Abstract
The new form of local government organization should be competent and effective in order to provide 21st century services equivalent to the citizens of every country. Its new developmental role can be fulfilled by implementing management techniques that will be conducive to local development. The use of accounting ratios from financial statements is necessary to municipalities as well as to every accounting body to depict the dynamic and static condition of each entity. The aim of the study is to propose a new modeling of an Analytic Hierarchy Process (ΑHP) assessment system for municipalities in Greece based on their public accounting data in the era of austerity, due to the recent Greek economic crisis. Several revenues ratios were analyzed, which were obtained by public accounting data, of a small sample of Greek municipalities with similar population for the years 2011-2015, which is during the period of economic crisis and after the implementation of the “Kallikratis” program in Greece. The analysis of accounting ratios shows useful findings on the efficiency of each one of the examined municipalities. The created assessment model could be applied as a guide in the analysis of financial statements with ratios of all the municipalities in Greece or elsewhere. It could be further used as an evaluation tool by the policy makers and managers in the central state authorities or the municipalities system. Key words: Public accounting, ratios, revenues, municipality, Kallikratis.
Highlights
The institution of local government administration in Greece dates back to 1833 according to the law of “Founding of Municipalities” and constitutes fundamental institution for the quality of democracy
State subsidies to cover operating and investment costs show a significant reduction from 2011 to 2015, which means that the municipality should arrange for the establishment and collection of its own revenue, as well as for the development and creation of infrastructure projects and to turn to other forms of funding
The following results were obtained: from the range of values moving from the autonomy ratio, from 56.3 to 68.07%, it can be inferred that the Municipality 1 relies more on the regular revenues, which are foreseeable sources of revenue, which allows it to plan(1it)s action
Summary
The institution of local government administration in Greece dates back to 1833 according to the law of “Founding of Municipalities” and constitutes fundamental institution for the quality of democracy. Municipalities in Greece have administrative and financial independence. In 2010, an important administrative reform occurred in Greece. The existing municipalities were united in larger ones so as to achieve improvement of public administration in the local government administration level. From the preexisting 910 municipalities and 124 communities, 325 new municipalities emerged from this new structure in primary local government administration
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