The future of popular reporting for Local Councils in Malta

Abstract

Purpose: The main aim of the study is to determine how Maltese Local Councils can increase transparency and accountability, and act fiscally responsible through the presentation of financial information that is user-friendly and understandable by their target audience. The study aims to describe the concept of Popular Reporting, explore the applicability of Popular Reporting for Maltese Local Councils, along with the preparation of a draft Popular Annual Financial Report for the Msida Local Council. Design: A mixed method research approach was chosen for the study. Semistructured interviews were conducted with five Local Government Assistants and four Msida Local Council Officials. A questionnaire was administered to Msida local citizens. Findings: Popular Reporting is a tool used by governments and public sector entities, which presents complex information through concise, easily read and understandable reports. It involves the preparation of Popular Financial Reports, where these are targeted to local citizens. The findings indicated that local citizens and the majority of councillors do not understand the traditional audited financial statements and that Popular Annual Financial Reports are designed in a manner that could be more understandable by the target audience. The current financial statements are transparent and accountable, however Popular Annual Financial Reports would enhance transparency and accountability. Findings highlighted that the current financial statements do not encourage citizen involvement in the decision-making of the locality, as opposed to Popular Annual Financial Reports. Research participants considered the locality’s public works, projects for recreation and parks, public safety and security and the structure of Msida Local Council, as the most important aspects to be included in the draft Popular Annual Financial Report for the Msida Local Council. Conclusion: Popular Annual Financial Reports are an essential supplement to the current audited financial statements as they are perceived to be more understandable by local citizens. They could bring Local Councils and citizens closer together. There is still room for improvement for Maltese Local Councils in relation to their interaction and communication with their audience. Value: The study may provide value to the Department for Local Government and Local Councils in Malta, particularly the Msida Local Council, because the study introduces the concept of Popular Reporting. This can improve the understandability of information presented by Maltese Local Councils and enhance the interaction between local citizens and Local Councils.