Peer-Reviewed Journal Details
Mandatory Fields
Turley, G., Robbins, G.,and McNena, S.
Local Government Studies
A Framework to Measure the Financial Performance of Local Governments
In Press
Altmetric: 1WOS: 8 ()
Optional Fields
local government, financial indicators, performance measurement, Ireland, benchmarking
AbstractA framework to assess the financial performance of local governments is presented in this paper. The framework adapts and extends an earlier methodology used by Carmeli (2002) and includes new financial performance measures reflecting considerations in the literature of appropriate financial performance measures for local government units. Using 14 indicators, five broad financial performance measures are employed, assessing liquidity, autonomy, operating performance, collection efficiency and solvency. We apply this numerical and narrative analysis of key financial performance indicators to Irelandís primary local authorities during the recent boom and bust period. The framework addresses concerns underlying calls for increased accountability and transparency of public sector organisations as part of New Public Management reforms. Through application of this financial performance measurement framework using a benchmarking methodology it aims to identify strong and weak local authority financial performance. We recommend the adoption of this framework as an extension to the annual financial statements of local authorities to help users more easily assess financial performance and to distinguish between relatively well-performing councils and those showing signs of financial trouble, with a view to early identification of councils in financial difficulty.Keywords: performance measurement, financial indicators, local government, Ireland, benchmarking
Grant Details
New Foundations Award 2014
Publication Themes