The Crown land accounting dilemma in New South Wales local government

PurposeThe paper addresses the question of whether Crown land managed by local authorities in the New South Wales (NSW) local government system should be recognised as assets on municipal balance sheets.Design/methodology/approachThe paper provides a synoptic review of the literature on accounting for public goods assets followed by a critical analysis of the official requirements of the NSW government on the recognition of Crown land.FindingsThe NSW government holds that Crown land managed by local councils should be recognised as an asset on council books. However, following an assessment of the problem through the analytical prism of financial accounting, it is argued that councils do not possess control over Crown land and that such land should thus not be recognised by councils.Research limitations/implicationsThe paper covers the legal and accounting framework applicable to NSW local government. However, it has broader implications for other local government systems with similar institutional and legislative foundations, such as other Australian states, New Zealand and South Africa, and these implications are highlighted in the paper.Practical implicationsIt is argued that NSW government policymakers should re-consider the requirement for Crown land to be recognised on councils' books. Local authorities would then be able to save money and time on external auditing, management of land asset registers and the mandatory valuation of land.Originality/valueAlthough Crown land shares some of the characteristics of other public good assets, unique accounting challenges arise due to the existence of a market in which such land could be traded not by councils, but by its legal owner (the Crown). In financial accounting, legal ownership is not considered as the main criterion over assets. However, the authors argue that for Crown land vested with councils, it becomes a critical factor in decision making.

Collaborative public service provision archetypes in healthcare emergencies: a case of COVID-19 administration in Sri Lanka

PurposeThis paper examines how the properties and patterns of a collaborative “networked hierarchy” incident command system (ICS) archetype can provide incident command centres with extra capabilities to manage public service delivery during COVID-19.Design/methodology/approachThe paper illustrates the case of Sri Lanka's COVID-19 administration during its “first wave” (from 15 February to 1 September 2020). Primary data were collected through in-depth interviews with government officials who were directly involved in the administration of the COVID-19 outbreak. Secondary data sources were government publications and web sources. The data were analysed and interpreted by using narrative analysis and archetype theory respectively.FindingsThe findings highlight how Sri Lanka's public sector responses to COVID-19 have followed a collaborative “networked hierarchy” ICS archetype. More specifically, the government changed its normative ICS “properties” by incorporating a diverse group of intergovernmental agencies such as the police, the military, the health service and administrative services by articulating new patterns of collaborative working, namely, organisational values, beliefs and ideas that fit with the Sri Lankan public service context.Originality/valueIn responding to high magnitude healthcare emergencies, the flexibility of a collaborative networked ICS hierarchy enables different balances of organisational properties to be incorporated, such as hierarchy and horizontal networking and “patterns” in public service provision.

Ambiguity in public sector performance measurement: a systematic literature review

PurposeThis paper presents a systematic literature review aiming at analysing how research has addressed performance measurement systems’ (PMSs) ambiguities in the public sector. This paper embraces the ambiguity perspective that PMSs in public sector coexist with and cope with existing ambiguities.Design/methodology/approachThe authors conducted a literature review in Scopus and ScienceDirect, considering articles published since 1985, and the authors selected articles published in the journals included in the Association of Business Schools' Academic Journal Guide (Chartered ABS, 2018). Of the 1,278 abstracts that matched the study’s search criteria, the authors selected 131 articles for full reading and 37 articles for the final discussion.FindingsThe study's key findings concern the elements of ambiguity in PMSs discussed in the literature. The study’s results suggest that ambiguity is still a relevant problem in performance measurement, as a problem that is impossible to be solved and therefore needs to be better understood by researchers and public managers. The analysis allows us to summarize the antecedents and consequences of ambiguity in the public sector.Research limitations/implicationsThe key findings of the study concern the main sources of ambiguity in PMSs discussed in the literature, their antecedents and their consequences. The study results suggest that ambiguity exists in performance measurement and that is an issue to be handled with various strategies that can be implemented by managers and employees.Practical implicationsManagers and researchers may benefit from this research as it may represent a guideline to understand ambiguities in their organizations or in field research. Researchers may also benefit from a summary list of the key issues that have been analysed in the empirical cases provided by this research. Social implicationsThis research may provide insights to limit ambiguity and thus contribute to improve performance measurement in the public sector.Originality/valueThis research presents a comprehensive review on the topic. It provides insight that suggests what future research should attend to in helping to interpret ambiguity, considering also what should be done to influence ambiguity.

Supreme audit institutions in Europe: synergies, institutional transparency, gender equality and sustainability engagement

PurposeSupreme audit institutions (SAIs) examine and supervise the activity of public institutions. The study aims at contributing to the existing literature on public sector audit by providing a classification of 29 European SAIs – 28 national SAIs and the European Court of Auditors (ECA) – based on a broad range of attributes varying from the SAIs' environment to its structure, activity, resources or transparency.Design/methodology/approachThe authors apply quantitative methodology for clustering by means of multidimensional scaling and regressive ordinary least square (OLS) and logistic models.FindingsThe authors' results show that SAIs from veteran EU member states (MSs) are more similar amongst them and the same applies to SAIs from Nordic countries, Baltic countries, Western Mediterranean countries and Eastern countries. The authors also perform additional analysis focussing on currently relevant issues such as gender equality, age, environment or the sustainable development goals (SDGs), concluding that the younger the institutions' staff, the more transparent the institutions are. The authors also find that more transparent SAIs report on environmental audits, more prone to cover the SDGs in their audits.Research limitations/implicationsThe research is limited in purpose and scope because data cover only Europe. Given the limited number of observations (29), it does not have prospective purposes but only explanatory ones. The authors' findings are interesting for researchers because they offer original insights on public audit in Europe and cover matters of current interest such as environment, transparency or gender equality.Practical implicationsThe research is also of interest for public auditors because it offers them information that may help them improve their activity and find institutional synergies, as the dataset is available to public auditors.Social implicationsFrom a social view point, the paper shows that public auditors perform work on topics of interest for the citizens.Originality/valueThe dataset compiled for the research offers extensive data and a wide variety of attributes defining European SAIs and may offer future opportunities for research from different perspectives.

Performance management and hybridization of healthcare – case of the accountable care organization

PurposeThe article seeks to explain whether and how value-based healthcare principles lead to hybridization. The public management literature has been increasingly interested in hybrid forms of governance and hybrid performance management, but empirical studies are still rare. Further, the article studies the design of performance management and accounting systems as healthcare organizations reorganize their care processes applying value-based healthcare principles.Design/methodology/approachThis article first connects the theoretical discussions on value-based healthcare and performance management for hybrids. The conceptual understanding of performance management in hybrid healthcare uses a case study of a Finnish healthcare organization with documentary data and transcribed interviews with healthcare professionals from both the strategic and operative levels of healthcare.FindingsThe article illustrates and analyses how new policy-level objectives and principles of value-based healthcare led to hybridity in healthcare, manifest in mixed ownership of a particular care path and new forms of social and financial control. Further, the article provides empirical evidence of how increased hybridity necessitated new organizational modes and roles, new managerial tools for performance management and created a need to develop the capability to account and measure entire integrated care processes. Important enabling factors for the integration of care and hybrid performance management were commitment created in dialogue, voluntary-based trust and technology to generate factual shared information.Practical implicationsThe study is informative for stakeholders, funders and managers of healthcare organizations, namely new knowledge for the discussion of hybrid governance in healthcare, including a critical account of the applicability and impact of a hybrid service model in healthcare management. Moreover, the article illustrates what needs to be reconsidered in performance management and accounting practices when reorganizing care processes according to the principles of value-based healthcare.Originality/valueThe article extends the analysis of performance management in hybrids and sheds new light on hybridization in healthcare. It also provides much-needed empirical evidence on the processes and practices of accounting and performance management after implementing a value-based healthcare strategy.

Accounting for unstable environments in the public sector: managing post-COVID-19 times

PurposeThis paper aims at reflecting on the role of accounting and accountability mechanisms in pre-COVID-19 conditions and how it may evolve in “new normal”, post-COVID-19 conditions.Design/methodology/approachMoving from the papers in this special issue, the authors draw on the literature on the social construction and reflective approaches to understand pre- and post-COVID-19 events and the role of accounting therein.FindingsThe “new normal” may exacerbated the difficulty of public sector organizations to manage the uncertainties and risks associated to the new context. While “old” wicked issues remain, such as social inclusion, poverty and corruption, new ones come. The authors speculate on the “new” and “old” roles accounting and accountability can play to support governments.Originality/valueThe paper contributes by setting new research avenues for future studies in a post-COVID-19 era.

Reporting on COVID-19 – or not? Annual report disclosure of the pandemic as a subsequent event

PurposeThis paper focuses on the extent to which Swedish municipalities identified and communicated risks due to the COVID-19 outbreak early on. The purpose of this paper is to explore to what extent the situational factors of the COVID-19 pandemic influenced the likelihood of municipalities disclosing COVID-19 information as a subsequent event in the annual reports of 2019.Design/methodology/approachLogistic regression models were used to estimate COVID-19 disclosure as a subsequent event. Data were handpicked from annual reports, audit reports and meeting minutes, or were retrieved from publicly available sources.FindingsRegression results indicate that municipalities issuing their annual report in a later stage of the pandemic, in regions with a higher number of confirmed COVID-19 cases, were more likely to disclose COVID-19 information as a subsequent event. However, the municipal factors used to capture the risk of a severe impact of the COVID-19 outbreak were not of major importance. In line with previous research, this study shows that political and institutional factors have explanatory power in predicting and explaining accounting disclosure choices.Originality/valueThis paper contributes to research on accounting disclosures in urgent crises and on the specific topic of subsequent events in the public sector. Few studies address subsequent events in a corporate setting and, to the best of the authors’ knowledge, none do so in the context of the public sector. This paper also offers insight into how explanatory factors, previously tested under normal conditions and circumstances, influence disclosure choices in an early stage of a health crisis characterized by uncertainty regarding both occurrence and consequences.

Do non-financial performance and accrual-based cost information affect public sector budgeting?

PurposeThis study aims to provide evidence of how budget officers use non-financial and accrual-based cost information in the budgeting process and how the usage of this information is influenced by financial constraints.Design/methodology/approachA randomized survey-based field experiment investigating budget officers in 546 Japanese local governments (LGs) was conducted. This allowed us to identify the budget officers' decision-making in the public sector budgeting process by creating and analyzing primary data with regression models.FindingsWe found that budget officers suppress budget amounts based on non-financial information of good performances. Under fiscal constraints, officers further reduce budget amounts using information on high accrual-based costs and poor non-financial performance.Originality/valueOur survey-based field experiment allowed us to obtain primary data from officers making budget decisions. To the best of our knowledge, this study provides the first evidence that non-financial good and poor performance information and accrual-based cost information affect budget officers' decision-making under financial constrain.

Sustainability reporting at EU level: leading by example?

PurposeThis paper aims to contribute to research on public sector sustainability reporting, by focussing on the sustainability reporting of EU institutions and agencies. It seeks to examine to what extent the EU is leading by example in this area and to highlight the challenges for developing sustainability reporting at EU level.Design/methodology/approachThe paper is based on the European Court of Auditors’ (ECA) review on reporting on sustainability and presents the results of qualitative research, including a survey conducted among EU institutions and agencies. Additional secondary literature analysis puts the review's findings into the current research context on sustainability reporting.FindingsThe paper provides an overview of how the EU and its institutions and agencies report on sustainable development. It finds that the EU, as well as its institutions and agencies, are not yet leading by example on sustainability reporting. Of the 53 EU institutions and agencies surveyed, only 2 published sustainability reports. Additionally, the paper identifies key challenges for sustainability reporting in the public sector and highlights future research areas.Originality/valueThis is the first academic article on sustainability reporting of EU institutions and agencies. It contributes to our understanding of the status and challenges of public sector, supranational sustainability reporting and the auditing of such activities.

An empirical analysis of capital assets condition ratio in local governments: the case of Florida counties

PurposeThe main purpose of this paper is to examine the political, economic and institutional determinants of capital assets condition ratio in American local governments using government-wide financial statements.Design/methodology/approachBased on capital assets data from the period of 2011–2016 for the 66 Florida counties as reported on their government-wide financial statements, the authors use a panel two-way fixed effects estimation and a dynamic panel generalized method of moments estimation.FindingsThe authors find that social-economic factors, fiscal capacity and democratic voters explain the capital assets condition ratio in Florida county governments.Research limitations/implicationsThe major findings of this study may only apply to county government in one single state. It may raise the issue of the external validity of our research. It provides policy recommendations for local public officials to maintain and upgrade their capital assets.Originality/valueThe study utilizes a new approach of capital assets condition ratio to measure county government investment in capital assets based on the government-wide financial statements.