Public Sector Accounting Research Articles

Approaches, enablers and barriers to govern the private sector in health in low- and middle-income countries: a scoping review

IntroductionThe private sector plays a substantial role in delivering and financing healthcare in low- and middle-income countries (LMICs). Supporting governments to govern the private sector effectively, and so improve outcomes...

CONTROL FUNCTIONS OF ACCOUNTING IN PUBLIC PROCUREMENT

When applying control levers in the process of implementation of public procurement, it is necessary to take into account the relationship between public sector accounting and public procurement, identifying the relationships between the legal frameworks regulating the above areas. Introduced in recent years, public sector accounting standards, legislation, and legislative and by-laws governing public procurement are closely related to each other and complement each other; moreover, during accounting, control over expenditures in the field of public procurement is implemented in practice. The relationship between public procurement and public sector accounting is reflected not only in the disclosure of control functions, but also in various economic operations, through time and methodological differences in balance sheet items (assets, liabilities) recognition.

The Effect of International Public Sector Accounting Standards (IPSAS) on Transparency, Accountability and Good Governance in Government Ministries in, Nigeria

This study critically examined the effect of International Public Sector Accounting Standard (IPSAS) on transparency and accountability of government ministries in Rivers State, Nigeria. The study adopted survey design technique using structured questionnaire which was administered to sample of 100 respondents. The data was analyzed using both descriptive and inferential statistics. The hypotheses formulated were tested using multivariate regression analysis techniques at 5% level of significance. The result of the study shows that adoption of IPSAS increases the level of accountability, transparency and good governance in the selected ministries. Based on the findings of the study, the following recommendation are suggested; that Nigerian government should enact an enabling law to back up the adoption and implementation of IPSAS and more importantly institute appropriate sanctions to ensure full compliance.

Performance reporting practices in state-owned enterprises: A systematic literature review

Background: Performance reporting and measurement in state-owned enterprises (SOEs) have been ambiguous for years subject to the nature of the sector. State-owned enterprises are third sector public entities characterised by hybridity of rationales, heterogeneity of goals and multiple stakeholders’ interest. Besides, the diverse institutional frameworks and ownership structure in SOEs make performance reporting and measurements in the sector more complex than in private profit enterprises.Aim: The systematic review of the literature focusses on performance reporting practices in SOEs. It examines SOE performance report users, performance measurement metrics, and the alignment of objectives and performance information.Method: Critical searches of literature in databases such as Scopus or Science Direct, Emerald Insight and JSTOR were made using ’performance reporting’ and/or ’State-owned Enterprises’ as main keywords. More literature was explored in Google Scholar.Results: The concept of performance reporting in SOEs is embedded in broader subjects such as ‘governance in public sectors’, ‘corporate governance in SOEs’ and ‘accountability in public sector’. Performance reports of SOEs in practice focus on the traditional financial performance measurement.Conclusion: There is no straightforward approach in performance reporting of SOEs in the literature. This shows that performance reporting in SOEs is highly slanted, making it difficult to assess efficiency of SOEs.Contribution: The article contributes in unlocking knowledge in highly blurred practices of performance reporting in SOEs.

Implementation of Public Sector Accounting in a Government Agency

Government Agencies are all government institutions with the function of carrying out tasks or functions of government administration in the operational environment, from those at the center to those in the regions, including commissions, agencies and councils that receive funding from the APBN or APBD. The demand for public transparency requires a system to create maximum good performance and accountability to make a government accessible from fraudulent acts detrimental to the state. Public sector accounting is an accounting system used by government institutions or public service institutions as a method or tool for accountability to the general public. This research aims to discover and understand the importance of implementing Public Sector Accounting in a government agency. This research uses a qualitative descriptive method. This research indicates that every government agency must implement public sector accounting because it can simplify and improve the quality of financial reporting.

The Role of Technology Integration in Public Sector Accounting Fraud Prevention Efforts

This research aims to determine the role of public-sector accounting information technology in preventing fraud in public-sector organizations. The study was a literature review based on articles suitable for further analysis of the research topic. The study found that there are ways to prevent fraud that, include technology and prevention strategies. The technology strategy includes leveraging data protection officers for fraud prevention, IoT access, data access management, timely reporting, and real-time data management. The prevention strategy is to develop a fraud detection system using machine algorithms, data mining, and meta-learning techniques.

A study exploring the adoption of cash IPSAS in the Solomon Islands: the case of the provincial governments

Purpose This study aims to examine the adoption of the cash-basis International Public Sector Accounting Standard (or for short cash IPSAS) within a problematic provincial government institution in the Solomon Islands. Design/methodology/approach An interpretive methodology that uses qualitative data techniques such as interviews and document analysis was used for this study. A total of 30 semi-structured interviews were held in 2022 at both levels of government (national and provincial). Documents included government, social media and historical or archival data. Thematic data analysis, which frames the discussions for this study, was conducted. Findings This study illustrates how the integration of the cash IPSAS with a locally designed funding framework called the Provincial Capacity Development Fund (PCDF) has successfully transformed the provincial government financial system, which has led to restoring the problematic image of the provincial government system in the Solomon Islands. Practical implications The study provides a practical example of how locally designed, neoliberal accounting tools inspired by new public management (NPM) doctrines can aid the efforts to achieve greater accountability. Policymakers, standard setters and regulators therefore, should promote and enforce an integrated approach to reform, reflecting the localities of developing countries when proposing international best practices such as IPSAS. Social implications The study contributes to the discussion on the role of accounting in its wider social context. The paper highlights how accounting as a calculative tool is instrumental in mediating conflict between political rival groups in the Solomon Islands. Originality/value This study is original and offers a unique perspective on the broader societal role of the cash IPSAS standard. Its implications are significant in addressing societal changes as a result of colonialism.

PACE: Participatory AI for Community Engagement

Public sector leverages artificial intelligence (AI) to enhance the efficiency, transparency, and accountability of civic operations and public services. This includes initiatives such as predictive waste management, facial recognition for identification, and advanced tools in the criminal justice system. While public-sector AI can improve efficiency and accountability, it also has the potential to perpetuate biases, infringe on privacy, and marginalize vulnerable groups. Responsible AI (RAI) research aims to address these concerns by focusing on fairness and equity through participatory AI. We invite researchers, community members, and public sector workers to collaborate on designing, developing, and deploying RAI systems that enhance public sector accountability and transparency. Key topics include raising awareness of AI's impact on the public sector, improving access to AI auditing tools, building public engagement capacity, fostering early community involvement to align AI innovations with public needs, and promoting accessible and inclusive participation in AI development. The workshop will feature two keynotes, two short paper sessions, and three discussion-oriented activities. Our goal is to create a platform for exchanging ideas and developing strategies to design community-engaged RAI systems while mitigating the potential harms of AI and maximizing its benefits in the public sector.

The Influence of the Implementation of Public Sector Accounting Models in Fraud Prevention Efforts in the Digital Era

This research aims to find and describe the characteristics of fraud that occurs in the public sector in the digital era to prevent fraud that occurs in the public sector. The research conducted is literature research sourced from articles that are in accordance with the research topic for further analysis. The results of the study show that the characteristics of fraud in the public sector that occur in the digital era include the use of misconceptions about the role of digital technology in the implementation of public accountant duties. The influence of the implementation of public sector accounting can prevent fraud in the public sector in the digital era if implemented by considering several factors that affect fraud, such as performance accountability, and implementing technical strategies, dual-paradigm approaches, and preventive strategies.

Better data for budgetary surveillance: EU law on statistics as key to unlocking the potential of public sector accounting

The quality of the data available for monitoring budgetary discipline of the Member States has been a hot topic within the European Union (EU) institutions and in the literature ever since the beginning of the economic crisis in 2008. The COVID-19 pandemic has shown the inadequacy, not only of the data, but also of the policy instruments available for coordinating efforts and decision-making. In this paper, we attempt to unlock the potential of public sector accounting (PSA) for contributing to the improvement of EU surveillance mechanisms. We look beyond the idea of standardised accounting rules for the entire EU public sector (European Public Sector Accounting Standards) into a less controversial area of EU competence, and we explore the conditions for introducing reporting obligations based on PSA data as part of EU law on statistics. Points for practitioners The current succession of crises might create momentum for a change in EU fiscal policy-making. New instruments for the monitoring of the budgetary situation in the Member States could become necessary. The EU institutions cannot impose the European Public Sector Accounting Standards. However, a new standardised reporting instrument could become binding EU law if it would come in the shape of a statistical methodology. Basic principles of EU law guarantee that any new statistical reporting obligations are limited to what is necessary, proportionate and cost-effective.

Lost in the maze? Public sector accounting and reporting—A structured literature review

IMPACT Motivated by the complexity and challenges of public sector accounting, this structured literature review (SLR) takes a broad approach combined with structured analysis to unravel the development, cross-temporal challenges and remaining gaps in public sector accounting and reporting research. By highlighting these gaps, the authors outline future research paths within the current literature and compare them with previous literature reviews to provide researchers with a roadmap for future research. Although this SLR does not provide direct assistance with day-to-day problems, through its comparative, quantitative and structured approach, it provides practitioners with an interdisciplinary overview of public sector accounting research in one article—helping them to navigate the complex field of public sector accounting without having to read multiple literature reviews.

Peningkatan Kepatuhan Regulasi Melalui Pengembangan Sistem Informasi Keuangan Bagi Badan Usaha Milik Desa Menggunakan Teknologi Berbasis Website

This study highlights the inability of village-owned enterprises (BUMDesa) to prepare financial reports according to guidelines, indicating a lack of financial accountability. Researchers attempted to develop a web-based platform to generate BUMDesa financial reports following Ministerial Decree Number 136 of 2022. We focus on the perspective of public sector accounting and accounting information systems to respond to research questions. Furthermore, application development considers the research and development (R&D) method and design science via the software development life cycle stages. A total of six BUMDesa contributed to developing this application. The result is a web-based financial reporting application platform that meets these criteria and guidelines. We also provide a platform usage procedure to facilitate its operation. The contribution of this study is to develop a financial information management platform for BUMDesa that emphasizes reporting accuracy and compliance.

Public value and public sector accountability in New Zealand

Public value and public sector accountability in New Zealand

Analisis Implementasi Akuntansi Sektor Publik dalam Sistem Keuangan di Desa Meranti Bunting

Public sector accounting is closely related to the application and treatment of accounting in the public domain. The public sector itself is broader and more complex than the private sector. The use of APBD or village funds is currently required to have efficient financial accountability. Government accounting plays an important role in public sector financial management which is useful in supporting the realization of efficiency and effectiveness in financial management. This research was conducted to analyze accountability reporting procedures in Meranti Bunting Village. The type of research carried out is quantitative descriptive research using secondary data. This research studies accounting policies, budgeting processes, and the size of village government financial transactions, which are smaller than regional governments. In this research, it was found that the policies implemented by the Meranti Bunting Village government had complied with and were implemented in accordance with applicable regulations, and were then considered accountable in presenting their accountability reports. And the existence of a village-based accounting information system (SISKEUDES) helps, village officials are becoming more serious in preparing financial accounting reports for village funds

International Public Sector Accounting Standards and economic growth: An international study of IPSAS adoption and experience

International Public Sector Accounting Standards and economic growth: An international study of IPSAS adoption and experience

New development: Assurance on public sector sustainability reporting—time to be proactive

IMPACT This article highlights the relevance of assurance of sustainability reporting (SR) in the public sector, discussing who can develop the assurance process and what standards can be used for this purpose. It provides a contribution in an original and new area that will be of interest to standard setters, supreme audit institutions, practitioners and scholars in the field of public sector accounting and auditing. The article contributes to the creation of a legitimate space for SR for public sector entities.

Adoption of International Public Sector Accounting Standards and Financial Reporting Quality in Universities in Rivers State

In spite of the adoption of International Public Sector Accounting Standards (IPSAS) in Nigeria, it appears that significant progress has not been made by public sector organisations in its implementation. The purpose of this study was to investigate the extent to which the adoption of IPSAS has influenced financial reporting quality in universities in Rivers State. Cross sectional survey research design was used for the study and the area of the study was Rivers State, Nigeria. The population of the study was 37 senior Accounting Personnel from the three universities studied. The entire population of 37 was used as sample, hence census was employed for the study. The instrument used for the collection of data was a self-structured questionnaire developed using a four-point rating scale of Very High Extent, High Extent, Moderate Extent and Low Extent. The instrument was validated by two Business Educators and one Measurement and Evaluation expert, all from the Faculty of Education, Rivers State University. The reliability of the instrument was determined using the test re-test method; this was done through the Pearson Product Moment Correlation Coefficient (PPMCC) and a reliability coefficient of 0.96 was obtained. Data was analysed using mean and standard deviation while the hypothesis was tested using one-way Analysis of Variance. Based on the results of the study, it was found that the adoption of international public sector accounting standards has influenced financial reporting quality in universities in Rivers State albeit to a moderate extent. The study further found that there was significant difference in the mean score of Senior Accounting Personnel in the three universities on the extent to which financial performance, financial position and cash flow standards have influenced financial reporting quality in universities in Rivers State. The study concludes that universities in Rivers State are still at an elementary stage of the adoption of IPSAS in the preparation of financial statements and as such the quality of their financial statements cannot be reasonably assured. One recommendation made, amongst others, was that Accounting Personnel of universities in Rivers State, especially those handling Final Accounts, should be made to undergo thorough training on IPSAS to enhance their financial reporting skills; the training should be practical and not theory-based and experts who have been involved in the successful implementation of IPSAS should champion the process.

Drivers for IPSAS Adoption: Context-Related Factors in Public Sector Innovation

ABSTRACT This study aims to characterize and contextualize the integration of accrual accounting into public sector accounting systems through International Public Sector Accounting Standards worldwide. Addressing a gap in cross-country empirical research, we explore links between accounting and sociopolitical, economic, and technological systems. Our study offers empirical evidence of IPSAS drivers, uniquely relying on public sector innovation contextual variables to identify adoption determinants. Furthermore, our research addresses a gap in the literature by employing a critical quantitative methodological approach. The results reveal that national contextual factors along with the organizational and external factors in which the public sector operates, influence IPSAS adoption.

The Influence of APIP Capabilities in Optimizing Financial Audit Efficiency: Optimal Accountability

Abstract This study aims to analyze the influence of the capabilities of the Government Internal Supervisory Apparatus (APIP) in optimizing the efficiency of financial audits and reducing audit findings to achieve optimal accountability. The study was conducted by collecting annual report documents from the Financial and Development Supervisory Agency (BPKP), the Audit Board of the Republic of Indonesia (BPK), and the Ministry of Home Affairs (Kemendagri). A quantitative approach was used in this study, with data analysis involving 3,252 observations from various government agencies in Indonesia. The data collected included APIP capabilities, financial audit efficiency, and the number of audit findings. The mediating variable used in this study is the follow-up on audit recommendations. The results show that APIP capabilities have a significant impact on the efficiency of financial audits. Increasing APIP capabilities has been proven to significantly enhance audit follow-ups and reduce the number of audit findings. Additionally, the variables of organizational age and geographic factors also significantly affect audit efficiency and the number of audit findings, indicating that these factors are important in achieving better financial accountability. Conversely, the size of the agency negatively affects audit follow-ups and positively affects the number of audit findings. These findings underscore the importance of enhancing APIP competencies and capabilities as a primary strategy in improving the efficiency and accountability of financial audits in the public sector. This study provides significant contributions to the development of internal supervisory policies and the improvement of financial audit quality in Indonesia, as well as encouraging efforts to enhance public sector accountability. Keyword: apip capabilities; financial audit efficiency; audit findings; accountability

Integrated reporting and its pluralistic perspective: promoting public value and accountability in public sector accounting?

IMPACT Public sector accounting needs a pluralistic perspective for fostering a broader public value and interactions with citizens and other stakeholders. In this article, the authors suggest that integrated reporting (IR) is a useful accounting practice for promoting a pluralistic perspective into public sector accounting to nurture public value and accountability—even though there are still lessons to learn. Public sector organizations need to stimulate engagement with stakeholders making disclosures more relevant; develop a more holistic appreciation for value creation focusing on efficacy and outcomes for society; and promote integrated thinking across internal stakeholders to avoid a superficial adoption of IR.