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An Explanation of Management of Local Governments in Spain Based on the Structure of the Internal Control System

Author

Listed:
  • Maria del Rocio Moreno-Enguix

    (Department of Finance and Accounting, Faculty of Economics and Business University of Murcia)

  • Ester Gras-Gil

    (Department of Public Economics, Faculty of Economics and Business, University of Zaragoza)

  • Joaquin Hernandez-Fernandez

    (Department of Public Economics, Faculty of Economics and Business, University of Zaragoza)

Abstract

Strengthening the internal control of municipalities offers multiple benefits: less opportunity for fraud, increased compliance with a growing regulatory environment, and the likelihood of more efficient resource utilization, leading to service improvements. The budget is viewed as a tool with which control over financial resources can be exercised successfully. The Budgetary Result allows us to measure efficiency in short-term in relation to management of financial resources. Our study determines the efficiency the internal control structure on Local Government performance. The results show a strong evidence for the effect of internal control system on increasing the budget result.

Suggested Citation

  • Maria del Rocio Moreno-Enguix & Ester Gras-Gil & Joaquin Hernandez-Fernandez, 2017. "An Explanation of Management of Local Governments in Spain Based on the Structure of the Internal Control System," Annals of Economics and Finance, Society for AEF, vol. 18(2), pages 393-410, November.
    • Handle: RePEc:cuf:journl:y:2017:v:18:i:2:moreno-enguix
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    More about this item

    Keywords

    Local Government; Management; Internal Control; Budgetary Results;
    All these keywords.

    JEL classification:

    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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