Despite the importance of public sector financial / accounting decisions, there has been little analytical work on the topic. Although political scientists have looked at the underlying political processes in public organizations, very few studies have tried to explore the antecedents and consequences of the specific accounting practices used. This proposal outlines a research program to explore decisions made by state / local government about financial reporting and auditing. By combining the study of accounting practices with analyses of organizational structure and processes, the proposed research takes an innovative approach. The project promises to contribute (1) to fundamental research on organizational theory in the public sector and (2) to improvements in public sector decision making by management. These contributions are made more likely by the application of a research approach which recognizes the unique functions and powers of public sector organizations. The principal investigator has both the background and the insights needed to make the project successful. In summary, the proposed research will lead to valuable new insights and applications in public decision making.
