Financial Management Authority
Public Entities and Institutions
A public entity is an entity that exercises central or local government authority, as well as institutions, funds and companies that are at least half-owned by the state or municipalities.
A public entity may exercise public authority or carry out statutory tasks for the public.
Examples of public entities Public entities may include, for example:
ministries
government institutions
municipalities
publicly run schools
publicly run healthcare institutions
the police
courts
regulatory bodies
Companies or associations owned by the state or municipalities may also be public entities if they carry out a public or statutory role.
Public entity or private entity
A public entity belongs to the public sector or acts on its behalf. A private entity is an individual, company or association that does not operate on behalf of the state or a municipality.
The Financial Statements of the Central Government cover all government activities and are divided into the A, B and C sectors. This classification reflects the nature of each entity's activities and how they are financed.
Classification of Government Entities
Part A covers the core operations of central government and entities that operate within the framework of the State Treasury. Part A is divided into three categories:
A1 Government Institutions
A1 government institutions form part of the government's direct operations.Key characteristics:
Do not have an independent financial position.
Revenue and expenditure are recorded directly in the State Treasury.
Operate within appropriations approved by Parliament.
A2 Government Institutions
A2 government institutions have greater financial autonomy than A1 institutions but remain state-owned and under government control.Key characteristics:
Generate part of their own revenue.
Often maintain their own accounting records.
Finance a significant share of their operations through own-source revenue.
Operate with greater independence than A1 institutions.
A3 Government Entities
A3 government entities generally operate on market-based principles while remaining part of Part A.Key characteristics:
Have independent finances.
Prepare their own financial statements.
Operate primarily in the marketplace.
Part B covers autonomous public institutions, funds and other entities that are under government control but finance most of their activities through their own revenue.Key characteristics:
Prepare separate financial statements
Have their own sources of revenue
Are not part of the day-to-day operations of the State Treasury
Part C includes companies and other entities in which the State holds a controlling interest, including entities that operate in competitive markets.Key characteristics:
Operate independently and at their own responsibility
Maintain finances separate from the State Treasury
Prepare their own financial statements
May distribute dividends to the State as owner