Canadian Classification of Institutional Units and Sectors (CCIUS) 2012

S133 - Local general government

The subsector consists of local governments plus non-market NPIs that are controlled by local governments. In principle, local government units are institutional units whose fiscal, legislative and executive authority extends over the smallest geographical areas distinguished for administrative and political purposes. The scope of their authority is generally much less than that of federal government or provincial and territorial governments, and they may, or may not be entitled to levy taxes on institutional units resident in their areas. They are often heavily dependent on grants or transfers from higher levels of government, and they may also act as agents of the federal or provincial governments to some extent. However, in order to be treated as institutional units they must be entitled to own assets, raise funds and incur liabilities by borrowing on their own account; similarly, they must have some discretion over how such funds are spent. They are also able to appoint their own officers, independently of external administrative control. Local government units typically provide a wide range of services to local residents, some of which may be financed out of transfers from higher levels of government. The same rules govern the treatment of the production of goods and services by local government units as are applied to federal and provincial and territorial governments. Units such as municipal theatres, museums, swimming pools, etc., that supply goods or services on a market basis should be treated as quasi-corporations whenever the appropriate accounting information is available so they can be classified to the non-financial corporations sector.
Other units supplying goods and services on a market basis are treated as unincorporated enterprises within local government. Units supplying services such as education or health on a non-market basis are an integral part of the local government unit to which they belong. As such, the local general government subsector consists of all local governments and all the non-market producing units under their control. These entities are engaged in the creation and implementation of local government policy and the delivery of services within their jurisdiction.