Public Sector Accounting Research Articles

Towards achieving SDGs through integrated reporting in Malaysian public universities

PurposeThe recent development in integrated reporting (<IR>) demonstrated a potential government tool for decision-making in allocating resources and developing sustainable policies for higher education institutions. This paper aims to examine the extent of the disclosure level of <IR> content elements in the annual reports of Malaysian Public Universities (MPUs). Additionally, the relationship between the disclosure level of <IR> content elements and the specific characteristics of MPUs is investigated.Design/methodology/approachThe study performed descriptive statistics analysis for each component of <IR> content elements. This idea is achieved by examining the annual reports of MPUs between 2016 and 2018. The relationship was also investigated using ordinary least squares, fixed effect and lagged models.FindingsThe findings showed an increasing trend in the disclosure level of <IR> content elements in MPUs’ annual reports, supported by institutional theory. Furthermore, RUs exhibited a significant positive relationship with the disclosure level of <IR> content elements, whereas university size and report conciseness are insignificant variables.Originality/valueThe study adds to the body of knowledge in public sector accounting and has significant implications in the industry. This implication is specific to achieving sustainable development goals within the context of a developing country, paving avenues for further MPU reporting studies.

Local authority audit in England, playing the field?

AbstractThis study focuses on the field of public audit as a collibrative element of public sector accountability. It reports on the consequences of substantial collibrative intervention in such a field. The intervention studied is the change to local authority audit in England that culminated in the Local Audit and Accountability Act, 2014, and entailed the abolition of the Audit Commission. Drawing on strategic action field theory, and through examination of submissions to the Redmond Review and other documentary materials, an analysis is developed of the field of public financial audit in its ongoing efforts to re‐equilibriate following the intervention. The analysis explores the action taken in pursuit of the restoration of field stability, effective functioning, and legitimacy, and the effects on public accountability. The analysis supports Julia Black's contention that different accountability regimes are not readily substitutable and exposes some of the risks and difficulties associated with attempts to modify accountability through collibrative intervention.

Public sector accounting harmonization in the European Union through the lens of the garbage can model

AbstractThe public sector accounting harmonization process that started in the European Union in the aftermath of the financial crisis led the European Commission to launch a project for the development of a set of European Public Sector Accounting Standards (EPSAS). This paper analyses the process and the decision‐making around development of the EPSAS through the lens of the garbage can model (Cohen, M. D., March, J. G., &amp; Olsen, J. P. (1972). A garbage can model of organizational choice. Administrative Science Quarterly, 17(1), 1–25). More specifically, by identifying problems, participants, solutions, and choice opportunities, it discusses why the development of the EPSAS is taking so long and why the process does not seem to be progressing as planned. To this end, documents related to the process of EPSAS development are analyzed. The results provide evidence of problematic preferences and fluid participation possibly coupled with flight decisions—three elements of the garbage can model. Postponing decisions can be an option to dampen reluctance. The more the public sector becomes accustomed to the International Public Sector Accounting Standards (IPSAS) by adopting IPSAS‐like accrual accounting standards while waiting for the completion of the EPSAS, the less resistance there might be to moving to accrual accounting standards. However, at the same time, an imminent change to a new set of EPSAS standards might become less plausible if changes demand extra reform.

Enterprise resource planning system reforms of European Union member states in association with central government accrual accounting and IPSAS adoption

PurposeThis paper examines the enterprise resource planning (ERP) systems of 27 European central governments and the governments' respective information technology (IT) reforms, facilitator role and association with accrual accounting reforms as premise of the International Public Sector Accounting Standards (IPSAS).Design/methodology/approachThis paper presents a qualitative and content analysis of 27 European Union (EU) member states (MSs) regarding the states' IT and accounting maturity in association with accrual accounting as breeding ground for IPSAS convergence based on published surveys on behalf of Eurostat, web data and emails collected from authorized officials.FindingsThis paper has found that (1) increased accounting and IT maturity scores of central governments are associated with the establishment or upgrade of ERP systems; (2) ERP systems prove to facilitate and support accrual accounting adoption; (3) in majority, EU MSs adopt similar ERP vendors to implement accrual accounting reforms; (4) with prevalence among ERP vendors, the Systems Application Products (SAP) ERP software proves to be a success story toward public sector accounting (PSA) reforms.Research limitations/implicationsRespective information on the ERP systems' facilitation to financial accounting reforms is collected only for 17 central governments.Originality/valueThis paper highlights the facilitation of ERP systems as reform drivers to accrual accounting change of EU MSs, through IT modernization. This paper links the ERP practices with specific ERP vendors pointing out the vendors' similarities. This paper presents examples of European ERP reforms and sets the reforms as reference for central governments that wish to embark on ERP and accrual accounting reforms.

Implementation of Blended Learning in Public Sector Accounting Learning to Improve 21st Century Skills

This research is a classroom action research with the aim of evaluating the effectiveness of the implementation of blended learning in learning Public Sector Accounting to improve 21st century skills which are proxied by critical thinking skills for students. The design of this study used the research model of Suharsimi Arikunto's class action with three cycles. The research subjects were 27 students of the accounting department at the Faculty of Economics and Business, University of Nusantara PGRI Kediri who were taking the Public Sector Accounting course in the even semester of the 2021-2022 academic year. Research data were collected using instruments in the form of observation sheets and end of semester exam scores. After being given the action, the results show that the implementation of blended learning is effective for increasing critical thinking skills, it can also improve student learning achievement in Public Sector Accounting courses.

THE NIGERIAN SOCIO-ECONOMIC AND POLITICAL LANDSCAPE: WITHER THE CHARTERED ACCOUNTANTS

The socio-economic and political landscape of Nigeria, is replete with, corruption, poverty, unemployment, insecurity and poor governance. A combination of the aforementioned issues are capable of crippling investments and ensure declining growth in the economy. How would the Chartered Accountants help in salvaging the situation? Given that the Chartered Accountants are 'numbers people' and are capable of reducing 'everything concerning any economy’ to numbers, perhaps, the answer may be in the affirmative. But, given the recent and trending allegation levelled against the now suspended Accountant-General of Nigeria(AGN), who will " police the police "? The main argument of this paper, therefore, is that, not even the Chartered Accountants alone can enhance public sector accountability in Nigeria, without the supporting role of all stakeholders, including other professionals. On the part of government, institutional strengthening is a key part of a country's anti-corruption strategies. Strengthening, through reforms in the judiciary, the anti-corruption agencies and good living wages for civil servants will do it. Given the complex and interconnected world, tackling the aforementioned socio-economic and political issues requires strong collaboration and commitment from the public, private and regulatory authorities.&#x0D; Keywords: Accountability, Corruption, Insecurity, Transparency, Nigeria Economy.

Accountability, human rights and social justice in public sector recordkeeping

Accountability, human rights and social justice in public sector recordkeeping

Kesediaan Mengadopsi Sistem Aplikasi Pengelolaan Keuangan Sekolah (Siperkasa) dengan Pendekatan Technology Acceptance Model

Abstract: Purpose: To evaluate the variables that influence the user's desire to use the Siperkasa school financial application system at the school in the IX branch office of the Education and Culture Office of Central Java Province using the Technology Acceptance Model (TAM) approach. Research Methodology: This research is quantitative with a total sample of 106 and data is collected from surveys conducted online by application users via electronic forms. The data analysis method uses path analysis using AMOS software. The results of this study indicate that the behavioral intention to use Siperkasa is not influenced by the perceived interest and attitude towards its use. Ease of use has a positive effect on the recognition of the benefits of Siperkasa. Result: The results of this study are expected to contribute additional literature for the development of theories in public sector accounting, increase the ability to think about the phenomenon of using school financial management information systems, and can be considered in the development of an integrated school financial management information system (Siperkasa) and other accounting information systems in improving accountability, able to be accepted by users of Siperkasa, especially in schools within the Department of Education and Culture of Central Java Province. Limitation: This study has limitations, namely only using a sample of Siperkasa users in SMA/SMK/SLB Negeri in the IX branch office of the Education and Culture Office of Central Java Province. Keywords: 1. School Finance Application System 2. Technology Acceptance Model 3. Regulation

New development: The development of standardized charts of accounts in public sector accounting

IMPACT Charts of Accounts (CoAs) in the public sector are important to control accounting records. They support the preparation of accurate and reliable financial statements and consolidated reporting. Standardized CoAs at the national level are desirable but specificities of different public sector areas must be considered, as well as harmonization with budget and Government Finance Statistics (GFS) classifications. Having broad international guidance for each country to develop its own CoA, while fostering public sector financial reporting harmonization, would allow for improved comparability of fiscal effects during difficult periods, such as the Covid 19 pandemic. ABSTRACT This article addresses the development of standardized Charts of Accounts (CoAs) in public sector accounting and reporting. In particular, it focuses on matters concerning the role CoAs have, or should have, at a national level, their main technicalities and the expected impact of using them as a bookkeeping instrument on the accuracy of accounting records and, ultimately, on the reliability and usability of the financial information for different purposes. Empirical evidence is provided from a survey to representatives of accounting international and national (Belgium, Brazil, Estonia and Portugal) standard-setters and preparers.

The Role of Public Sector Accounting on Accountability in Public Institutions in Ghana

The increasing push for accountability in public institutions across Africa is borne out of the various socioeconomic prospects associated with it. It is due to this that public sector accountability is so critical and hence the interest in understanding it and ensuring that it is done properly to meet its intended purpose. This study investigated the role of public sector accounting on accountability in Ghana. This study relied on purposive sampling while using an interview guide and questionnaire for its primary data collection. The findings showed that financial accountability is carried out through five phases. Additionally, it was revealed that proper financial reporting and internal audits have a positive significant impact on financial accountability in public institutions. Finally, the study recommends periodic training and development programmes for public sector accountants and internal auditors as well as perceives financial reporting and internal audits function as a strategic part of the business. Keywords: Public Sector Auditing, Auditor-General office and public sector accountability DOI: 10.7176/EJBM/14-20-06 Publication date: October 31 st 2022

Analyzing Public Sector Accounting Standards: A Qualitative Synthesis of Literature

This qualitative synthesis aims to provide a comprehensive overview of public sector accounting standards, focusing on their definitions, specificities, challenges, and implications. The research objective is to analyze existing literature to identify key themes, trends, and areas for further inquiry in public sector accounting. A systematic review of relevant studies was conducted, with data extracted and analyzed to derive insights into accountability, transparency, accrual basis of accounting, adoption of International Public Sector Accounting Standards (IPSAS), challenges, opportunities, and implications for future research. The findings reveal that robust accounting standards are crucial for ensuring transparency and accountability in governmental entities. Adoption of accrual accounting enhances the accuracy and relevance of financial reporting, while the convergence towards IPSAS facilitates comparability and consistency across jurisdictions. Challenges include capacity constraints, resistance to change, and keeping pace with evolving regulatory environments. However, opportunities exist in leveraging technology, increasing collaboration, and investing in professional development. Future research should focus on longitudinal studies, comparative analyses, interdisciplinary approaches, stakeholder perceptions, and the role of emerging technologies in public sector accounting. This synthesis contributes to the scholarly discourse by providing insights into the complexities and implications of public sector accounting standards.

Public sector financial management in New Zealand central government: the role of public sector accountants

PurposeThis paper aims to examine the actions of public sector accountants in the New Zealand government departments as they respond to the demands of the Central Treasury.Design/methodology/approachThe analysis is developed through an understanding of the secondary literature and practical experience of the first author who worked in the New Zealand public sector as a public sector accountant from 1972 to 1998. Both authors have remained active in the public sector through research and practice. The first author's last three placements were being Director Financial Management in the Ministry of Energy, Assistant Secretary in the Department of Maori Affairs and finally as CFO at the Ministry of Education. The first author has been a close observer of the Budget and was a participant at the departmental level for over 20 years.FindingsThe public sector reforms have posed challenges for public sector accountants. The arrival of accrual output based budgeting shaped a reconfiguration of accountants' identities. The politicians made public sector accountants the central entity of accrual output based budgeting and thus responsible for increasing public sector efficiency.Research limitations/implicationsThe research is limited to public sector in New Zealand only.Practical implicationsThis study would be of use to practitioners interested in the pressures and opportunities which arise out of a particular constellation of administrative roles.Social implicationsThe administrative history, in particular, by senior officers is often unwritten for the public sector offices.Originality/valueThis is a descriptive piece on the role of public sector accountants and contributes to the understanding of how financial accountability works within the New Zealand Central Government.

Additional thoughts on the implementation of the International Public Sector Accounting Standards in Europe – a commentary

ABSTRACT The Polzer et al. [2022. Implementation of the international public sector accounting standards in Europe. Variations on a global theme. Accounting Forum, 46(1), 57–82.] paper on the implementation of the International Public Sector Accounting Standards (IPSASs) in Europe published in 2021/2022 in Accounting Forum concluded that European Member States have deviated substantially from the international standards. The authors use an analytical framework, which is derived from new institutional theory, for the analysis of reasons for diverging responses to structure the reasons for the deviations by Member States they have identified. Based on his personal experience, the commentator aims to add a practitioner’s perspective to this paper. In terms of the adaptation of standards by Member States and the observed diversity in translated accounting standards, an alternative viewpoint is offered, which draws attention to some practical aspects of IPSAS implementation. A further issue that could explain the deviations are possible incompatibilities of Anglo-Saxon and European approaches to accounting standard-setting in the public sector. The commentary also addresses some potential misunderstandings about IPSASs.

A Survey of International Public Sector Accounting Standards

Globalization generates a verifiable upheaval and unavoidably impacts the bookkeeping division. Thus, harmonization of national bookkeeping frameworks meets with accomplishment under globalization. Bookkeeping techniques for neighbourhood open parts can't be unaffected and International Public Sector Accounting Standards (from this time forward IPSAS) have been gotten for a worldwide appropriation. This study delineates the huge way of IPSAS, their general qualities and importance of them. Additionally, cash‐basis and accrual‐basis measures will be called attention to. Moreover, this study will allude to some theoretical issues about IPSAS, as a type of question to some of their thoughts and objectives.

Penerepan Akuntasi Sektor Publik, Ketidakpastian Lingkungan Kerja, Pengawasan Sistem Pengendalian Internal, Kualitas Laporan Keuangan, Kejelasan Sasaran Anggaran Terhadap Penerapan Transparansi Pelaporan Keuangan Pemerintah Daerah

This study aims to test the application of public sector accounting, work environment uncertainty, internal control system supervision, the quality of financial statements, clarity of budget targets on the implementation of government financial reporting transparency. Respondents in this research are government employees of Mayor of Central Jakarta, South Jakarta and West Jakarta, the number of government employees who are the sample of this study are 3 government offices of DKI Jakarta each government office 50 respondents government officials. Sampling method used in this study is a random sample, while the method of data processing used by the study is multiple regression analysis.The data is done through survey by using questionnaires distributed to respondents. The data analyzed by using multiple regression analysis supported by SPSS version 24.0 result of this research indicate that the influence of public sector accounting implementation, work environment uncertainty, internal control system supervision, quality of financial report, clarity of significant budget targets to the application of transparency of government financial reporting. The result of adjusted R square found that, the application of public sector accounting, work environment uncertainty, internal control system supervision, quality of financial report, clarity of budget target to the implementation of transparency of government financial reporting can be explained by 25,0% while 75,0% other variables not included in this research model.

Governmental accounting and budgeting in Malta and Poland – a different dance to the same tune

PurposeThis paper compares governmental accounting and budgeting in two European Union (EU) member states, analysing the developments in each country as to how they “fit” into the EU's harmonization project and the push towards the implementation of accrual accounting compliant with the International Public Sector Accounting Standards (IPSAS).Design/methodology/approachAn explanatory multiple case study is used to describe the structures and changes in governmental systems (accounting and budgetary) in Malta and Poland. The methodology takes a qualitative interpretative approach, examining the underlying legislations and related ministerial publications as secondary sources.FindingsFocusing on the output from financial accounting and budgetary systems, the results illustrate how organizations respond in a different manner to similar institutional pressures. In particular, Poland shows no inclination to adopt the IPSAS, but emerges with a sophisticated budgeting system while Malta is more focused on developing its financial reporting in line with the IPSAS. The theoretical lens highlights that while both countries tend towards pragmatic legitimacy, Poland appears more inclined towards exchange legitimacy, and Malta is more subject to influence legitimacy.Research limitations/implicationsAt a practical level, this study should be read by public sector accounting standard setters. It illustrates how EU member states are engaging with the IPSAS, emphasizing the ambitious nature of the EU's harmonization project, in spite of the structural legitimacy that the EU institution emanates.Originality/valuePrevious comparative international governmental accounting studies have examined accounting reform processes and developed or applied various theoretical models to try to understand the process. This study looks at the output from such reform processes. The two countries are seemingly experiencing the same type of pressures exerted by the demands of EU membership. However, the translation of the same external macro-forces at macro-level to micro (organizational)-level results in different compliance with the desired harmonization of governmental accounting systems.

A Study on International Public Sector Accounting Standards (IPSAS) and the Quality of Accounting Information in Libyan Government Sector

The purpose of this study was to investigate the influence of applying International Public Sector Accounting Standards (IPSAS) on accounting information quality. Recent research has found positive outcomes in IPSAS and accounting information quality (Bakhtah &amp; Ammar, 2019). However, because IPSAS is a new product, there is still a lot to learn and explore about it. In Libya's government sector, the study population included a number of board directors, non-audited members, internal auditors, accountants, and department heads from various departments of government. They were given 400 questionnaires, and their responses were analysed with SPSS and PLS-SEM. The four independent criteria (ensuring good governance, disclosure, board of directors’ responsibilities, and the preservation of shareholder rights) had a significant impact on the quality of accounting information among Libyan bank workers. The authors suggest a future study agenda and highlight contributions to knowledge, namely auditing literature and accounting information quality literature. The findings indicate that the implementation of IPSAS will have an impact on an external audit in Libya. External audit reports are standardised by IPSAS, and external audit notes are influenced by it. Following the deployment of IPSAS, Libyan audit firms will collaborate with global audit firms to gain experience auditing IPSAS-prepared financial statements. This will strengthen the external auditors' judgments and knowledge of global accounting standards. Keywords: Governance, Disclosure, IPSAS, Government, Quality of information, Accounting

Government Accounting in Pakistan: transition from a Legacy system to the New Accounting Model

ABSTRACT This research aims to describe and assess the historical development of government accounting in Pakistan; and to analyse the distinctive elements of each stage of development that contributed to the dynamics of change. Prior studies have overlooked public sector accounting as researchers have focused more on Pakistan’s private sector. We find, in the first instance, a transition in the government accounting of the country from a Legacy system to the New Accounting Model. A thematic analysis of the archival data further reveals that the system has passed through the stages of Dependency, Stepping-stone, and Modernisation with a forward look to Standardisation. Beyond accounting history, our results are deemed to be useful to accounting education, policy, and practice.

Culture, language, and accounting reform: a new perspective on IPSAS implementation

PurposeThis study aims to explore the role that culture and language play in the implementation of International Public Sector Accounting Standards (IPSAS).Design/methodology/approachThe Hofstede–Gray and Huerta et al. (2013) models were used to collect data on language and accounting culture. Paired-sample t-test, regression and factor analyses were conducted on data from a sample of 101 respondents. This study also used ordinary least squares to test hypotheses.FindingsThe cultural dimensions of professionalism, secrecy and uniformity significantly influence the implementation of IPSAS. Furthermore, this study finds a significant link between culture, language and IPSAS implementation, which underlines the need for careful consideration of International Public Sector Accounting Standards Board policies in the promotion of IPSAS internationally.Research limitations/implicationsWhile this study is limited to its research method, using secondary data would have been challenging given the setting and accessibility issues. This study overcomes this problem by using a self-administered questionnaire. Prior studies confirm the reliability of the constructs. Despite providing justifications for why the authors use judgemental sampling, the authors acknowledge the limitation of the technique in survey distribution. Furthermore, the findings cannot be read without caution, as the authors focused on one country. However, interactions between accounting practices and culture in one country may be transferred to other countries that share a common language and culture with Qatar. The authors believe future research in this area will complement the understanding of the determinants of IPSAS implementation should the study be replicated.Social implicationsPolicymakers, standard setters and regulators should promote and enforce an integrated approach that reflects the need for accountants and auditors to be conscious of the effects of culture and language, given the likelihood of widespread IPSAS adoption.Originality/valueThis study offers insight into the significance of culture and language in reforming public-sector accounting systems in developing nations and emerging economies.

Designing international public sector accounting standards: An analysis of constituents’ participation through comment letters

AbstractHarmonization of public sector accounting is attracting increasing attention from scholars and practitioners. A focal component of this phenomenon is the setting of accounting standards, whose legitimacy is paramount to their application. As participation by constituents is considered fundamental for ensuring this legitimacy, in this study, we focus on participation through comment letters in the due process. In particular, we explore the type of respondents, their geographical area, their agreement/disagreement with the documents prepared by the International Public Sector Accounting Standards Board (IPSASB) and the issues of importance to them, through an analysis of the comment letters submitted for six projects launched over the period 2017–2020 by the IPSASB. Furthermore, we analyze some factors that may affect countries’ participation in the due process. The analysis enriches our understanding of the IPSASB's due process and provides relevant insights for the growing research into accounting standard‐setting.