Sociomaterial practice: the logics of commitment income and expenses that hit the general ledger in that

ERP system that was implemented. It had been in use appropriate for the University.

within the Central Budget Office for over a decade in

Under the guidance of their administrator, PIs were sup-

order to improve Ivy’s institutional planning and over-

posed to mimic the pace and rhythms of their research all corporate governance activities. The Director of that projects by coming up with a budget plan for their mul-

office spearheaded the time-phased budgeting practice tiple grants. This approach was designed to allow them as the logic for ERP-based grant accounting. The shift in to achieve their academic goals without having to think

grant accounting practice tells us a lot about the nature of in terms of the detailed financial chart of accounts. In the

accounting practice being produced at the end of the 20th beginning, each project is divided into broad categories

century during a time of societal uncertainty related to Y2K of spending throughout its duration. Then grant funds are

and large corporate scandals related to financial report- applied to cover the planned activities and categorized by

ing. The technical agencies of ERP and the time-phasing type of transaction as well as the time when the transac-

algorithm were to be tied together with the academic con- tion will occur. Faculty and staff then monitor these plans

stituencies. in comparison to the monthly financial transactions. This

Time-phased budgeting is based on recording each

regular comparison was designed to encourage reflexiv-

financial transaction in a chart of accounts category

ity as part of the financial management process enabling

(expense, revenue, capital, etc.) thereby allowing Univer- timely and corrective interventions to be made to the grant

sity managers to budget for future years by estimating the bottom line. The time-phased budgeting module generates

E.L. Wagner et al. / Management Accounting Research 22 (2011) 181– 197 189

reports at the end of each month comparing how closely ture and benefited from being the first industry-specific

the PI matched the budget for that period in time thereby solution:

scaffolding the practice of monitoring grants.

Over longer term the the intention was for the time- “Why did the integrated technology have to be time-

phased budgeting to be further decentralized removing phased budgeting when we had [a system] before that

administrative intervention and asking faculty to monitor, worked for the faculty? I mean the legacy accounting] [commitment system could

have been fully integrated as made plain

review, and report on their grants themselves. This was

an ERP – it was technically supported as one, but was

in the following interview: only ever managed and used at the departmental level.

I mean let’s give the job directly to the faculty. It doesn’t Why not design [commitment accounting] as the inte-

take a Nobel Prize winner to say I’ve got $50, I spent $65, grated, standardized technology? It worked for faculty

I’m in trouble for $15. That’s really all we’re talking about. for years . . . I hope you understand that it’s not [the ERP]

And it doesn’t take a Noble Prize winner to do a busi- itself that’s the issue. It’s the lack of understanding and

ness plan that’s timed out by months or quarters. So you regard for the people bringing in the money and the

know, when we talk about somebody who is a secretary people doing the work that’s so frustrating.” [Academic

who’s put into a position with the ERP that is now totally manager, follow-up email 2002]

you had somebody with an IQ of 90 and it’s a job for a PIs felt the ERP system had reduced their ability to manage and control their spending. Furthermore, person the with an IQ of 110, there’s a problem. But with

too complicated for them, that’s really different. I mean if

accounting logic the faculty – the fact of the matter is they’re all smart! that underpinned commitment account-

ing was consistent with deeply held I mean they may be values of nutty faculty as hell but they’re smart and

there’s nothing here that they can’t figure out . . . I really related to academic freedom: it allowed a flexible form

believe – you put pressure on people to take responsibil- of

accounting that was capable of adjusting the bottom

ity for things that they should be responsible for and then line to

represent commitments in terms of future spend-

you hold them accountable for it. It’s like the old thing that ing; and also gave them flexibility in terms of spending somebody once said, if you treat people like children, when projects

were nearing completion without anyone

like children. If you treat them like adults, asking questions about this. At a spur of the moment, fac-

ulty were known to demand from their support staff the they behave like adults. [Director of financial planning,

they behave

balance in their account and now this information could summer 2000] not

be retrieved. They also could no longer rely upon the cus-

tomized monthly reports that were provided in the legacy