A Model For Financial control in Metropolitan Municipalities of Iran

Document Type : Research Paper


1 Prof., Department of Accounting, Faculty of Management & Accounting, Allameh Tabataba'i University, Tehran, Iran.

2 Associate Professor, Industrial Management, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran


Objective: Considering the importance and necessity of financial control to ensure from receipt and consumption of financial resources in accordance with the regulations and in designated destinations and to improve the financial accountability of Iranian metropolitan municipalities, the purpose of this study is to provide a model for financial control in Tehran municipality and other Iranian metropolitan municipalities based on regulations and characteristics of the activities.
Method: In this study, the dimensions, components and indicators of providing financial control model in metropolitan municipalities were identified using library studies and fuzzy Delphi method. after screening the indicators by using scree test, Fuzzy hierarchical analysis method has been used to determine the weight of each factor and provide a model of financial control in Tehran municipality and other Iranian metropolitan municipalities. To collect data, questionnaires had distributed in two stages between 40 financial managers of Tehran Municipality and 20 financial experts of Mashhad, Isfahan, Shiraz, Kerman and Urmia municipalities, including Managers of financial and urban economic deputies, financial comptrollers, internal auditors, Managers of the inspection organization and inspectors and auditors of company meetings and the council of organizations and independent auditors of the Islamic Councils of the city. Finally, the proposed financial control model has been validated through structured interviews with 5 independent experts and Spearman test.
Results: The results of this study provide a model of financial control in the municipality of Tehran and other metropolises. Accordingly, the supervisory model of municipalities has two main dimensions( financial and performance controles). Financial control consists of four components. Respectively, Each of these components contains 23, 8, 39 and 5 indicators.
Conclusion: Based on the results of this study, the financial control system in the metropolitan municipalities of Iran consists of two main parts (financial and performance). In the first part of this article, the components of financial control in metropolitan municipalities have been identified. These four components are:
• Predict and identify the financial controllers
• Predicting the provisions of financial supervision in the laws and regulations governing the activities of metropolitan municipalities
• Designing procedures and methods for exercising financial control in executive processes and
• Establish financial control infrastructures.
The Audit Committee, financial comptroller, the Independent and Internal Auditors are among the most important financial controllers within the city administration. The National Inspection Agency and the Ministry of Interior are the most important financial controller of municipalities in the country.
Clear determination of accountability and levels of accountability, separation and explanation of the relationship between authorized spending authorities and oversight agent, oversight of resource acquisition and proper revenue generation, and identification and transparency of expenditure procedures are also among the most important variables related to the legal requirement of financial control in municipalities.
Control procedures and financial control in municipalities can be in the six main axes of designing and implementing budget controls, using accounting control methods, designing, establishing and evaluating internal control systems, conducting compliance and financial audits, designing and measuring performance, transparency and open access.


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