Report Calls for Different Approach to Municipal Accounting

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.

Read the report: Building Better Budgets: Canada’s Cities Should Clean Up Their Financial Reporting

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