Financial Condition and Government Accounts: An Analysis in the Municipalities of the State of Rio de Janeiro (2009 to 2015)

Abstract

This research sought to analyze whether the opinion of government accountability of the municipalities of Rio de Janeiro by the Court of Accounts of the State of Rio de Janeiro (TCE-RJ), in the period from 2009 to 2015, considers the financial condition of these municipalities. The financial condition was measured based on the methodology created by the Canadian Institute Chartered Accountants and adapted to the reality of the Brazilian institutional and regulatory environment. Factor analysis was used to select and group the determinants of municipal financial health and the logistic regression analysis to assess whether the result of the opinion of the municipal accounts by the TCE-RJ considered the municipal financial condition. The results were conclusive in relation to the analysis of the accountability of municipal government accounts considering the financial condition factor that deals with the collection, as well as the opinion of the TCE-RJ indicated that it is related to the technical analysis of external control. It was not possible to conclude whether there is political influence from the governor in issuing the prior opinion of the plenary.