The influence of public sector audit digitalisation on local government budget planning

Evidence from Brazil

Bibliographic Data

ID20201562
AuthorsAndré Lino (0000-0003-1121-4971, University of Essex), Ricardo Rocha De Azevedo (0000-0001-6302-0760, Universidade Federal de Uberlândia), Guilherme Simões Belote (0000-0002-9226-1077, Universidade Federal de Uberlândia)
Year2023
Volume35
Issue2
Pages198-218
Publication date2023-03-23
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Journal identifiersISSN: 1096-3367 • E-ISSN: 1945-1814
PublisherEmerald (PUBLISHER)
DOI10.1108/jpbafm-05-2022-0090
OpenAlexW4323364446
LanguageEN
Citations received5
References cited56

Purpose This article analysed how data collection systems (DCS) developed by governmental audit organizations (Court of Accounts) affect budgetary planning within local governments. Design/methodology/approach Eighteen semi-structured interviews complemented by six time-lagged interviews via WhatsApp were carried out with the actors involved in the preparation and auditing of the Medium-Term Expenditure Framework (MTEF) in Brazilian local governments. Documents such as the structured layouts of Courts' DCS and the publicised MTEF prepared by local governments were also analysed. Findings The findings indicate that Courts' DCS structured layouts reduce local governments' budgetary planning autonomy in elaborating their MTEF. It happens as the Courts' main driver is to make MTEF information auditable and not to improve the usefulness of information by governments. As a result, the planning choices of the local governments end up limited, not by the general legislation but by the rules established by the computerized systems of the Courts. Originality/value The paper's originality relies on demonstrating that the digitalisation of audit processes ultimately affects local governments' practices through structured layouts for the data collection on MTEF information - that impose rigidity on the budget planning process of local governments. The authors highlight the role of public sector auditing organisations as potential catalysts of reforms; however, this should be considered cautiously since the drivers and motivations of the organisation that sponsors public financial management reforms matter for overall reform effectiveness

Audit · Autonomy · Business · Economics · Legislation · Local government · Originality · Political science · Public relations · Public sector · Qualitative research · Sociology · E-Government and Public Services · Local Government Finance and Decentralization · Public Administration · Public Policy and Administration Research · Accounting

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