policy agenda, in particular for the voucher/s. Distinctions could be made between the voucher idea and 'money following the patient' in quasi markets. A critical issue in introducing choice and competition, not explored here, is the issue of ‘cream skimming’.

Profiling: a Strategy for Successful Volunteer Recruitment in Credit Unions

Abstract: Credit unions are non-profit financial organisations that provide financial services to their members. They are located in 97 countries across the world. All credit unions are governed by a volunteer board and many are reliant on volunteers for all their labour requirements. However, recruiting volunteers is a problem. The literature on recruitment issues in volunteering in general, suggests that the not-for-profit sector looks to the private sector for guidance on recruitment policies and approaches. One such approach which is considered in this paper is ‘market segmentation’ wherein the potential volunteer body is profiled to determine if an individual is likely to volunteer and if they are, to identify the type of role they are most likely to be attracted to. Prior literature on volunteering in non-profit organisations suggests that certain types of individual (dominant individuals) are more likely to volunteer. This paper investigates whether this dominant status profile is evident amongst volunteers in credit unions in Northern Ireland (NI). The study finds that people with dominant characteristics are more likely to be attracted to volunteering to the board of directors and individuals who have less dominant traits overall should be offered more social/participative type roles. This information can be used by credit union governing boards for volunteer recruitment, retention and management purposes.

Ambitions and opportunities for assessing military performance in crisis response operations

Abstract: This paper addresses the issue of measuring armed forces’ performance in crisis response operations. By means of interviews (17 respondents) and a large scale survey (1,253 respondents) field and general officers of the Netherlands Armed Forces (NAF) have been questioned on perceived organisational success in crisis response operations. The Dutch officers assess the NAF's performance positively. A number of senior officers are hesitant about the usefulness of measuring the performance of crisis response operations. According to them the context in which the operations are being executed is too complex. Most interviewees, however, are convinced that measuring performance is useful and should be improved. These military leaders express a strong need for criteria to assess their performance on the job

Chinese public finance framework: a contextual analysis

Abstract: This paper explores the complexities of government financial management in China and examines the nature of the recent Public Finance Framework (PFF) reform in that country. We argue that this reform is not just the latest instalment in a centrally dominated reform agenda (and a logical and strategic development in the process of social, political and economic transformation), but that it reflects the Central Government's struggle to fine-tune central-local financial relationships and to grapple with the consequences of the previously misplaced delegation of government budgets. In so doing, the paper challenges the prescriptive research which often pervades policy studies in China. Instead, it analyses the historical and contemporary contexts which are shaping government administration in China, and sheds new light on the background, implementation and future prospects of Chinese public sector financial reform. Overall, our contextual analysis provides a starting point for more critical research into the changes in government financial administration at both policy and organisational levels in China.