Measuring financial successes of municipalities through analysis of their financial statements and a sample application

The subject of this study is first to analyze the financial statements of municipalities, which share an important part of total public expenses and have great significance in the development of local democracy; and then to use the findings of this analysis in measuring the financial successes of municipalities. In this context, firstly general topics related to municipalities such as the financial and administrative structure, the functions undertaken, the budget making process, the chart of accounts used, the sources of income, the variety of expenses, general accounting systems, financial statements and the techniques related to analyzing these statements are explained. Later, it is tried to determine the methods that can be used in the analysis of financial statements of municipalities and the limitations of this analysis. Finally, as an actual sample study, financial successes of some selected municipalities are investigated through analysis of their financial statements., Our conclusion is that financial statements of municipalities can be analyzed within the boundaries of the limitations described in this study. This analysis must primarily be ratio analysis where the results are compared with other municipalities and interpreted in the light of structural factors such as development level, population, and other factors related to the accounting system and the spending frame.