The budget is a plan for the operation and financial management of the city, approved by the City Council. The budget is adopted each year for the budget year and the following three years before the end of the previous year.

The budget approves the city’s operational and financial objectives and sets the budgets and revenue estimates for the administrative departments to provide services to the city’s citizens.

Budget and participation

Timetable for the preparation of the 2024 budget

The process of drawing up the budget of the City of Loimaa proceeds in a particular way. It starts with the Council’s initial discussion in June 2024, and from there, through various stages, it is submitted to the Council for decision in November.

Monitoring of finances and activities

The City Council decides on the main operational and financial objectives in the budget. The implementation of the finances and objectives is reported in the interim reports.

Interim reports are prepared for April, August and the end of the year. In addition, the City Council monitors the financial performance of the city as a whole and the committees monitor the financial performance of their respective departments in a separate monthly report.

Financial statements and auditor’s report

Municipal financial statements are prepared in accordance with the provisions of the Municipal Act and, where applicable, the Accounting Act and Accounting Regulations. The municipal accounting period is the calendar year. The accounts for each financial year must be drawn up by the end of March. The accounts are discussed by the Council in June.

The financial statements of the City of Loimaa include:

• profit and loss account
• balance sheet and notes to the balance sheet
• budget outturn comparison
• activity report

The financial statements also include the consolidated financial statements. The financial statements provide information on the results, financial position, financing and activities. Any additional information required is disclosed in the notes.

The financial statements are accompanied by an auditor’s report to the Council, which sets out the results of the auditor’s examination of the administration, accounting and financial statements for the financial year. The report shall state whether the accounts are to be approved and whether the members of the institutions and the chief executive of the institution concerned may be discharged.

Audit activity – audit and audit committee

The administrative and financial control of the municipality is carried out through external audit and internal control.

The external audit and evaluation is independent of the executive management. Under the Local Government Act, it is the responsibility of the Audit Committee and the Auditor General. The Audit Committee assesses the implementation of the municipal strategy and other objectives set by the Council. The auditor is responsible for auditing the administration and finances.

Talvea Julkishallinnon palvelut Oy is the auditing company of the City of Loimaa.

According to the Municipal Act, the Committee of Auditors is appointed by the Council. The Audit Committee is appointed according to the number of years corresponding to the term of office of the Council. The chairman and vice-chairman of the Audit Committee must be councillors. The role of the Audit Committee is to monitor administrative and financial performance. The Audit Committee presents an evaluation report to the City Council when the accounts are closed.

Internal control and risk management are part of the municipal group’s management and administration system and operational management. The institution and its service area managers are responsible for the internal control of the activities they manage.