Examining the goals of users of financial reports of municipalities with regard to performance-based budgeting

The new public financial management was basically proposed with the aim of increasing transparency and improving the accountability of users of financial reports. The purpose of this research is to investigate the goals of users of financial reports of municipalities with regard to performance-based budgeting.

The data collection tool of this research was a questionnaire containing 15 items. The targeted community was the managers and experts of the municipality at the level of Tehran province. Finally, 215 questionnaires were examined. Hypotheses have been tested using structural equation modeling methods and smart.PLS software.

The findings of the research showed that internal administrative control, internal accounting control, self-control and internal audit have an effect on the goals of users of financial reports of municipalities with regard to performance-based budgeting.

In performance-based budgeting, users' goals should be considered with regard to financial reporting, because it improves transparency and accountability. Keywords: budget and financial statements, internal control, decision making, municipalities.