Eureka! Institutional Repository

Lately, the majority of countries made significant reform initiatives regard to the development and evolution of financial reporting systems for the management of Local Authorities. This also includes the preparation of the financial statements of the Municipalities. The aim of the changes is to ensure the transparency of the public finances of the Municipalities, as well as to strengthen the control over the cost and efficiency of each Municipality's activities. In particular, the above, can be achieved through the transition, from the cash basis accounting followed by the Municipalities, to create a more accurate and efficient accounting based on the accrual basis. Accounting reform has contributed to a broad and structural reform of the management and monitoring of the financial data of public sector. All the above contributes to change the way Local Government Administration works. The budget as a control of the municipalities contributes to more efficient and quality control of the services through the information provided to the competent auditors.