Hagkvæmnisreikningar

Hagkvæmnisreikningar, often translated as "efficiency accounts" or "performance accounts," are a method of financial accounting used in Iceland. They are primarily employed by public sector entities, such as government ministries, agencies, and municipalities, to measure and report on the efficiency and effectiveness of their operations. The core idea behind hagkvæmnisreikningar is to move beyond traditional financial reporting, which focuses on input costs and expenditures, to also consider the outputs and outcomes achieved by an organization.

These accounts aim to provide a more comprehensive picture of public spending by linking financial resources to the services delivered and the results obtained. They often involve setting performance indicators and targets that are then measured against actual performance. This allows for an assessment of whether public funds are being used in a cost-effective manner and whether desired societal goals are being met. The information generated can be used for internal management purposes, such as improving service delivery and resource allocation, as well as for external accountability to taxpayers and citizens. While the specific methodologies can vary, the underlying principle is to enhance transparency and promote better decision-making in the public sector through a focus on both financial and operational performance.