Russian Public Sector Reform: The Impact on University Accounting

Abstract

The last few decades have witnessed substantial efforts to reinvent the state worldwide. The Russian state is no exception to this global trend. At the outset of a new millennium, the need for renewal of the post‐Soviet model of the state has been acknowledged, and an up‐to‐date reform package has been promoted by the central government. This has encompassed the reconstruction of public sector accounting. Given the paucity of consistent research efforts on the topic, this article seeks to describe and analyze, and by so doing, contribute to knowledge about Russian public sector accounting in times of change. To tackle the general purpose, two levels are incorporated in this study to link reform initiatives for the government as a whole with those endeavours to implement them in one state‐sponsored university of Russian tertiary education. The major questions to be addressed are of whether, why, and how changes at the central government level have penetrated down to the university and extended to its accounting system. The evidence gathered in this paper reveals that a new Russian public sector ideology has markedly been affected by overseas developments in the shape of large international organizations. However, no compelling evidence has been documented in this research as unveiling that changes at the macro‐level have penetrated down to the university to any significant extent. This study concludes that launching a new version of accounting by the Russian state can be regarded as more of a symbol of legitimacy for the university rather than of an actual financial management tool.

Mental models and cognitive discomfort

“…Particularly, one aim in Russia was to eliminate the inefficient public bureaucracies by making service production by governmental organizations more like business (see e.g. Timoshenko andAdhikari, 2009, 2010). As the previous research on Russian accounting and public sector reforms indicate (Timoshenko, 2008;Timoshenko andAdhikari, 2009, 2010;Bourmistrov, 2006), Russia has been also trying to modernize its budgetary and accounting system, based primarily on the ideas and expertise from the IMF and the WB, including the introduction of accrual accounting and multiyear budgeting.…”

The Winds of Change in Russian Higher Education: is the East moving West?

“…As Sahlin-Andersson (2001) argues, the NPM label 'motivates actors to reform or at least it is used to argue for the need to reform further' (p. 15). In this regard, the present study hopes to contribute to the body of literature that demonstrates how the education system has become one of the key areas of NPM reforms (Timoshenko & Adhikari, 2009;Timoshenko, 2008;Guthrie & Neumann, 2007;Czarniawska & Genell, 2002) Economic agents are anticipated to encounter tremendous challenges on the path from a centrally planned economy to a market environment. What was considered an appropriate method of 'business' conduct in Soviet times no longer fits in with the new economically defined role of the Russian State.…”

Reforming central government accounting in diverse contexts: a three-country comparison

“…A common argument for this move was to establish a system of accounting and financial reporting in the Russian public sector that was capable not simply of tracking the flow of budgetary resources, but also of assessing their effective use. The concept favoured a shift from traditional cash accounting towards accrual accounting in order to boost accountability and transparency of government transactions (see, e.g., Timoshenko, 2008).…”

“…The transformation process in Russia was substantially impacted by overseas forces in the shape of large international organisations, especially the IMF and the World Bank (Timoshenko andAdhikari, 2009, 2010). To illuminate this, the IMF's (2004) Report on Fiscal Transparency Practices in Russia prescribed that "the new Chart of Accounts should be based on a GFS-consistent budget classification system, reflect international accounting standards in the public sector (IPSASs), and facilitate a gradual transition to accrual accounting" (p.28).…”

“…The application of IPSASs is expected to help streamline the system of government accounting standard-setting in Russia, meaning that their adoption would assist in avoiding an endless stream of instructions, orders, and decrees, which have all proved to be rather contradictory in the past (Charkov and Choroshev, 2005). As of September 2008, the IPSASB (2008) has reported that Russia has agreed to adopt the accruals basis IPSASs and has made significant progress towards its implementation (Timoshenko andAdhikari, 2009, 2010).…”