An epistemic community as influencer and implementer in local government accounting in Australia

This paper adopts an epistemic community framework to explicate the dual role of epistemic communities as influencers of accounting policy within regulatory space and as implementers who effect change within the domain of accounting. The context is the adoption and implementation of fair value accounting within local government in New South Wales (NSW). The roles and functions of Australian local government are extensive, and include the development and maintenance of infrastructure, provision of recreational facilities, certain health and community services, buildings, cultural facilities, and in some cases, water and sewerage (Australian Local Government Association, 2009). The NSW state Department of Local Government (DLG) is responsible for legislation and policy development to ensure that local councils are able to deliver ‘quality services to their communities in a sustainable manner’ (DLG, 2008c). These local councils receive revenue from various sources including property rates, government grants and user-pays service provision. In July 2006 the DLG issued Circular 06-453 to councils (DLG, 2006c), mandating the staged adoption of fair value measurement of infrastructure assets. This directive followed the policy of NSW State Treasury (NSW Treasury, 2007),4 and an independent inquiry into the financial sustainability of local councils (LGSA, 2006). It was an attempt to resolve the inconsistency in public sector asset valuation in NSW Local Governments, and to provide greater usefulness and comparability of financial statements.5 The focus of this study is the mobilization of accounting change by the DLG within this wider political context. When a regulatory problem arises, those with political power seek advice from professionals with relevant skill and expertise (Potter, 2005). This paper explores the way in which professionals diffuse accounting ‘problems’ and the associated accounting solutions ‘across time and space’ (Potter, 2005, p. 277). The DLG’s fair value accounting policy emanated from a ‘regulatory space’ (Hancher and Moran, 1989)6 as a result of negotiations between many parties, including accounting and finance professionals. Operating within the local government sector, these professionals were identified by the DLG as being capable of providing helpful input. They were also responsible for the implementation of the new olicy within local councils. Accordingly they have been dentified as an pistemic community with the ability to ranslate regulatory power by changing he domain of ccounting (Potter, 2005, p. 278).7 The paper is organised as follows. The background to the LG’s decision to require the introduction of fair value accounting for infrastructure assets is explored. Following this, the method of the study is described, and the epistemic community framework outlined. In the next sections, evidence of the influencing and implementing roles of epistemic groups is provided. Finally, conclusions are drawn about the significance of these groups both within regulatory space in developing accounting regulation, and in embedding change within the domain of accounting.

Modelling the marketing of place by local government in Australia

Much of Regional Australia is suffering from an overall decline in population with a specific loss of young adults (16-30 year olds). A decline in population, linked with the Australia-wide problems of ageing populations and diminishing birth rates, is leading to a social and economic malaise in many regional cities and towns that threatens their long-term sustainability due to the lack of skilled workers and professionals. This paper examines the concept of “place” marketing, and the approach of local government to market regions, cities, and towns to attract targeted population to help maintain the sustainability of Regional Australia.

Accounting for local government boundary changes in South Australia : valuing assets and liabilities or valuing revenue streams

This paper examines the methodologies adopted in the transfer of assets, liabilities, revenues and expenses resulting from boundary changes associated with municipal amalgamations in South Australia during the late 1990s. It investigates the methods employed for apportioning these financial elements, valuations used and financial settlements required. Significant transfers occurred in only three cases. In two cases, councils used simple, pragmatic methods to apportion assets and liabilities, similar to those used previously in Victoria. In the third case a transfer price was calculated based on the net present value of revenues. This method is quite different from previous methods examined and is appropriate where one council will make significant future gains at another council's loss because of net revenue transfers.

Online marketing by local government in Australia and the United States

The study reported in this paper involves a comparison audit of local government websites in two states of Australia with county and city level government in two states of the United States of America, using the Marketing Readiness of Website Indicator (MRWI). The hypothesised more highly rated Web use in marketing by United States local government relative to Australian local government (LGA) is not supported. Californian counties, NSW and Victorian LGAs generally employ the Web in a more capable manner in marketing than Californian cities and Alabama counties and cities.

Australia local government and e-governance : from administration to citizen participation

This chapter analyses local government’s response to the pressure to modernise its structures through its use of Information Communication Technologies (ICT) to execute its broad range of tasks. The chapter begins by discussing Chadwick and May’s (2003) three basic models of e-government; managerial, consultative and participatory. Using data collected from an analysis of 658 local government websites in Australia together with existing survey research the chapter then analyses the extent to which local government sites fit into the three models. The chapter concludes with a discussion of the issues and problems faced by local government in its attempt to develop e-governance as both an extension of administrative as well as democratic functions.

Geographical Information Systems (GIS) and their role in sustainable planning : a case study from a Local Government Area (LGA) in Australia

A case study is used to demonstrate the application of Geographical Information Systems (GIS) to inform sustainable development. The suitability of the landscape to support tourism accommodation in a Local Government Area (LGA) is modelled by integrating existing datasets, including conservation areas, residential zones, major roads and known locations of tourism operators into a logistic regression framework. By using a data-driven approach an indication of the relative importance of each explanatory variable can be accounted for, therefore informing planners of the importance of different assets. In a region where tourism is reliant upon natural features, this use of information systems in conjunction with quantitative statistical modelling can value-add to existing datasets. The provision of this kind of knowledge is important as it would otherwise not factor into the decision-making process had the datasets been considered independently of each other – a concept that applies to both the public and private sectors.