This requires that they set objectives, create reporting mechanisms and fiscal rules, audit and monitor cities’ finances, and eventually, take corrective measures if necessary. The design of such systems is likely to vary a great deal from country to country as a result of the enormous differences in fiscal systems, municipal competences and constitutional architecture. Since states/provinces/regions are usually responsible for setting fiscal rules and monitoring local governments’ finances in federal and quasi-federal countries, there can even be differences within them.