WATER ACCOUNTING AS A CATALYST FOR SUSTAINABLE PERFORMANCE: A PROPOSED SEEA–IPSAS FRAMEWORK FOR IRAQI WATER DIRECTORATES

Abstract

The absence of a specialized water accounting system integrally linking financial and water data in Iraq's water directorates hinders rational water resource management and climate change adaptation. This research assesses the application of water accounting, water loss, and integrated water resource management (IWRM) to evaluate the sustainable performance of the Al-Anbar Water Directorate. Consequently, a proposed water accounting framework was developed, grounded in the System of Environmental-Economic Accounting for Water (SEEA-Water) and integrated with International Public Sector Accounting Standards (IPSAS). This framework provides a standardized reference that links water data to economic accounts, enabling integrated water accounts to measure water use efficiency and enhance IWRM towards achieving Sustainable Development Goals. A composite methodology was adopted, combining an applied case study utilizing official financial and water reports from the Al-Anbar Water Directorate, supplemented by checklists and interviews, with an analytical field study employing inferential statistics. A questionnaire, designed based on the proposed framework, surveyed a stratified random sample of 200 specialists (accountants, auditors, experts, and department heads) across Iraq’s 18 water directorates. Findings reveal that the current unified accounting system suffers from significant deficiencies, proving incompatible with the directorates' operational nature. Its focus on traditional financial aspects limits its capacity to accommodate water accounting requirements, thereby constraining its effectiveness in supporting IWRM and sustainable performance evaluation. The field study results statistically validated the proposed framework's robustness and applicability, confirming its potential to integrate financial and water data and enhance managerial efficiency. The research primarily recommends adopting the proposed SEEA-Water-based framework across Iraqi water directorates to achieve integration between financial, water, and operational data, thereby strengthening sustainable water resource governance.