Management control over financial reporting in the local government – selected issues

Abstract

Current regulations of the financial law create more possibilities of gradual shift from the administrative management of public organisations towards the managerial model by introducing the concept of management control to public sector entities. R. Szostak rightly indicates that the increased importance of management control is related with the managerial approach to public finance, particularly in terms of special stress on sufficiently effective spending of public funds [10]. The principal aim of this article is to present the issue of management control over budget reporting in the local government. The efficiency of operating in this area is of major importance in the present and future periods of financial economy management. It results from the fact that budget reporting participates in the realisation of the cardinal principle of transparency of public finance, which requires the system of preparing reports to operate with the respect to legal principles and internal regulations.