Municipalities edge near to yearly agreements - Authorities struggle to keep pace with annual financial records
Let's dive into the latest update on Saxony-Anhalt's municipalities wrapping up overdue annual closures!
By the end of March, it's been reported that 1,823 annual closures for 2021 were still hanging fire, an 82% completion rate according to the Ministry of the Interior in Magdeburg. That's around 100 more than six months ago, showing steady progress.
Each new fiscal year brings about 247 new annual closures. As of now, 60% for 2022 and roughly 44% for 2023 are accounted for. Remember, since 2013, Saxony-Anhalt's municipalities have been using a different budget management system, involving an opening balance sheet that's updated yearly and the submission of annual closures.
The annual closure process saw a delay in some places, leading the black-yellow-green coalition to implement stricter penalties, more on that later. It's worth noting that, from now on, the approval of the budget will hinge on the submission of the previous year's closure for audit. Clearly, those who've missed annual closures in the past will feel the heat. Without budget approval, municipalities can't make certain expenditures.
Now, let's talk about the city of Zerbst. They've stomped on the gas, completing eight annual closures in addition to their regular tasks over the past two years. The city administration announced this upon request, with Mayor Andreas Dittmann (SPD) sharing that there was no need for an amendment to the Municipal Constitution Act to make this happen. "We had already agreed on the timeline with the Ministry of the Interior and the municipal oversight authority beforehand," Dittmann stated.
While I couldn't find specific information regarding stricter penalties for annual closures in Saxony-Anhalt's municipalities or how the city of Zerbst has responded to such changes, municipalities generally respond to regulatory changes by adjusting local policies and procedures to comply. This can involve training local officials, updating internal guidelines, and ensuring all municipal operations adhere to new rules.
In light of stricter penalties for delayed annual closures, Saxony-Anhalt's municipalities may need to amend their community policy to include vocational training for local officials, focusing on efficient budget management and timely closure submission. As the city of Zerbst has already demonstrated success in this area, they could serve as a model for other municipalities undertaking policy-and-legislation reform in regards to general-news topics such as these.
