Financial Control and Ratio Analysis in Local Governments

Financial Control and Ratio Analysis in Local Governments

Ali Kablan
Copyright: © 2014 |Pages: 13
ISBN13: 9781466646353|ISBN10: 1466646357|EISBN13: 9781466646360
DOI: 10.4018/978-1-4666-4635-3.ch027
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MLA

Kablan, Ali. "Financial Control and Ratio Analysis in Local Governments." Global Strategies in Banking and Finance, edited by Hasan Dinçer and Ümit Hacioğlu, IGI Global, 2014, pp. 410-422. https://doi.org/10.4018/978-1-4666-4635-3.ch027

APA

Kablan, A. (2014). Financial Control and Ratio Analysis in Local Governments. In H. Dinçer & Ü. Hacioğlu (Eds.), Global Strategies in Banking and Finance (pp. 410-422). IGI Global. https://doi.org/10.4018/978-1-4666-4635-3.ch027

Chicago

Kablan, Ali. "Financial Control and Ratio Analysis in Local Governments." In Global Strategies in Banking and Finance, edited by Hasan Dinçer and Ümit Hacioğlu, 410-422. Hershey, PA: IGI Global, 2014. https://doi.org/10.4018/978-1-4666-4635-3.ch027

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Abstract

Local governments have to use their sources in the most efficient way against increasing service demands. Local governments’ incomes are to be collected regularly and in accordance with the conditions, and their expenses are to be spent in the most efficient way. These depend on the healthy operation of budget, accounting, and financial control systems related to them. Progress of the system shall be controlled in local governments, and this data shall be analyzed and presented to the higher authorities as reports. Today, only official reports take place in local governments, and there is no analysis related to control. This causes the deterioration of the balance of income and expenditure and affects service presentation and service quality in a negative way. Financial structure of local governments is the most important issue that determines the quality and aspect of the services provided to the region. The efficiency of local qualified incomes, transfers of local management, and size of the resources caused of borrowing play an important role in forming the financial structure (Kurtulus, 2006, p. 28). Therefore, management and financial analysis ratios are needed. Due to these ratios, establishing a control system can be used in management. In this study, financial resources in public management are analyzed, ratios related to these financial resources are included, and a suggestion for financial implementation for local governments is promoted.

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