The course is focused on management planning and control in the public sectors. Critically examines and applies the assumptions, concepts, and tools of the new approaches that are being applied in public sector. Many of these techniques have been borrowed from the private sector and the course critically assesses their impact on improving outcomes in public sector. Many governments have moved, or are attempting to move, beyond the basics of public financial management which focuses on financial control (line item cash budgets, single entry bookkeeping, cash accounting) to financial management and planning. The course include: formulating and articulating a mission and vision in public organizations; formulating and internalizing in the organization a set of long-term objectives; translating objectives into measures of performance; designing context of control systems and organizational structures; and shaping organizational culture. Emphasis will be placed on the use of cost data for planning, control, and decision-making purposes within an public organization. Various costing systems will be introduced to illustrate how the planning and control process helps public organization draw up strategic plans to meet management’s short and long term objectives. This course will, also, examine cost behavior as it relates to an organization’s planning and execution of particular processes. Operational budgeting, responsibility accounting, and transfer pricing will be explored to evaluate public management’s performance and provide feedback, to various end users, with respect to the feasibility of an organization’s planning and control process. Privatization and partnerships will be examined along with public provision as ways of creating public value.

Course objectives:

•Summarize and apply financial, cost and managerial accounting terms, concepts, and principles in public administration
•Analyze, record and report transactions for service, in central and local administrations, healthcare organizations and subsidiaries.
•Use cost information to support operating decisions and strategic decisions.
•Prepare reports for use by management in decision-making.
•Stimulate problem-solving abilities and critical thinking skills of the students

Course contents (Syllabus):

1.The role of management accounting and management accountants in public organizations;
2.The use of cost accounting in the decision making process of public administrations : cost behavior, cost-volume-profit relationships, overhead cost allocations, traditional and activity-based costing systems;
3.Using managerial tolls to improve the decision making process in short-term decisions, such as resource allocation, inventory management and outsourcing, and the role of accounting information in long-term decision making such as strategic control;
4.Management accounting and organizational design: responsibility centers, planning and budgeting, financial performance measurements, variance analysis, and incentives;
5.Performance measurement: non-financial performance measures, the balanced scorecard, limitations of performance measurement, linking management accounting information to managerial work.