The Malta Tourism Authority : accountability and transparency through financial reporting obligations

Abstract

PURPOSE: The Malta Tourism Authority (MTA), as an Extra Budgetary Unit (EBU), is characterised by a level of autonomy which allows it to operate independently from the Central Government (CG). This research critically assesses how the underlying legislation supports accountability and transparency within the MTA, by referring to all available tools, particularly, financial reporting obligations. DESIGN: A qualitative research method was adopted in order to achieve the objectives of this research. The case study used two research instruments, namely, document analysis (of the underlying legislation) and eight semi-structured interviews. FINDINGS: The Malta Travel and Tourism Services Act provides for the setup of the Authority. The principal legislations which supply the MTA with guidelines and requirements in order to ensure effective and efficient use of public finances are the Fiscal Responsibility Act and the Public Finance Management Act. These laws provide a detailed understanding of the budgetary requirements needed in order for the MTA to receive its subvention. However, such regulations still pose various challenges and limitations with respect to the Authority’s process to adhere to, and ensure, accountability and transparency. In turn, lack of enforcement is deemed to be the primary weakness within the public sector structure, as the necessary obligations are in place but with insufficient enforcement. Additionally, audit reviews together with improved technology are deemed to be the key vital tools to allow the MTA to enhance its level of accountability and transparency. Subsequently, although advanced technology creates new challenges, it allows for better accessibility to public information. CONCLUSIONS: Over time, the Maltese public sector, including the MTA, has improved when it comes to its portrayed level of accountability and transparency. This is achieved through the several financial reporting obligations which emanate from the various legislations. Nonetheless, although all the necessary steps are followed in order to adhere to such obligations, a crucial need arises for enhanced monitoring and enforcement. It is therefore increased enforcement which will allow the public sector to strengthen its public image, and, subsequently, achieve greater accountability and transparency. VALUE: This study increases awareness with respect to the level of accountability and transparency that is reached through financial reporting obligations and other tools available to public sector entities, and also citizens’ accessibility to public sector information. The findings and discussions of this research may prove to be of value not only to the MTA, but also to other public sector entities that use public money and wish to enhance their level of accountability and transparency.