Factors explaining the non-use of accrual accounting in Moroccan non-commercial public establishments: an exploratory study

Abstract

The New Public Management (NMP) redefines public management by adopting private-sector methods to enhance performance and transparency. A crucial component of the NMP concerns reforms in accounting systems, with a particular focus on accrual accounting. Despite its promising adoption, the effectiveness of accrual accounting in the public sector raises questions, particularly in Morocco, which introduced the practice via the Organic Law on the Finance Law (LOLF) in 2015. The study focuses on Non-Commercial Public Establishments (NCPE) in Morocco, examining the explanatory factors for the non-use of accrual accounting. Our research is based on two case studies and draws on multiple qualitative data collection methods.  The results reveal that the non-profit nature of the establishments, the focus on core business and user training explain the non-use of this management tool despite its adoption. This finding refers to neo-institutional theory, and more specifically to the notion of decoupling.

Keywords: New Public Management, accrual accounting, NCPE, non-use, decoupling.

Classification JEL: H83, L3 

Paper type: Empirical Research