Public Sector Organizations

Public Sector Organizations

Understanding the public sector can be seen from various perspectives, such as: organizing (public or private), financial resources (taxes or from the community), the formThe public sector is an entity whose activities are related to the effort to produce goods and public services in order to meet the needs and rights of the public. (Mardiasmo, 2002).Characteristics of Public Sector Organizations: not seeking financial gain Held by publicOwnership  resource is not in stock Decision by consensusGroup Public Sector Organizations: Institute pemeritah Religious Organizations Social Organization Foundation Educational Institutions Health OrganizationPublic Sector Organization equations with the Company: an integral part of a system of national economy Facing limited resources to achieve their goals same pattern of financial management Some products have the same output Set by legislation
Public sector organizations do not emphasize the organization's goals but rather profit search service. According to the Salusu Anthony and Young (2003) emphasis on public sector organizations can be classified into seven areas:1. No motive for profit.2. The existence of special consideration in the imposition of taxes.3. There is a tendency oriented exclusively - an eye on the service.4. Many faces major obstacles on the goals and strategies.5. Much less rely on their clients to get financial aid6. Professional dominance.7. Political influence often plays a very important role.When viewed from the environment variables, the public sector is not only influenced by economic factors, but also influenced by other factors such as political, social, cultural, and historical, which give rise to differences in understanding, perspective, and definitions. From the point of view of economics, the public sector can be understood as an entity whose activities generate public goods and services to meet the needs and rights of the public.American Accounting Association (1970) in Glynn (1993) states that the purpose of accounting in public sector organizations is to provide the necessary information in order to manage the operations and allocation of resources entrusted to the organization in a timely, efficient, and economical, as well as providing information for the report accountability for the implementation of the management and reporting of operating results and the use of public funds. Thus, public sector accounting related to the provision of information for management control and accountability.