Public Sector Accounting Research Articles

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

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

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

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.

The failure of the United Kingdom’s accounting and fiscal governance

PurposeThis paper aims to unravel the puzzle that the United Kingdom’s high-quality government accounting and fiscal architecture is associated with low-quality outcomes, including poor productivity growth, high public debt, public services which do not meet citizen expectations and historically high levels of taxation. It contributes to public sector accounting research in the fields of fiscal transparency and governance.Design/methodology/approachThis paper uses Miller and Power’s (2013) economization framework and Dunsire’s (1990) concept of collibration to explain why being a global leader in public sector accounting reform and in fiscal and monetary architecture has not protected the UK from weak governance. The intersection of economization’s roles of accounting with modes of government accounting clarifies the puzzle.FindingsWhereas accruals government accounting contributes to fiscal transparency, this is not a sufficient condition for well-judged policy and its effective application. Collibration is the dominant mechanism for mediation in the fiscally centralized UK, but it has failed to deliver stable outcomes, in part because Parliament is limited in its ability to hold back inappropriate behaviour by the Executive. Subjectivization has disrupted adjudication because governments at all levels resist constraints on their behaviour, with unpredictable and often damaging consequences.Originality/valueThis paper provides insights through the combined lens of economization and modes of government accounting, demonstrating the practical value of this conceptualization. Although some causes for unsatisfactory outcomes are specific to the UK, there are cautions for accounting and fiscal reformers in other countries, such as Member States of the European Union.

The Notion of Accountability in the Public Sector

Purpose: The purpose of this presentation is to investigate the various views, perceptions and attitudes of people with regards to the notion of accountability within the public sector with the hope of suggesting, recommending and creating knowledge base that can be utilized to enhance best accountability practices in the public sector. Players in the public sector accountability roles should be helped to take an active role in shaping the notion of accountability for public effectiveness and efficiency. The current employment accountability system is top-down and excludes players at the bottom to contribute to the formulation of accountability parameters and standards. The notion stems from the assumption that individuals in organizations are held to a certain standard of excellence, hence responsible for their actions and be answerable for the results of their actions. Implementers at the receiving end just receive parcels of finished products for implementation .This creates platforms for those in management positions to take advantage of their counter parts and abuse them in effecting accountability as a tool for control and appraisal .The current practice has opened up avenues for practice of unprofessional and the unethical practices to prevail in work places .Thus , the presentation came up with mitigatory measures to shift the current perception of accountability to a user-friendly approach that will promote unity among players and ensure quality work and service delivery in work places if adopted Material and Methods: This presentation used the qualitative survey methodology to gather data on, ‘The Notion of Accountability in Public Sector. The interpretivist approach was taken on body in this presentation. This philosophy of qualitative survey was selected for use in this presentation as it is powerful when it comes to individual in-depth interviews or questionnaires to collect analyze and interpret data on what people see, believe hear or think about the notion of accountability in the public sector. The methodology clearly reports on the meaning, perceptions, characteristics and descriptions of phenomena. Actually it was chosen for use due to its open endedness and exploratory nature which are basic fundamentals of depth research. Questionnaires were chosen for their ability to solicit definitive information without allowing chances of data ambiguity. Conversely, the interviews were taken on board in this presentation due to their upper hand in gathering qualitative thick descriptive data hence providing the researcher with the much needed data to warranty research finding generalization. The approach allowed random sampling from the study population leading to data gathering, presentation, analysis and discussions. Findings: The research findings revealed a wide range of scenario coming out of the notion of accountability in the public sector. The major finding emanates from the theory x of the trait theories where those in management view employees as naturally lazy and unwilling to do their jobs or task assignment. As such management and public in general expect employees to account for their performance so that they can be appraised where work outcomes are positive to pre-determined goals and be punished where performance fall short of set expectations and goals. Concerns and perceptions of those at the bottom who happens to account to top management are often neglected and not taken seriously leaving those who are supposed to account feeling worthless and not owning the entire process of accountability. Some of the tasks given to employees to carry out are not feasible but the door for grievance and challenge handling is closed since there is a one way information flow system which is predominantly top-down. The long chain of bureaucracy is a barrier to information communication which should be two way. Those in lower levels of management lack clarity of some specific issues but are compelled to ensure task accomplishment by those in top management who have no time and mandate to receive instruction from people at the bottom lines of the accountability chain. Implications to Theory, Practice and Policy: The presentation recommended best accountability practices where people at the lower level of accountability are offered opportunities to contribute to the construction and formulation of accountability guidelines so that they do not become strangers in implementation of tasks meant for them so as to account. This can be achieved through making reviews on basic assumptions under pinning decision making in areas of accountability within the public sector.

Methodologies and best practices for audit and compliance in governmental financial management

This review paper explores the methodologies and best practices in audit and compliance in governmental financial management. It provides a comprehensive overview of the regulatory framework and standards governing public sector audits, discusses the types of audits commonly conducted, and outlines the typical audit processes. The paper identifies significant challenges faced in governmental auditing, such as limited resources, the complexity of operations, and resistance to change. It highlights the critical role of risk management and technology in addressing these challenges. Furthermore, it emphasizes the importance of ongoing training and capacity building for auditors and compliance officers. The paper concludes by considering emerging trends in the field, such as the integration of artificial intelligence and the emphasis on sustainability. It offers recommendations for further research to enhance the efficacy of governmental audit and compliance practices. Keywords: Governmental Financial Management, Audit Processes, Compliance, Risk Management, Public Sector Accountability.

Evaluación de la transparencia y rendición de cuentas en instituciones públicas del Ecuador

The study evaluated the accounting practices of the International Public Sector Accounting Standards (IPSAS) and their impact on the transparency of accountability in public institutions in Ecuador. A mixed approach integrating qualitative and quantitative elements was employed. Eighty-two public institutions were surveyed and the data were analyzed using descriptive statistical techniques. The results showed that, although most of the institutions have clear and documented accounting policies, a high percentage do not adequately comply with them. Areas for improvement were identified in the execution of accounting policies, the disclosure of financial and non-financial information, the recognition of income at the time of accrual and the adoption of IPSAS. In conclusion, the need to improve the clarity of accounting policies and the quality of external auditing to strengthen transparency and accountability in Ecuador's public institutions was highlighted.

The Attitude of Public Sector Accountants Towards Nonfinancial Reporting

The role of accounting in the public sector is to provide the information necessary for decision-making and accountability. In response to the changes in the public sector, a new form of reporting is emerging, namely nonfinancial reporting. It is expected that accountants involved in financial reporting will also be involved in the preparation of nonfinancial reports. This paper aims to investigate how accountants perceive nonfinancial reporting and whether they believe that they should be involved in the process of preparing nonfinancial reports. The research in this paper was conducted using a questionnaire sent to public sector accountants in Croatia from February to April 2022. The results of the study show that accountants are not overly positive about nonfinancial reporting, i.e. apart from believing that nonfinancial reporting will become more important in the future, they disagree or are quite undecided about the current need to prepare nonfinancial reports. Although accountants believe that they are in the best position to assess financial sustainability, they do not believe that they should be involved in the process of preparing nonfinancial reports. Our study contributes to the literature on nonfinancial reporting in the public sector and to the literature on public sector accountants’ attitudes towards nonfinancial reporting.