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Article
Publication date: 1 March 2010

Abstract

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Journal of Public Budgeting, Accounting & Financial Management, vol. 22 no. 2
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 3 June 2020

Christopher Enyioma Alozie

This paper assessed accuracy level in accounting for government funds in Nigeria's federal treasury and their faithful presentation in government financial reporting. It…

Abstract

Purpose

This paper assessed accuracy level in accounting for government funds in Nigeria's federal treasury and their faithful presentation in government financial reporting. It aimed to determine whether the reported annual balances in Nigeria's financial reporting were reliable or otherwise. Data used in analysis were obtained from secondary sources from federal treasury.

Design/methodology/approach

Ex-post “facto” analysis method was adopted in the study involving the use of statistical techniques of absolute or aggregate mean percentage error derived from differences between recomputed and published fund balances and was employed. This was augmented with interactive review meetings of the initial case research report with the management of Nigeria's audit agency.

Findings

Results distilled from the consolidated revenue fund (CRF), development fund and public debt show that recomputed values were greater than the fund balances in the gazetted financial statements. Results for contingency fund (CTF), federation account fund (FAF), special trust fund (STF) and sundry deposit fund yield equal figures and accurate. The paper concludes that there were serial understatements of the core public fund balances in the financial statements over the years. This trend of reporting incorrect in three core public funds in financial statements rendered Nigeria's financial position unreliable in the affected years for decisions. It also facilitated frauds, mismanagement of funds and corrupt practices.

Research limitations/implications

The scope of the research is restricted to assessment of degree of accuracy in fund accounting, faithful representation of the respective fund balance in the liabilities side of FGN balance sheet and the reliability of the financial position. But, it did not consider or cover the implementation of International Public Sector Accounting Standards (IPSASs) in federal treasury since FGN had not issued any full IPSAS–oriented financial statements as on 2015.

Practical implications

Identification of deficiencies in fund account balances, structural defects in fund accounting and acts of understatement of carrying balances in CRF and capital development fund (CDF) implies that the aggregate core fund liabilities reported in financial statement of government entities without corresponding assets do not actually reflect a true and fair financial position in some countries. It reveals remarkable degree of financial information asymmetry in government financial reporting. Illusionary fund accounting has direct linkage to poor fiscal governance in many sovereign with associated sub-optimal delivery of public goods and service level distress syndrome in many economies; lead to poverty, unemployment, crisis and macroeconomic disturbances.

Social implications

The study contributes to the development of fund accounting system; strengthening government financial reporting architecture and practices. It provides framework for tracking financial information asymmetry in government financial reporting and mismanagement of public funds. It provides platform to effect necessary adjustment (correction) during the “first time 3-year adoption” adjustment window in Nigeria. Flowing from the findings, it advocates for institutionalization of government fund accounting standards and provides evidence for migration to accrual accounting system in countries that have not already implemented it. Evaluation system developed herein will improve fund management in federal treasury and contribute to efficient public financial management, good governance and enhance development of public accounting practice.

Originality/value

This exploratory empirical research is the one to ever evaluate accuracy level of fund accounting in sovereign entities and faithful representation in government's financial position prior to implementation of accrual accounting and financial reporting. The study established substantial level of illusionary accounting for public funds and information asymmetry in published government's financial reporting. It is necessary to rectify these discrepancies in fund accounting and financial reporting prior to and or during the first three years of the IPSAS transition implementation programme. These research deliverables provide adopters with relevant data for adjustment accounting during the transition period in strengthening public financial reporting in order to realize the benefit of full IPSAS accrual accounting.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 32 no. 3
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 1 May 2001

Paul Klumpes

Examines the financial accountability implications arising from the adoption of accrual‐based accounting principles by Australia’s largest public sector employee pension…

Abstract

Examines the financial accountability implications arising from the adoption of accrual‐based accounting principles by Australia’s largest public sector employee pension fund manager, the State Authorities Superannuation Board of the Australian State of New South Wales (SASB), during its brief existence from 1988 to 1996. While the adoption of accrual‐based accounting principles increased management’s political accountability concerning the performance of SASB’s commercially‐managed asset portfolio, it reduced the level of generational accountability concerning the under‐funding of its major pension fund, the State Authorities Superannuation Scheme (the SAS). Negative political visibility associated with management’s voluntary compliance with a controversial financial reporting standard, together with government’s adoption of accrual accounting, resulted in two major changes in the SASB’s organizational structure. The impact of political visibility on the generational accountability behavior of SASB management is examined by comparing stock and flow funding trends of the SAS over time.

Details

Accounting, Auditing & Accountability Journal, vol. 14 no. 2
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 20 November 2017

Solabomi Omobola Ajibolade and Collins Sankay Oboh

The purpose of this paper is to attempt an empirical examination of government budgeting and expenditure processes in Nigeria, a developing country. It examines the…

Abstract

Purpose

The purpose of this paper is to attempt an empirical examination of government budgeting and expenditure processes in Nigeria, a developing country. It examines the current state of budgeting and public funds management (PFM) in Nigeria. It also examines the extent to which the government has used the budgetary mechanism to effectively manage the nation’s economy.

Design/methodology/approach

The paper employed simple regression estimation technique for data analysis. Time series data set of budgetary information was constructed from different archival sources over a 16-years period (2000-2015), majorly the national Appropriation Acts, press releases, regulatory and governmental reports, reports of Transparency International, World Bank and Central Intelligence Agency.

Findings

The findings confirm that the nation’s annual budgeting approach is defective and lags in achieving its fiscal objectives. The budget indicates a state of poor accountability and transparency in PFM. Findings also suggest that the level of economic development in Nigeria is not commensurate with the size of government expenditure.

Practical implications

The paper draws the attention of the government to the need to restructure its approach to budgeting and adopt a more resilient approach that suits its environment and economic peculiarities in effort to ensure efficient management and accountability of public funds. The paper also offers value to other developing countries. It provides empirical evidence that explains an aspect why the African continent remains underdeveloped hitherto.

Originality/value

This paper lends a voice to the call for a restructuring of the Nigerian budgetary system and its implementation strategy. It advocates for the adoption of an alternative budgeting approach that matches Nigeria economic realities. The paper demonstrated that the traditional budgetary approach being used by many developing countries is limited in certain ways and could hinder sustainable development.

Details

International Journal of Public Leadership, vol. 13 no. 4
Type: Research Article
ISSN: 2056-4929

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Article
Publication date: 3 September 2018

Julius A. Nukpezah and Sawsan Abutabenjeh

The purpose of this paper is to draw on the theory of institutional isomorphism to investigate how Mississippi’s centralized cash management policy affects the cash…

Abstract

Purpose

The purpose of this paper is to draw on the theory of institutional isomorphism to investigate how Mississippi’s centralized cash management policy affects the cash management practices in the state’s rural and urban counties.

Design/methodology/approach

The study uses a sequential exploratory mixed methods design involving a qualitative documentary analysis and a quantitative analysis of a survey of Mississippi counties.

Findings

The study finds that institutional isomorphism drives cash management practices in the counties by influencing how they follow state and agency mandates. Moreover, while urban counties have superior socio-economic indicators compared to their rural counterparts, no differences exist regarding standardized financial indicators, which suggest that local governments in the state may be imitating the practices of one another.

Practical implications

First, states should consider the different financial and economic conditions of their local governments when prescribing cash management policies because uniform policies could stifle local innovation and reduce efficiency in cash management. Second, when there is pressure from a higher-level government or a state agency, local governments may end up imitating one another rather than exploring opportunities for innovation within state policies. Third, state policies should consider requiring education and training in cash management practices that help identify strategies to add value to public funds within the scope of local fiscal capabilities.

Originality/value

The study uses one state to investigate a unique case of centralized cash management practices. The lessons learned can apply to other states seeking to develop a policy for their small local governments without placing the larger ones at a disadvantage.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 30 no. 3
Type: Research Article
ISSN: 1096-3367

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Article
Publication date: 9 August 2018

Luís Leonardo Cumbe and Helena Inácio

The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).

Abstract

Purpose

The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).

Design/methodology/approach

This paper followed a case study approach of the INE Common Fund that was based on the qualitative evidence from the content analysis of the external audit reports, annual plans of activities and budget for the past seven years and interviews with middle managers of the INE.

Findings

The research found that external audit has a relatively significant impact on the management of the INE Common Fund. The authors attribute the positive impact to the high concern of management to implement the external audit recommendations, associated with the financial dependence between the agent (the National Institute of Statistics) and the principal (Fund Donors), explained through Laughlin’s Model of Accountability.

Practical implications

The results indicate that external audit associated with the financial dependence of the agent on the principal has a significant impact on the accountability. Thus, it contributes to assist in the formulation of public policies on external financing to developing countries.

Originality/value

Most of the studies on external audit and accountability are from countries with more developed economies than Mozambique’s, without heavy reliance on external financing, and these studies analyse the audits carried out by public audit institutions. This research explores the phenomenon in the context of external financing to the State Budget by governments and international organisations.

Details

Managerial Auditing Journal, vol. 33 no. 6/7
Type: Research Article
ISSN: 0268-6902

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Article
Publication date: 2 October 2017

Yuchen Gao and Yimei Hu

This study aims to explore key factors and specific ways for the upgrade to hybrid incubators in the context of China. A hybrid incubator means that a technology-based…

Abstract

Purpose

This study aims to explore key factors and specific ways for the upgrade to hybrid incubators in the context of China. A hybrid incubator means that a technology-based business incubators (TBIs) can implement various distinct value creation processes with the integration of the advantages of non-for-profit and for-profit TBIs at same time as Chinese government now requires government-sponsored non-for-profit TBIs to be profitable self-sustainability with less dependent on direct public subsidies, aiming to motivate these TBIs to provide higher quality services for their tenant new technology-based firms (NTBFs).

Design/methodology/approach

This study conducts a single in-depth case-study of Tuspark Incubator (located in Tsinghua Science Park [TSP]) with categorical analysis.

Findings

Three factors, i.e. incubation subdivision, intermediary platform and proactive approach, are found to be essential for a formerly government-sponsored TBI’s upgrading. Incubation subdivision enables Tuspark Incubator to create multiple incubation processes with incubator characteristic variables of both non-for-profit and for-profit incubators; with the establishment of intermediary platform, Tuspark Incubator provides specialized business support and high-quality networking from relevant specialized service organizations external to the incubator; more proactive approach with equity investment on incubating firms from Tuspark Incubator help to generate social welfare and financial profit at the same time.

Practical implications

For the incubators’ managers, incubation subdivision enables TBIs to operate for-profit and non-for-profit processes at the same time and provides different specific needs; more open intermediary service platforms can leverage the full potential of the actors in innovation system and help TBIs to save resource when upgrading to hybrid incubators; proactive approaches nurture learning climate and entrepreneurship environment to enhance the successful rate on NTBFs inside incubators and provide main profit source for incubators. For policy makers, using proactive approaches including creating a good milieu for incubation on technology-based start-ups and the design of public guidance funds is increasingly crucial.

Originality/value

This research is a pioneering study on the key factors and specific ways for the upgrade of government-sponsored non-for-profit TBIs in China to hybrid for-profit and non-for-profit incubators.

Details

Journal of Science and Technology Policy Management, vol. 8 no. 3
Type: Research Article
ISSN: 2053-4620

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Abstract

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Fighting Corruption in the Public Sector
Type: Book
ISBN: 978-1-84950-857-5

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Article
Publication date: 31 July 2020

Scott Douglas and Tom Overmans

The principles of public value management (PVM) have greatly inspired public management practitioners and scholars, but the application of these ideas to the everyday…

Abstract

Purpose

The principles of public value management (PVM) have greatly inspired public management practitioners and scholars, but the application of these ideas to the everyday practice and research of government has proven to be more difficult. This article formulates propositions for how the principles of PVM could affect one of the core processes of government: budgeting. These propositions can inspire practitioners and be tested by future researchers.

Design/methodology/approach

The article identifies the core principles of PVM and applies these to the budgeting functions of the allocation, management and accountability of public money. This exploration leads to a first conceptualization of “public value budgeting” and generates 12 propositions about how budgeting will change and remain unaltered under the influence of PVM.

Findings

The central argument is that “public value budgeting” could promote more coordination and integration between public funds and community resources, more involvement of societal stakeholders in the budgetary process and more continuous tweaks and changes to the budget. At the same time, legislative vetoes, financial controls and debates about the best use of public money will remain an important feature of public budgeting.

Originality/value

The article forwards the first conceptualization of public value budgeting, connects the literatures on public value and public budgeting, and offers both a practical application of PVM to public budgeting as well as a concrete agenda for future research.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 32 no. 4
Type: Research Article
ISSN: 1096-3367

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Book part
Publication date: 24 October 2018

T. F. Romanova, L. V. Bogoslavtseva and V. V. Terentjeva

This chapter defines the prospects of treasury technologies considering the current financial environment in Russia. The purpose of this chapter is to justify the…

Abstract

This chapter defines the prospects of treasury technologies considering the current financial environment in Russia. The purpose of this chapter is to justify the promising treasury technologies, which improve the quality of budget flows’ management. The authors highlight the mission, role, and values of treasury institute. The evaluation of its functional activity and efficiency as well as the world experience in the development of the institution is provided. Comparative analysis of treasury technology for the implementation of foreign budgets with domestic practice is provided. The need for development of treasury technologies providing the liquidity of “single treasury account” is justified. This chapter suggests expanding the positive experience of the Federal Treasury using treasury technologies to ensure the efficient use of budgetary funds on both, regional and local levels.

Details

Contemporary Issues in Business and Financial Management in Eastern Europe
Type: Book
ISBN: 978-1-78756-449-7

Keywords

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