Accounting Reforms for Accountable Public Sector Management

2020 ◽  
pp. 41-64
Author(s):  
Chitra Sriyani De Silva Lokuwaduge ◽  
Keshara M. De Silva Godage
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Sri Lanka ◽  
Financial Management ◽  
Public Management ◽  
New Public Management ◽  
Developed Countries ◽  
The Public ◽  
New Public ◽  
Public Sector Accounting

Accounting reforms in the public sector have become one of the most debated aspects of the public sector financial management during the last three decades. Following the steps of developed countries around the globe, Sri Lanka as a developing country made initiatives to adopt international public sector accounting standards (IPSAS). The purpose of this study is to analyse the progress and the challenges they face in adopting IPSAS as a new public management (NPM) reform in Sri Lanka to enhance public sector accountability. Public sector accounting reforms in the developing countries in Asia is relatively under researched. Using the NPM concept, this study attempts to fill this gap. This chapter argues that even though Sri Lanka has initiated the move towards adopting IPSAS, developing countries face practical problems in adopting reforms due to their contextual factors such as limited institutional capacity and resources, high political involvements in decision-making, and high informality.

Exploring the New Public Management (NPM)-Based Reforms in the Public Sector Accounting

2016 ◽  
pp. 49-67 ◽  
Author(s):  
Chitra Sriyani De Silva Lokuwaduge
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Public Management ◽  
Resource Dependence ◽  
New Public Management ◽  
Resource Dependence Theory ◽  
Sri Lankan ◽  
The Public ◽  
New Public ◽  
Public Sector Accounting

This Chapter aims to explore the process of adopting International Public Sector Accounting Standards (IPSAS) as a New Public Management (NPM) based reform in Sri Lanka as a developing country. Based on institutional theory and resource dependence theory, framework was developed to highlight the importance of reforms and of changes in the area of public sector accounting specifically during the last three decades. It shows the extent to which Sri Lankan public sector has adopted IPSAS based accounting reforms and the limitations of adopting these standards in developing countries. This chapter argues that adopting reforms in developing countries is problematic due to limited resources and concludes that, significant changes towards adoption of IPSAS and implementing some of the reform ideas has taken place during the last decade. Relatively little is known about the NPM-based reforms in public sector accounting practices in developing countries. This is an attempt to fill this gap.

scholarly journals Accounting and the post-new public management

2018 ◽  
Vol 32 (1) ◽  
pp. 255-279 ◽  
Author(s):  
Ileana Steccolini
Keyword(s):  
Public Sector ◽  
Public Administration ◽  
Public Management ◽  
New Public Management ◽  
Content Type ◽  
The Public ◽  
Accounting Research ◽  
Societal Relevance ◽  
New Public ◽  
Public Sector Accounting

Purpose The purpose of this paper is to reflect various pathways for public sector accounting and accountability research in a post-new public management (NPM) context. Design/methodology/approach The paper first discusses the relationship between NPM and public sector accounting research. It then explores the possible stimuli that inter-disciplinary accounting scholars may derive from recent public administration studies, public policy and societal trends, highlighting possible ways to extend public sector accounting research and strengthen dialogue with other disciplines. Findings NPM may have represented a golden age, but also a “golden cage,” for the development of public sector accounting research. The paper reflects possible ways out of this golden cage, discussing future avenues for public sector accounting research. In doing so, it highlights the opportunities offered by re-considering the “public” side of accounting research and shifting the attention from the public sector, seen as a context for public sector accounting research, to publicness, as a concept central to such research. Originality/value The paper calls for stronger engagement with contemporary developments in public administration and policy. This could be achieved by looking at how public sector accounting accounts for, but also impacts on, issues of wider societal relevance, such as co-production and hybridization of public services, austerity, crises and wicked problems, the creation and maintenance of public value and democratic participation.

scholarly journals Revisiting Trade Unions’ Response to New Public Management: A Case From Zambia

2017 ◽  
Vol 46 (3) ◽  
pp. 288-307 ◽  
Author(s):  
Clever Madimutsa ◽  
Leon G. Pretorius
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Trade Unions ◽  
Public Management ◽  
New Public Management ◽  
Choice Theory ◽  
Developed Countries ◽  
Negative Consequences ◽  
New Public ◽  
Public Sector Unions

This article discusses the strategic responses by public-sector unions to new public management (NPM) reforms in Zambia. The article is based on a qualitative research methodology focusing on the Civil Servants and Allied Workers Union of Zambia. The study shows that public-sector workers in developing countries are more vulnerable to the effects of externally imposed NPM reforms, which include job cuts. However, the implementation of these reforms faces opposition especially from trade unions. In line with the assumptions of strategic choice theory, union responses to NPM reforms are strategic. Despite the high vulnerability of public workers in developing countries, their unions use strategies that can also be observed in developed countries to mitigate the negative consequences of NPM reforms on the public sector. These strategies follow a three-stage process, namely, opposing the reforms, negotiating for favorable reform measures, and shifting from centralized structures to networks.

scholarly journals Influence of New Public Management Philosophy on Risk Management, Fraud and Corruption Control and Internal Audit: Evidence from an Australian Public Sector Organization

2019 ◽  
Vol 18 (4) ◽  
Author(s):  
Anup Chowdhury ◽  
Nikhil Chandra Shil
Keyword(s):  
Risk Management ◽  
Control System ◽  
Public Sector ◽  
Private Sector ◽  
Financial Management ◽  
Public Management ◽  
New Public Management ◽  
Internal Audit ◽  
The Public ◽  
New Public

Research Question: This study will explore how private sector financial management technologies (specifically, risk management system, fraud and corruption control system and internal audit) become embedded in a selected public sector organisation. Motivation: The motivation for this study is to explore how private sector financial management control tools contributed to and shaped new organisational culture within the public sector organisation. Idea: The idea was generated from the philosophy of New Public Management which was based on the premise that using the private sector tools, the public sector would be efficient and at the same time effectiveness would be improved (Chowdhury and Shil, 2017). Data: Qualitative research approach was adopted and data was collected in the case study tradition. Twenty top, mid and junior level executives from a selected Government Department in the Australian Capital Territory were interviewed (Chowdhury and Shil, 2016). Tools: The main data sources were interviews and archival official documents. Another tool used was direct observation which helped researchers to support the archival documents and interview data. Data were analyzed using the approach provided by Miles and Huberman (1994). Findings: Findings of the study revealed that strategic risk management is a part of the business planning life cycle of the researched Department and business units review their strategic risks as part of their business planning process. In the Department it is evident that fraud and corruption control system is a part of their cultural environment. The Department has established an independent Internal Audit and Review Unit, who provides service to management to meet all prescribed statutory responsibilities within a performance improvement environment. Contribution: The findings of the present study are expected to increase our understanding about the private sector control devices used in a public sector context and this study will be of value to the academic researchers and practitioners. The study may be useful to the policy makers also who are engaged in formulating new public sector policies. Moreover, the findings reported on this study would be useful to the public sector managers in their day to day decision-making process.

scholarly journals Cash to accrual accounting: Does it mean more control for the public sector? The case of revenue from non-exchange transactions

2013 ◽  
Vol 3 (4) ◽  
pp. 28-35
Author(s):  
Francesco Capalbo ◽  
Marco Sorrentino
Keyword(s):  
Public Sector ◽  
Financial Management ◽  
Public Management ◽  
New Public Management ◽  
Accounting System ◽  
Accrual Accounting ◽  
The Public ◽  
Accounting Measurement ◽  
New Public ◽  
Exchange Transactions

Within the New Public Management, a fundamental role is played by changes in accounting measurement and recognition systems (in this case, the literature speaks specifically of New Public Financial Management). It has been substantially characterized by a gradual shift from cash to accrual accounting. In light of it, this paper aims to analyze some of the most significant conceptual and practical implications associated with the use of accrual accounting in the public sector – such as Italy’s, where most entities still use cash accounting – by looking closely at that full-accrual standard that seem to best show the system’s innovative reach: IPSAS 23 – Revenue from Non-Exchange Transactions (Taxes and Transfers). The switch-over broadens the scope of the accounting system, thereby leading to the recognition and consequent valuation of all the resources of any public-sector entity in its financial statements. As is often the case, though, greater utility implies greater complexity and innumerable elements of uncertainty are evidently still present.

scholarly journals Performance Management System in Mozambican Universities: A Literature Review of Theories, Origin and Evolution

2020 ◽  
Vol 11 (6) ◽  
pp. 52
Author(s):  
Carlos Bire Caixote ◽  
Bashi Mothusi ◽  
Thekiso Molokwane
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Performance Management ◽  
Public Management ◽  
Public Universities ◽  
New Public Management ◽  
Performance Management System ◽  
The Public ◽  
Public Sector Reforms ◽  
New Public

From the end of the 1970s up to the 2000s, governments in the developed and developing countries were involved in implementing economic, social, political, cultural and legal reform programs. The first wave of public sector reforms came under the Structural Adjustment Programs (SAPs) which were implemented in most of the developing countries from the late 1970s to the early 1990s. The second wave, which started in the early 1990s, was propelled by influence generated by proponents of the New Public Management (NPM) school of thought. The major objective of reforms was to enhance performance and productivity in public sector organizations including higher education institutions. This practice was grounded on certain theories and models, mainly public-choice theory and goal-setting theory under the New Public Management (NPM) model. The Government of Mozambique has adopted a performance-based approach to implementing public sector reforms. This study, which employs a qualitative literature survey with secondary data as its primary research source, discusses and analyzes literature on the design and implementation of a Performance Management System (PMS) in the public sector including public universities of Mozambique. The study also discusses the origins and evolution of the theories which are linked to PMS and their applicability to the public universities of Mozambique as they started embracing PMS as a tool for improving performance of individuals and the organization as a whole.

scholarly journals Intellectual Capital and Sustainable Economic Performance in the Public Sector: The Context of the New Public Management in Malaysia

2021 ◽  
Vol 13 (14) ◽  
pp. 7885
Author(s):  
Kardina Kamaruddin ◽  
Indra Abeysekera
Keyword(s):  
Public Sector ◽  
Intellectual Capital ◽  
Economic Performance ◽  
Public Management ◽  
Structural Equation ◽  
New Public Management ◽  
The Public ◽  
New Public ◽  
Operational Variables ◽  
Construct Dimensions

The New Public Management allows us to reflect upon whether intellectual capital helps public sector organisations meet their performance benchmarks. Sustainable economic performance gains importance from the public sector’s service ideal. Although there have been empirical endeavours using intellectual capital as operational variables, this study examines the theoretically informed relationship between the intellectual capital construct and its construct dimensions and the sustainable economic performance construct and its construct dimensions. The decision-making inputs of senior officials in the Malaysian public sector are vital for evaluating the relationship, as these officials are the individual strategists of the collective organisational strategy. The study conducted a survey that received 1092 usable responses and analysed them using the structural equation modelling research method. The findings showed a robust theoretical relationship between intellectual capital and sustainable economic performance. Furthermore, the study identified intellectual capital items that play a vital role in supporting public sector sustainable economic performance in Malaysia under New Public Management. The findings provide useful knowledge for public sector officials and policymakers, and for further research.

scholarly journals New public management and the rise of public sector performance audit

2018 ◽  
Vol 32 (1) ◽  
pp. 280-306 ◽  
Author(s):  
Lee D. Parker ◽  
Kerry Jacobs ◽  
Jana Schmitz
Keyword(s):  
Public Sector ◽  
Public Management ◽  
New Public Management ◽  
Content Type ◽  
The Public ◽  
Key Stakeholders ◽  
New Public ◽  
Performance Audit ◽  
Performance Auditing ◽  
Strong Control

Purpose In the context of global new public management reform trends and the associated phenomenon of performance auditing (PA), the purpose of this paper is to explore the rise of performance audit in Australia and examines its focus across audit jurisdictions and the role key stakeholders play in driving its practice. Design/methodology/approach The study adopts a multi-jurisdictional analysis of PA in Australia to explore its scale and focus, drawing on the theoretical tools of Goffman. Documentary analysis and interview methods are employed. Findings Performance audit growth has continued but not always consistently over time and across audit jurisdictions. Despite auditor discourse concerning backstage performance audit intentions being strongly focussed on evaluating programme outcomes, published front stage reports retain a strong control focus. While this appears to reflect Auditors-General (AGs) reluctance to critique government policy, nonetheless there are signs of direct and indirectly recursive relationships emerging between AGs and parliamentarians, the media and the public. Research limitations/implications PA merits renewed researcher attention as it is now an established process but with ongoing variability in focus and stakeholder influence. Social implications As an audit technology now well-embedded in the public sector accountability setting, it offers potential insights into matters of local, state and national importance for parliament and the public, but exhibits variable underlying drivers, agendas and styles of presentation that have the capacity to enhance or detract from the public interest. Originality/value Performance audit emerges as a complex practice deployed as a mask by auditors in managing their relationship with key stakeholders.

scholarly journals PERFORMANCE MEASUREMENT SYSTEMS IN THE CONTEXT OF NEW PUBLIC MANAGEMENT: EVIDENCE FROM AUSTRALIAN PUBLIC SECTOR AND POLICY IMPLICATIONS FOR DEVELOPING COUNTRIES

2017 ◽  
Vol 12 (1) ◽  
pp. 7-19
Author(s):  
Anup Chowdhury ◽  
Nikhil Chandra Shil
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Performance Measurement ◽  
Public Management ◽  
New Public Management ◽  
Policy Implications ◽  
Measurement Systems ◽  
New Public ◽  
Performance Measurement Systems

This research explored in depth the evolution of performance measurement systems in the context of new public management initiatives in Australian public sector. A governmental department in the Australian Capital Territory was selected for the purpose of the exploration. The qualitative research approach was adopted and data was collected following case study tradition. The main data sources were archival official documents and interviews. In addition, the researchers used direct observation to supplement and corroborate the archival documents and interview data. The empirical evidence presented in this research supports the fact that the selected Australian government department has implemented performance measurement systems in the line of new public management to illustrate the department’s commitment to efficiency and accountability. The research undertaken was in-depth, using a case study and though generalization is not possible from this single case study, the findings may be expected to add knowledge to existing literature and provide some important lessons for other public sector entities of the developing countries who are interested in adopting performance measurement systems as their control devices. Keywords: public sector, performance measurement systems, new public management, developing countries, Australia.

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