What Is Known and What Should Be Known About Factors Affecting Financial Sustainability in the Public Sector

Author(s):  
Silvia Gardini ◽  
Giuseppe Grossi

The international literature suggests that the causes of weak financial sustainability of public organizations depend on both external and internal conditions. Whereas the external conditions are related to demographic and socio-economic factors, the internal conditions are associated with the political and managerial settings, and thus, the latter could be addressed by the local government with the aim to maintain financial sustainability over the long term. Based on a literature review, the authors explain the most consolidated trend of such variables with respect to the impact of those variables on financial sustainability, and simultaneously, they reveal a disproportion in what the literature has most recently analyzed. Ultimately, the authors highlight the need for further research regarding the managerial factors and additional cross-country comparisons of the roles of both external and internal conditions.

Author(s):  
Desiree Sandoica Paris ◽  
Manuel Soler Severino

There are public entities that possess in their hands multiple property assets, that are difficult to manage, being, in many cases, buildings that are considered icons that contribute to the character of their surroundings or that take part of our historical heritage or have some kind of protection. It is difficult for the private sector to manage these assets, if in the public sector, we add the electoral cycle, the problems increase. At a public level, it is more complicated, since it should be understood that the planning of property assets and delivery do not correspond to the political cycles. In addition, policies change once established, perhaps with the development under construction, will inevitably have serious consequences on: the planning, cost and alignment of the building with the final needs of the asset. Therefore, it is important for all the stakeholders to realize that an approach is needed for the long-term management of property asset portfolios. To achieve this goal, we have developed a structured and programmed approach of Property Asset Management adapted to the public sector, in order to provide the best solutions.


2015 ◽  
Vol 22 (2) ◽  
pp. 219-227
Author(s):  
Kwabena Frimpong

Purpose – This article aims to focus on the impact of the current austerity measures on UK public sector anti-fraud and financial crime investigative resource capacity building initiative developed over the years to tackle fraud against the public purse. Design/methodology/approach – The article draws on secondary sources of data and available literature on fraud and financial crime. Findings – Fraud is a challenge in the UK public sector but the cut-back on anti-fraud and financial crime investigative resources, given the scale of public sector fraud, the growing emphasis on accountability and the time of austerity with public money more exposed to fraud is arguably a back-door/u-turn policy on zero-tolerance approach in tackling public sector fraud and financial crime. There is the potential of this encouraging more fraud and financial crime against the public sector in the long term if measures are not taken to devise strategies for enhancing anti-fraud and financial crime investigative resource capacity. Research limitations/implications – The research implication for this article is that it opens an avenue for future studies to examine post austerity strategies for strengthening public sector anti-fraud and financial crime investigative resource strategies to deal with emerging fraud threats to UK public sector. Practical implications – This article acts as a reference guide for policymakers to reflect on the long-term adverse impact of the austerity on anti-fraud and financial crime investigative resource capacity and capability in tackling fraud public sector fraud. Originality/value – The paper attempts to present an alternative lens to examining the scale of UK public sector fraud problem rather than relying on headline story of declining fraud in UK.


Author(s):  
Amal Abdulla Alqooti

The study aimed to investigate the impact of public governance on the implementation of National Audit Office’s recommendations in Kingdom of Bahrain. It measures the impact of public governance on reducing the total violation of government entities. The study finds that there is significant impact of stewardship and rule of law principle on reducing the total violations. The study came out with important recommendations to the executive bodies concerned with addressing the deficiencies in the governmental system and raising the level of public governance to assist implementing the auditors ‘recommendations and avoid violations.


Author(s):  
Caroline Fischer ◽  
Moritz Heuberger ◽  
Moreen Heine

The digitalization of public administration is increasingly moving forward. This systematic literature review analyzes empirical studies that explore the impacts of digitalization projects (n=93) in the public sector. Bibliometrically, only a few authors have published several times on this topic so far. Most studies focusing on impact come from the US or China, and are related to Computer Science. In terms of content, the majority of examined articles studies services to citizens, and therefore consider them when measuring impact. A classification of the investigated effects by dimensions of public value shows that the analysis of utilitarian-instrumental values, such as efficiency or performance, is prevalent. More interdisciplinary cooperation is needed to research the impact of digitalization in the public sector. The different dimensions of impact should be linked more closely. In addition, research should focus more on the effects of digitalization within administration.


2020 ◽  
Vol 5 (2) ◽  
pp. 10
Author(s):  
Abdulla Salem Ahmed Alnuaimi ◽  
Kamarul Bahari Yaakub

This study examines the moderating impact of leadership practices (LP) in TQM and organizational performance (OP). Through literature review, four hypotheses were derived which are tested in the UAE to better understand the nature of the relationship between TQM and LP as well as the impact of TQM on OP in the public sector departments in the UAE. Data were collected by distributing questionnaire to 230, data we analyzed by using descriptive and inferential statistics. The research showed the impact of LP on TQM and OP.


2017 ◽  
Vol 30 (5) ◽  
pp. 429-446 ◽  
Author(s):  
Charmaine Belfanti

Purpose This paper presents a review examining an Australian public sector competency framework through the lens of emotional intelligence (EQ) to answer the question “To what extent is the concept of EQ used to facilitate NSW public sector reform?” The purpose of this paper is to accentuate the importance of emotional capacity as an important capability to achieve reform goals, recognising the public sector’s deep organisational history and accepting that change is an emotional event, and that people achieve change. Design/methodology/approach A literature review drawing relationships between culture, change and emotion is applied to a capability framework for the public sector in the State of NSW. This review serves two purposes. First, it examines interacting factors that define the public sector context – a culture developed over generations, identity, the impact of culture on change and the relationship between change and emotions. The second examines a concept for its ability to transform this culture in a comparatively short time compared to its evolutionary history. Emotional capacity is framed by the EQ literature and is explored as a competency with particular focus in the NSW public sector. A ProQuest search using keywords Emotional intelligence and Public Sector or Civil Service; and Emotional intelligence and Public Administration located 22 studies across 14 countries looking at EQ in the public sector. These are supplemented by additional studies on EQ. The capability framework is examined against the elements of the only recognised standardised test for EQ (Fiori and Antonakis, 2011), the Mayer-Salovey-Caruso Emotional Intelligence Test. Findings The examination concludes that emotional capacity is implicit, if not overlooked within the framework, with continued emphasis on technical and managerial competencies, evident of public sector management still encased in traditional paradigms. The discussion positions the development of emotional capacity as a high-order competency in a challenging reform environment. Research limitations/implications The literature review may suffer from publication bias in both the literature cited in this review as well as those studies that have been published, particularly given the small amount of studies available within the public sector environment. The theoretical nature of the matching assessment is subjective and allows potential for variation in interpretation in both the meaning of the competencies and the matching to the four branches of EQ. Practical implications Empirical research in EQ is limited in the public sector domain. The public sector has an embedded culture weighed with assumptions steeped in history. A public sector organisation is valuable for longitudinal studies as many employees stay for considerable years if not their whole career. Further empirical research within this sector in examining the impact of emotional capacity on cultural reform would enhance the knowledge in this field. Originality/value The paper contributes to the limited literature examining the optimal competencies in particular emotional capacity for reform in the public sector.


2021 ◽  
Vol 12 (1) ◽  
pp. 45-59
Author(s):  
Dharmendra S. Mistry ◽  
◽  
Pallavi C. Vyas

Dividend is the return given to the shareholders on investment made by them in company’s capital. It is paid in cash to shareholders out of companies’ profit and sometimes shareholders have an option to reinvest all or part of dividend in the company. Raising of fund for future growth and development of the significantly depend on Dividend Decision. Hence, the present study is an attempt to study the determinants of the Dividend decision. In the present paper, The impact of profit Before Tax, Assets and Long-Term Liabilities on Dividend Decision of the Public Oil and Gas Sector in India has been analysed in the present research work. Analysis for the period of 5 years i.e., 2015-16 to 2019-20 through a statistical model has been carried out. The regression and correlation techniques have been used to study the level of impact of the selected companies on the public sector of Oil and Gas Sector in India. The study found that 97% variation in the Dividend was because of a set of predictors and hence the Dividend can be predicted from a linear combination of factors affecting dividend decision i.e. PBT (Profit Before Tax), A (Assets) and L (Long-term Liabilities). It can be concluded that shareholders got an increase in Dividend with the increase in PBT. It means that shareholders got a higher return in the form of a Dividend on the fund provided by them because of increase in profits of the companies. It is observed that with the increase in Assets (means with the increase in the size of the business), correspondingly turnover and profit have increased and as a result, the return of the shareholders i.e. Dividend has also increased. On one hand, Long Term Liabilities have increased while on the other hand Dividend has also increased. It shows that the fund requirement for an increase in Assets (size of the business) has been met by the borrowed funds and equity shareholders got the benefit of Trading on Equity because the amount of Dividend has also increased


2019 ◽  
Vol 27 (3) ◽  
pp. 346-365
Author(s):  
Sotirios Karatzimas ◽  
Carles Griful Miquela

Purpose The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on financial sustainability – its usefulness and necessity of maintaining, its impact on citizens’ welfare and alternative proposals. The setting is rather interesting as strict rules are imposed by a legislation criticized of mimicking European Commission policies, on well-performing municipalities, in light of the recent “independency” conflict. Design/methodology/approach The study uses insights from the public choice theory and the concept of accountability to draw a framework that could explain the perceptions of mayors and comptrollers. The views of the two groups are captured with the use of an online questionnaire. Findings The results indicate that while the application of strict rules has borne fruit, this trend is not sustainable in the long run and a careful reconsideration is required. Accordingly, both groups express concerns on citizens’ future welfare. It moreover appears that in this particular setting, mayors’ and comptrollers’ sense of accountability toward citizens exceed their personal interests. Originality/value This study provides empirical evidence on the impact of strict budget stability and sustainability rules on the long-term financial sustainability of local governments from the point of view of mayors and municipality comptrollers who are called to implement them.


2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
M Poldrugovac ◽  
J E Amuah ◽  
H Wei-Randall ◽  
P Sidhom ◽  
K Morris ◽  
...  

Abstract Background Evidence of the impact of public reporting of healthcare performance on quality improvement is not yet sufficient to draw conclusions with certainty, despite the important policy implications. This study explored the impact of implementing public reporting of performance indicators of long-term care facilities in Canada. The objective was to analyse whether improvements can be observed in performance measures after publication. Methods We considered 16 performance indicators in long-term care in Canada, 8 of which are publicly reported at a facility level, while the other 8 are privately reported. We analysed data from the Continuing Care Reporting System managed by the Canadian Institute for Health Information and based on information collection with RAI-MDS 2.0 © between the fiscal years 2011 and 2018. A multilevel model was developed to analyse time trends, before and after publication, which started in 2015. The analysis was also stratified by key sample characteristics, such as the facilities' jurisdiction, size, urban or rural location and performance prior to publication. Results Data from 1087 long-term care facilities were included. Among the 8 publicly reported indicators, the trend in the period after publication did not change significantly in 5 cases, improved in 2 cases and worsened in 1 case. Among the 8 privately reported indicators, no change was observed in 7, and worsening in 1 indicator. The stratification of the data suggests that for those indicators that were already improving prior to public reporting, there was either no change in trend or there was a decrease in the rate of improvement after publication. For those indicators that showed a worsening trend prior to public reporting, the contrary was observed. Conclusions Our findings suggest public reporting of performance data can support change. The trends of performance indicators prior to publication appear to have an impact on whether further change will occur after publication. Key messages Public reporting is likely one of the factors affecting change in performance in long-term care facilities. Public reporting of performance measures in long-term care facilities may support improvements in particular in cases where improvement was not observed before publication.


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