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.     

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.     

A Comparative Analysis: New Public Management — The Way Ahead?

A set of measures constituting 'New Public Management' (NPM) has been adopted worldwide (Pollitt 1995). This article describes their implementation in the State of Victoria. In particular, the article assesses the reforms within the context of Pollitt's eight elements of NPM reforms that have taken place in management in the public sector in Victoria and, to varying degrees, in all OECD countries. It argues that the evaluation of the success of NPM in Victoria should be addressed by independent evaluations of the impacts of the changes within the political, executive and operational spheres of government, and on consumers and the public service itself. The article offers some lessons for those in government following Victoria's example of the implementation of NPM.
Good governance is critical to ensuring that challenges to society are dealt with adequately (OECD 1995:5).     

Lessons from the new public management in commonwealth nations

The New Public Management (NPM) is unlike any other public sector reform for the simple fact that it is practitioner-driven as well as a global movement. However, what works in one public sector circumstance may not work in another political, social, or economic setting. By surveying the Commonwealth countries I find that NPM reforms are taking place in all Commonwealth countries regardless of their various stages of economic and political development. This evidence confirms that the administrative reform of NPM measures is truly a global public sector reform movement.     

US state government privatization: Implications for social equity and inequality?

Privatization of state government services is commonplace, but our understanding of its effects is limited by data availability. We study the relationship between American state government contracting and public sector wages. Governments have used public sector employment to support a variety of goals, including social equity and economic development, but privatization, as a new public management (NPM) reform, may shift the focus. Our empirical analysis shows that state privatization of service delivery is associated with decreases in the public sector wage premium, but that these effects are not driven by gender, race, or low-levels of educational attainment. The fidelity of the implementation to NPM values conditions these effects. We also find that contracting service delivery is associated with a lower public sector wage premium for middle-class workers.     

Understanding evolving public motivational practices: An institutional analysis

New public management (NPM) has been the focus of research and reform practices in countries globally since the late 1970s. This article looks at NPM in historical perspective with particular attention to understanding the evolution of public motivational practices. Three different eras and motivational models common in OECD countries are discussed—the bureaucratic model, the NPM model, and the new public service model. This long‐linked historical perspective highlights the interplay between administrative theory and realpolitik. It is possible to see how certain priorities have been a result of or led to the preservation, the adaptation, or the discontinuation of practices in alignment with the values and behaviors of the successive reform eras. Additional research into the dynamics of change in the public sector is suggested.     

The enabling role of institutional entrepreneurs in the adoption of IPSAS within a transitional economy: The case of Estonia

In the light of neoinstitutional theory and by adopting case study research methodology, this article explains the adoption of International Public Sector Accounting Standards for modernizing public sector accounting in Estonia. This article reveals that the smooth—yet gradual—adoption of International Public Sector Accounting Standards‐compliant accounting systems was enabled by the involvement of powerful actors (i.e., institutional entrepreneurs) with foreign and/or business backgrounds. In addition, the change in public sector accounting in Estonia was facilitated by the developments in its international positioning, characterized by the transition from a Soviet communist to a market economy and subsequent European Union membership and by the absence of past accounting practices, which could potentially hinder the change.     

WOLF'S MODEL: Government Failure and Public Sector Reform in Advanced Industrial Democracies

Many developed nations have embarked on public sector reform programs based on the New Public Management (NPM) paradigm. This article seeks to evaluate the efficacy of NPM reform strategies as a means of dealing with the problem of “government failure” in public sector hierarchies by examining these strategies through the analytical prism provided by Wolf's theory of nonmarket failure. Drawing on the New Zealand experience, we explore the potential for NPM reform initiatives to mitigate the problems of nonmarket supply. Moreover, we examine how “autonomous policy leadership” and “advocacy coalition networks” can overcome the various obstacles to the successful implementation of reform strategies delineated by Wolf under his “conditions of nonmarket demand”. The article then focusses on the efficacy of NPM in removing, or at least reducing, the various forms of government failure identified in Wolf's taxonomic catalogue of nonmarket failure. We conclude by assessing some of the likely tradeoffs involved in the application of NPM reform programs.     

Testing the Discourse of Declining Policy Capacity: Rail Policy and the Department of Transport

It has been observed that countries that implemented new public management (NPM) reforms are currently witnessing growing complaints about a decline in the policy capacity of their public services. Australia is a part of this trend with public sector leaders increasingly voicing concern about policy capacity decline within the Australian Public Service (APS). This article sets out to examine whether there is an empirical basis for this discourse and to assess allegations that NPM reforms have contributed to any related shifts. It draws on rail policy and the Department of Transport as its case study. It finds that the reforms transformed role of the department in a way that enhanced strategic policy capacity. However, the reforms also introduced a number of structural impediments that make it difficult for the new role to be effectively executed .     

Different Roads to Unfamiliar Places: UK Experience in Comparative Perspective

This article views the new public management (NPM) as a prime example of the sour laws of unintended consequences in action. Section 1 places the UK in international context by arguing there is no such thing as NPM and suggesting recent public sector reforms vary along six dimensions: privatisation, marketisation, corporate management, regulation, decentralisation and political control. Section 2 updates the UK story by describing developments under New Labour. Section 3 identifies the unintended consequences of reform: fragmentation, steering, accountability, co-ordination, and public service ethics. Section 4 argues the conventional story of public sector reform as marketization and corporate management omits significant changes. British government differentiated its service delivery systems and now employs at least three governing structures: bureaucracy, markets and networks. The final section discusses whether British experience is different. I argue a satisfactory explanation of the differences must include an analysis of governmental traditions that make public sector reform distinctive everywhere.     

From Cash to Accrual Budgeting and Accounting in the Public Sector: The Dutch Experience

Traditionally, governments used to deploy input‐based budgeting systems and cash‐based accounting systems. However, these systems do not provide the information that is necessary for a government to operate efficiently and effectively. Therefore, a growing number of countries have already shifted or are planning to shift from cash‐based to some form of accrual accounting in the public sector. Usually, the implementation of some accrual‐based system is linked to wider financial management reforms including performance management requiring information on cost. This paper focuses on the Dutch experience with the shift from cash‐based accounting and budgeting systems to an accrual‐based system.     

Business Models and the Transfer of Businesslike CentralGovernment Agencies

At the same time as many researchers in public administration are suggesting the emergence of similar New Public Management (NPM) forms in Organization for Economic Co-operation and Development (OECD) countries, a substantial number of those working in comparative political economy are rediscovering differences between countries. This paper explores a key component of NPM—business-like central government agencies—in four countries: the UK, the U.S., Germany, and Japan. So far, the private sector side of the NPM story has largely been neglected. However, the business-like agency model as developed in the UK was influenced by the Anglo-American system of corporate governance. In comparative political economy, the Anglo-American system is seen as different from that in Germany or Japan. These differences are important for understanding transfer through emulation of the UK agency model by policy-makers in other countries. An apparent inconsistency may be developing, with governments using an NPM form based on an Anglo-American model of business that is far from universal in business itself.     

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.     

Accounting and accountability: recent developments in government financial information systems

In developed countries, governmental accounting is considered as an integral part and a successful aspect of public sector reforms. In developing countries, besides being a tool for government financial management modernisation, accounting is regarded as a weapon against fraud and waste in government. The aim of this article is to compare, taking the IPSAS No.1 as a benchmark, the information content of the financial statements submitted by the central governments of Anglo‐Saxon, Nordic, European Continental and Mercosur zone countries. The results give us a point of reference as to where the central governmental accounting of each country studied lies in the ‘spectrum’ from cash to full accrual accounting and to what extent the IPSASs are able to fit into diverse public administration styles in order to improve the transparency, accountability and reliability of the financial information disclosed. Copyright © 2004 John Wiley & Sons, Ltd.     

Critical success factors for modernising public financial management information systems in Bosnia and Herzegovina

This article identifies a number of critical factors that have contributed to the successful implementation of a public financial management information system in the Republic of Bosnia and Herzegovina (BiH). The information system, funded by USAID and implemented by Emerging Markets Group from 1999 to 2004, has revolutionised accounting practices and has contributed to a more transparent and effective public sector. This article describes the project's context and purpose, its main features, challenges and obstacles. It continues by outlining the critical success factors that have contributed to the success of the project in a challenging environment. The project was implemented in a rather unique environment since it was initiated not long after the end of the civil war and the creation of the Republic of BiH. The Republic of BiH inherited the former socialist Yugoslavian payment systems. There were no adequate public financial management systems in place, and the project team could essentially start from scratch. The project team designed and implemented an accrual accounting system, and unlike the situation in many countries, relieved the government from having to transform their financial management system from cash‐based accounting to accrual accounting. Copyright © 2005 John Wiley & Sons, Ltd.     

Sustainability reporting: How consistency and interdependence in financial and managerial accounting enhance eco-controls

Sustainability reporting requires consistency and interdependency of financial accounting and managerial accounting. Accounting is closely entangled with the eco control (EC) in organisations. The quality of (sustainability) reporting and the disclosures is only as good as the quality and consistency of accounting data captured. Therefore, accounting choices and practises have an important role to play in sustainability reporting. This study explores the mechanism through which accounting informs EC. Through the independent and serial use of two levers, first ‘interdependency’ between financial accounting and management accounting and second, though the use of ‘digitalized information’ as a moderating variable, it is probed as to how EC are shaped. An empirical investigation is undertaken by carefully curating primary data, analysed through partial least squares structural equation modelling technique to inform broader debates in the ‘sustainability reporting’ literature concerning the mechanisms through which EC, are influenced by accounting mechanics, choices and disclosures. Sound EC contributes to sustainability accounting and governance to meet needs of the firms direct and indirect stakeholders without comprising the firm's ability to meet the needs of future stakeholders. The study established that the interdependency between the financial accountants and the management accountants output, mediates the effect of a consistent financial language on EC practises and this effect is independent of the firm size or the industry category. This article brings to the fore, the interplay of FA and MA in informing the environmental controls. The under researched perspective addressed by this study is that EC are highly interdependent with the consistency and comprehensiveness of accounting that informs it which in turn is effected by the cooperation and coordination (interdependency) between FA and MA information providers.     

A Knowledge‐Based Approach to Public Value Management: A Case Study of Change Implementation in Disability Services in Western Australia

This paper provides a knowledge‐based perspective to understanding public value management (PVM). As distinct from other approaches to public administration, PVM focuses on collaborative capacity building for the creation of public value. To develop the notion of PVM further, we explore the role of a knowledge‐based strategy in a case study of change implementation in 18 disability service organisations in Western Australia. Our findings show important inter‐relationships between knowledge management strategy, adopting a person‐centred approach to service provision, and sustainability of change implementation. We discuss the implications of the study for disability sector change management and for the further exploration of the strategic role of knowledge management capabilities in the study and practice of PVM in public sector administration. The paper explores the relationship between an organisation's knowledge capture and sharing systems and processes and its ability to implement change in a way that generates long‐term benefits for both public sector employees (e.g., engaging with key stakeholders to generate innovative solutions for serving client needs) and clients (i.e., increased well‐being through better service design and support).     

Public sector reform in a poor,aid‐dependent country,Tanzania

African public sectors went through many changes during the 1960s and 1970s in response to political, economic and social pressures. They expanded in size but remained, at least in design, hierarchical and centralized. Their formal relations to society did not undergo any significant changes either. Generally, the reforms now under way are significantly different from earlier ones. Most are inspired by the new public management (NPM) paradigm. They are also much more radical in their aims, among which are: to reduce the core functions of the state; redraw the boundaries between political and administrative responsibilities; emphasize efficiency; redefine relations between public and private sectors; strengthen accountability; reduce corruption; reorganize organizations and staff; change values and attitudes; and exploit new technologies. This article focuses on a paradox of reform in Tanzania: multiple changes are pursued in the public sector despite fragile domestic political support to the reform package as a whole and despite few service delivery improvements on the ground. It is argued that this is the result of substantial external influences, fragmented domestic policy making, weak links between policy making and implementation, and questionable assumptions about some of the key NPM‐inspired reform measures. Moreover, the analyses highlight a number of differences with some of the recent reform literature. Copyright © 2000 John Wiley & Sons, Ltd.     

Public values and administrative reforms in French health care

Public value appears to be reborn out of the ashes of earlier failed new public management (NPM)‐driven policies in health care. It advocates greater consultation of the civic society and autonomy of public managers in decision‐making. In France, the 2009 Hospital, Patient, Health, and Territory law recentralized the health system and strengthened the central government to restore consistency in policy implementation and address earlier NPM shortcomings. The 2014 Health Project heralds a phase of policy hybridization that not only preserves earlier NPM tools but also seeks to reaffirm the role of the public and the medical profession in the governance of the health system. Copyright © 2016 John Wiley & Sons, Ltd.     

Holding on tight – NPM and the New Zealand performance improvement framework

The New Zealand Government's Performance Improvement Framework (PIF) is aimed at public sector organisational improvement. The PIF exemplifies how the characteristics of new public management (NPM) challenge the evolution of performance systems attempting to go beyond performance management. The paper provides an empirical example of the operation of the PIF, using a theoretical frame derived from the literature. The analysis suggests that the PIF design does not yet mitigate the effects of gaming, synecdoche, and reputation-protecting behaviour. The common graded ratings continue to hold the attention of those to whom the PIF is important, acting as a proxy for the whole performance of the organisation. This is a case study of how, despite promising adaptations, performance improvement efforts remain hampered by NPM limitations.