Luís Leonardo Cumbe and Helena Inácio
The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).
Abstract
Purpose
The purpose of this paper is to evaluate the impact of external audit on the management of the Common Fund of the Mozambique National Institute of Statistics (INE).
Design/methodology/approach
This paper followed a case study approach of the INE Common Fund that was based on the qualitative evidence from the content analysis of the external audit reports, annual plans of activities and budget for the past seven years and interviews with middle managers of the INE.
Findings
The research found that external audit has a relatively significant impact on the management of the INE Common Fund. The authors attribute the positive impact to the high concern of management to implement the external audit recommendations, associated with the financial dependence between the agent (the National Institute of Statistics) and the principal (Fund Donors), explained through Laughlin’s Model of Accountability.
Practical implications
The results indicate that external audit associated with the financial dependence of the agent on the principal has a significant impact on the accountability. Thus, it contributes to assist in the formulation of public policies on external financing to developing countries.
Originality/value
Most of the studies on external audit and accountability are from countries with more developed economies than Mozambique’s, without heavy reliance on external financing, and these studies analyse the audits carried out by public audit institutions. This research explores the phenomenon in the context of external financing to the State Budget by governments and international organisations.
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Keywords
Romildo Silva, Rui Pedro Marques and Helena Inácio
The purpose of this study is to identify the possible efficiency gains in using tokenization for the execution of public expenditure on governmental investments.
Abstract
Purpose
The purpose of this study is to identify the possible efficiency gains in using tokenization for the execution of public expenditure on governmental investments.
Design/methodology/approach
Through design science research methodology, the exploratory research produced a tokenized prototype in the blockchain, through the Ernst and Young OpsChain traceability solution, allowing automated processes in the stages of public expense. A focus group composed of auditors from the public sector evaluated the possibility of improving the quality of information available in the audited entities, where the tokens created represent and register the actions of public agents in the blockchain Polygon.
Findings
The consensus of the experts in the focus group indicated that the use of tokenization could improve the quality of the information, since the possibility of recording the activities of public agents in the metadata of the tokens at each stage of the execution of the expenditure allows the audited entities the advantages of the information recorded on the blockchain, according to the following ranking: first the immutability of audited data, followed by reliability, transparency, accessibility and efficiency of data structures.
Originality/value
This research makes an empirical contribution to the real use of tokenization in blockchain technology to the public sector through a value chain in which tokens were created and moved between the wallets of public agents to represent, register and track the operations regarding public expense execution.
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Keywords
Cristina Góis, Helena Inácio, Deolinda Meira, Mafalda Jesus, Maria Goreti Teixeira and Patrícia Monteiro
Considering in one side, the differences between the non-profits and profits entities and, in other side, given the importance of governance to monitoring the protection of the…
Abstract
Considering in one side, the differences between the non-profits and profits entities and, in other side, given the importance of governance to monitoring the protection of the interests of the different stakeholders, this literature review aims to identify the special features of the social economy entities and its effects in the principles and guidelines of an adequate governance model for these entities.
An important conclusion after the analysis of several frameworks is that the latest approaches place less importance on formal aspects such as the governing body roles or composition. Nowadays the concerns are increasingly focused in the best ways to adopt viable strategies and business models that will ensure survival and growth of non-profit entities.
In Portugal we identified the specificities of the Portuguese third sector that is limited to the fulfilment of the legally imposed requirements to these organizations. Regarding governance aspects, Portuguese organizations are not subject to codes of good practice or if they follow them, they are designed for the for-profit sector and do not address the main concerns of the non-profit sector.