The head of the internal auditing department of Arak Municipality announced:

Change of Accounting Method of Arak Municipality from Cash to Accrual / A Step Towards Transparency in Financial Matters

The head of the internal auditing department of Arak Municipality said: Arak Municipality is one of the leading municipalities in changing the accounting method from cash to accrual at the national level.

According to the Department of Communications and International Affairs of Arak Municipality, Hossein Pakzad stated that one of the biggest concerns of mayors and municipal managers has been and continues to be the lack of financial and accounting transparency of municipalities. He said: Municipalities in the country, due to adherence to the cash accounting system, do not have accurate information about their financial activities, and often the reports sent to higher authorities are not fully presented, and this issue is due to the use of the cash accounting method, which has been obsolete in most other countries.

He further added: In line with the transparency of the issue and the correction of audit reports from previous years, this necessity was felt, and Arak Municipality, as one of the leading municipalities in changing the accounting method from cash to accrual at the national level, prepared a bill and sent it to the City Council, and the sixth council also welcomed this issue and issued a permit for the correction of accounts and the change of accounting method, in this regard, one of the top-rated firms of certified public accountants, which was approved by the Ministry of Interior and the Municipalities Organization, was selected, and with the start of work, the issues that had led to the rejection or lack of opinion in audit reports in previous years were put on the agenda.

Hossein Pakzad also stated: As of December 2023, the account correction project in Arak Municipality began, and in this process, an initial review of the municipality's assets and properties was conducted, which led to very positive and valuable results for identifying the municipality's properties. In the next phase, a review of revenues, receivables, and payable accounts was conducted, and by recording all checks and receivables, the status of a large number of unresolved checks of the municipality was clarified, and also by reviewing the municipality's investments in other companies, the amount of shares and dividends of the companies was determined, and subsequently, the shares of the municipality were reviewed and recorded, and until the end of the contract, many other issues that need to be reviewed will be put on the agenda.

In conclusion, while appreciating the assistance and support of the mayor and members of the City Council, as well as the efforts of the auditing firm and the financial, property, and revenue staff of Arak Municipality, he expressed hope that with all the actions taken, effective steps have been taken towards the transparency of the financial affairs of the urban management system.