Peter Chalos

An application of data envelopment analysis to public sector performance measurement and accountability

Publication languages: Data set: Elsevier Source Journal of Accounting and Public Policy > 1995 > 14 > 2 > 143-160 Public sector performance measures have been advocated by numerous regulatory bodies (FASB 1980; CCAF 1987; CICA 1988; GASB 1989). Proposed Service Efforts and Accomplishment (SEA) disclosures include measures of inputs and input-output efficiency ratios (GASB 1989). Such metrics, it is argued, improve internal control and external accountability. To date, SEA disclosures are not widely disseminated.Our study examined the potential utility of SEA disclosures in determining public policy in education. Specific concerns of the Illinois State Board of Education and the state legislature with respect to fiscal neutrality and tax referenda in education were examined. As proposed by the GASB (1989, x-xii), educational input and output indicators were compiled for 207 school districts. To overcome specification problems, DEA analysis was used to measure input-output efficiency. Non parametric hypothesis tests... more Identifiers journal ISSN : 0278-4254 Authors Additional information English Publisher Elsevier Science Fields of science No field of science has been suggested yet. article Read online Download Add to read later Add to collection Add to followed Share Export to bibliography Peter Chalos Joseph Cherian An application of data envelopment analysis to public sector performance measurement and accountability 8.1 Efficiency measurement in the public sector. Measuring an organisationâ€TMs efficiency is about the relationship between the outputs it produces and the inputs it uses. An efficient organisation would be one that produces the maximum possible outputs given its inputs, or one that produces a certain level of output with the minimum amount of inputs. The process of trying to measure an organisationâ€TMs efficiency can therefore be broken down into three steps. SFA and DEA in practice Applications of these techniques have illustrated the sensitivity of results to the methods used to measure efficiency. 11 T. Nunamaker, †̃Using data envelopment analysis to measure the efficiency of non-profit organizations: a critical evaluation – replyâ€TM, Managerial and Decision Economics, 1985, vol. 6, pp. 50–8. Application of data envelopment analysis (DEA) to the education sector is natural given these recent concerns. Standard DEA models fail, however, due to the heterogeneity of DMUs arising from socioeconomic differences. Models suitable for application to education have been developed and will be discussed in this chapter.

An Examination of Budgetary Inefficiency in Education Using Data Envelopment Analysis

The generally weak association between educational spending and performance is a source of ongoing debate. This study examined size, type and source of educational operating expenditures as potential explanators of this weak relationship. Using Data Envelopment Analysis (DEA) and publicly available input-output performance metrics, budgetary efficiency was measured across school districts. Budgetary inefficiency was found to be significantly and positively associated with (1) budget size (2) administrative overhead and (3) local revenue accountability. These findings offer a partial explanation for the weak relationship traditionally found between educational spending inputs and performance outcomes. The results are suggestive of how school districts might improve their budgetary goal setting, performance auditing and resource allocation practices.

Evidence of agency conflict among management, auditors, and the audit committee chair

Abstract This research examines perceptions of agency conflict via survey results from external auditors, internal auditors, management, and the audit committee chair of the board of directors. The results suggest the existence of agency conflicts between management and audit committee chairs regarding variables that constitute full financial disclosure and for variables that influence discretionary accounting procedure choices. In addition, the results provide evidence with regard to both internal and external auditor positions in agency conflicts. The external and internal auditors exhibited significant perceptual differences with the audit committee chairs about the variables hypothesized to influence accounting choices, but did not exhibit significant differences with managements perceptions.

Accounting information systems and organization learning: A simulation

Abstract Accounting Information Systems may facilitate or impede organizational learning. Critical attributes of accounting systems that have the potential to affect organizational learning include: (1) characteristics of the information environment, whether uniform, dispersed or clustered importance weights; (2) information distribution, whether overlapping or segregated information; and (3) information coordination mechanisms, whether expert teams, majority voting teams or hierarchies. Organizational learning and performance was simulated in the following manner: (i) the organization was faced with a continuous sequence of repetitive but not identical problems; (ii) the organizational task was subdivided between analysts; and (iii) analysts learned by basing their decisions on the relationship found between information available to them and organizational outcomes. Simulation results indicated that learning in flatter (team) organizations is generally more accurate than in hierarchical organizations. Learning is also faster with majority teams than hierarchies, but slower with expert teams. Overlapping accounting information transmission between agents was found to offer only limited benefits. These findings have implications for the design of accounting information systems in organizations.

Management controls in Sino‐American joint ventures: a comparative case study

Studies the characteristics, control and performance of joint ventures producing a model based on four cases. Explains the theory of complementary strategic objectives, and the need for delineating specific transaction costs and management controls under differing cultures. Interviews managers of four Sino‐American Joint Ventures in manufacturing for several years. Finds that the US partner controlled the technology, the Chinese partner wanted to reduce imports and import management and product skills. Focuses on raw material sourcing as a cause of conflict, as well as slow learning and high transaction costs from a poorly controlled system. Points out the keenness for incentive payments among Chinese workers and the reluctance by Chinese managers to have their performance evaluated.

A spreadsheet analysis of different costing systems

Abstract This note describes a project that uses a spreadsheet to illustrate the conceptual similarities and differences between actual, normal, and standard costing systems, under both variable and absorption reporting formats. Budgeting and variance analysis are also included in the illustration. The purpose of the project is to enhance, via a comprehensive numerical example, the students understanding of these three costing systems. A spreadsheet formulation enables the student to perform sensitivity analysis, while eliminating the need for repetitive income statement formatting and calculations.