EFFICIENCY OF COMPANIES OWNED BY LOCAL AND REGIONAL SELF-GOVERNMENT UNITS

The subject matter of this paper are companies owned by local and regional self-government units from five counties (Pozega-Slavonia, Vukovar-Srijem, Osijek-Baranja, Brod-Posavina and Istria). The research was based on business operations data from individual reports drafted in audits conducted by the National Audit Office. An analysis has been performed and conclusions had been drawn about business operations, sources of financing and efficiency of operators in five counties. This paper confirms the assumption that companies owned by local and regional self-government units differ significantly according to the sources of financing and achieved business results. Businesses were analysed according to the number of employees, total revenues, grants, total expenditures and expenditures for employees in total achieved expenditures. Conclusions had been made regarding setting business objectives, measurement of business results and achieving planned purposes for which the companies were established and regarding the options for improving business results. This paper confirms the importance of accounting information system as a basis for information on business operations through an overview of revenues in accordance with prescribed regulations.