The Authorising Function of Budgets in Public Administration. Applicability of IPSAS 24 in Italy

Abstract

This paper begins with the assumption that in many public administrations, budgets are not limited to the role of mere statements to provide additional information; they are authorisations with a legal value that make them autonomous documents. Our aim was therefore to analyse the relations between politicians and managers, focusing in particular on the governance models in use within public administration in Italy and the role of budgeting in these cases. We have also looked at the contents and constraints of IPSAS 24, from which the difficulties of its application in Italy have emerged. Our research has led to a firm belief that IPSAS 24 needs to be supplemented by an international standard specifically dedicated to budgeting. Moreover, this should include a European version which takes into account SEC 95 and the COFOG classification.

Corporate governance and financial performance of state-owned enterprises in Kenya

“…Capital expenditure budget relates to a long term investment plan on fixed assets that supports the welfare of the community and improve public services (Kuntari et al , 2019). Capital budget realization is usually reported on an annual basis by SOEs that applies International Public Sector Accounting Standards (IPSAS) accrual basis of accounting and make their approved budget (s) publicly available through audited annual financial reports as per the recommendation of IPSAS 24; Presentation of budget information in financial statements (Grandis and Mattei, 2014). The realization ratio indicates the efficiency level of the public entity in achieving the social welfare objective (Tosun, 2014; Akbar et al , 2019; Rakhman, 2019).…”

International Accounting Standards, Budgeting and Controlling in Private and Public Sector

“…The dissemination of accrual-based accounting is partly based on local governments (Pina et al, 2009) [14] and the compilation of consolidated financial statements (CFS) has become quite complicated (Grossi & Soverchia, 2011) [15], pointing out the need for consecutive improvement, such as the establishment of supplementary international standards for budgets (Grandis & Mattei, 2014) [16]. In addition, the importance of local authorities to overcome the problems created by the economic crisis has been highlighted, making the financial performance of municipalities an important factor in this direction (Askounis et al, 2016) [17].…”