Do the data on municipal expenditures in the Czech Republic imply incorrectness in their management?

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Show simple item record Půček, Milan Plaček, Michal Ochrana, František
dc.contributor.other Ekonomická fakulta cs 2016-12-05 2016-12-05 2016-12-05
dc.identifier.issn 1212-3609
dc.description.abstract Limited public resources confront public administration bodies with the question of how to handle them in an economically rational manner. Audit of public expenditures necessitates an ongoing creation and modification of an effective control system. Such a system is made up by subsystems of a formal (accounting and documentation) and economic control, responsible for monitoring the efficiency, effectiveness and economy of managing public expenditures. Significance of such interconnection rests in the fact that the formal control may signal possible improper management of public expenditures. This may become a stimulus for the economic control subsystem to verify the effectiveness, efficiency and economy of outlaid expenditures. For identification purposes related to potential accounting and record-keeping incorrectnesses in the management of public expenditures is proposed adoption of Benford’s Law (Benford’s test). Benford’s test is applied on municipal expenditure data for the year 2012. Data represent sums of public expenditures in the structure of the statement of budgetary execution and control specified by the Regulation of the Ministry of Finance of the Czech Republic No. 323/2002 Coll. For the data analysis there were used statistical methods, hypothesis testing, linear regressions and comparisons. Although the empirical analysis points at a limited use of Benford’s test in the conditions of municipal expenditures in the Czech Republic (mainly due to the instability of results and unavailability of suitable data), the analysis showed that Benford’s test can be adopted as a supporting tool, suitable for building into the control system of public expenditures. It is one of the ways to increase the effectiveness of a complex control of public expenditures. en
dc.format.extent 89-103 s. cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
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dc.rights CC BY-NC
dc.subject control of public expenditures
dc.subject municipal expenditures
dc.subject manipulation of public expenditure data
dc.subject Benford’s Law
dc.subject Benford’s test as a signalling tool for auditing public expenditures
dc.subject.classification H72
dc.subject.classification C12
dc.subject.classification M42
dc.title Do the data on municipal expenditures in the Czech Republic imply incorrectness in their management? en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2016-4-007
dc.identifier.eissn 2336-5604
local.relation.volume 19
local.relation.issue 4
local.relation.abbreviation E&M en
local.relation.abbreviation E+M cs
local.citation.spage 89
local.citation.epage 103
local.fulltext yes

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