Journal of Public Budgeting, Accounting & Financial Management

Klase, Kenneth A.; Dougherty, Michael J.

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B001

Little empirical analysis has occurred of the influence of performance-based budgeting on appropriation decision-making or budget outcomes, and most research has focused on the perceptions of budget officials. This research empirically tests to what extent the implementation of performance-based budgeting has had an impact on the actual allocation of resources in the form of Constant Per Capita Expenditures in the states. A pooled cross-sectional analysis is used to evaluate the time series encompassing before and after implementation as a means of determining the impact of performance budgeting on state budgeting outcomes as revealed in expenditure patterns of the states. Results indicate that the implementation of performance budgeting has a statistically significant and positive effect on budget outcomes in the states as measured by constant per capita expenditures.

Goodman, Doug

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B002

Many studies of the budgetary process focus on the national government while ignoring the state budgetary process and state budgetary actors. Executive budget analysts and legislative budget analysts are important gatekeepers in the budgetary process. These actors were surveyed to ascertain what influences their decisions and to determine what responsibilities are included in their job duties. The results show that many similarities exist between executive budget analysts and legislative budget analysts. Legislative budget analysts are more involved in the budgetary process than many believe. Consequently, they play important “gatekeeping” roles in the budgetary process.

Vermeer, Thomas E.

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B003

Mensah, Yaw M.; Lam, Kevin C. K.; Werner, Robert H.

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B004

We present, in this study, a method for comparing the relative effectiveness of different non-profit institutions with similar objectives. In addition, we show how this measure of relative effectiveness is related theoretically to their relative efficiency. Relative effectiveness is shown to be a product of the efficacy with which potentially utilizable resources can be converted into usable inputs, and the efficiency with which the inputs are converted to outputs or outcomes. Finally, drawing on developments in data envelopment analysis, we illustrate the new methodology using data from 109 institutions of higher education.

Kinnersley, Randall L.; Magner, Nace R.

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B005

Program heads are key players in governmental budgeting because they are involved both in formulating their program’s budget and ensuring the program’s activities comply with the budget. This paper synthesizes past research pertaining to two aspects of a government’s budgeting system-formal budgetary procedures fairness and budgetary procedures implementation fairness-that influence program heads’ attitudes and behaviors. Criteria are identified for each of the two forms of budgetary procedures fairness, as are specific types of attitudinal and behavioral reactions on the part of program heads. Reasons that program heads value fair budgetary procedures are also discussed. The paper concludes by presenting implications the research has for people involved in designing and implementing governmental budgeting systems and for governmental budgeting researchers.

Pumphrey, Lela D.; Crain, Gil

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B006

In 2004, City of Gardena was unable to meet its obligations on $26 million in debt. The authors examined City of Gardena financial reporting as of June 30, 2004 and 2003 to determine if the publicly available financial reports adequately disclosed the situation. Information about the long-term debt was properly displayed in the financial statements and disclosed in notes. There was no mention of the situation in the MD&A either year. The auditors’ did not include an explanatory paragraph highlighting the debt, nor did they issue a ‘substantial doubt about the ability to continue to exist as a going concern’ report. This paper examines existing accounting and auditing standards to determine their adequacy to protect the public interest.

Styles, Alan K.; Koprowski, William R.

2008 Journal of Public Budgeting, Accounting & Financial Management

doi: 10.1108/JPBAFM-20-03-2008-B007

U.S. hospitals face calls for accountability from regulators, professionals, academics and consumers. Transparency and wider dissemination in reporting of financial performance is an integral component of accountability. This paper investigates the extent to which U.S. hospitals have used the Internet to disseminate financial information and demonstrate accountability to the communities they purport to serve. The authors examine the availability of financial information on the websites of the American Hospital Association’s 100 Most Wired healthcare systems. Results of this investigation indicate that the vast majority of the most technically competent U.S. hospitals have yet to embrace the Internet as a tool for financial disclosure. The findings highlight a lack of transparency and an accountability gap for U.S. healthcare systems.