The controlling background of the financial management of municipalities

Abstract

In the study, the controlling activities that affect the financial management of the municipalities were examined on the basis of the deep interviews and questionnaire-based surveys conducted with the staff members of the municipalities and their institutions. The purpose of the fact-finding research was to assess the extent to which the application of controlling gained ground in the evolution of the financial management of municipalities in 2005–2007. The purpose of the investigation is to lay the foundations for a controlling model which may contribute to the future expedience, efficiency and profitability of the financial management of the municipalities. From among the number of conclusions drawn from the investigation, it should be highlighted that the answers to the questionnaire confirm the level of controlling knowledge of those who participated in the survey. The respondents primarily expect the application of controlling to improve the effectiveness of financial management and the transparency of the budget. Many accept the conclusion that measuring the performance of public services could reduce the dissatisfaction of society with public services. It is a general opinion that by developing efficiency and effectiveness calculations, the economic decisions could be better supported by cost data, as opposed to the current justifications mostly relying on income- and expense-based data.