ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  1. About us
    1. Governance
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Careers support
    6. Mentoring
    7. CA Wellbeing
    8. More for Members
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. ICAS podcast
    15. Newly admitted members 2022
    16. Newly admitted members 2023
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
    7. CA Student wellbeing
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
    7. University exemptions
  5. Employers
    1. Become an Authorised Training Office
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
  6. Find a CA
  7. ICAS events
    1. CA Summit
  8. CA magazine
  9. Insight
    1. Finance + Trust
    2. Finance + Technology
    3. Finance + EDI
    4. Finance + Mental Fitness
    5. Finance + Leadership
    6. Finance + Sustainability
  10. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Business and governance
    5. Charities
    6. Coronavirus
    7. Corporate and financial reporting
    8. Cyber security
    9. Ethics
    10. Insolvency
    11. ICAS Research
    12. Pensions
    13. Practice
    14. Public sector
    15. Sustainability
    16. Tax
  11. CPD - professional development
    1. CPD courses and qualifications
    2. CPD news and updates
    3. CPD support and advice
  12. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  13. CA jobs
    1. CA jobs partner: Rutherford Cross
    2. Resources for your job search
    3. Advertise with CA jobs
    4. Hays | A Trusted ICAS CA Jobs Partner
    5. Azets | What's your ambition?
  14. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  15. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

How to make the case for change in public sector accounting

  • LinkedIn (opens new window)
  • Twitter (opens new window)
By ICAS

17 November 2015

Main points:

  • Research explores how public-sector accounting changes are discussed, made sense of and legitimated in the UK
  • Accounting change requires modifications to be seen as both rational and promoted by those in authority
  • Changes perceived as being merely imposed by those in authority are likely to result in only cosmetic adjustments

ICAS research highlights the factors which need to be considered for changes to be successfully embedded in public sector organisations.

New ICAS research highlights key factors which should be considered when seeking to embed changes in public sector accounting.

The research report, Central government accounting: Arguing for and legitimating change, says those implementing change should ensure that staff affected by, and ultimately involved in operating new systems, need to see that change as rational and being promoted by those in authority

The work, by Noel Hyndman and Mariannunziata Liguori, explores how changes have been discussed and legitimated by politicians and public sector managers in UK government, both at Westminster and Holyrood, since the 1980s.

Research Findings

Over a period of almost 35 years, accounting, budgeting and performance management systems in all parts of the UK central government have changed considerably.  Initially UK public sector accounting systems featured: cash budgeting with strict annuality requirements (budget allocations that have to be spent by the financial year-end or be surrendered), cash accounting, and limited performance management. Since then, they have moved progressively along a continuum of modernisation in financial accounting, budgeting and performance management in favour of New Public Management (NPM)-type accounting tools and ideas inspired by the private sector.

The main findings include

The UK embraces NPM-style accounting changes

In the UK NPM-style accounting, budgeting and performance management tools have been embraced relatively rapidly and intensely. There is also a clear alignment between the language of the political discussion and the accounting changes decided upon and introduced, with both clearly directed towards managerial, NPM orientated reforms.

Changes are not necessarily replacements; "layering" often occurs

The process of accounting change is achieved by a “layering” of different ideas, where ideas from certain administrative models complement, rather than supplant, each other over time.

Effective change requires both authorisation and rationalisation

The political debate suggests that changes are introduced to provide a more “rational” way of managing and taking decisions. However, individuals often perceive changes as being based mainly on “authority”. To embed change effectively requires those implementing it to see it in terms of both authorisation and rationalisation; changes seen as being legitimated merely, or mainly, through authorisation are likely to result in only cosmetic adjustments.

Scottish differences

In the devolved Scottish government, the joint reference to rational and authority-based elements when discussing accounting, budgeting and performance management changes showed a different pattern, with rational reasons much less present. This could be explained by the multiple levels of government with which Scotland has to interact as a devolved administration and that possibly contribute to feelings that non-Scottish solutions are imposed or do not adequately consider the Scottish dimension. This more limited justification of change as being both rational and authority-driven suggests that embedding change may be more difficult in Holyrood, compared with Westminster, particularly for changes viewed as “coming from Westminster”.

Policy implications

For meaningful change in public sector accounting to occur, training and education are key. The involvement of operationally focused managers in the development of the changes, as well as in the early process of change, is essential. To expect change via solely top-down, authority-based initiatives is shortsighted. From a policy perspective, recognition of this should impact on the planning and timeline relating to the introduction of accounting changes.

The research also informs public policy makers regarding links between new and existing systems. Given that existing accounting approaches often have long established validity, it is important to consider the interactions between new and old tools, that is, the layering of new on the old. Any proposed abandonment, or criticism, of valued techniques is likely to hamper implementation of new ones. To reduce resistance to change, integrating new ideas into existing frameworks should be handled carefully.

Michelle Crickett, Director of Research at ICAS, said, “Change is never easy and this report highlights the factors which need to be considered for change to be successfully embedded in an organisation.  We hope the research will benefit those involved in promoting and implementing accounting change in central government and beyond.”

About the research

The research is based on an analysis of 2,455 pages of political discussion of accounting changes and 34 interviews with key individuals.

This research was funded by the Scottish Accountancy Trust for Education and Research (SATER), now known as the ICAS Foundation, exclusively from the SATER funds. For further information contact research@icas.com.

About the authors

Noel Hyndman is professor in accounting and Mariannunziata Liguori is senior lecturer in accounting, both at Queen’s Management School, Queen’s University, Belfast.

2-23-marsh 2-23-marsh
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba

Accreditations

  • ISO 9001 - RGB (opens new window)
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: