Financial Reporting Practices in Public Universities of Bangladesh
The objective of recording and reporting of financial transactions in government and non-profit organization is to make sure good governance through ensuring transparency, accountability, reliability, and fairness on dealing of public money. By using primary sources of data, this study strives to appraise the practices of recording and reporting of financial transactions of public universities in Bangladesh. To ascertain the financial reporting compliance practices dichotomous procedure used. Statistical results report that most of the public universities under the study follow cash basis of accounting, prepared receipts and payments accounts, and bank reconciliation statement. All of the universities maintain payment voucher, the majority of the universities doesn’t value and record fixed assets and, half of them don’t prepare debt receipts and payments account. Financial Reporting Compliance Index (FRCI) of public universities under the study is satisfactory (78.10) but not outstanding. Statistical results testimony that there is a significant relationship between universities’ size and FRCI, and financial activities of universities and FRCI but there is no significant relationship between university category and FRCI. The regression model can explain 61.8 percent of total variation by R2 and 50.3 percent of total variation by AdjR2. To ensure good governance in the public sector government should take the initiative to establish an accounting standard-setting organization for public bodies like Institute of Chartered Accountants of Bangladesh. It is needed to introduce accrual basis of accounting in the public sector to ascertain the financial performance and determine the financial position of the public bodies like Sri Lanka, Australia, New Zealand, and the United Kingdom.
