Audited financial statements provide a consolidated and independently verified overview of a local government's financial activities over the course of the previous fiscal year and its financial position at the end of that year. This provides enhanced transparency and public accountability of local government financial affairs.
Financial statements must be prepared annually by the local government's Director of Finance in accordance with Generally Accepted Accounting Principles for Local Government, and must be independently audited by a qualified and authorized auditor under the Business Corporations Act . The auditor reports directly to the local government council or board and provides an audit opinion on the statements.
Once completed, the audited financial statements must be available for public inspection and a copy of the statements must be provided to the Inspector of Municipalities by May 15 each year.