The Reporting Entity: an often neglected aspect of municipal accountability
Management best practices for your municipality (Vol. 1, N° 8)
The concept of reporting entity refers to the fact that the entities under direct or indirect control of municipalities must be included in the municipality’s financial information so that citizens and financial statement users may understand all the financial implications of decisions made by these entities on the municipality’s financial situation. Therefore, appropriately determining the reporting entity promotes accountability and transparency in disclosing a municipality’s financial situation.