Evaluating the reform process of the communal household and accounting system

At the beginning of 2010, more than half of the 211 cities being member of the Deutsche Städtetag - the German Association of Cities, which is the largest national local-authority organization in Germany representing the cause of local self-government - have changed to a new communal household and accounting system based on communal household legislation and on voluntary basis.

The German Association of Cities and PwC AG worked together to show the status quo after 7 years of reform and to highlight existing challenges. The report forecasts that by 2015, the new communal two-folded accounting system (the so-called "Doppik") will be used in more than 80% of the participating cities. The analysis concludes that instead of the continuing discussion whether this double accounting system is suited to public administrative units, more focus should be set on strengthening the financial capacity of cities and on advancing the existing system.