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Annual Reporting and Accountability by Municipalities in Canada: An Empirical Investigation

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  • Huguette Blanco
  • John Lennard
  • Sylvain Lamontagne

Abstract

Prior research regarding reporting and accountability by local governments in several countries has questioned the value of traditional annual reporting and the level of accountability to the public. This article reports on comparable research for local governments throughout Canada. The disclosure index methodology is used to evaluate the quality and quantity of information published in the annual reports and in the financial statements of Canadian local governments in 2003 with a comparison in 2005. Although all municipalities published audited financial statements, less than one‐third of municipalities published a comprehensive annual report in 2003. The results show an overall low disclosure index with significant improvements in 2005 compared to 2003 and significant differences across the country. The results, largely consistent with previously published international studies, raise questions about local government accountability and about the conceptual framework for local government reporting. Rapport annuel et reddition de comptes des municipalités canadiennes : une étude empirique Résumé Les études précédentes portant sur la reddition de comptes des administrations locales de plusieurs pays et sur les informations qu’elles publient ont remis en question la valeur des rapports annuels traditionnels et du niveau de reddition de comptes à la collectivité. Les auteurs font état de données comparables pour les administrations locales de l’ensemble du Canada. Ils appliquent la méthodologie de l’indice d’information pour évaluer la qualité et la quantité des informations publiées dans les rapports annuels et les états financiers des administrations locales canadiennes en 2003 comparativement à 2005. Bien que toutes les municipalités aient publié des états financiers audités, moins du tiers des municipalités ont produit un rapport annuel exhaustif en 2003. Les résultats de l’étude révèlent que le faible indice global d’information affiche une amélioration sensible en 2005 par rapport à 2003, avec d’importants écarts selon le lieu géographique au pays. Ces résultats, qui confirment essentiellement ceux des études internationales antérieurement publiées, soulèvent des questions en ce qui a trait à la reddition de comptes des administrations locales et au cadre conceptuel des informations publiées par les administrations locales.

Suggested Citation

  • Huguette Blanco & John Lennard & Sylvain Lamontagne, 2011. "Annual Reporting and Accountability by Municipalities in Canada: An Empirical Investigation," Accounting Perspectives, John Wiley & Sons, vol. 10(3), pages 195-224, September.
    • Handle: RePEc:wly:accper:v:10:y:2011:i:3:p:195-224
    DOI: 10.1111/j.1911-3838.2011.00024.x
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    References listed on IDEAS

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