Accrual Budgeting: Accounting Treatment of Key Public Sector Items and Implications for Fiscal Policy

Budgeting in accrual terms is one of the most controversial issues in public sector accounting. In this paper, we analyze the accounting treatment of problematic elements of the financial statements when introducing accrual budgeting, and discuss the effects of the analyzed accounting alternatives on fiscal policy. We focus on three pioneer countries in the implementation of accrual budgeting and accounting: the United Kingdom, Sweden, and New Zealand. The accounting standards of the International Public Sector Accounting Standards Board, the European System of Accounts, and the Government Finance Statistics Manual of the International Monetary Fund are taken as benchmarks.     

The contribution of international accounting standards to implementing NPM in developing and developed countries

In recent years, numerous countries have undertaken administrative reforms to implement New Public Management (NPM) postulates. The implementation of NPM involves new information needs for decision taking by public managers. In this context, public sector accounting plays a key role as an information system for the successful implementation of NPM. The International Federation of Accountants (IFAC) is undertaking an international accounting harmonisation project to establish high‐quality public sector standards to meet the new information requirements under NPM worldwide. This article examines the capability of IFAC accounting measurement bases to meet information needs under NPM postulates, in both developing and developed countries, analysing the differences between these types of countries. The National Accounting Standard Setters (NASS) of 47 countries were asked about the usefulness and viability of Fair Value Accounting (FVA) to implement NPM postulates, especially those concerning improved efficiency, enhanced information transparency and benchmarking analysis. Copyright © 2007 John Wiley & Sons, Ltd.     

Public Financial Management Reforms: The Role of Ipsas in Latin‐America

During the last 30 years, many public administration reforms promoted by New Public Management have been undertaken. These reforms have spread to Latin‐American countries and include changes in governmental accounting systems, where the implementation of International Public Sector Accounting Standards (IPSASs) has been a stimulus for modernization. This article aims to clarify the situation of IPSASs implementation in the Latin‐American context as well as the stimuli for and effects of their implementation. The analysis shows that there is an emerging international trend to adopt IPSASs in Latin‐American countries although at the same time, there are evident obstacles to achieving reform goals. In Colombia, reforms are still underway, and the usefulness of IPSASs to improve decision‐making at an organisational level cannot be evaluated. Meanwhile, in Peru, the modernization is more rhetorical than real, and many efforts remain to be made for the effective implementation. Copyright © 2016 John Wiley & Sons, Ltd.     

The Appointment, Removal and Responsibilities of Public Sector Chief Executives in Australia: Some Recent Developments

In the little over the decade since the publication of Smith's Public Employment Law and McCarry's Aspects of Public Sector Employment Law, much as changed in the law of public sector employment in Australia. This article briefly surveys some of the major developments in public sector employment law in Australia during the 1990s in relation to departmental chief executive departmental heads.     

Australia's Northern Territory perspectives of public sector reform

This article analyses the forces driving reform of the Northern Territory Public Sector over the past 20 years. It spans an era in which the NT, a ‘small State’ moved from colonial-style dependency on external governments to self-government, with corresponding shifts in the public service. Included is an analysis of the demise of old civil service traditions and their replacement with modern methods of policy development and implementation. It scrutinizes the impact of politicians and politics on the public sector. It examines new legislation currently governing the public sector and the role played by the Public Service Commissioner in leading the reform movement through all its stages—from the analysis of weaknesses in earlier legislation to the passage of new legislation which encapsulates the philosophy behind a modern and effective public sector. It looks at what subordinate legislation is needed by a public service to add substance to a primary Public Sector Employment & Management Act. It analyses the main functions of the Act and highlights the roles and relationships of politicians with the Public Service Commissioner and the Chief Executive Officers of various government departments. Finally, it attempts to evaluate the strengths and weaknesses of the Act after three years of operation. (© 1997 by John Wiley & Sons, Ltd.)     

Victoria: Rolling Back – or Reinventing – the Kennett Revolution?

The election of the Kennett government in 1992 heralded an era of unprecedented change in public sector employment and industrial relations in Victoria. The Employee Relations Act 1992 and the Public Sector Management Act 1992 redefined the public sector in Victoria and the relationship, both collective and individual, of public sector employees with government. In October 1999 the Kennett government unexpectedly lost office. But despite its pre-election rhetoric promising a return to more conventional arrangements, there is little indication that the Bracks government intends to significantly dismantle the Kennett legacy in public sector employment and industrial relations.     

Because coconuts do not grow in Canberra: Complexity theory and capacity development in Solomon Islands Police Force

Statebuilding has been informed and captured by reductionist, linear change models. Defined by technocratic approaches to public sector (re)building and reform—it has been monitored, measured and evaluated by New Public Management artefacts such as log‐frames and Results‐Based Management. Through a case study on the capacity development of the Royal Solomon Islands Police Force, I explore the possibilities for using complexity theory to better understand, manage, and monitor capacity development interventions. The analysis of interview data with police practitioners from both sides of the intervention—advisors and local counterparts—reveals the explanatory power of complexity concepts (such as interconnectedness, emergence, initial conditions, and non‐linear change) in ways that could inform a rethink of how we frame public sector capacity building interventions.     

Global Regulation and Institutional Change in European Governance

The literature on institutional innovation in European governance has been dominated by an inward-looking focus on the European integration process. However, in the context of a highly integrated and interdependent world, it is not possible to understand the evolution of European governance without taking into account developments in the international institutional environment. This article aims to contribute to the study of the interaction between global and European modes of governance by examining the impact of EU's engagement with the International Accounting Standards Board (IASB), and its predecessor the International Accounting Standards Committee (IASC) on the institutions of European accounting regulation. Following an analysis of the politics of international accounting harmonisation, it is demonstrated that EU's decisions to adopt the standards produced by the IASB, and to establish a new, differentiated European accounting regulatory mechanism, were driven by its desire to bolster European influence in the context of the IASC/IASB.     

Searching for Efficiency in the Public Sector: Interim Evaluation of Performance Budgeting in New Zealand

In this article I examine the efforts to promote performance measurement in the public sector with particular reference to New Zealand. In section two I examine the State Sector Act of 1988 and the Public Finance Act of 1989, which together brought about changes in the New Zealand public sector. In section three I examine the problems of implementing the reform. In section four I discuss the experience of developing statements of performance measurement required under the Financial Administration Act of 1989 and in section five I develop an alternative scheme on the basis that a uniform approach is less likely to be applicable to a range of public sector agencies. The final section contains a brief conclusion.     

People: hearts and minds Towards rebirth of the public service ethic

No country will escape the enormous forces that are now buffeting the public sector worldwide. The massive changes underway are affecting people—public servants and citizens alike—and not just bottom lines. Standard approaches to dealing with change may unwittingly overlook the fact that Public Services are first and foremost “people systems”. The article provides a timely reminder that players in public organizations—senior officials, middle managers and front-line workers—experience change differently given their distinct perspectives and levels of authority. While responses to change may vary considerably within organizations, a common humanity is what ultimately unites people. As a result, governments that choose to ignore rather than acknowledge the human side of change may experience needless difficulty in bringing about the successful renewal of the public sector. (© 1997 by John Wiley & Sons, Ltd.)     

公共管理视域中的第三部门：功能、优势及困境

第三部门与公共管理无论从理念还是实践层面都具有紧密的内在联系。第三部门是公民社会的组织,在公共管理的多元主体体系中,代表来自市场和政府之外的力量。在公共管理中,第三部门发挥独特的功能,它已经成为推动经济发展、提供社会公共服务、推进民主政治进程、维护社会稳定、促进社会资本积累的重要力量。第三部门功能的发挥源于第三部门在贴近民众、行动灵活、创新性、专业性、广泛性方面具有独特的优势。同时,第三部门由于内外两方面的原因,存在活力缺失的困境。第三部门要走出困境,客观上需要第三部门自身、政府和社会的共同努力。     

Latin–American public financial reporting: recent and future development

In recent years, numerous Latin–American countries have carried out reforms in their public accounting systems, with technical cooperation provided by the U.S. Agency for International Development (USAID). Taking into account the lack of international accounting standards for the public sector, USAID has designed a model termed Integrated Financial Management System for Latin America and the Caribbean (IFMS or SIMAFAL). This model is intended to provide better financial information for governmental decision‐taking as regards the allocation of resources; a further goal is to achieve greater transparency and for a higher degree of responsibility to be accepted for the commitments made and the results of activities undertaken. Important changes are currently taking place on the international public accounting scene and the International Federation of Accountants (IFAC) is pressing for the adoption of a set of international public accounting standards by Latin–American countries. In this article, we compare the level of information included in the year‐end governmental public report in Latin–American countries which have carried out their reforms outside SIMAFAL with that of others which have followed this model. Second, we examine the extent to which the public financial reporting practices recommended by IFAC coincide with those adopted by the above countries. Copyright © 2007 John Wiley & Sons, Ltd.     

Enron/Andersen: Crisis in U.S. Accounting and Lessons for Government

Accounting and auditing play a key role in the belief of ordinary taxpayers and investors in their institutions. This is equally true of the private and governmental sectors. The Enron/Andersen scandal, regrettably, is not an isolated case, but rather merely indicative of underlying, structural flaws in our financial systems. Moreover, there is evidence that some of these flaws may be present in governmental accounting and auditing. The Sarbanes‐Oxley Act of 2002 is an attempt to address these problems in the private sector, but does not address concerns in the public sector. Public sector accounting issues that need to be addressed and monitored include substandard audit work and related liability issues, the appropriate funding of GASB so as to ensure its independence, auditor fees, and auditor independence questions including protection of elected and appointed state auditors.     

Public sector capacity reform in Ethiopia: a tale of success in two ministries?

To enhance the capacity of public institutions in Ethiopia and to create an ideal environment for investment and economic growth, the public sector has gone through a series of reform processes including the civil service. This article attempts to assess the outcomes of the Public Sector Capacity reform, based on a small‐scale survey conducted in two ministries. The survey, which was conducted between March and May in 2005, reveals a notable transformation of service delivery in each organisation. Very high levels of user satisfaction and spectacular improvements in performance were also recorded as a result of the introduction of business process reengineering (BPR). Although the change process in both organisations tended to be sluggish, these improvements appear to be outstanding within the context of Ethiopia's system of public administration. However, one challenge will be for the government to maintain the momentum of reform and to cascade BPR and other elements of the reform to other divisions, departments and work units in the government. Putting in place incentive schemes and an appropriate monitoring system should protect the reform from backsliding. Despite the pessimistic accounts of public sector reform in African countries, this article reveals that there are positive findings of interest to the field of development administration. Copyright © 2007 John Wiley & Sons, Ltd.     

Introduction

ABSTRACT

Many externally motivated public sector reforms produce less change than expected. This article argues that we should expect limited reform results in respect of certain organizational attributes. Applying institutional theory on isomorphism, the argument is simply that reforms are harder where they influence organizational characteristics that (i) are difficult to observe externally, (ii) are core to the organization, and (iii) involve actors with whom the externally defined change agenda is unlikely to resonate normatively. These arguments are tested in an analysis of Public Financial Management (PFM) reform in Africa, where evidence is supportive. The article contributes to public management literature, and comparative studies in particular, by applying a well-suited theory to the study of public sector change. The approach and findings should be of particular interest to the development community, shedding light on why reforms routinely underperform—in PFM and beyond, extending to topics like externally driven nation building.     

GASB's Survival Potential: An Agency Theory Perspective

The primary objective of this article is to develop a framework for examining the survival or demise of an accounting standards setting body, with specific emphasis on analyzing the survival potential of the proposed GASB (Government Accounting Standards Board). In meeting this objective, we will first contrast the survival of the Securities and Exchange Commission (SEC) with the demise of the Cost Accounting Standards Board (CASE), based on a framework derived from recent developments in agency theory.
The position taken in this article is neither that of an advocate nor an adversary of the various accounting regulatory bodies discussed. Instead, the authors' intent is to shed light on the complex issues surrounding the potential for survival of such bodies. An improved understanding of these issues should, in turn, permit a more enlightened analysis of the strengths and weaknesses of such bodies.     

Implementing GASB 45: Recommended Best Practices in Local Government

The Governmental Accounting Standards Board issued Statement No. 45—Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions in 2004, requiring local governments to actuarially determine their annual required contribution to fund other postemployment benefits (OPEB) and to account for the unfunded amount as a liability on annual financial statements. This article discusses best practices on the implementation and management of this accounting standard, including actuarial practices, funding decisions, and benefit changes. It also presents how Phase I cities and counties in North Carolina implemented Statement No. 45 for further explanation. The hope is that these best practices will serve as a guidepost for making OPEB policy decisions, especially among smaller local governments, on the criteria of financial accountability and sustainability.     

新会计准则下公司利润调节空间的变形及应对策略

2006年初,我国孕育3年之久的新会计准则终于破茧而出,并于2007年1月1日起首先在上市公司中推行,随后将逐步推广到所有公司。新准则与国际准则趋同,涵盖各类企业各项经济业务,可独立实施。新准则在旧准则基础上作了重大的调整和补充,填补了我国会计领域中诸多空白。本文系统地探讨了新会计准则下公司利润调节和机会主义盈余管理空间的变化,并针对这些变化,较全面地提出了应对策略。     

Appraising Commitments and Guarantees with Option Prices1

Budgetary decision‐making is prone to myopia and to tunnel vision. Pension commitments suffer from both of these pathologies. In this case, we look closely at the State of Oregon's Public Employee Retirement System to show how the disclosure standards adopted by the Government Accounting Standards Board (GASB) help correct the fiscal vision of state and local governments and further conclude that postemployment commitments ought to be comprehensively examined in GASB's review of its accounting and reporting standards scheduled for 2008, ideally from the standpoint of present‐value budgeting.