Evaluation of the Quality of Government Financial Reports and their Impact on Administrative Decision-Making

Abstract

This study aims to evaluate the quality of governmental financial reports in public institutions in the city of Misrata, Libya, and to analyze their impact on the effectiveness of administrative decision-making. The study adopted a mixed-methods approach, which included a simulation model to analyze the qualitative characteristics (relevance, reliability, understandability, and comparability) in a hypothetical financial reporting framework, as well as a field survey distributed to a purposive sample of 53 decision-makers and report preparers. The integrated results indicate that the structural deficiencies in the current reporting models directly limit their effectiveness in supporting strategic decisions and the reallocation of resources. The study concludes that the quality of Libyan governmental financial reports, in their current form, is insufficient to meet the requirements of sound administrative decision-making, and it recommends adopting structural reforms, including a shift toward the modified accrual basis, enhanced disclosure, and simplified presentation.