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When managing municipal enterprises, the regional government has not acted effectively and pursuant to the statutory requirements and the principles of good governance practices. It has directly affected the fact that the activities of municipal enterprises are not economic and efficient and do not comply with the requirements of laws and regulations . The auditors’ analysis of the annual financial statements of the largest municipal enterprises shows that municipal enterprises have low liquidity ratios, operate at a loss, have low return on fixed assets, and are not able to fully cover their short-term liabilities from current assets. In this situation, the population cannot rely on the services they need in the long run. Without changes in the management and operation of municipal enterprises, the “wallet” of municipal enterprises will become empty. In their turn, residents will be forced to pay more and more for that “wallet be full”.
