Lack of documentation in the Court of Accounts
An alarming 40% of local entities have not submitted to the Court of Auditors the documentation related to public contracts for the year 2022. This figure is highlighted in a report by the auditor, which warns of the low degree of compliance in the rendering of accounts by these administrations within the established deadlines. In fact, only 12% of these entities have managed to render accounts completely and in the required time in the 2022 fiscal year.
Overview of the local public sector
The current situation reflects that the country’s local public sphere comprises a total of 12,930 entities, all of which have the legal obligation to render accounts and submit information related to contracts, agreements and internal audits. However, according to the data recorded for the year 2022, only 42% of these entities, excluding those in the Basque Country and Navarra, fulfilled their reporting duties within the established legal deadlines.
Challenges in accountability
Upon closer inspection, it is found that, as of June 30, 2024, a significant 21% of local administrations had not yet presented the general balance sheet corresponding to 2022. Among the entities that are in this situation, the town councils of Jaén, Jerez de la Frontera (Cádiz) and Marbella (Málaga), which have populations that exceed 100,000 inhabitants, as do the Island Council of Fuerteventura and the Provincial Councils of Cuenca, Cádiz, Málaga and Almería.
Violations in the submission of information
Furthermore, the report highlights that, as of June 30, 2024, 40% of local entities do not comply with the obligations to submit information regarding public procurement, while 55% have not submitted data. about the agreements. In relation to the obligation of local intervention bodies to submit reports on internal control for the 2022 financial year, it is noted that 46% of these entities, except for the smallest, had not complied with this obligation at the beginning of this month.
Link with regional regulations
The report also establishes that non-compliance is not restricted to the established deadlines, but rather reflects a general pattern of non-compliance in relation to obligations. The Court of Auditors maintains that the degree of compliance is ‘directly related’ to the regulations in force in each autonomous community. They highlight that in those communities where the requirements to receive aid and subsidies are linked to compliance with these obligations, ‘significantly higher’ rates of reporting and submission of information are observed.
Analysis of the economic situation
Finally, the report also analyzes the main economic, financial and budgetary variables of the local sector during fiscal year 2022. The data indicates a 9% increase in expenses and a 7% increase in income compared to the previous year, 2021. These results are classified as ‘positive’ from the perspective of the supervisory body.