Communes catch up in annual closings - Saxony-Anhalt’s towns near full compliance with new financial reporting rules
Municipalities in Saxony-Anhalt have made steady progress in adopting a new financial reporting system. Since 2013, local governments have been required to switch to accrual-based budgeting, which tracks revenue, spending, and assets more transparently. By late 2022, most had caught up with overdue statements—but some delays remain.
The shift to accrual-based accounting began nearly a decade ago. Under the system, each municipality must prepare an opening balance sheet and submit yearly financial reports. These changes were designed to improve clarity in public finances.
By the end of September 2022, 1,918 annual reports for the years up to 2021 had been filed. This figure represents about 86 percent of the total required, leaving 271 still outstanding. The improvement is notable: in 2021, only 1,724 reports had been submitted by the same deadline. Local authorities have been working to clear a backlog of late statements. No specific council missed its 2021 report by the end of 2022 after having filed it on time the previous year. The push to meet deadlines has accelerated in recent months.
The latest figures show most municipalities in Saxony-Anhalt now comply with the new accounting rules. With 271 reports still pending as of late 2022, efforts to eliminate the backlog continue. The system’s goal of clearer financial tracking appears closer to being fully realised.
