Local government is a form of decentralized government, where usually residents of the units of basic territorial division shall form of community self-government by law. The essence of self-government is the proper management of public affairs by themselves. Local government units shall endeavor to fulfill its mission servitude towards their citizens through their bodies. Rounding out the way the management in local government is to use the internal auditor, who with their knowledge and competence supports the management of local governments in decision-making. The aim of the study analyzed area is to identify the essence of the functioning of local self-government, which is increasingly effectively and efficiently perform its duties. Author of the article, as a longtime practice acting as an internal auditor, determines methods and ways of managing public tasks of local authorities, referring both to the existing legislation in this area.