Financial analysis on local goverment and application

Local governments could be considered to be the institutions at which the public are engaged directly in administration, benefited from the provision of local services, and their local needs are met immediately. Thanks to the fact that the local governments are the closest administrative units to the public, they can also function as a bridge between the public and the central government. Managing the limited financial sources which mainly come from the tax revenues of the public in general in an effective and efficient way is one of the most important tasks of local administrations. In order to manage financial resources effectively and efficiently, the current financial situation should be determined and projections for the future should be made from the current situation. This is possible by measuring the financial performance of the local government. Financial performance analysis can be defined as the interpretation of existing financial data and the financial progress of the local government by looking at past financial data of local administrations. Many financial analysis techniques are used to measure financial performance in local governments. In our work, financial analysis techniques used in measuring financial performance are explained and implemented in sample local governments.