CULTURA Y OCIO

Based on the above argument, the current study aims to contribute to this research gap by examining the accrual basis accounting system adoption and implementation within the specific setting of the Greek HEIs. Public institutions of higher education in Greece include universities and Technological Education Institutions (TEIs) that are the sole

providers of tertiary education in Greece. Article 16 of the Greek constitution clearly states that all HEIs are legal entities of public law and also that they are self-governed bodies. The State finances and supervises the HEIs and they are organized in line with specific statutory laws that govern their operations. According to Saitis (1993, p. 115)

“With the term “self-governed” the Greek legislator intends that the academic institutions of higher education should enjoy the authority to select their teaching staff and administrative officers, make decisions about their affairs and carry them out under the “supervision” of the State and in particular of the Ministry of Education”.

According to Gouvias (2007, 2012), the Greek constitution has identified that free education is provided at all level of the education system and for almost every dimension of its every-day operations including tuition fees and textbooks, accommodation and food in most cases. This is something that clearly differentiates the Greek higher education system from most contemporary European policy frameworks regarding higher education sector as most of the European countries charge fees for the above provisions. Thus, the author stated that Greek higher education system is one of the most resistant against the introduction of market-oriented reforms in education (Gouvias, 2007). Indeed, NPM principles and techniques have not yet been applied in Greek HEIs due to the centralized political structure as well as the Greek educational tradition which do not allow for common trends in reforming the institutional framework similarly to those in other European countries. For example, in countries such as Germany, Britain and Spain, which are more decentralized, it is easier the promotion of such changes. Papandreou (1998, p. 23) noted that

“Greece is obviously a long way from making those qualities part of its social and educational structures, and we have long way to go make the necessary changes in order to confront the challenges with which such transformation can come about”.

The existing contextual framework regarding the structure and the operation of the HEIs poses multiple restrictions in their autonomy and independence and makes their operation cumbersome. Thus, it restrains them from any innovative and transformation efforts. Keridis and Sfatos (1998, p. 174) called the Greek university “a behemoth, unable to respond to the changing social environment and demands”. According to Gouvias (2012), in the Greek higher education system there is a considerable degree of bureaucratic inertia that keeps resisting radical changes in a variety of areas concerning teaching, learning and administration. It is also notable that

“Even in a centralized system, such as the Greek one, there is always room for individual initiative and resistance to top-down decision-making models, if we take into account the 30- year-long tradition of academic and administrative autonomy of the HE faculty, …”(Gouvias, 2012, p. 81).

All the above opposing views reflect the interest that this study encountered in its attempts to explain the adoption of accrual accounting system in the specific and reluctant to change setting of Greek HEIs which seem to operate in opposite dynamics, like the two different sides of coin. Even though they are organized and structured on a strictly centralized basis system, at the same time, they have space to resistant to top- down decision-making such as government legislation. This is possibly explained due to the long time transition of their academic and administrative autonomy that enforce the empowerment of rather a contradictory dynamic than positively facing the transformation efforts.

The particular period of the study was chosen for a variety of reasons. The structure of the frame of the external institutional environment of the Greek HEIs regarding the accounting reform derived from the government’s political willingness in 1996-1997 and which the Greek legislator provided finally in 1998. Indeed, the reform of the accounting system in the Greek public sector - including the Greek HEIs - was announced initially in 1997 and was promoted later with the Presidential Decree (P.D.) 205/1998. In the latter part of 1998, the P.D. 205/98 was passed and demanded the implementation of accrual accounting by the public sector entities. This included the higher education sector in its entirety. The rationale was based on a sectoral accounting plan focusing on the maintenance and issuance of proper documentation regarding financial, cost and budget accounting. The deadline for the implementation of the accrual accounting system by the HEIs was specified at the beginning of January 2000 but it is noticeable that the process was an ongoing one despite the expiration of the official date.

Since then, a series of legislative reforms and tremendous changes were undertaken in the Greek higher education sector during the period 2004-2007 challenging thus the autonomy of HEIs in administrative issues, the structures of studies, the assessment of both academics and students and their funding (Georgiadis, 2007; Gouvias, 2012). Obviously, the trend of education followed a new direction towards the total restructuring of the Greek system of education since it was viewed as a key component of economic competitiveness at an international level (Georgiadis, 2005; Ball, 2007). The major reforms experienced during the period 2004-2007 in the higher education sector can be classified into quality, efficiency and performance and are related

basically to Laws 3374/2005 and 3549/2007. However, one of the most important attributes of these reforms was the introduction of a new funding system for HEIs with the association of the planned assessment of the Greek HEIs with the future planned funding being provided by the State. Assessment and quality indicators towards the improvement of the HEIs, responsibility and accountability in terms of their academic programmes, staff and resources were demanded to be identified by the legislation. Legislation was referred to indicators and quality measures focusing on common standards and procedures for efficient investment and sufficient and sustainable resources that effectively respond to the new challenges (Georgiadis, 2007) with accrual accounting to be more than ever demanded as providing accurate information regarding financial statements and decision making. Thus, it is clear that during the period 1998-2008 the State sought rigorously the implementation of NPM techniques such as the adoption of accrual accounting in the higher education sector. In addition, due to the developments shown above, this particular time period allows for the measurement of variations between and amongst same group members.

Furthermore, the starting year 2008 of the empirical research proved later as a landmark for the current enquiry. The austerity measures underway due to the economic crisis in Greece forced many of the academic and administrative staff of the HEIs to retirement at the end of 2009 in order to secure their pension schemes and avoid loosing their benefits. It is expected that members of the Financial Departments who participated in the current study and were all very experienced and knowledgeable of the accounting reform that was attempted in their institutions started retiring during the same period. Even though they all had viewed the process of change in their own institutions from

day one they would not be available any further to provide accurate and useful information regarding the accounting reform experience, reducing thus the amount and sources of information available for this study.