On the other hand, the Government points to strong accountability through arrangements such as annual reporting requirements and access to information on the full costs of government services. For example, agencies are required to report in their annual reports against performance indicators specified in Portfolio Budget Statements. At this early stage, it is difficult to determine the degree of transparency provided by accrual budgeting and accounting. Conclusion By itself, the implementation of accrual budgeting would represent a substantial challenge for agencies. In conjunction with other public sector management reforms, this challenge is intensified, highlighting the need for strong financial management skills.
Accountability is a key component of Australian democracy.
The consequences of accrual budgeting for the quality of accountability are not yet clear. However, the significance of this issue means that continuing attention is essential.