EFFICIENCY OF THE MUNICIPALITY’S ACTION IN THE CONTEXT OF THE SYNTHETIC ASSESSMENT OF THE FINANCIAL CONDITION ON THE EXAMPLE OF THE KAMIENNA BASIN MUNICIPALITIES

Abstract

The public sector is affected by the surroundings, multitude of stakeholders and pressure of increasing the effectives and enhancing the quality of action. Its activity has direct or indirect influence on the development of the local economy. The position of the territorial authorities requires a solicitude of the financial situation, which defines the efficiency of its functioning. The financial condition is a multidimensional phenomenon which impedes the unambiguous assessment. Its precise and wide description requires including many various aspects of activity. Some pointers may indicate that it is good while other may signal problems. The aim of this study is to assess the financial state of selected Eastern Poland municipalities with the synthetic index. The construction of the synthetic feature enables the measurement of the multidimensional phenomenon with one numerical value, as well as linear alignment of studied units.
The analysis enables assessment of the level of differentiation of the objects described by the set of statistical features. It also leads to defining the clusters of objects similar in terms of synthetic measurement .
The research broadens the information about the considered category of objects. It enables the assessment of the share of each object in the development of the whole collectivity and to accomplish the graphic visualisation of the issue .
The analysis of financial condition of the territorial govrnment units should foster the rational spending of public financial resources. The achievement of the best qualititative and most accurate information, which enable taking appropriate decisions in terms of financial resources management, is essential in this matter . The measurement of effectiveness is a system of actions which enable the estimation of the consequences of the action, the assessment of the efficiency of the resource usage and of the level at which the actions taken correspond with the policy and intentions of the organization.
The system of measurement of the effectiveness should include the aspect of the usage of owned resources and their size with particular focus on the financial resources.ment of studied units.