The Impact and Challenges of Implementing Accounting Policies in Public Institutions (Education)

The following diploma thesis focuses on a key area of financial management of public institutions in the field of education – implementation of accounting regulation policies. The accounting regulations policies are the basis for a legal, effective and transparent handling of public resources intended for educational public institutions.

However, oftentimes there are obstacles, which hinder its successful realisation.

Hence, this diploma thesis carefully analyses individual obstacles, such as lack of clarity and imperfections in the regulations, lack of properly qualified accounting workers, additionally, improper internal controls and difficulties with coordinating regulation clauses with ever changing laws and legislations.

Therefore, an analysis of three different accounting regulation policies in education was carried out (one primary school, grammar school, high school). Based on the results of the analysis, certain deficiencies were discovered, consequently, recommendations about how to improve the regulation policies were made.

In addition to the analysis of the obstacles, this diploma thesis researches the effect of the accounting regulation policies have on the financial performance of public institutions. It was shown that a well prepared and implemented regulation policy, greatly contributes to a legal and transparent business practice, efficient and economical usage of public resources and to a higher public confidence.

Quality accounting information, that is ensured by the accounting department, based on the regulation policies, are important for making strategic and managerial decisions. They also allow for measurements and for comparing levels of success, additionally they ensure responsible financial planning of a public institution.

The last chapter focuses on the potential of artificial intelligence (AI) for improving accounting processes in public institutions. AI can majorly automate routine tasks and create a smaller margin for error, improves data accuracy and can provide a better internal control for decision making.

Moreover, it can also ensure regular updates and consistency of the regulation policies with the changes in the laws and legislations.

This diploma thesis makes concrete suggestions for improving the implementation of accounting regulation policies, including an improvement of clarity and understandability, regular training of the employees, using modern accounting tools and gradual implementation of artificial intelligence with the integration of accounting regulation policies provisions into the information system.