Financial Performance of Khon Kaen Provincial Administrative Organization

Abstract

The objectives of this study were to analyze the financial performance of Khon Kaen Provincial Administrative Organization (KKPAO) by considering four dimensions of financial performance indices. Data on each indicator were collected from financial and fiscal documents of KKPAO for the fiscal years 2012-2017. Content analysis was conducted to classify, group, and determine the associations. Ratios and percentages were used to indicate financial performance indicators.

            The results for the fiscal year 2017 are as follows. First, cash solvency was relatively high with a current ratio of 2.26 and a cash ratio of 2.93. These ratios are likely to increase annually. Second, for budget solvency, self-reliance was relatively low with accumulated funds of only 0.71% and locally-collected tax of 0.40-0.55% of total expenditure. Third, long-term solvency was quite good with long-term debt of only 0.15% and net assets ratio increased to 0.81%. And, fourth, service-level solvency was insufficient because a single KKPAO official must serve and take care of 1,693 people and the local tax burden is 633 baht per capita.

            The findings of this study could lead to the suggestions as follows: 1) measures regarding taxation and penalties for officials who neglected their duty should be strictly enforced; 2) the handbook or the guidelines should be prepared to clarify the loan regulations of the PAO; and 3) a sufficient number of personnel should be provided for public services and personnel training or promotion should be organized to achieve a correct performance of their duties.