A Framework to Measure the Financial Performance of Local Governments

Gerard Turley, Geraldine Robbins and Stephen McNena

Local Government Studies, 2015, vol. 41, issue 3, 401-420

Abstract: A framework to assess the financial performance of local governments is presented in this paper. The framework adapts and extends an earlier methodology 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 Ireland’s primary local authorities during the recent boom and bust period. Through application of this financial performance measurement framework using a benchmarking methodology, we identify relatively 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.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1080/03003930.2014.991865 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:flgsxx:v:41:y:2015:i:3:p:401-420

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/flgs20

DOI: 10.1080/03003930.2014.991865

Access Statistics for this article

Local Government Studies is currently edited by Helen Hancock

More articles in Local Government Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().