...Financial Management: Fitch Ratings considers financial management as key in the effective operations of a subnational. In some countries, Local and Regional Governments (LRGs) are run as "corporations" and have the same level of control and reporting as a company. In others, they are simply administrative units with a limited level of sophistication. Assessment of Management: Management can be assessed as being `proactive' (considered as Strong management), whereby they are fully aware of the risks that they are undertaking or could face, have clear reporting lines and internal controls in place. `Neutral', where there are some shortcomings, for example accounting policies may be limited or debt management less sophisticated. Or `passive' (considered Weak management), where there is a limited debt management culture, rudimentary accounting policies and deficient reporting lines. Budget Planning: The ability to project revenues and expenditure can be challenging at the budget stage and...
