The utilisation of the Government financial report by parliamentary members

Abstract

Purpose: While the International Public Sector Accounting Standards Board identifies the Members of Parliament (MPs) as the main user group of the Government Financial Report (GFR), the accounting literature appears sceptical about the extent that MPs actually use such information. This study examines the use and non-use of the GFR by Maltese MPs, highlighting the utility of the GFR for decision making as perceived by the Maltese MPs. The main objective would therefore determine whether the MPs are one of the key user groups of the GFR. Design: A mix of quantitative and qualitative research methods were used in this study. Quantitative research consisted of a questionnaire which was distributed to all Maltese MPs. The data was analysed using quantitative statistical techniques. The results of the quantitative analysis were substantiated through qualitative methods. Documentary research was utilised to formulate the literature review and to design the questionnaire, and structured interviews compromising of open ended questions were carried out with a majority of the research participants. Findings: The findings are not convincing on whether the MPs are one of the key user groups of the GFR. One primary reason why the GFR is not utilised is because MPs find it technical to understand. Although nearly half of the MPs do not make use of the GFR, the average MP uses the majority of the information presented and finds the report useful. In addition, more than half of the users of the GFR utilise this report for decision making. Conclusion: The Government produces various Financial Reports from different sources. Entrusted with management of public funds, the MPs should make it a prerogative to be aware of these sources. This study reveals that the annual GFR may not be so The subject matter is of public interest and contributes to the body of knowledge in the field of Accountancy. The level of use and non-use of GFRs by MPs is useful for both academics and other practitioners in the field.