The Relationship between Performance-based Budgeting Characteristics with the Integrated Reporting Approach in the Public Sector

Iranian Journal of Accounting, Auditing and Finance

مقاله 4، دوره 7، شماره 4 - شماره پیاپی 25، اسفند 2023، صفحه 57-75   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2022.42760.1173

نویسندگان

Javad Pourghaffar¹؛ Heydar Mohammadzadeh Salteh^{* 1}؛ Mehdi Zeynali²؛ Sasan Mehrani³

¹Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran

²Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

³Department of Accounting, Faculty of Management, Tehran University, Tehran, Iran

چکیده

This research explains the relationship between performance-based budgeting characteristics and the integrated reporting approach in Iran's public sector. This research is applied research in terms of its purpose, quantitative research in terms of methodology, and descriptive and survey research in terms of data collection and analysis. The statistical population includes all experts related to planning and budgeting in the public sector and expert university professors. The determination sampling method is that 250 questionnaires were distributed among the community members and 64 questionnaires were analyzed due to the presence of complete information. Therefore, the data collection tool is a researcher-made questionnaire based on the model provided by Pourghaffar et al. (2021 and 2022) with a 5-point Likert scale. The current research includes 6 hypotheses. SPSS and PLS software and structural equation analysis were used to analyze the hypotheses. The results showed 6 indicators in the hypotheses: legal requirements with the approach of government administration in the style of the private sector, strategic planning system, accounting and auditing system of management performance, information technology infrastructure with the perspective of organizational architecture and integrated systems, attention Human capital and incentive policies, the process approach and process management are directly related to the establishment of performance-based budgeting with an integrated reporting approach in the public sector of Iran. In other words, the government can use these indicators to achieve performance-based budgeting goals.

کلیدواژه‌ها

Performance-based Budgeting؛ Integrated Reporting؛ Public Sector

مراجع

1. Abbasi, E. and Ahmadi, M.S. (2012). Information Technology Infrastructure for Establishing Performance-Based Budgeting, 5th International Conference on Performance-Based Budgeting. Iran Center for Management and Productivity Studies, Tarbiat Modares University, Tehran, Iran. pp. 204-212 (In Persian).
2. Andrews, M. (2004). Authority, acceptance, ability and performance‐based budgeting reforms. International Journal of Public Sector Management, 17(4), pp. 332-344. https://doi.org/10.1108/09513550410539811
3. Azar, A., Zahedi, S.S. and Amirkhani, T. (2010). A Model for Implementing Performance-based Budget: A System Dynamics Approach. Iranian Journal of Management Sciences, 5(18), pp. 29-54 (In Persian).
4. Babajani, J. and Osta, S. (2015). A comparative study of performance-based budgeting in Iran and developed countries (A case study of: Canada). Governmental Accounting, 2(1), pp. 7-16. https://dorl.net/dor/20.1001.1.24234613.1394.2.1.1.3
5. Badem, A. C., Kilinc, Y. and Kavas, T. (2013). Performance-Based budgeting process in Turkey: Kocaeli University case. Kocaeli University, Social Science Journal, 26, pp. 77-104. http://dx.doi.org/10.18854/gjhss.v3i3.1568
6. Bal, T. (2015). Applicability of alternative models in Turkey within the framework of performance based budgeting (PBB) system. Sayıştay Journal, 96, pp. 25-54.
7. Belfo, F. and Trigo, A. (2013). Accounting information systems: Tradition and future directions. Procedia Technology, 9, pp. 536-546. https://doi.org/10.1016/j.protcy.2013.12.060
8. Biondi, L. and Bracci, E. (2018). Sustainability, popular and integrated reporting in the public sector: A fad and fashion perspective. Sustainability, 10(9), A. 3112. https://doi.org/10.3390/su10093112
9. Bogsnes, B. (2016). Implementing Beyond Budgeting: Unlocking the Performance Potential. New Jersey: John Wiley & Sons. Hoboken, New Jersey, United States.
10. Celebi, A.K. and Kovancilar, B. (2012). Theoretical and practical problems of performance-based budgeting system. Management and Economics, 19(1), pp. 1-18.
11. Ciubotaru, M. and Hincu, V. (2016). Implementing Performance-Based Budgeting in Republic of Moldova. International Conference “Risk in Contemporary Economy”, Galati, Romania, pp. 267-272.
12. Daneshmand, M. and Sanati, A. (2016). Accounting Information Systems: The Challenge of Real Time Reporting. Applied Studies in Management and Development Sciences, 1(1), pp. 23-33. (In Persian)
13. Demokaan D. (2015). The financial aspect of performance: Performance based budget. Ataturk University Journal of Social Sciences Institute, 19(1), pp. 265-282.
14. Downes, R., Moretti, D. and Nicol, S. (2017). Budgeting and performance in the European Union: A review by the OECD in the context of EU budget focused on results. OECD Journal on Budgeting, 17(1), pp. 1-60.
15. Egeli, H., Akdeniz, A., Aksarayli, M., Tugen, K. and Ozen, A. (2007). Analysis of critical control points of strategic planning oriented performance based budgeting system: The applications of Turkey’s public institutions. Journal of Dokuz Eylul University Faculty of Economics and Administrative Sciences, 22 (1), pp. 27-47.
16. Erkutlu, H. V., Tanc, S. G. and Koçyiğit, S. Ç. (2017). The factors used to create performance-based budgeting: A research on Turkey. Accounting and Corporate Reporting, Today and Tomorrow, pp. 297-314. http://dx.doi.org/10.5772/intechopen.68920
17. Iacuzzi, S., Garlatti, A., Fedele, P. and Lombrano, A. (2020). Integrated reporting and change: evidence from public universities. Journal of Public Budgeting, Accounting & Financial Management, 32(2), pp. 291-310. https://doi.org/10.1108/JPBAFM-08-2019-0120
18. Jordan, M. M. and Hackbart, M. (2005). The goals and implementation success of state performance-based budgeting. Journal of Public Budgeting, Accounting & Financial Management, 17(4), pp. 471-487. https://doi.org/10.1108/JPBAFM-17-04-2005-B003
19. Karacan, E. and Yazici, K. (2015). Performance-Based Budget Arrangements, the Implementation Process and Advancements in Turkey. International Journal of Business and Social Science, 6(4), pp. 62-79.
20. Kim, J.M. and Park, N. (2007). Performance budgeting in Korea. OECD Journal on Budgeting, 7(4), pp. 1-11.
21. Larry, M. (2014). A look at electronic financial reporting: Real Time Reporting. Hesabres Journal, (93), pp. 44-51 (In Persian).
22. McNab, R. M. and Melese, F. (2003). Implementing the GPRA: Examining the prospects for performance budgeting in the federal government. Public budgeting & finance, 23(2), pp. 73-95. https://doi.org/10.1111/1540-5850.2302006
23. Mehrani, S., Akrami, S. R. A., Khoda Bakhshi, H. and Jabbari, M. (2019). A Review on the Role of Executives Accountants in Performance Based Budgeting. Journal of Governmental Accounting, 5(1), pp. 9-20. (In Persian). https://doi.org/10.30473/gaa.2019.36822.1160
24. Melkers, J. E. and Willoughby, K. G. (2001). Budgeters' views of state performance‐budgeting systems: Distinctions across branches. Public Administration Review, 61(1), pp. 54-64. https://doi.org/10.1111/0033-3352.00005
25. Mirzaei Nasirabad, J., Mahboub Ahari, A., Zeynali, M. and Bagheri Shadbad, M. T. (2021). Development of the Beyond Activity Based Costing System in Faculty of Management and Medical Informatics of Tabriz: A New Approach for Costing in Higher Education. Payavard Salamat, 15(1), pp. 14-25. (In Persian). http://dorl.net/dor/20.1001.1.17358132.1400.15.1.7.7
26. Mirzaei Nasirabad, j., Mahboub Ahari, A.R., Zeynali, M. and Baradaran Hasanzadeh, R. (2020). Improving educational, research and support processes based on Business Processs Modeling Notation and timing under uncertainty: An Action Research Study at Tabriz University of Medical Sciences. Hakim Health Systems Research Journal, 23(3), pp. 367-378.
27. Pourghaffar, J., Mohammadzadeh Salteh, H., Zeinali, M. and Mehrani, S. (2022). Performance-Based Budgeting Model with a Real Time Financial Reporting Approach in Iran Public Sector. Governmental Accounting, 8(2), pp. 21-36. https://doi.org/10.30473/gaa.2022.61861.1528
28. Pourghaffar, J., Mohammadzadeh Salteh, H., Zeynali, M. and Mehrani, S. (2021). The Investigation of Main Determinants of Real Time Performance based Budgeting in Iran. Quarterly Journal of Fiscal and Economic Policies, 9(35), pp. 169-198. http://dx.doi.org/10.52547/qjfep.9.35.169
29. Sarraf, A. (2019). Step-by-step performance-based budgeting, Tehran: Public Management Education Center. Tehran, Iran. (In Persian)
30. Schick, A. (2007). Performance budgeting and accrual budgeting: Decision rules or analytic tools?. OECD Journal on Budgeting, 7(2), pp. 109-138. https://doi.org/10.1787/16812336
31. Vesty, G. M., Ren, C. and Ji, S. (2018). Integrated reporting as a test of worth: A conversation with the chairman of an integrated reporting pilot organization. Accounting, Auditing & Accountability Journal, 31(5), pp. 1406-1434. https://doi.org/10.1108/AAAJ-08-2016-2684