Public sector accounting education and training as supportive mechanisms of the ongoing accrual-based accounting reforms

This article explores the major challenges surrounding the ongoing wave of public sector accrual accounting reforms. In particular, this paper sheds light on the importance of training and skill development as essential components of capacity-building and discusses the crucial role educational institutions play in laying the basis of a sound Public Sector Accounting (PSA) body of knowledge. The article also provides recommendations based on studies and reports conducted by international organizations, standards-setting bodies, and accountancy profession institutions as well as capitalizing on the experience of leading countries in the public financial management field

Strengthening public financial management in the health sector: a qualitative case study from South Africa

IntroductionEffective public financial management (PFM) ensures public health funds are used to deliver services in the best way possible. Given the global call for universal health coverage, and concerns about the management of public funds in many low-income and middle-income countries, PFM has become an important area of research. South Africa has a robust PFM framework, that is generally adhered to, and yet financial outcomes have remained poor. In this paper, we describe how a South African provincial department of health tried to strengthen its PFM processes by deploying finance managers into service delivery units, involving service delivery managers in the monthly finance meeting, using a weekly committee to review expenditure requests and starting a weekly managers’ ‘touch-base’ meeting. We assess whether these strategies strengthened collaboration and trust and how this impacted on PFM.MethodThis research used a case study design with ethnographic methods. Semi-structured interviews (n=30) were conducted with participant observations. Thematic analysis was used to identify emergent themes and collaborative public management theory was then used to frame the findings. The authors used reflexive methods, and member checking was conducted.ResultsThe deployment of staff and touch-base meeting illustrated the potential of multidisciplinary teams when members share power, and the importance of impartial leadership when trying to achieve consensus on how to prioritise resource use. However, the service delivery and finance managers did not manage to collaborate in the monthly finance meeting to develop realistic budgets, or to reprioritise expenditure when required. The resulting mistrust threatened to derail the other strategies, highlighting how critical trust is for collaboration.ConclusionEffective PFM requires authentic collaboration between service delivery and finance managers; formal processes alone will not achieve this. We recommend more opportunities for ‘boundary crossing’, embedding finance managers in service delivery units and impartial effective leadership.

Taxation and Public Financial Management of Mining Revenue in the Democratic Republic of Congo

This rapid review provides a summary of the evidence on the taxation and public financial management of mining revenues in the Democratic Republic of Congo (DRC). This is a very complex topic, with a large and growing literature base, a huge interest by donors, non-governmental organisations and businesses, with some conflicting information at times. In particular, specific data on provincial budgets and spending was not identified during this review. No specific information on public financial management in either of these provinces was identified during the course of this review. Given the burgeoning size of the literature base and the complexity of the mining sector in the DRC, this rapid review only provides a snapshot of the literature. It draws on academic, grey and donor literature sources. Some papers for further reading are highlighted. The report first provides a brief background discussion of general taxation in the DRC, the decentralisation process, and provincial public revenue management. The next section provides general information on the mining sector in the DRC, including the regulatory system and official duties, royalties and tax provisions. Section 4 goes into more detail about taxation and rent-seeking in the mining sector, touching on both large-scale mining (LSM) and artisanal and small-scale mining (ASM). The next section looks at smuggling of minerals in the DRC, with a focus on gold. Finally, some specific lessons learned were drawn from two World Bank projects and highlighted in the final section. Lessons and experiences from other mining-related projects are also highlighted throughout the report. Literature in French was not included in this rapid review, which may mean that some key documents were omitted.

Analysis of public expenditure management in terms of respect for economic, social and cultural rights in the Republic of Moldova

To a great extent, respecting human rights in the Republic of Moldova is affected by unsatisfactory evolution of public expenditures and the way the latter are managed. The quality of public expenditure management, with an impact on respecting economic, social and cultural rights (ESCR) is evaluated through the prism of basic objectives of public financial management, namely the following: maintaining strict financial discipline, allocating public financial resources in conformity with government’s priorities, efficient provision of public services. The central public administration and local public administrations from the Republic of Moldova are relatively more successful in consolidating fiscal discipline than in providing an efficient use of public expenditure in conformity with strategic priorities. The research argues the positive effect which can be made by improvement of public expenditure management on respecting ESCR in the Republic of Moldova.

Ethical Problems in Nigerian Fiscal Administration (An Analysis of Political Emoluments and Remuneration)

Political Emoluments have never been only a Nigerian issue, but also a fiscal issue facing global economy today. It has become an ethical issue in public financial management, thereby hampering on the economic growth of national and international economies, respectively. Nevertheless, this paper takes into consideration such ethical issues, laying emphasis on the constitutional background of how this finance issue can be resolved legally and ethically. The major methodology to researching on this fiscal issue is a descriptive, explanatory, and prescriptive analysis, putting together the legal provisions of the Nigerian constitutions as a DNA for appropriate recommendations as a way forward. The paragraph 31 and 32 of the 3rd Schedule of the Nigerian Constitution is the major area of focus for the analysis of this paper, thereby drawing a line between the adoption of the written and spirit of the aforementioned section of the constitution in theory and practice in order to curb the fiscal crisis in the Nigerian public Emoluments laws.

INCREASING THE EFFICIENCY OF THE USE OF PUBLIC FINANCIAL RESOURCES IN ENSURING EMPLOYMENT OF THE POPULATION

The paper reveals the essence of the system of public financial management (PFM), defines its key elements of the PFM system, and articulates goals and objectives in enhancing employment. The authors definition of PFM is given. A comparative analysis of managerial financial cycles in the public and private sectors of the economy is carried out. The historical aspect of the PFM reforms is also analyzed, and various approaches to financial management (income and expenditure) in the public sector are studied and suggested better ways to improve the busyness of the population. Factors influencing the effectiveness of the PFM reforms are revealed. The challenges faced by financial managers in implementing public finance reforms are analyzed, and the opportunities that can be used to achieve the objectives of the PFM system, some of which are simultaneously challenges are analyzed.

Guest editorialHappy endings and successful stories in public sector financial management: a lesson drawing perspective

PurposePublic financial management has been characterized by the implementation of several innovations and reforms that embrace different areas and scope. These reforms aim at expenditure rationalization and efficiency enhancement, as well as the improvement of accountability and performance. Despite research having already paid attention to these innovations and reforms, the strengths, weaknesses, opportunities and threats empirically faced by public sector organizations still need to be investigated. This editorial introduces the special issue by emphasizing on the lessons that can be learned from past reform experiences.Design/methodology/approachThe editorial synthesizes some of the findings of the previous literature and evidences the necessity of both successful and unsuccessful stories, presenting a future agenda of research which emphasizes the use of case studies as a suitable method to get insights out of multiple experiences.FindingsThe four articles presented in this special issue, covering the topics of accrual accounting adoption, the use of financial statements by councilors, the use of performance information by politicians and the outsourcing of auditing in local governments, provide an overview of the efforts and challenges faced by public administrations by analyzing the influence of the institutional context, the relevance of political implications and their practical footprint.OriginalityIn this special issue, four successful stories that touch upon multiple facets of public financial management in different country contexts are discussed, and they signal important takeaway messages for further reforms.