Determining county government fiscal instability: Independent audit report findings and the prompting of state action
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2014
Abstract
Decreasing revenues among local governments across the country have placed an increased focus on governmental financial practices. For states with local government financial oversight organizations, the ratios and other benchmarks used to assess fiscal stability face increased scrutiny. This study examines financial reports sent to North Carolina’s financial oversight body, the Local Government Commission (LGC), to determine the types of operational and policy practices that can lead to fiscal stress based on guidelines established by the LGC. Findings indicate that lowering levels of fund balance, increased salaries, increased debt service levels, and the presence of a countywide water system all increased the probability of a county government receiving notice of potential financing problems requiring immediate action.
Citation
Modlin, S. and Stewart, L.M. (2014), "Determining county government fiscal instability: Independent audit report findings and the prompting of state action", Journal of Public Budgeting, Accounting & Financial Management, Vol. 26 No. 3, pp. 405-428. https://doi.org/10.1108/JPBAFM-26-03-2014-B002
Publisher
:Emerald Publishing Limited
Copyright © 2014 by PrAcademics Press