MOZHGAN MOHARRAMI; jafar babajani
Abstract
The purpose of this study was to determine financial performance measurement indicators, assess the adequacy and capability of existing indicators, and evaluate the capabilities of the accounting system to fulfill the financial responsibility of Tehran Municipality. In order to, theoretical fundamentals ...
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The purpose of this study was to determine financial performance measurement indicators, assess the adequacy and capability of existing indicators, and evaluate the capabilities of the accounting system to fulfill the financial responsibility of Tehran Municipality. In order to, theoretical fundamentals and the literature related to the assessment of the performance of municipalities in developed countries and relevant laws and regulations were first studied; then the indicators for this type of evaluation were determined and agreed through the use of the Fuzzy Delphi methodology and expert opinion polls. Subsequently, the "confirmatory factor analysis" test was used to determine the factor load of each component’s indicators. Additionally, the adequacy and capability of performance measurement indicators in Tehran Municipality were assessed in order to fulfill the responsibility of financial accountability by comparing the indicators of performance evaluation with the consensus indicators in a specialized community. Finally, the accounting system capabilities of Tehran Municipality were evaluated to provide the information needed. The results of the study showed that out of 50 indicators of financial performance evaluation derived from theoretical fundamentals and researches, the Delphi group obtained 41 general consensus indicators, but only 26 indicators were sufficiently important by doing a confirmatory factor analysis. On the other hand, the results of the research showed that the indicators of financial performance evaluation in Tehran's municipality are identical to half of the consensus indicators. However, the Municipality's accounting system provides a considerable part of the actual necessary information of the entity's financial performance measurement system.
