scholarly journals Examination of Statements of Service Performance of New Zealand Local Authorities: the Case of Wastewater Services

2021 ◽  
Author(s):  
◽  
Prae Keerasuntonpong
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Local Government ◽  
Service Performance ◽  
Conceptual Level ◽  
Local Authorities ◽  
Accounting Standard ◽  
The Public ◽  
Performance Reporting ◽  
Auditor General

<p>The provision of statements of service performance (SSPs) by local government in New Zealand is a product of the economic reforms carried out in the late 1980s. A statement of service performance is regarded as an important document of New Zealand local government reporting. It is statutorily required by the Local Government Act 2002 and complemented by accounting guidance provided by the New Zealand Institute of Chartered Accountants (NZICA), with the objective of strengthening accountability obligations (Local Government Act 2002, s. 98; NZICA, 2002). In spite of twenty years‟ experience in preparing statements of service performance, the Office of the Auditor-General (OAG) (2008) criticised that the quality of SSPs prepared by local authorities (and other public-sector entities) was poor. A fundamental problem of statements of service performance reporting is the lack of comprehensive authoritative requirements on their preparation and presentation (Office of the Auditor-General, 2008). Arguably, the present authoritative requirements have been written to cater for the needs of large, profit-oriented entities in the private-sector rather than for the public-sector‟s specific needs for performance reporting and pitched at a higher or more conceptual level than is typically required for financial reporting standards (Office of the Auditor-General, 2008, Webster, 2007). This may be due to the fact that the current authoritative requirements, developed in early 1990s, have been influenced by the economic framework highlighting the decision-usefulness purpose of private-sector reporting, which is not suitable for public-sector reporting (Mack, 2003; Parker & Gould, 1999). Responding to the need for more adequate guidance for non-financial performance reporting of public-sector entities, the OAG and the International Public Sector Accounting Standards Board (IPSASB) are working on improving accounting guidance applicable for the preparation for SSP reporting by public-sector entities (Office of the Auditor-General, 2010; International Public Sector Accounting Standard Board, 2010). Pallot (1992) points out that accountability is the preferred purpose for public-sector reporting since the nature of the relationship between providers and users of government is non-voluntary. Past theoretical literature has attempted to define the possible components of accountability that would be suitable for public-sector entities to adequately discharge their accountability. Among them, Stewart (1984) has developed accountability bases, which provide a platform for understanding accountability expectations and, hence desirable characteristics of any accountability documents provided by public-sector entities for the public. It is possible that accountability documents pertaining to these accountability expectations will enable the public-sector entities to adequately discharge their accountability. New Zealand local government is the important second tier of New Zealand government sector. Among the wide range of community services provided by New Zealand local authorities, wastewater services represent one of the most crucial services. New Zealand constituents could be expected to be concerned not only about the performance of wastewater services provided by their local authorities, but also with the disclosures about that performance. However, the research on SSP wastewater disclosures by New Zealand local authorities is limited (Smith & Coy, 2000). Given the criticism on the usefulness of authoritative requirements for SSP reporting and the recognition of accountability expectations by the literature, the first two objectives of this study are to examine the consistency of SSP disclosures, regarding wastewater services provided by New Zealand local authorities, with the existing authoritative requirements, and the accountability expectations, using the disclosure index as a measurement tool. To understand possible explanations for the cross-sectional differences on the extent of disclosures, according to the authoritative requirements and accountability expectations, the third objective of this study is to examine the influential factors of the disclosures, using multiple regression analysis. The study finds that the performance disclosures made by the local authorities have low levels of correspondence with the index that is based on the authoritative requirements. The result also provides evidence that the current authoritative requirements are focused on financial information reporting and pitched at a high conceptual level. This supports the view that the existing authoritative pronouncements are not providing sufficient guidance for local authorities. The index based on accountability expectations has relatively greater correspondence with the disclosures made. This identifies that local authorities are providing information consistent with accountability expectations. The study suggests that accountability expectations provide a model suitable for SSP reporting guidance. According to the multiple regression analysis, the result shows that only size is significantly related to the extent of the disclosures. Larger local authorities report more corresponding information. The findings of this study provide three immediate implications which should be useful to: (i) accounting standard-setters for their current work on improving accounting guidance for SSP reporting; (ii) the Office of the Auditor-General for providing more insightful comments in the audit statement for SSP reporting; and (iii) regulators for increased attention on some special local authorities. By doing so, it is expected that New Zealand local authorities may lead the world in providing comprehensive SSPs, which enable them to adequately discharge their accountability and, hence in reaching a reform principle for greater accountability.</p>

scholarly journals Examination of Statements of Service Performance of New Zealand Local Authorities: the Case of Wastewater Services

2021 ◽  
Author(s):  
◽  
Prae Keerasuntonpong
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Local Government ◽  
Service Performance ◽  
Conceptual Level ◽  
Local Authorities ◽  
Accounting Standard ◽  
The Public ◽  
Performance Reporting ◽  
Auditor General

<p>The provision of statements of service performance (SSPs) by local government in New Zealand is a product of the economic reforms carried out in the late 1980s. A statement of service performance is regarded as an important document of New Zealand local government reporting. It is statutorily required by the Local Government Act 2002 and complemented by accounting guidance provided by the New Zealand Institute of Chartered Accountants (NZICA), with the objective of strengthening accountability obligations (Local Government Act 2002, s. 98; NZICA, 2002). In spite of twenty years‟ experience in preparing statements of service performance, the Office of the Auditor-General (OAG) (2008) criticised that the quality of SSPs prepared by local authorities (and other public-sector entities) was poor. A fundamental problem of statements of service performance reporting is the lack of comprehensive authoritative requirements on their preparation and presentation (Office of the Auditor-General, 2008). Arguably, the present authoritative requirements have been written to cater for the needs of large, profit-oriented entities in the private-sector rather than for the public-sector‟s specific needs for performance reporting and pitched at a higher or more conceptual level than is typically required for financial reporting standards (Office of the Auditor-General, 2008, Webster, 2007). This may be due to the fact that the current authoritative requirements, developed in early 1990s, have been influenced by the economic framework highlighting the decision-usefulness purpose of private-sector reporting, which is not suitable for public-sector reporting (Mack, 2003; Parker & Gould, 1999). Responding to the need for more adequate guidance for non-financial performance reporting of public-sector entities, the OAG and the International Public Sector Accounting Standards Board (IPSASB) are working on improving accounting guidance applicable for the preparation for SSP reporting by public-sector entities (Office of the Auditor-General, 2010; International Public Sector Accounting Standard Board, 2010). Pallot (1992) points out that accountability is the preferred purpose for public-sector reporting since the nature of the relationship between providers and users of government is non-voluntary. Past theoretical literature has attempted to define the possible components of accountability that would be suitable for public-sector entities to adequately discharge their accountability. Among them, Stewart (1984) has developed accountability bases, which provide a platform for understanding accountability expectations and, hence desirable characteristics of any accountability documents provided by public-sector entities for the public. It is possible that accountability documents pertaining to these accountability expectations will enable the public-sector entities to adequately discharge their accountability. New Zealand local government is the important second tier of New Zealand government sector. Among the wide range of community services provided by New Zealand local authorities, wastewater services represent one of the most crucial services. New Zealand constituents could be expected to be concerned not only about the performance of wastewater services provided by their local authorities, but also with the disclosures about that performance. However, the research on SSP wastewater disclosures by New Zealand local authorities is limited (Smith & Coy, 2000). Given the criticism on the usefulness of authoritative requirements for SSP reporting and the recognition of accountability expectations by the literature, the first two objectives of this study are to examine the consistency of SSP disclosures, regarding wastewater services provided by New Zealand local authorities, with the existing authoritative requirements, and the accountability expectations, using the disclosure index as a measurement tool. To understand possible explanations for the cross-sectional differences on the extent of disclosures, according to the authoritative requirements and accountability expectations, the third objective of this study is to examine the influential factors of the disclosures, using multiple regression analysis. The study finds that the performance disclosures made by the local authorities have low levels of correspondence with the index that is based on the authoritative requirements. The result also provides evidence that the current authoritative requirements are focused on financial information reporting and pitched at a high conceptual level. This supports the view that the existing authoritative pronouncements are not providing sufficient guidance for local authorities. The index based on accountability expectations has relatively greater correspondence with the disclosures made. This identifies that local authorities are providing information consistent with accountability expectations. The study suggests that accountability expectations provide a model suitable for SSP reporting guidance. According to the multiple regression analysis, the result shows that only size is significantly related to the extent of the disclosures. Larger local authorities report more corresponding information. The findings of this study provide three immediate implications which should be useful to: (i) accounting standard-setters for their current work on improving accounting guidance for SSP reporting; (ii) the Office of the Auditor-General for providing more insightful comments in the audit statement for SSP reporting; and (iii) regulators for increased attention on some special local authorities. By doing so, it is expected that New Zealand local authorities may lead the world in providing comprehensive SSPs, which enable them to adequately discharge their accountability and, hence in reaching a reform principle for greater accountability.</p>

scholarly journals The Impact of Performance Audit: the New Zealand Experience

2021 ◽  
Author(s):  
◽  
Nurul Athirah Abd Manaf
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Performance Improvement ◽  
Managerial Practices ◽  
The Public ◽  
Performance Audit ◽  
And Performance ◽  
Auditor General ◽  
The Many ◽  
The Impact

<p>Performance audit, compared to the traditional financial and compliance audits, is a relatively new innovation that emerged amidst accountability concerns in the public sector. Economic crises, ministerial scandal and inefficiencies were among the impetus that led the public to demand better performance and greater accountability in the public sector, and performance audit was among the many responses to such demand. In New Zealand, performance audit is carried out by the Controller and Auditor General (the AG) under the mandate granted by the Public Audit Act 2001. Adapting the methodology from grounded theory, this study looks at the impact of performance audit on seven entities audited in 2006 by the AG. This study found that the entities were impacted through the manifestation of implemented audit recommendations and the attainment of performance audit goals. In particular, there is a high acceptance and implementation rate to the audit recommendations made in the seven audits. The implementation of accepted recommendations consequently led to the changes within the entities in terms of managerial practices, as well as internal systems and processes. In some entities, these changes were translated into performance improvement, where the entities experienced changes in the way that they carried out their operations. However, based on interviewees' accounts being the auditees of the audits, most interviewees viewed performance audit as having a greater role for performance accountability compared to performance improvement. Whilst the auditees found the audit recommendations useful, the impact on performance in their view has not been significant. Rather, the auditees viewed performance audit as having a more important role as an assurance tool in terms of their accountability to the public.</p>

Réflexions sur l'administration intermédiaire

Res Publica ◽  
1986 ◽  
Vol 28 (1) ◽  
pp. 159-167
Author(s):  
Stefan Schepers
Keyword(s):  
At Risk ◽  
Public Sector ◽  
Local Government ◽  
Central Government ◽  
The State ◽  
Local Authorities ◽  
The Public

Widespread consideration of the role of the public sector was bound to develop in a society confronted by a serious economic crisis.The reforms of local government carried out in the 60s and 70s have not led to the strengthening of local authorities and their means, as claimed deceptively in politica! speeches, hut towards more influence by central government on these authorities and ultimately to its increased power over the administration of society.There is not doubt that the state in its diligence to run almost everything is not only failing in its task of governing hut is also putting society at risk. The administrations which come under the intermediary authorities could form a useful counterforce against the ever present invasion of the state.For reason of its reduced capabilities local government shows the first virtue of not being able to claim hegemony, but also of being an instrument close to the citizen and his control. Furthermore it could manage many tasks in the best way.

An institutional theory perspective on public sector reform and service performance reporting by New Zealand universities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tarek Rana ◽  
Zahir Uddin Ahmed ◽  
Anil Narayan ◽  
Mingxing Zheng
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Institutional Theory ◽  
Service Performance ◽  
Policy Changes ◽  
Public Sector Reform ◽  
Sector Reform ◽  
Content Type ◽  
Reporting Practices ◽  
Performance Reporting

Purpose This paper aims to examine new public management (NPM) reform in New Zealand Universities (NZUs) and the process by which government policy changes generated service performance reporting (SPR), and how the SPR practices were institutionalised. It seeks to explain the underlying institutional forces of the reform process, how universities were subjected to accountability pressures through government-imposed managerial techniques and how universities responded to them. Design/methodology/approach The authors draw on the theoretical lens of neo-institutional theory and the concept of NPM to interpret the setting of SPR. Data comprise annual reports and other documents produced by the NZUs. Findings The findings show that the development of the SPR was driven by NPM ideals and rationales of greater transparency and accountability. The institutional pressures bestowed extra power to the government by demanding greater accounting reporting of university performance. It also shows the ensemble of institutions, organisations and management practices that were deployed to reorganise performance reporting practices. Research limitations/implications The study adds to the neo-institutional theory work that universities are experiencing extraordinary institutional pressure to become a market-type commodity in New Zealand and internationally. The findings have implications for government, universities, policymakers and public sector professionals who work in public sector reform. Originality/value Through the institutional theoretical lens, the study offers new insights into our understanding of NPM-driven regulation and institutionalisation of managerial techniques. The insights inform policy and practice surrounding design, implementation and the potential effect of future policy changes with reference to the performance of NZUs and internationally.

scholarly journals The Impact of Performance Audit: the New Zealand Experience

2021 ◽  
Author(s):  
◽  
Nurul Athirah Abd Manaf
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Performance Improvement ◽  
Managerial Practices ◽  
The Public ◽  
Performance Audit ◽  
And Performance ◽  
Auditor General ◽  
The Many ◽  
The Impact

<p>Performance audit, compared to the traditional financial and compliance audits, is a relatively new innovation that emerged amidst accountability concerns in the public sector. Economic crises, ministerial scandal and inefficiencies were among the impetus that led the public to demand better performance and greater accountability in the public sector, and performance audit was among the many responses to such demand. In New Zealand, performance audit is carried out by the Controller and Auditor General (the AG) under the mandate granted by the Public Audit Act 2001. Adapting the methodology from grounded theory, this study looks at the impact of performance audit on seven entities audited in 2006 by the AG. This study found that the entities were impacted through the manifestation of implemented audit recommendations and the attainment of performance audit goals. In particular, there is a high acceptance and implementation rate to the audit recommendations made in the seven audits. The implementation of accepted recommendations consequently led to the changes within the entities in terms of managerial practices, as well as internal systems and processes. In some entities, these changes were translated into performance improvement, where the entities experienced changes in the way that they carried out their operations. However, based on interviewees' accounts being the auditees of the audits, most interviewees viewed performance audit as having a greater role for performance accountability compared to performance improvement. Whilst the auditees found the audit recommendations useful, the impact on performance in their view has not been significant. Rather, the auditees viewed performance audit as having a more important role as an assurance tool in terms of their accountability to the public.</p>

Assessing the Performance of Local Government

2005 ◽  
Vol 193 ◽  
pp. 90-101 ◽  
Author(s):  
Philip Andrew Stevens
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Cost Savings ◽  
Library Services ◽  
Potential Cost ◽  
Local Authorities ◽  
Background Factors ◽  
The Public ◽  
Economic Profile

We consider the measurement of performance in the public sector in general, focussing on local government and the provision of library services by English local authorities in particular. We will consider two methodologies that assess the performance of local authorities in terms of the efficiency with which they provide services and consider methods that allow us to account for exogenous influences on performance, such as the socio-economic profile of the population served by the authority. We find that although both methods' results appear similar, the implications for potential cost savings vary widely. Omitting to account for background factors leads to an overstatement of the level of inefficiency and hence the scope for reducing expenditure.

scholarly journals Sprogarbejdet i danske kommuner

2018 ◽  
Author(s):  
Julie Meyer Ingemansson ◽  
Anne Kjærgaard ◽  
Sabine Kirchmeier
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Questionnaire Survey ◽  
Digital Communication ◽  
Task Group ◽  
Local Authorities ◽  
The Public ◽  
Effective Administration ◽  
Language Quality ◽  
New Challenges

Klart sprog bidrager til en god og effektiv forvaltning. Digitaliseringen af den offentlige sektor åbner nye muligheder for at styrke og professionalisere den borgerrettede kommunikation, men skaber også nye udfordringer for de skrivende medarbejdere. Dansk Sprognævn har undersøgt hvordan der arbejdes med sproget i den borgerrettede kommunikation i danske kommuner. Undersøgelsen er baseret på en spørgeskemaundersøgelse suppleret med interviews og omfatter 13 kommuner. Rapporten tegner et billede af et område hvor medarbejderne ofte er meget optaget af at skrive klart og forståeligt, men hvor der mangler fokus, organisering og ledelsesmæssig opbakning til at opbygge de nødvendige kompetencer og til at arbejde systematisk med sprog og tekster. På grundlag af rapportens resultater anbefaler Sprognævnet at der nedsættes en arbejdsgruppe med eksperter fra fx KL, Digitaliseringsstyrelsen og Dansk Sprognævn. Arbejdsgruppen skal udarbejde forslag til hvordan indsatsen for en klar og sammenhængende digital kommunikation med borgerne kan styrkes.SummaryPlain language contributes to good and effective administration. The process of digitalising the public sector and its services provides new opportunities to strengthen and professionalise communication with citizens. However, this process also creates new challenges for employees who must produce the corresponding texts. The Danish Language Council studied how local authorities in Denmark manage language quality in their communications with citizens. The study covers 13 local authorities and is based on a questionnaire survey supplemented with interviews. The resulting scenario is one where employees are often very concerned with producing plain and comprehensible language, yet management lacks a focus on organised communication and does not support or build employees’ competences for systematically working with texts and language. Based on these results, the Danish Language Council recommends the establishment of a task group consisting of experts from e.g. the Local Government Denmark, the Danish the Agency for Digitisation and the Danish Language Council. The main assignment of the task group will be to submit proposals on how to strengthen plain and coherent digital communication with citizens.

scholarly journals The Utilisation and Perceived Value of Archives: New Zealand’s Recordkeeping Standards by Public Sector Recordkeepers

2021 ◽  
Author(s):  
◽  
Grace Elizabeth Currie
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Survey Research ◽  
Perceived Value ◽  
Research Approach ◽  
Local Authorities ◽  
Public Records ◽  
Quantitative Survey ◽  
The Public

<p>Archives New Zealand has issued and revised seven recordkeeping standards since the passing of the Public Records Act 2005, four of which are mandatory compliance standards for all public offices and local authorities. Public sector recordkeepers are charged with achieving their organisations’ compliance with the Public Records Act but no research has been done into the utilisation and perceived value of these standards by this group. This project aimed to reveal how widespread utilisation of Archives New Zealand’s recordkeeping standards is and how valuable public sector recordkeepers believe the standards are by seeking evidence of utilisation of the standards, reasons behind this utilisation or lack thereof, and perceived drivers and/or barriers to the standards’ utilisation. A quantitative survey research approach was taken to obtain data from public sector recordkeepers. The research found that the standards are being used by many recordkeepers and for multiple purposes within organisations. The mandatory standards are the most utilised and compliance to the Public Records Act the biggest driver behind utilisation. Overall the standards are deemed valuable, but opinions are conflicting concerning the style and content of the standards. Further research into this area is recommended to provide more detailed results about the standards as individual entities.</p>

scholarly journals The Utilisation and Perceived Value of Archives: New Zealand’s Recordkeeping Standards by Public Sector Recordkeepers

2021 ◽  
Author(s):  
◽  
Grace Elizabeth Currie
Keyword(s):  
New Zealand ◽  
Public Sector ◽  
Survey Research ◽  
Perceived Value ◽  
Research Approach ◽  
Local Authorities ◽  
Public Records ◽  
Quantitative Survey ◽  
The Public

<p>Archives New Zealand has issued and revised seven recordkeeping standards since the passing of the Public Records Act 2005, four of which are mandatory compliance standards for all public offices and local authorities. Public sector recordkeepers are charged with achieving their organisations’ compliance with the Public Records Act but no research has been done into the utilisation and perceived value of these standards by this group. This project aimed to reveal how widespread utilisation of Archives New Zealand’s recordkeeping standards is and how valuable public sector recordkeepers believe the standards are by seeking evidence of utilisation of the standards, reasons behind this utilisation or lack thereof, and perceived drivers and/or barriers to the standards’ utilisation. A quantitative survey research approach was taken to obtain data from public sector recordkeepers. The research found that the standards are being used by many recordkeepers and for multiple purposes within organisations. The mandatory standards are the most utilised and compliance to the Public Records Act the biggest driver behind utilisation. Overall the standards are deemed valuable, but opinions are conflicting concerning the style and content of the standards. Further research into this area is recommended to provide more detailed results about the standards as individual entities.</p>

The Reporting Entity in Private-Public Accounting Harmonisation. Is Control Enough for the Local Government Consolidated Financial Statements?

2017 ◽  
pp. 5-29 ◽  
Author(s):  
Cristian Carini ◽  
Laura Rocca ◽  
Claudio Teodori ◽  
Monica Veneziani
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
The Public ◽  
Financial Accountability ◽  
Public Sector Accounting ◽  
Definition Of ◽  
Reporting Entity

The European Commission initiated a discussion on the expediency of using the International Public Sector Accounting Standards (IPSAS), based on the IAS/IFRS, as a common base for harmonizing the public sector accounting systems of the member states. However, literature suggests that accounting is not neutral with respect to the economic, social and political dimensions. In the perspective of evolution of the accounting regulation outlined, balanced between accountability, with the need to represent phenomena for reporting pur-poses, and decisionmaking issues, which concentrates on the quantitative importance of the values, the paper aims to analyse the effects of the application of different criteria for the definition of the reporting entity of the local government consolidated financial statements (CFS). The Italian PCA 4/4, the test of control and the financial accountability approaches are examined. The evidence that emerged from the case studies examined identifies several criticalities in the Italian PCA 4/4 and support the thesis that the financial accountability approach is more effective in providing a complete representation of the public resources entrusted to and managed by the group, whereas the control approach better approximates quantification of the group results in terms of central government surveillance. The analysis highlights the importance of the post implementation review period and the opportunity to contextualize the adoption of the consolidated financial statement in the broader spectrum of the accounting harmonization process, participating in the process of definition of the European Public Sector Accounting Standards (EPSAS).

Sign in / Sign up

Export Citation Format

Share Document