FINANCIAL INFORMATION AS A BASIS FOR MAKING DECISIONS IN LOCAL GOVERNMENT UNITS Abstract: Purpose – an attempt to determine the importance of reporting of units of territorial government in making rational decisions. Design/Methodology/Approach – the analysis of the subject literature and legal acts concerning financial reporting of units of territorial government. Findings – financial and budgetary reports made by units of territorial government contain a lot of drawbacks and do not always serve a purpose of making right decisions. Originality/Value – indication of a possibility to apply new tools that would provide accurate and solid information for management goals in units of territorial government. Keywords: information, decisions, reporting, task reporting