Purpose: The purpose of this paper is to develop a model to assess and rank the financial risk of a municipal government (“municipality”). Financial risk is the likelihood that a municipality will experience financial distress. Design/methodology/approach: Logistic regression is used with...

This paper investigates the financial risk factors associated with fiscal distress in local governments. We hypothesize that fiscal distress is positively correlated with revenue concentration and debt usage, while negatively correlated with administrative costs and entity resources. The...

This paper uses survival analysis to investigate fiscal distress in special district governments. We hypothesize that fiscal distress is positively correlated with revenue concentration and debt usage, and negatively correlated with organizational slack and entity resources. Our model addresses...

In 1999, the Government Accounting Standards Board passed GASB Statement No. 34 (GASB 34), which required local governments to prepare certain financial statements using the modified accrual basis. GASB 34 also required many local governments to record and depreciate their infrastructure assets...

In June 1999, the Government Accounting Standards Board issued Government Accounting Standards Board Statement No. 34 - Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments (GASB 34) to improve the transparency and accountability of governments....