Public Financial Management Reform in South African Provincial Basic Education Departments

Since the transition to democracy in 1994, the South African government has engaged in a sustained programme of public financial management (PFM) reform across the national, provincial and local spheres of government. This study evaluates the progress of the nine provincial education departments (PEDs) in implementing the Public Finance Management Act of 1999 and explores the factors that facilitated or impeded reform. A PFM progress (PFMP) index is constructed to track each PED's performance from 1997/1998 to 2013/2014 and then used to benchmark its progress over time and relative to the education sector as a whole. The indicators comprising the PFMP index assess key PFM functions (budgeting, accounting, financial auditing and audits of performance information), financial leadership and the effectiveness of governance institutions such as audit committees. While there has been considerable progress in PFM, distinct differences in the quality and effectiveness of PFM practices across the nine PEDs remain. Stable top administrative leadership, availability of PFM skills, varying degrees of accountability and departmental capacity to establish PFM systems that conform to new accounting standards drive variances in reform outcomes. Copyright © 2016 John Wiley & Sons, Ltd.     

Budgeters' Views of State Performance-Budgeting Systems: Distinctions across Branches

Given that a majority of states have had some sort of performance‐budgeting initiative on the books for several years, how has implementation of such reform progressed? To answer this question, we surveyed legislative and executive budgeters from the 50 states, asking them for their impressions of performance‐budgeting implementation in their state. Specifically, we asked these budget officers about the reasons for introducing performance budgeting in their state; the types of activities required of their system; responsible oversight bodies; extent of application across state agencies and departments; and perceived levels of effectiveness and problems experienced with implementation of the budget reform. Our findings indicate that implementation of performance‐based budgeting systems is proceeding slowly. While there are some benefits to highlight, results show that implementing performance budgeting is not without problems—perhaps the greatest being differing perceptions of use and success among budget players, particularly across branches of government.     

Performance‐Based Budgeting: The Contribution of the Program Assessment Rating Tool

Under the President's Management Agenda for performance and budget integration, the Office of Management and Budget (OMB) designed the Program Assessment Rating Tool (PART) to breath new life into performance‐based budgeting as envisioned by the Government Performance and Results Act (GPRA). This article discusses what PART is designed to do and how the PART process works. Based on recent Government Accountability Office (GAO) reports addressing implementation of PART in the last four fiscal years, the article answers such questions as: Has PART made a difference in program operations? What is the relationship between PART and GPRA? Has progress been made in improving the evidence base for PART assessments? How well does PART assess programs related to a common goal? What has been congressional reaction to the PART process? Are PART and performance budgeting making a difference in government?     

Portfolio Budgeting in the Australian Portfolios-Principles and Practice

In the mid-eighties Australia implemented a budgeting system that is similar in its principles to the U.S. PAYGO rule and the now defunct Policy and Expenditure Management System of Canada. Termed as portfolio budgeting, it seeks to encourage greater ministerial participation (a ministry comprising a number of related departments) in the portfolio budget process. It obligates portfolio ministers to offer offsetting savings for funding new policies. Ministers have to thereby set new policy priorities so that only the most deserving new policies obtain funding through the savings identified. Additionally, portfolio budgeting requires ministers to prioritize their ongoing programs so that budget allocation to these programs reflects ministerial priorities. The article examines the practice of portfolio budgeting in the Australian portfolios in light of these objectives. The article suggests that portfolio budgeting has caused greater ministerial involvement in budgetary management. However, there has been little significant change in budget decision making at the portfolio level. The state of play of portfolio budgeting at the national budget process (cabinet and the Department of Finance) offered little incentive to portfolios to provide offsetting savings for new policy proposals. And, the appropriation structure and the organizational and political dynamics impeded ministers from allocating and reallocating their budgets (operating expenditure or running costs) for ongoing programs along ministerial priorities.     

Budget Reform in Malaysia and Australia Compared

The study, using the recent contrasting experience of budget reform in Malaysia and Australia, inquires why quite similar changes were attempted in different socio-economic and fiscal settings. It explains why their implementation differed and identifies the factors that shaped, sustained, or impeded the respective efforts.
Three basic themes emerge. First, political and administrative will are necessary requirements for the success of any budget reform effort. Second, the more correspondent the bureaucratic culture is with the culture upon which the new budget system is premised, the more easily change occurs. Third, a model of reform predicated upon the assumption of fiscal restraint cannot effectively function in a climate of fiscal relaxation. Malaysia adapted its budget model from the Australian system. As the Australian model suited the paradigm of expenditure restraint, the adapted model proved less workable against the Malaysian climate of fiscal relaxation.     

Performance Management in Australia's Public Mental Health Service: A State Based Perspective

This article investigates the implementation of key performance indicators (KPIs) in Western Australia's public mental health system. A nationally agreed performance measurement framework forms part of the much needed reform now taking place within Australia. However, progress in the effective monitoring and reporting of KPIs is slow in most states, including Western Australia. The authors report on the results of a selective case study involving semi‐structured interviews with mental health administrators and offer a more nuanced insight into the intricacies and difficulties involved in performance measurement reform. The principal finding is that effective performance measurement and reporting can be internally problematic, particularly within a fragmented and networked system. This tends to give rise to a conformance‐only approach to performance measurement.     

Implementing Program Budgeting in the Serbian Ministry of Defense

The Republic of Serbia's Ministry of Defense (MoD) is attempting to implement a program‐oriented, multi‐year budgeting system in 2010. This paper reveals several challenges that threaten the success of this initiative. First, we find that the proposed budget system confuses organizations and programs. Second, there does not appear to be a centrally coordinated effort to implement program budgeting, leading to significant disparities in comprehension, organization, and implementation amongst the subordinate commands in MoD. Finally, there is a distinct lack of communication within the MoD regarding the necessity of a program budget and how the process should move forward. These issues inhibit the implementation of program budgeting in the MoD and diminish the possible gains associated with the multi‐year, programmatic allocation of defense resources.     

CURRENT DEVELOPMENTS IN CANADIAN PUBLIC ADMINISTRATION

Little more than a decade ago the basic structure of the Canadian public service was radically reformed. In accordance with recommendations of the Glassco Royal Commission on Government Organisation the central agencies were restructured and their relations with departments reconstructed to shift as much as possible the location of responsibility for financial and personnel management to the departments. The Treasury Board, a statutory committee of Ministers, separated from the Department of Finance which handles economic and revenue policy, became the Government's management agency responsible for budgeting as well as financial and personnel administration. It was also cast in the role of "employer" for purposes of collective bargaining, which was introduced into the Service at the same time and thereby aligned labour relations in the Service with the system which had prevailed in the private sector since the Second World War. Responsibility for recruitment and promotion of staff according to "merit" was vested in the Public Service Commission, an independent agency reporting directly to Parliament, which also has some advisory functions in respect of training. These legislatively-based changes were accompanied, especially after Mr. Trudeau became Prime Minister in 1968, by construction of an elaborate Cabinet committee system and more policy coordination at the administrative level by an expanded Privy Council Office. Structural change was reinforced by changes in methods of operation. Over the next few years new techniques in budgeting, which was placed on a program basis, policy evaluation and performance measurement were introduced. Under the guiding hand of the Planning Branch in the Treasury Board Secretariat, increasing emphasis was given to planning and research in central agencies and departments.     

Implementing PBB: Conflicting Views of Success

A modern budget reform, performance‐based budgeting (PBB) emphasizes the measurement of government performance by agencies and public servants. In this article we define PBB as requiring strategic planning regarding agency mission, goals and objectives, and a process that requests quantifiable data that provide meaningful information about program outcomes. Performance‐based budgeting requirements are now pervasive in the states. Of forty‐seven states with PBB requirements, thirty‐one have legislated the process to be conducted, while sixteen have initiated the reform through budget guidelines or instructions.¹What remains unknown, yet of vital interest to state administrators, their staff, legislators, and citizens, regards implementation status of PBB systems. How many states are utilizing a PBB process as prescribed by law or administrative directive? And if PBB has been implemented, has it been successful regarding improvement of agency effectiveness and decision making about spending? Perhaps most importantly, has PBB influenced appropriation decisions?. This research is based on responses to a mail survey of executive and legislative budgeters regarding the PBB system established in their state. Results discussed in this article consider budgeters’ response about PBB implementation status and effectiveness as conducted. We find that there are differing perceptions across the branches of government regarding both the extent of PBB implementation as well as its success. Results show that states with better‐known PBB systems have not necessarily realized greater success in terms of effectiveness from this budget reform than states with less popularly known systems, at least as perceived by the budgeters included in this article.     

Pitfalls of Contracting for Policy Advice: Preparing Performance Budgeting Reform in Estonia

The goal of this article is to analyze the challenges involved in contracting for policy advice with the example of performance budgeting reform in Estonia in 2009–2011. The Estonian Ministry of Finance has sought to prepare a major change in the budgeting system by outsourcing the analytical preparation of different aspects of the reform to various private sector organizations. The case study seeks to identify the challenges and pitfalls involved in contracting for policy and management advice in the area of a major public sector reform. The Estonian experience shows that such a reform strategy can run into serious problems, including fragmented and inconsistent reform plan, limited learning, and high transaction costs. The contractualization of reform preparation has constrained deliberations on the planned changes to the strategic planning and budgeting system among the stakeholders and undermined the democratic legitimacy of the reform.     

COORDINATION IN STATE ADMINISTRATION: A CASE STUDY

Abstract: "Coordination is one of the perennial concerns of public administration, and has been a particular problem of State-level policy-making in Australia. This paper describes a policy initiative under the Dunstan government in South Australia which was necessarily an exercise in State administrative coordination. The story illustrates the complexity of a multi-Departmental program aimed at producing an innovative, flexible and decentralized policy. While it shows the awkwardness of conventional administrative and policy-making procedures in such a situation, it also provides examples of constructive cooperation among and readjustment within departments. The general policy "parameters" inspired by the Dunstan government are regarded as a significant influence on the outcome of the program.     

An analysis of budget compliance measurement in South African local government best‐practice financial management technical assistance programs, 2001—2003

South Africa's local government financial management best‐practice technical assistance program (known as MFMTAP) was to reform municipal financial management; achieve credible, realistic budgets and prevent financial failure. We consider whether a budget compliance procedure, developed by National Treasury (NT) to measure funding requirements compliance with the Municipal Finance Management Act (MFMA) focusing on ‘realistic’ revenue budgeting, improves our understanding of technical assistance effectiveness. We assess a metropolitan municipality's compliance before, during and after advisory assistance. The compliance procedure was robust. Potential exists for wider application to assess best‐practice technical assistance (BPTA) program financial reform effectiveness. The findings from this single, important sample suggest that MFMA funding requirements are not being sustained 4 years after MFMTAP commencement, attributable to either BPTA performance or termination effects. We conclude that MFMA financial performance can be assessed by the procedure, from analysis of the metropolitan municipality performance assisted by a BPTA advisor for approximately 3 years. The analysis raises questions about BPTA program reform sustainability, but we add the caveat that conclusions cannot be drawn from a single sample metropolitan municipality, but a larger sample need be used for further methodology development to confirm its efficacy. Copyright © 2009 John Wiley & Sons, Ltd.     

MANAGING TRANSPORT INTEGRATION IN SOUTH AUSTRALIA

Abstract: By 1970 the transport portfolio in South Australia consisted of over a dozen government departments and statutory authorities of differing sizes and varying degrees of independence from the State Government. Each organization, by inclination or statutory requirement, tended to carry out its modal responsibilities without reference to the others, with the result that matters which did not fall clearly into the jurisdiction of one or another remained undone and transport problems remained unresolved. The development of area-wide land use planning in the 1960s and integrated economic planning in recent years were hindered by the inability of the transport portfolio to respond to such plans, or to enunciate a single transport policy for a given planning or developmental scenario. Since 1970 successive South Australian governments have pursued a policy of gradual integration of the transport portfolio. This paper reports on the progress achieved after ten years, problems confronted during this period, and prospects for further integration. Comparisons are made with other Australian States and the Commonwealth Government's transport administration.     

Government Budget Reforms: Agenda for the 1980s

A previous article (Vol. 1, No. 2, Spring 1980) examined the progress and problems of budgetary innovation in the postwar era. Through a succession of reforms, budgeting maintained its coherence and continuity, It is likely, however, that future innovations will take a different path, one less certain of its success and more a product of fiscal stress than of government affluence. This article considers the reform issues likely to emerge in the coming years.     

Downsizing the civil service in developing countries: golden handshakes or smiling farewells?

Some researchers have suggested innovative ways to successfully implement civil service reform in developing countries. Although most approaches to implementing public sector management reform are still very much process-driven, and focus almost exclusively on civil service reform, long-term success in making the public sector more efficient may be better assured if civil service reform is but one outcome of a broader public sector management reform agenda. Particularly, re-focussing from traditional input-driven reform thinking towards output-oriented measures, such as the introduction of accrual budgeting in the public sector, may well result in greater popular acceptance and, thus, longer-term success for sensitive reform programs. Although output-driven accrual budgeting is by no means a panacea for all public sector illnesses, it can at least set the scene for profound and durable cultural change in the public sector. © 1998 John Wiley & Sons, Ltd.     

Positive engagement and support for single‐parent families: Building bridges across sector boundaries

The high rate of joblessness among single‐parent families in Australia, relative to other organisation for OECD countries has resulted in the development of various government initiatives designed to support single parents to prepare for and gain employment. The ParentsNext pilot program that began in March 2016, in 10 socially and economically deprived areas throughout Australia, is the most recent Federal Government program aimed at connecting parents with young children into local activities that will build their confidence, skills, and networks and ultimately prepare for future employment. The ParentsNext pilot program is delivered through contracted providers in each of the 10 disadvantaged areas. WISE Employment, a national not‐for‐profit organization together with its local partner, Youth Family and Community Connections, delivers the pilot program in Burnie, Tasmania. This article discusses the findings of a study, which examined the implementation of ParentsNext in Burnie and provides insights to inform and improve practice outcomes.     

Implementing Performance-Based Program Budgeting: A System-Dynamics Perspective

The article proposes a model for evaluating budget reforms that combines insights from budgeting, policy implementation, and system-dynamics literatures. System-dynamics modeling combines both quantitative and qualitative research techniques to provide a new framework for applied research; its use is illustrated using performance budgeting as an example. Applied to the implementation of Florida's performance-based program budget, the model identifies actions in the short run that will increase the reform's likelihood of success: providing clear communications; facilitative budget and accounting routines; reliable performance information. The model also identifies critical legislative behaviors that influence executive implementation: how the legislature in the long-run uses performance information to inform resource allocation and how it applies incentives or sanctions to programs that achieve or fail to achieve their performance standards. The legislature has the opportunity to use program reviews prepared by legislative staff to invigorate the executive branch's resolve to continue implementing the reform.     

Juggling Inputs, Outputs, and Outcomes in the Search for Policy Competence: Recent Experience in Australia

During the mid- to late 1980s, the Labor government in Australia under Prime Minister Bob Hawke distinguished itself by achieving a balance in its budgeting and management approaches. This allowed for focusing on inputs, outputs, and outcomes in tandem. The approach differed considerably from that pursued in New Zealand. There, an overemphasis on outputs introduced serious distortions to the relations between ministers and officials, which reformers in Wellington have subsequently taken strides toward correcting.
As often happens with reform movements, the Australian process reached a plateau by the early to mid-1990s. Broadly, officials welcomed a change of government in 1996 with the expectation that the coalition under Prime Minister John Howard would give new impetus to innovative public management. Ironically, this coalition addressed the issues surrounding budgeting and management reform through an unreconstructed 1980s lens, highlighting outputs at the expense of balanced emphasis of inputs and outcomes as well. As suggested by the Labor government's success in the 1980s and the adjustments attempted by New Zealand governments in the 1990s, collective dynamics among and between members of cabinet and officials, respectively, are key to a balanced approach. These dynamics foster a sense of trusteeship whereby participants see that inputs, outputs, and outcomes form part of a seamless web centered on public interest. The analysis of the Coalition's performance so far suggests thhat its efforts at reform have proven retrogressive when evaluated by this standard.     

论人民代表大会在绩效预算改革中的运作与影响——以广东省A区为例

在当代中国的人民代表大会制下,加强人民代表大会对政府预算的监督是深化预算制度改革的核心内容。但是,在信息不对称的背景下,由于缺乏科学有力、具体可行的制度安排,人大的预算监督在实践中往往被大大弱化。通过参与式观察及无结构访谈的形式搜集广东省A区开展绩效预算改革的实证资料后发现,尽管以财政部门为主导的绩效预算改革模式缓解了人大与政府间的信息不对称现象而有助于加强人大的预算监督,但由于人大在改革中未能发挥主导作用而损害了绩效预算改革的最终效果。因此,发挥人大的内在优势,并以构建强化人大预算监督的制度安排为主要目标,应当是当前地方政府推行绩效预算改革的不二选择,而强化预算体制的公共性则应当是绩效预算改革的基本主轴。