Use of public resources and audit observations in local governments

Abstract

This research analyzes the relationship between the use of municipal resources and the results of oversight processes, considering the volume, complexity, and remediation of audit observations issued by the Office of the Comptroller General of the Republic for the period 2017-2024. A descriptive correlational, longitudinal, and exploratory design was used, covering all 345 municipalities in Chile. The study examined the association between the level of executed budgetary expenditure and dependent variables, such as the number of audit reports and observations, their complexity, and the degree of remediation. The results showed positive and statistically significant associations among the variables. Moderate correlations were identified between expenditure and the number of reports and observations, and strong correlations between the latter and their remediation. Although the adjusted R² values were low and results should be interpreted accordingly, the regression models confirmed a positive and significant effect of expenditure on all dependent variables, thereby validating the proposed hypotheses. The pandemic period also exhibited a significant incidence, demonstrating its effect on oversight and the generation of observations. The findings indicate that higher expenditure is associated with a greater number and complexity of observations, as well as a greater number of remediated observations. This study contributes to understanding the link between the use of public resources and control and accountability mechanisms in Chilean municipal management.

Keywords:
local governments; irregularities; audit findings; public spending.