Internal control within the conditions of performance budgeting of universities

Subject. This article discusses the issues of improving the financing of universities, the development of performance-based budgeting to support their activities. Objectives. The article aims to assess the problematic aspects of financial support for the activities of higher education institutions, including using the performance-based budgeting, and identify the features of its implementation that affect the system of internal control at universities. Methods. For the study, we used the methods of analysis, grouping, comparison, and generalization. Results. The article summarizes the problematic provisions of financing the activities of universities, including the use of the performance-based budgeting method, and justifies the need to transform the internal control of universities. Conclusions. The article concludes that the development of the system of financing the activities of universities generally corresponds to foreign practice, although there are some shortcomings in the financing of higher education institutions. Internal control of universities should be modernized taking into account the strategic nature of the project financing process and the possibilities of digitalization of control activities.

Integrating non-financial performance indicators in budget documents: the continuing search of Dutch municipalities

PurposeAlthough the topic of performance budgeting has received considerable attention in the literature, it is mainly explored in the field of public management and administration, and little research exists in the field of public sector accounting. The purpose of this paper is to provide more insight into how non-performance indicators are integrated in budget documents, thereby bridging the gap between the literature in both fields. Furthermore, the influence of potential drivers of differences in the incorporation of non-financial performance indicators are explored.Design/methodology/approachThis study starts with an overview of historical developments in Dutch local government for a period of 50 years. This is followed by an empirical assessment of the current incorporation of non-financial performance indicators based on a dataset of 107 municipal budget documents for FY2019.FindingsThe authors' historical overview shows that several initiatives were employed to encourage municipalities to integrate non-financial performance indicators in their budget documents. A search to connect policy and means can be observed, which has not developed linearly over time, but mostly in reaction to major changes in national legislation. The authors find a large variation among the municipalities in their current incorporation of non-financial performance indicators. Contrary to theoretical expectations, output indicators (and not outcome indicators) are most frequently incorporated. Furthermore, the authors find that more indicators are incorporated if a municipality is larger, more willing to innovate and if it has less financial resources.Originality/valueThis article contributes to the understanding of how to incorporate non-financial performance indicators in public sector financial statements. To the best of authors’ knowledge, this is an area that is not explored before.

Budgeters’ Perceptions of the Scope, Support, and Patterns of Implementation of Performance Budgeting in Texas Cities

This study views performance budgeting as a budget innovation, and examines how this innovation tool has been diffused across the largest cities in the State of Texas, emphasizing the scope and patterns of implementation of this innovation in the context of a state with comprehensive performance budgeting legislation. The study also reports the perceptions of city budgeters vis-à-vis the external and internal factors that may support the use of performance measures in budgeting at the local level, using survey data from a sample of Texas cities with population over 50,000. The results of the study reveal that although performance laws set up the general framework for performance budgeting, they do not seem to generate a uniform pattern of implementation. Cities in our sample are found at different stages of performance budgeting implementation, and have developed different patterns of budgetary practices.