Currently, the changes in the sphere of local government make relevant the study of approaches to local finance management. Modernization in this area is aimed at building a system of municipal services, organization and improvement of processes of the system with a focus on the service recipient subjects. It is important to describe the basic models of management in the municipal sector in terms of the subject-oriented approach, the concepts and principles on which the models are based, to determine their impact on local finance management and on the parameters used when managing local finances. In this paper, we performed a comparative analysis of the bureaucratic and client-oriented models of municipal finance management in the process of activities of entities providing municipal services to individuals and legal entities. The analysis revealed strengths and weaknesses of each model. We made conclusions about the need of their integration and implementation through the Balanced Scorecard to improve the effectiveness of financial management when providing municipal services. In this case, a classical Balanced Scorecard should be adapted to the municipal sector services. We propose a process approach as a basis for building a strategy map of the balanced scorecard, which allows obtaining the necessary information for management decision-making. The process approach justifies the need to establish functional relationship between financial and non-financial indicators that are proposed to be taken into account when managing local finances under customer-oriented and bureaucratic models.
Keywords: municipal services, management, local finance, subject-oriented approach, finance management, Balanced Scorecard
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