This paper addresses the adequacy of the Local Government financial reporting model for internal decision-making by developing an exploratory empirical study that evaluates internal users’ satisfaction concerning the reporting model within the municipality of Braganc¸a. It additionally examines to what extent internal control and financial reporting information opportunity are important for municipalities’ internal decision-making. In Portugal importante developments have recently emerged in public sector accounting systems in the context of internal decision-making and control, hence calling for further studying Local Government current
financial reporting model in this context.
From an experimental questionnaire applied to decision-makers of Braganc¸a municipality in 2010, main findings show that the actual reporting model is not the most appropriate in providing information for internal decision-making in that municipality. Moreover, both internal control and opportunity of the financial reporting information seem to have significant importance in the context of internal decision-making.