A new report, released yesterday by the C.D. Howe Institute, calls for municipalities in Canada to move towards full accrual accounting. According to the report, which is the third in a series that ranks municipal accounting practices in Canada, the current method for accounting for allocated versus actual spending makes comparing a municipalities spending as approved in the budget with the actual spending as reported at year-end, almost impossible for anyone but an expert reader.
The Municipal Finance Officers Association (MFOA) has previously raised questions and concerns with the C.D. Howe recommendations, which you can find here.