Application of Accrual Accounting in the Australian Public Sector – Rhetoric or Reality

This paper presents a contextual. historical analysis of recent accrual accounting developments in the Australian Public Sector (APS). It takes a critical stance in that it questions the accrual accounting developments on a number of grounds. The paper examines changes in public sector financial management and accountability in four distinct settings, being: accrual financial reporting, accrual management systems, whole of government reporting, and accrual based budgeting. The findings show that already in Australia accrual accounting has made significant encroachments into some areas of annual financial and budget reporting. This influx has meant that terms such as 'deficit', 'debt', 'liabilities', 'operating results', 'assets', etc. have begun to change in meaning, which it is argued has important implications for the current process of transformation of aspects of the APS.     

Budget Rules and Flexibility in the Public Sector: Towards a Taxonomy

The practices and norms of public budgeting have often been seen as a brake on the flexibility needed of government organisations. This remains true despite historically significant financial management reforms designed around budgetary devolution. Seeing flexibility as operating along two dimensions – devolution and discretion – this paper revisits the underlying features of traditional public budgeting to develop a taxonomy of six generic ‘budget rules’. By isolating key properties of budget control, the paper uses two of the more prominent rules – annuality and purpose – to illustrate how the rules interact to generate control capacity, as well as the scope for rule variability in promoting increased flexibility.     

BUDGETING PRACTICES IN LOCAL GOVERNMENTS OF ENGLAND AND WALES

Results of two surveys (1983/1988) of local authorities' budgeting practices for strategic planning, budget preparation, and budgetary control are presented and contrasted. Findings show both improved practices and areas needing improvement. The budgetary process remains dominated by reporting requirements that disclose the budgetary compliance position rather than control the economy, efficiency, and effectiveness of operations. Shortcomings include limited use of mid- to long-term financial planning, inadequate profiling in control statements, general failure to distinguish between controllable and non-controllable items, and general disregard of non-financial output measures.     

政府会计基础比较研究——传统的收付实现制与崛起的权责发生制,孰优孰劣?

传统上 ,政府受托责任的核心是反映政府部门预算执行情况以及支出是否符合有关法律法规要求 ,这一定位并不完全适应剧变了的经济环境的内在要求。在当今经济全球化的大背景下 ,政府受托责任的具体内容与形式发生了根本性的变化。是关注现金流以做到切实遵守预算 ,还是注重资源及其使用以提高效率和效果 ,这种由不同的公共管理理念决定的会计目标差异 ,必然导致不同的会计技术选择 ,更直接地说 ,它决定了政府会计方法基础的选择。本文通过对两种会计基础的深入研究 ,认为在政府会计领域采用传统的单一会计基础有一定局限性 ,应该借鉴国际经验有选择地进行权衡取舍 ,循序渐进地实施相关改革。     

适应人民银行履职特点的财务制度研究

随着国内经济金融的快速发展,尤其在全球金融危机后,中国人民银行的管理职能有了很大的扩展,但现行人民银行财务制度尚未根据其职能变化做出相应调整,这会在一定程度上影响其职能的履行。文章结合央行工作实际分析了当前人民银行财务制度与其履职不相适应的表现,并从强化独立的财务预算体系、建立与职能相统一的财务管理体系、合理设计编制和执行部预算等方面,对建立适应人民银行履职特点的财务制度进行了研究。     

高等学校零基预算编制问题研究

零基预算近年来在我国得以推广,并取得一定成效。但是,由于预算环境和预算过程中各种不完善因素的存在,零基预算在我国高校财务预算编制中没有发挥根本性的作用。不少高校的财务预算编制采用的是一种形式上的零基预算加部门预算的预算编制模式。零基预算在我国高校的推行既需要政府的政策配套、协调合作,更需要高校改革现有的预算编制模式和预算管理模式,从而形成内外互动的良好的高校零基预算管理体系。     

Managing budget emphasis through the explicit design of conditional budgetary slack

Budgetary slack plays an important role in the functioning of budgets in organizations. While theory has found negative as well as positive elements associated with its presence, the empirical literature has interpreted it as being dysfunctional to organizations. In this paper, we present empirical evidence on how a company purposefully budgeted additional financial resources with a motivation intention (Lukka. Budgetary biasing in organizations: Theoretical framework and empirical evidence. Accounting, Organizations and Society 13 (1998) 281–302) to facilitate the managers’ task in achieving the goals of the company. Using quantitative and qualitative data from four logistic sites of a disk drive manufacturer for 24 months, we examine how the company accepted more slack as the demand on business processes increased and goals other than budget targets––in particular, service quality––became harder to achieve. By allowing this practice, headquarters made it clear to local managers that product quality and service were at least as important as meeting budget objectives. We also find that not only was budgetary slack purposefully built during the budgeting process but also in the budgeting system itself through the underlying cost accounting assumptions. The results of this paper provide empirical evidence on the positive aspects of budgetary slack and on the role of cost accounting models used in the budgeting system to facilitate managerial work.     

Budget Reporting in Local Government: Problem or Solution?

Budgeting practice in Victorian local government has been criticised by the ICAA, which has developed a standardised budgeting model. The Victorian government has prescribed standardised financial and budget reporting following a decade of reform in the public sector. This paper examines whether the criticism of local government budgeting is valid, and whether standardised models are appropriate, particularly in the context of ambiguous outcomes and lack of input-output relationships, criticism of the adoption of accrual accounting in the public sector, and a focus on the implementation of a flexible best-value regime designed to suit local conditions.     

National Accounting, Government Budgeting and the Accounting Discipline

National accounting and government budgeting include two kinds of financial reporting that are not influenced by, but have an increasing influence on, the accounting discipline. The government budget has changed, over the last sixty years, from a financial statement that was recognisably part of the accounting discipline to one in which national accounting and government budgeting have the dominant influence. There were early attempts to reconcile national accounting and the discipline but these have largely disappeared. Although the three forms of accounting measure the same phenomena, each is different in fundamental ways, in terms of both relevance and reliability.     

Implementing budgetary control in the performing arts: games in the organizational theatre

When administrators or political bodies try to enforce implementation of new management control systems on organizations, various forms of conflicts and games may be observed in the implementation process. Different rationalities are brought face-to-face in the discourse on implementation, and the process will be influenced by some form of political behaviour. A political perspective will call attention to such issues as the players, power and games. By adopting the concept of budget games in an analysis of the actions related to the implementation process we try to show how we can gain a better understanding of the behaviour exhibited by the various groups involved and of the outcome of the process. Observations from a case study of the Royal Danish Theatre show how different budget games emerge in a process in which the Theatre, the Danish Treasury Department, and various actors inside and outside the theatre have been engaged over a period of 15 years, in an attempt to implement a new management control system at the theatre. The management control system being implemented is a combination of a new accounting system and a new planning and budget system. First, we will discuss the strengths of the concept of budget games and the possibilities that it offers for a better understanding of organizational actions related to the implementation of budgeting systems. In addition, we will look at reforms in the public sector with a special view to the role of budgetary control systems. A framework for using budget games as an analytical tool in understanding implementation processes is developed and applied to the case. The analysis shows how various budget games emerge in the organizational field. The budget games start when an individual or a group wants to address an issue and encounters opponents. The analysis also demonstrates how one budget game may create a counter-game. Finally, the findings and their implications are discussed. The analysis demonstrates the usefulness of the budget game perspective in understanding the implementation of accounting systems and the behaviour of the various groups involved or af fected by the system.     

The New Business of Government Budgeting: Reporting Non-Financial Performance Information in Victoria

Since the early 1990s the general and financial management of the Victorian public sector has been significantly transformed. This research examines and explains the content, nature and quality of non-financial disclosures, including those related to performance indicators, through a disclosure indicator analysis of reporting practices in recent government budget papers. It reports the results of its application to the last three years' budget papers. The findings highlight the problems in the reporting of non-financial performance indicators in the Victorian budget papers. These results indicate a significant gap between "official" expectations of the type of items required to be reported and actual budgetary reporting practices – some many years after regulation and major financial accountability reforms have taken place.     

The New Business of Government Budgeting: Reporting Non-Financial Performance Information in Victoria

Since the early 1990s the general and financial management of the Victorian public sector has been significantly transformed. This research examines and explains the content, nature and quality of non-financial disclosures, including those related to performance indicators, through a disclosure indicator analysis of reporting practices in recent government budget papers. It reports the results of its application to the last three years' budget papers. The findings highlight the problems in the reporting of non-financial performance indicators in the Victorian budget papers. These results indicate a significant gap between "official" expectations of the type of items required to be reported and actual budgetary reporting practices – some many years after regulation and major financial accountability reforms have taken place.     

论中国政府预算管理改革的优先序--兼议绩效预算在中国的适用性

绩效预算是西方国家实践证明了的先进的预算管理模式。但绩效预算的实行需要社会相关制度环境的配套。中国目前尚不具备实施绩效预算的基本条件。中国预算制度改革的当务之急是建立控制取向的预算管理模式,解决财务合规性问题。待相关条件具备后,再选择绩效预算管理模式。     

交互预算:应对战略不确定性、契合管理控制的新机制——基于天津一汽丰田公司的案例研究

本文基于Simons的管理控制框架,在理论上梳理交互预算的控制特征、重构交互预算与其它管理控制方式间的协同关系,通过对天津一汽丰田公司预算控制的案例描述与理论分析,阐明了有别于传统的诊断预算控制,交互预算既能够克服传统预算方式的制度弊端,又能成为适应不确定性环境下的战略管理工具,还是促进企业上下级对话沟通、组织学习和管理创新的机制;另外,交互预算控制也是契合管理控制系统中信念控制、边界控制等其他控制方式的制度安排。     

Murphy’s Laws: A Key Explanatory Tool for Public Sector Disputes in the UK

This article reports on the use that the public makes of the budgetary and financial reporting produced by Spanish local authorities. The authors show financial reporting influences voting behaviour. Although citizens cannot decide how much tax they have to pay or the volume or quality of the services, they can control public management when it comes to election time. Accounting information can reflect the results of public policies and consequently serve as a vehicle for communicating the economic effects of political management. The authors make a strong case for more ‘popular’ financial reporting so that government accounts can be understood and properly used by non-specialists.     

Budgeting and Strategy in Schools: The Elusive Link

This paper examines the effects upon management control in schools following the assumption of responsibility for delegated budgets required by the Education Reform Act (ERA) 1988. The paper examines the process of construction, approval and amendment of school budgets drawing on a neo-institutionalist framework. Our investigation has drawn upon extensive interviews in 17 schools in three North West local authorities, supplemented by a postal questionnaire and inspection of relevant documents. We develop two main arguments. First, in order to satisfy their statutory duties LEAs supervised the introduction of internal systems of budgetary control and school development planning in schools. Thus, control procedures were largely designed by internal auditors, who sought to provide an audit trail and to ensure financial probity mainly to satisfy external legitimacy, rather than to influence internal decision-making. Second, the specific nature of the relationship between budgeting and strategy varies between schools as the extent of formalised planning differs, but in general there is a very loose coupling between strategic objectives and budget expenditures.     

我国预算会计改革可行性的问卷调查研究

为评估我国预算会计改革的可行性并拓展相关研究领域,我们对我国预算会计信息的编报者和使用者进行了问卷调查。结果表明,我国现行收付实现制基础预算会计信息质量存在种种问题,这已成为预算会计改革的主要动机之一;权责发生制基础预算会计信息质量明显优于现行预算会计信息,因而在预算会计改革中引入权责发生制应是有益的选择;改革必然会面临诸多困难,势必产生改革成本。编报者和使用者对待改革的态度说明改革是可行的,因为改革的收益大于成本。改革的成本与收益会受到很多因素影响,所以相关决策者应注意改革方向、方式以及时机的选择。在上述研究结论的基础上,我们对我国预算会计改革的实施提出了初步的政策建议。     

Budgeting in Catholic Parishes: An Exploratory Study

In this paper an aspect of accounting, namely budgeting, has been studied in an organizational context. According to Booth (1993) churches represent 'extreme cases' in which to study the impact of accounting. Following on from Laughlin (1988) Booth considered the sacred and secular divide to be a significant element in the use of accounting by church organizations. The parishes of the Catholic Archdiocese of Melbourne form the context of this study in which evidence is sought for the sacred and secular divide by studying the role of budgeting in the parish. Questions were asked regarding participation in the budgetary process and the development and use of the budget. It was found that there was little consultation or participation in the budgetary process and that the use of the budget was restricted. These findings suggest that the sacred and secular divide operates at the parish level.     

French revolution and German circumspection: reforming budgeting and accounting in national governments

In France in 2001, a revolutionary budgeting and accounting reform of the central government was begun and, in 2006, introduced—it is now almost complete. In 2006, the German federal government began a similarly revolutionary budgeting and accounting reform, but abandoned it in 2010. We identify the similarities in technique between the two countries' reforms but also significant differences. The authors conclude that, notwithstanding the importance of accrual accounting in the French revolution and in the abortive German revolution, the resilience of the traditional budgetary accounting systems is striking.     

LATEST DEVELOPMENTS IN LOCAL GOVERNMENT ACCOUNTING IN SPAIN

This paper provides an analysis of the present situation concerning local government accounting in Spain following recent reforms introduced in the early nineties. It presents a picture of the main features of Spanish local finance—budgeting and accounting, the measurement focus, and the basis of accounting—and analyses the financial reporting system adopted by Spanish municipalities. This is followed by a critical review of several weak points in the reform which in the author's view will encourage further developments.