Intergovernmental grants misrepresentation in the balance sheets of Italian municipalities (original) (raw)

Preliminary effects on the political accountability of the new accounting system for Italian local authorities

Corporate Ownership and Control

The issue of accountability, particularly with regard to the use of public resources, represents one of the most significant and necessary aspects faced by a public administration. This work, therefore, focuses on the transparency of information with regard to the economic viability of a public administration, paying specific attention to the local and regional authorities which have been subject to major reforms in accounting systems. Harmonised accounting is the term given to the complex and multifaceted process of reforming public accounting, as provided by Italian Law No. 196, Article 2, December 31, 2009, and is aimed at unifying, comparing and aggregating the public administration financial statement, carrying out the operations with the same methods and accounting policies, and seeking to satisfy the necessity for information and accountability relating to the coordination of public finances. Several studies have analyzed the effects of accounting reforms on accountability. H...

Potential Uses and Usefulness of Italian Local Government Consolidated Financial Reporting

Global Perspectives on Risk Management and Accounting in the Public Sector

Debate on consolidated financial reporting has considerably increased over the years, also due to the various public sector accounting reforms. In this regard, Italy offers an important experience since it was one of the first countries in the European Union to expressly provide for compulsory adoption. The Legislative Decree no. 118/2011 will introduce consolidated financial reporting for local government as from 2017, after an initial “experimentation” period. In view of the recent adoption, the methodological approach implemented in the chapter is based on a case study. After discussion of the boundaries of the consolidation performed by comparison with international experiences – IPSAS 6, new IPSAS 35 and GASB 14 – a critical analysis of the Italian proposal is also provided. The chapter aims to contribute to the debate on consolidated financial reporting both from the theoretical and empirical points of view.

From Cash to Accrual Accounting: The seminal case of the Sicilian Regional Public Bodies

The Italian public sector has been traditionally characterised by a cash based and compliance oriented governmental accounting, principally aimed at supporting the budgetary control by the legislative body. Over the last few decades, however, a new movement has been spreading around the world, casting doubt on the potentialities and advantages of the traditional accounting system in favour of an accrual basis one. This paper traces the progressive introduction of a complete accrual accounting by the Sicilian Regional public bodies – within the context of international and national public management changes – pursuing the ultimate goal to improve efficiency, accountability and transparency. After a close examination of the major choices made by a Committee established for this purpose, the work investigates about the need to go beyond a “simple” accrual basis accounting system especially in a context where concepts like inter-institutional horizon and public value are more and more relevant

Measuring Horizontal Fiscal Imbalances: The Case of Italian Municipalities

SSRN Electronic Journal, 2014

In the literature on fiscal federalism, vertical fiscal imbalances have been widely studied, while the theme of horizontal fiscal imbalances and inequality between local governments' fiscal capacities is still less explored. This paper contributes to fill the gap. A new method to compute fiscal capacities based on regression analysis is proposed, which can overcome some of the drawbacks of traditional methods such the representative tax system. This new approach is then employed to evaluate the fiscal capacities of Italian municipalities over the period 2002-2010. Finally two global measures of the horizontal fiscal imbalance are then used to evaluate the equity implication of a major policy change occurred in 2008 in Italian municipal finance.

From Transfers to Tax 'Co-Occupation': The Italian Reform of Intergovernmental Finance

SSRN Electronic Journal, 2000

SERIES e MATEF sono pubblicati a cura del Dipartimento di Scienze economiche dell'Università degli Studi di Bari. I lavori riflettono esclusivamente le opinioni degli autori e non impegnano la responsabilità del Dipartimento. SERIES e MATEF vogliono promuovere la circolazione di studi ancora preliminari e incompleti, per suscitare commenti critici e suggerimenti. Si richiede di tener conto della natura provvisoria dei lavori per eventuali citazioni o per ogni altro uso.

Measuring horizontal fiscal imbalance: the case of Italian municipalities

Local Government Studies, 2016

In the literature on fiscal federalism, vertical fiscal imbalances have been widely studied, while the theme of horizontal fiscal imbalances and inequality between local governments' fiscal capacities is still less explored. This paper contributes to fill the gap. A new method to compute fiscal capacities based on regression analysis is proposed, which can overcome some of the drawbacks of traditional methods such the representative tax system. This new approach is then employed to evaluate the fiscal capacities of Italian municipalities over the period 2002-2010. Finally two global measures of the horizontal fiscal imbalance are then used to evaluate the equity implication of a major policy change occurred in 2008 in Italian municipal finance.

Accounting Reform in Italy and Perceptions on the Local Government Consolidated Report

Accounting Reform in Italy and Perceptions on the Local Government Consolidated Report, 2019

The article aims to explore the perception of local government (LG) financial officers on the users, the uses, and the utility of the consolidated financial report in Italy, since it was one of the first countries to expressly provide for compulsory adoption. A questionnaire was sent to a statistical stratified sample of LG, collecting 133 responses (response rate 17%). The results, tested through the structural equation model we observe that social legitimization pressure rather than accountability patterns or performance analysis drive more the adoption process. The evidence indicates that the report is perceived as a potential tool for pursuing performance assessment strategies in a group context. However, this potentiality depends on the coordination effort made by the LG. The article finds out the rise of the topic of the public governance and the role of coordinating the local public group.

The Process of Implementing the Accounting Harmonisation In The Italian Local Governments: The Case of Prato

International Journal of Business Research and Development, 2013

The purpose of this paper is to describe the experience of the Municipality of Prato (Comune di Prato) in adopting the new accounting model proposed by the harmonisation process of local governments. According to the theoretical model developed by institutional theories, the implementation of accounting reforms is connected to external stimuli that are exercised on an organization, and by the capability to interpret and implement the principles and requirements included in reforms. In accordance with the literature, the paper describes the process of implementation of the reform carried out by the Municipality of Prato, assessing the external and internal elements that have influenced the implementation. The paper analyses the most significant conditions and reactions to the change during the experimentation, which should introduce the reform. In this two year period, the new adopter has the chance to play a pro-active role in the process. This circumstance contributes to the development of the research, as it adds a component (the pro-active role), that has not been considered by the literature.

An Empirical Analusis of Fiscal Federalism Implementation and of Cost Accounting in Italian Public Administrations

Risk Governance and Control: Financial Markets & Institutions, 2012

The concept of cost has been introduced in Italian Administration since the early nineties. There is a copious legislation referring directly or indirectly, to the need, as well as to the utility of measuring the costs of public administration, in deference, to a renewed interpretation of the constitutional principle of Good Performance in pursuance of Article. 97 of the Italian Constitution. The most recent and probably the most significant intervention at institutional level, is the implementation of fiscal federalism as provided by Law. 42, 2009. The core features of fiscal federalism are the transition from historical expenditure to standard costs as a criterion for determining financial needs of public bodies, together with the attempt to establish more meaningful accountability mechanisms, both to policy makers and to public management. The measurement of standard costs represents one of the pillars of fiscal federalism and it will be pursued using the mechanism of "best ...