The use of budgetary and financial information by politicians in parliament: a case study

2019 ◽  
Vol 31 (4) ◽  
pp. 539-557 ◽  
Author(s):  
Susana Jorge ◽  
Maria Antónia Jorge de Jesus ◽  
Sónia P. Nogueira
Keyword(s):  
Public Sector ◽  
Information Needs ◽  
Accounting Information ◽  
Financial Information ◽  
Content Type ◽  
Members Of Parliament ◽  
Information Intermediaries ◽  
Public Sector Accounting

Purpose The purpose of this paper is to research the use of accounting information by politicians. Based on the Portuguese Parliament setting, it seeks to understand how useful politicians consider this information to be, what type of budgetary and financial information they use, and for what purposes. Finally, the research also seeks to find out whether politicians resort to expert intermediaries or advisors help them in the use of this information. Design/methodology/approach Following a qualitative and interpretative methodology, the study draws upon interviews with Members of Parliament in Portugal (and their technical advisors (TAs)) from all political parties, in particular the members of the Budget, Finance and Administrative Modernization Committee (COFMA) of the Parliament. Findings Research shows that, due to the general lack of knowledge and the complexity of the accounting information, politicians in the Parliament do not use it frequently, only occasionally. To be better or worse informed for the debates and other activities depends on each Member of Parliament’s personal willingness to prepare oneself, notwithstanding some aggregated and previously analyzed information made available by official technical support units. Parliamentarians may also resort to TAs, who prepare the information at their request. Both intermediaries and TAs are deemed important to support parliamentarians’ understanding of more technical budgetary and financial issues. Practical implications This paper shows that politicians acknowledge there is room for improving the role of information intermediaries and advisors, who would support them to better understand and use accounting information. Parliamentary groups incharge of hiring advisors, as well as accounting professionals, in Portugal and in other countries, must be aware of the very useful role accountants play in this process. Social implications While allowing to understand whether and how politicians use accounting information, this research contributes to the process of public sector accounting reforms in Portugal, and at an international level, inasmuch as public sector accounting and reporting standards should better address these users’ information needs. Assuming that these reforms would foster more accurate, transparent and useful information for accountability and decision making, it is essential that politicians acknowledge and become real users of accounting information, in order to accomplish those objectives. Originality/value This study contributes to the general knowledge of how politicians use accounting information. Academic studies so far have not gathered enough evidence about the type of accounting information that is actually important for politicians. This paper highlights that use of such information by politicians depends on individual skills and their willingness to receive the appropriate advice.

Outsourcing relationship management: accounting in the decision mix

2018 ◽  
Vol 39 (5) ◽  
pp. 41-49
Author(s):  
Mirghani Nimir Ahmed
Keyword(s):  
Management Accounting ◽  
Accounting Information ◽  
Relationship Management ◽  
Internal Audit ◽  
Management Control ◽  
Control Mechanisms ◽  
Monitoring Cost ◽  
Content Type

Purpose The paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships. Design/methodology/approach The paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed. Findings The findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners. Practical implications The paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships. Originality/value The case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

Boundary subjects and boundary objects in accounting fact construction and communication

2016 ◽  
Vol 13 (3) ◽  
pp. 303-329 ◽  
Author(s):  
Teemu Laine ◽  
Tuomas Korhonen ◽  
Petri Suomala ◽  
Asta Rantamaa
Keyword(s):  
Design Methodology ◽  
Information Needs ◽  
Boundary Objects ◽  
Shared Understanding ◽  
Content Type ◽  
Business Partners ◽  
Pragmatic Constructivism ◽  
Practical Implications

Purpose This paper aims to elaborate the concepts of boundary subjects and boundary objects in constructing and communicating relevant accounting facts for managing product development (PD). Boundary subjects as reflective actors benefit effective accounting enactment, by building a shared understanding about different actors’ roles and information needs, and by helping to respond to these needs with new boundary objects. Design/methodology/approach The paper uses a longitudinal interventionist case study of a machinery manufacturer. The focus of this case study was the production ramp-up phase at the end of a PD program. Different actors’ needs were first collected and elaborated by interventionist researchers (boundary subjects). Then accounting prototypes (boundary objects) provided new means of communication. Findings The findings show that dealing with boundaries is crucial in accounting development. The role of boundary subjects was fundamental in the process of choosing, constructing, elaborating and communicating accounting facts. During this process, accounting prototypes integrated new accounting facts, the boundary subjects mitigated the boundaries and the boundary objects focused and restricted communication about accounting facts. Research limitations/implications The paper tests the pragmatic constructivism approach by examining accounting enactment under uncertainty and ambiguity. The study refines pragmatic constructivism in terms of boundaries, boundary subjects as actors and boundary objects. Practical implications The intentional use of boundary subjects and objects as communication platform could push a more active inclusion of business controllers as active business partners. Originality/value The paper contributes to the literature on accounting development by highlighting the use of boundary subjects and boundary objects as fundamental mechanisms in constructing and communicating accounting facts.

The harmonization of government financial information systems: the role of the IPSASs

2007 ◽  
Vol 73 (2) ◽  
pp. 293-317 ◽  
Author(s):  
Bernardino Benito ◽  
Isabel Brusca ◽  
Vicente Montesinos
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Central Government ◽  
Accounting Standards ◽  
Financial Information ◽  
Accounting Systems ◽  
Starting Point ◽  
Public Sector Accounting ◽  
Near Future

The publication of International Public Sector Accounting Standards (IPSASs) in the field of governmental financial reporting has raised the necessity for a wide-ranging discussion about the harmonization of public sector accounting systems. The article has a double aim: to show the adoption or not of IPSASs in local and central government and to analyse the level of convergence between the different countries studied. In order to achieve these objectives, we carried out an empirical study, whose results allow us to show that while some accounting systems are very close to the IPSASs model, others are completely different. Nevertheless, we think that this could be a starting point and that in the near future countries could tend towards IPSASs more and more, which may be the most probable way to reach convergence accounting systems between them.

The institutionalization of public sector accounting reforms: the role of pilot entities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Susana Jorge ◽  
Sónia P. Nogueira ◽  
Nuno Ribeiro
Keyword(s):  
Public Sector ◽  
Implementation Process ◽  
Global Strategy ◽  
External Support ◽  
Reform Process ◽  
Content Type ◽  
Overall Design ◽  
Public Sector Accounting ◽  
Actual Contribution

PurposeThis paper aims at understanding the action of pilot entities, in order to ultimately infer about their role to the overall reform process of public sector accounting (PSA).Design/methodology/approachTaking the Portuguese case as a reference, the new institutional theory (isomorphism perspective) and institutional logics are used to explain the action and stance of pilot entities in the implementation process of reforms.FindingsPilot experiments are expected to provide feedback on the main difficulties felt in the implementation of a new PSA system, helping to define a global strategy to overcome those problems and to improve the system to be generally and finally put into practice. Nevertheless, entities seem to find it important to be pilots, more for individual advantages than for the common benefit of the reform as a whole. Therefore, in order for them to actually be important actors in the reform process, pilots need to be included in the decision process, better realizing the benefits of the new IPSAS-based system and be provided with the proper technical, human and financial support.Research limitations/implicationsThis research suffers from some limitations, namely concerning the use of questionnaires. The findings may, in some points, reflect the perceptions of the respondents and not the actual reality. Additionally, the respondents were not asked about any personal background factors, which may influence their answers. Also, they did not allow relating the new PSA system features with the way pilot entities (re)acted. In regard to the implications for practice, the study points to a need for decision-makers and external support bodies to work more closely with pilot entities in the overall design and implementation of PSA reforms. Pilot entities need to understand the importance and usefulness of changes, and reform authorities need to better recognize their institutional reality and the support they require. Only in this way, the use of pilots can make a difference in the implementation of PSA innovations.Originality/valueThis paper contributes to theory by adding to a better understanding of the role of the ones acting in the development and implementation of PSA innovations, enlightening on how pilot entities can act/react. Despite several studies on PSA reforms, very few so far have addressed pilot entities in particular, their attitude and actual contribution toward PSA reforms, and why. The case of Portugal as a frontrunner in adopting an IPSAS-based system within the EU helps contribute to that understanding in the setting of European countries.

scholarly journals Intellectual heritages of post-1990 public sector accounting research: an exploration

2020 ◽  
Vol 33 (8) ◽  
pp. 2077-2110
Author(s):  
Hans-Jürgen Bruns ◽  
Mark Christensen ◽  
Alan Pilkington
Keyword(s):  
Public Sector ◽  
Public Management ◽  
New Public Management ◽  
Content Type ◽  
Accounting Research ◽  
Loosely Coupled ◽  
New Public ◽  
Public Sector Accounting ◽  
Cumulative Knowledge

PurposeThe article's aim is to refine prospects for theorising in public sector accounting (PSA) research in order to capture the methodological benefits promised by its multi-disciplinarity.Design/methodology/approachThe study primarily employs a bibliometric analysis of research outputs invoking New Public Management (NPM). Applying a content analysis to Hood (1991), as the most cited NPM source, bibliographic methods and citation/co-citation analysis for the period 1991 to 2018 are mobilised to identify the disciplinary evolution of the NPM knowledge base from a structural and longitudinal perspective.FindingsThe analysis exhibits disciplinary branching of NPM over time and its imprints on post-1990 PSA research. Given the discourse about origins of NPM-based accounting research, there are research domains behind the obvious that indicate disciplinary fragmentations. For instance, novelty of PSA research is found in public value accounting, continuity is evidenced by transcending contextual antecedents. Interestingly, these domains are loosely coupled. Exploring the role of disciplinary imprints designates prospects for post-NPM PSA research that acknowledges multi-disciplinarity and branching in order to deploy insularity as a building block for its inquiries.Research limitations/implicationsCriteria for assessing the limitations and credibility of an explorative inquiry are used, especially on how the proposal to develop cumulative knowledge from post-1990 PSA research can be further developed.Practical implicationsA matrix suggesting a method of ordering disciplinary references enables positioning of research inquiries within PSA research.Originality/valueBy extending common taxonomies of PSA intellectual heritages, the study proposes the ‘inquiry-heritage’ matrix as a typology that displays patterns of theorisation for positioning an inquiry within PSA disciplinary groundings.

Creating shared service centres for public sector accounting

2015 ◽  
Vol 28 (2) ◽  
pp. 158-179 ◽  
Author(s):  
Ringa Raudla ◽  
Kaide Tammel
Keyword(s):  
Public Sector ◽  
Central Government ◽  
Customer Orientation ◽  
Managerial Decision ◽  
Content Type ◽  
Theoretical Contribution ◽  
Public Sector Accounting ◽  
Shared Service ◽  
The Creation

Purpose – The purpose of this paper is twofold. First, it aims to contribute to the theoretical discussion on shared service centres (SSCs) for public sector accounting by putting forth a novel typology of different SSCs and their creation modes, and outlining the challenges these specific models are likely to face. Second, it uses the Estonian case study to test the theoretical conjectures. Design/methodology/approach – Since in the Estonian central government different reform models for creating SSCs for public sector accounting have been tried out, the Estonian case offers an opportunity for exploring what the motives behind the creation of different forms of SSCs can be and what kind of challenges reform actors can face when opting for different reform models. The sources of data for the qualitative case study included official documents, media articles and interviews. Findings – The Estonian case study demonstrates that the distinct reform models for creating SSCs in public sector accounting can indeed have different motives and also face various challenges to different degrees. Some challenges, however, are present in all reform models (e.g. difficulties in achieving customer orientation and reduced input to managerial decision making). Originality/value – This paper puts forth a novel typology of public sector SSC reform models and analyses the challenges these different reform models are likely to face. The theoretical contribution and the Estonian case study are valuable for both academics and practitioners analysing or considering the creation of SSCs.

scholarly journals Building legitimacy for European public sector accounting standards (EPSAS)

2019 ◽  
Vol 33 (2/3) ◽  
pp. 229-245 ◽  
Author(s):  
Giovanna Dabbicco ◽  
Ileana Steccolini
Keyword(s):  
Public Sector ◽  
Accounting Standards ◽  
Network Governance ◽  
Content Type ◽  
European Public ◽  
Public Sector Accounting ◽  
Critical Issues ◽  
Multimethod Approach ◽  
Definition Of

Purpose The purpose of this paper is to look at the European public sector accounting standards (EPSAS) project development path to explore how governance and legitimacy issues intertwine when a new standard-setting system is developed. Design/methodology/approach A qualitative interpretative multimethod approach is adopted, which encompasses document analysis and participative observations. Findings The analysis shows the role of governance dimensions, including institutional participation and consensus, in the process for securing the legitimacy of accounting standards and the related setting processes, pointing to the critical issues emerging throughout the development of the EPSAS project. Originality/value The definition of public sector accounting standards poses significant challenges to the accounting profession and regulators alike. A paradigmatic case of such challenges is represented by the decisions to develop harmonised EPSAS. A key contribution of this paper is to connect legitimacy dimensions with network governance, offering a view of the input, output and procedural dimensions associated with decisions to legitimise EPSAS and how these may be affected by network governance.

The role of talent development in environmentally sustainable hospitality

2018 ◽  
Vol 10 (1) ◽  
pp. 69-85 ◽  
Author(s):  
Andrew Bratton
Keyword(s):  
Public Sector ◽  
Environmental Sustainability ◽  
Hospitality Industry ◽  
Talent Development ◽  
Public And Private ◽  
Content Type ◽  
Public And Private Sector ◽  
Practical Implications

Purpose The purpose of this paper is to examine the role of strategic talent development in supporting environmental management in the hospitality sector, as well as exploring its practical implications. Design/methodology/approach This paper examines a single public sector case study in the hospitality industry, a National Health Service conference centre. This case is part of a larger study in which qualitative and quantitative data were collected in six public and private sector workplaces in Scotland. Findings The findings emphasise the key role of leaders as change agents, and in promoting sustainability and encouraging workplace low-carbon behaviours. The findings demonstrate that an inclusive approach to talent development can play a key role in creating a pro-environmental culture and can significantly contribute to the long-term environmental sustainability of organisations. Research limitations/implications The scale of the research is limited to one public sector case study and restricted to the Scottish hospitality industry. Extending the research to multiple case studies in both the public and private sector in Scotland would be useful. Practical implications This paper makes recommendations about the role of line managers, blended learning strategies, organisational culture and employee participation in supporting workplace learning for sustainability. Originality/value This paper examines the role of strategic talent development in supporting environmental sustainability in the hospitality industry and provides unique insight for both academics and practitioners into a single public sector case study.

Perception of the Malaysian Federal Government accountants of the usefulness of financial information under an accrual accounting system: a preliminary assessment

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suhaiza Ismail
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Federal Government ◽  
Work Experience ◽  
Accounting Information ◽  
Perceived Usefulness ◽  
Financial Information ◽  
Accounting System ◽  
Accrual Accounting ◽  
Content Type

Purpose The objective of this study is to examine the perceived usefulness of accrual accounting-based financial information for accountability and for supporting decision-making in public sector organisations. Design/methodology/approach A questionnaire survey adapted from Kober et al. (2010) was used to survey Malaysian Federal Government accountants to ascertain their views on the usefulness of accrual accounting information across 12 situations regarding accountability and decision-making. Mean scores and mean score ranking were computed on a total of 165 usable responses received. The independent t-test was conducted to investigate the differences in the perception between “accountants with” and the “accountants without” prior work experience in the private sector. Findings The study provides evidence that Malaysian Federal Government accountants consider accrual accounting information as very useful for decision-making. The three most important decision-usefulness indicators in the survey are “To assist in managing the department’s assets and liabilities”, “To assess cash flow needs of a department” and “For departmental resource allocation decisions”. The least useful accrual accounting information as perceived by the Malaysian public sector accountants is “To assist in discharging the department’s accountability obligations”. Originality/value The study provides valuable insights into the extent to which accrual accounting information is considered useful for accountability and decision-making, lending support to the Malaysian Government’s reform agenda of moving towards using accrual accounting in public sector organisations at the federal level.

Democracy and financial transparency of local governments in Sub-Saharan Africa

2020 ◽  
Vol 28 (4) ◽  
pp. 681-699
Author(s):  
Redeemer Krah ◽  
Gerard Mertens
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Local Governments ◽  
Local Governance ◽  
Financial Information ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Public Sector Accounting ◽  
Financial Transparency ◽  
Sub Saharan

Purpose The study aims at examining the level of financial transparency of local governments in a sub-Saharan African country and how financial transparency is affected by democracy in the sub-region. Design/methodology/approach The study applied a panel regression model to data collected from public accounts of 43 local authorities in Ghana from 1995 to 2014. Financial transparency was measured using a transparency index developed based on the Transparency Index of Transparency International and the information disclosure requirements of public sector entities under the International Public Sector Accounting Standards. Findings The study finds the low level of financial transparency among the local governments in Ghana, creating information asymmetry within the agency framework of governance. Further, evidence from the study suggests a strong positive relationship between democracy and financial transparency in the local government. Research limitations/implications Deepening democracy is necessary for promoting the culture of financial transparency in local governance in sub-Saharan Africa, perhaps in entire Africa. Practical implications There is a need for the local governments and governments, in general, to deepen democracy to ensure proactive disclosure of the financial information to the citizens to improve participation trust and eventual reduction in corruption. Effective implementation of the Right to Information Act would also help promote financial and other forms of transparency in the sub-region. Originality/value The study contributes to the public sector accounting literature by linking democracy to financial transparency in the local government. Hitherto, studies concentrate on how entity level variables impact on the level of financial information flow in the local government without considering the broader governance infrastructure within which local governments operate.

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