Financial Reporting Requirements
Local governments, as public bodies, are accountable for the manner in which
they spend their funds. Annual financial reporting is
one method of demonstrating local government accountability.
A key component of financial reporting is the requirement for local governments to produce annual audited financial statements (145 KB). These statements must be prepared in accordance with generally accepted accounting principles established by the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants (CICA) and be reviewed by an independent auditor.
A local government's Statement of Financial Information
must be prepared in accordance with the
Information Act. The SOFI must be made available for
public viewing by June 30 each year and be accessible for the
following three years.
The Local Government Department administers the
Financial Information Act as it applies to local
governments on behalf of the Ministry of Finance. The Ministry of
Finance has created a guidance package
providing further clarification of the SOFI submission requirements.
Municipal Report is another local government accountability requirement. This
report must state the goals and objectives of the local government
for the coming year and demonstrate progress towards achievement of
the preceding year's goals and objectives. The report must also include a set of audited
financial statements. Local governments must present the report
at a public meeting before June 29th in each year. The Annual Report must
be available for public inspection at least 14 days prior to that
meeting. There is no requirement that the report be submitted to the province.
Local governments are also required to submit financial statement
information and tax rate information to the Local Government
Department by May 15 each year. The information is reviewed, compiled and
published in statistical schedules.
Publication of these financial statistics increases the openness,
transparency and accountability of local government financial affairs.