A recount of experiences in implementing the accrual accounting methodology within the Maltese public service

Abstract

The Organisation for Economic Co-Operation and Development (2017) reports that an expanding number of governments are adopting accrual accounting. This study, through a qualitative methodology, analyses the experiences of the recent implementation of this accounting methodology in the Maltese public service, whilst exploring the challenges endured, and evaluating the benefits of such an adoption. Through secondary data this research additionally investigates similar implementations in other jurisdictions and compares them to the Maltese experience. This research analyses the experiences of two sets of interviewees within the Maltese public service, end-users who operate the accrual accounting system on a daily basis, and elite public officials. Despite the contrasting grades, a somewhat common position and perspective emerge from this study: (1) a general lack of accountancy skills; (2) the training provided was not considered as adequate; and (3) the complexities of accrual accounting and the new IT system threatened the success of this changeover. However, this study also concludes that the accrual accounting will eventually prove to be beneficial to the Maltese public accounting, if operated professionally. Accrual accounting was introduced in 15 pilot-sites in 2020, with the rest of the Maltese public service experiencing the changeover a year later, making this one of the first studies researching this topic. Finally this study recommends that future projects should establish more effective communication, ensure skills are readily available, coordinate resources better, whilst promoting training and personal development.