THE FINANCIAL ACCOUNTABILITY AND CONTROL STRUCTURE OF PUBLIC SECTOR UTILITIES*

Abstract: Profit-based financial measures have been given prominence in the present financial accountability and control systems of public sector utilities in Australia. As a result, periodic evaluation of financial accountability and managerial performance suffers from a lack of objective-orientation. Assessing the financial accountability and controlling the activities of public utilities properly requires information consistent with their operational environment. Neither clear financial policies and targets, nor a set of environment-specific performance measures have been outlined by the government. The paper proposes that, in addition to profit measures, consideration should also be given to non-profit measures if an improvement is really desired in the monitoring of managerial performance and in accountability of those utilities which operate in virtual monopoly or near-monopoly situations.     

ACCOUNTABILITY AND PERFORMANCE IN PUBLIC ENTERPRISE: THE BRITISH DEBATE*

Abstract: This paper examines recent developments in the debate in Britain about the role of public enterprises which are wholly owned by the State, that is, the nationalized industries. The changing political and economic context surrounding public enterprise is briefly outlined and the successive attempts to give operational significance to concepts of accountability and performance are noted. In the light of this review recent developments in the framework of control are discussed. It is argued that the parliamentary system has failed to develop adequate criteria of accountability and performance for the nationalized industries, in part because of inherent difficulties common to systems of representative government, which in Britain have been exacerbated by a declining rate of economic growth and attendant attempts to reduce public expenditure.     

GOVERNMENT-OWNED COMPANIES AND SUBSIDIARIES: ISSUES IN ACCOUNTING, AUDITING AND ACCOUNTABILITY*

Parliamentary committees (and especially the one I chair) seldom make headlines and often, perhaps after months or even years of toil, a carefully researched report is left to gather dust unnoticed. So I welcome the attention on this occasion.     

ACCOUNTABILITY AND CREDIBILITY IN THE MANAGEMENT OF COMPLEX HAZARDOUS TECHNOLOGY

The requirements for dependable management of complex hazardous technologies include multiple barriers against serious failure, clear accountability for errors, and credibility for the decision-making process. Unfortunately, these requirements are in direct conflict. These conflicts can undermine the public's assurance that their health and safety concerns are being properly addressed. These conflicts can be reduced by the adoption of policies that enhance information exchange and evaluation, thereby, complementing the current policies based on physical safe guards and adversarial processes.     

ACCOUNTABILITY, EFFICIENCY AND THE ROYAL COMMISSION ON AUSTRALIAN GOVERNMENT ADMINISTRATION

Abstract: This paper deals first with alternative concepts of accountability and efficiency. It views accountability—and associated concepts of efficiency—in a hierarchy of increasing sophistication and potential usefulness, but corresponding operational difficulty. The lowest level is fiscal or fiduciary accountability, relating to the actual expenditure of funds and procedures by which that expenditure is accounted for. The second level is efficiency accountability, defined in terms of the ratio of some physical measure of output to cost. The most sophisticated level is effectiveness accountability, in which the output measures used reflect the attainment of objectives or programs. Corresponding to these levels is a hierarchy of approaches to auditing, namely financial, efficiency, and effectiveness auditing.
The second part of the paper looks at the present situation in Australia and at the recommendations of the Royal Commission on Australian Government Administration in terms of this framework. It argues that the government should commit itself to a continuing, comprehensive process of analysis and evaluation of public programs and activities aimed at making programs efficiently effective in a manner consistent with regular financial procedures. A "package" for implementing this approach—including revised institutional arrangements—is discussed in terms of the difficulties likely to be encountered—difficulties such as the shortage of capable personnel and problems of extending analytical practices to the State and local spheres of government.     

THE POWER OF THE PURSE AND BUDGETARY ACCOUNTABILITY: EXPERIENCES FROM SUBNATIONAL GOVERNMENTS IN CHINA

Accountability is the cornerstone of fiscal administration. This research studies the relationship between accountability and the sharing of budgetary power. We found that the accountability in China is supported by the superior of bureaucratic power, instead of the comprehensiveness of various accountability components. The implication is that the accountability is facilitated in terms of emphasising to whom government officials are accountable within the chain of command, reducing goal conflicts and improving strategic goal attainment. However, it is hindered at the same time in terms of lacking evaluations perceived to be impartial, limited room for democratic accountability, over‐implementation of policies at all costs, and weak comprehensive awareness of ‘accountable for what’ (as long as it is a policy direction from the top). The structure of the power of the purse both enables and limits the tone and terrain of budget accountability in particular and government accountability in general. Copyright © 2011 John Wiley & Sons, Ltd.     

LOCAL GOVERNMENT DISCRETION AND ACCOUNTABILITY IN TURKEY

After ratification of the European Charter of Local Self‐Government in 1993, Turkey has witnessed major local government reform efforts in 2000s. The policy objectives of these reforms were granting more political, administrative and fiscal discretion to local governments along the principles of democratic decentralization and strengthening accountability linkages between citizens and local governments. We employ a diagnostic framework to analyse the impact of these reforms. We argue that reforms have achieved limited success in improving decision‐making autonomy and accountability of local governments. Copyright © 2013 John Wiley & Sons, Ltd.