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This paper aims to examine the non-financial information disclosed in social reports by an Italian provincial government over time to determine its relevance, contribution and evolution.

Through a case study analysis, the authors examine 10 years of social reports by one “best practice” Italian provincial government. The authors use content analysis to quantify the level of social and environmental disclosures and use a coding instrument based on the GRI guidelines. The authors use legitimacy theory as a framework.

The level of disclosure increased over the 10-year period, and the type of disclosures became more detailed. However, many of the economic, social and environmental elements set out in the Global Reporting Initiative (GRI) guidelines were not disclosed. Moreover, the social report was contingent on a few key factors. The authors find that there has been a decline in interest in social reports by local governments in Italy, suggesting that voluntary disclosure was perhaps a fad that no longer is of interest in Italian local government.

This research is one case study so the findings are not generalisable. The findings suggest that there is a need for regulation in non-financial information disclosures, as the disclosures in the case study organisation were very much at the discretion of the organisation. This has implications for policymakers.

Unlike prior studies, this study takes a longitudinal approach to voluntary disclosure of non-financial information and focusses on the under-explored context of public sector organisations.

This paper illustrates the aims and the contents of the 1995 Local Government Accounting Act, which introduced an accrual-based financial reporting for Italian municipalities and provinces. To this end, this paper focuses on a sample of 23 local governments that produced these reports for the first time in 1998, and highlights a series of problems that emerged with regard to both communicational efficacy and fair presentation. The conclusions summarize the major gaps between the reform’s objectives and actual effects, and explain the reasons for these gaps and formulate some suggestions in order to re-design the system.

Accounting innovations, and especially the introduction of accruals accounting, are often portrayed as fundamental aspects of publicsector reforms. An increasing body of literature has been studying the experiences of different countries and levels of government, often referring to Lueder's (1992) "contingency model" and its subsequent developments. This model highlights a number of social, political, and administrative variables that are likely to affect government accounting innovations. It applies at a country-wide level and is mainly intended to describe and compare the environments within which accounting reforms take place, as well as the technical features of such reforms. Our paper, on the contrary, tries to expand the contingency model by applying it to individual organisations and by testing its explanatory power.

In the spirit of ‘Europe of the Regions’, local authorities are responsible for responding to the main interests, needs and preferences of the country’s citizens. Regional and local administrative authorities provide citizens with the necessary public goods, which reflect the trend towards ‘glocalisation’ in public administration at the European level, more significantly in the states in which the political system recently became democratic. With this background, the effectiveness of local self-government depends not only on local authorities’ decision-making freedom but also on (financial) support for it through decentralisation, and the member states of the European Union (EU) employ different strategies to achieve the same goal, with varying degrees of success. Within this context, our chapter offers a comparative analysis of the administrative, financial and local self-government decentralisation in member states, which include the southern and eastern regions on the outer edges of the EU. The general goal of our study is to identify the main trends in the present administrations and their challenges, as well as best practices that can offer lessons to other member states which are reforming their administration through decentralisation. In addition to the identified challenges, solutions and best practices, our study reveals a tendency towards consolidation at the level of regional government not only in the terms of legal responsibility but also of administrative budgets, thus generating an assumption of improvement in the general quality of governance in the member states.

The paper focuses on the potential benefits of fair value accounting (FVA) in the public sector and the shift towards the entity theory of consolidation supported by international accounting standards. The analysis of the Italian cases shows neither adjustments of the assets to their fair value, nor any recognition of intangibles other than goodwill in consolidated financial statement (CFS), maintaining the configuration of a municipal corporate group based on historical costs. These findings suggest a lack of focus on FVA by local governments (LGs), which is in contrast with international accounting standards. Using a combination of sources (such as annual reports and interviews), part of this paper is based on multiple-case studies of Italian LGs on the voluntary adoption of CFS.

The purpose of this paper is to build a working definition of public administration's management capacity (PA‐MANCAP) aiming at empirically testing the existence and size of an implementation gap in public management reforms in Italy.

A confirmatory factor analysis is developed to assess the validity of the proposed operational measure. Data are taken from a survey administered on 204 local governments in Italy.

The validity of the measure is assessed for all the attributes that conceptualize PA‐MANCAP except for the information and communication technology dimension. Findings from a survey of 102 major Italian municipalities indicate a situation with areas of light and shadow with regard to the implementation of public management reforms in Italy.

The paper presents a valuable insight for both academics and practitioners in order to benchmark the managerial capacity of various local governments and to develop additional quantitative research into the determinants of the implementation gap of public management reforms in Italy and abroad.

This chapter describes the audit of local government in Italy. In Italy, as elsewhere, local audit has been affected by the implementation of new public management based reforms. There is an increasing trend towards collaboration and cooperation between the audited authority and the auditor. Audit has begun, as in other jurisdictions to widen its remit, so that it focusses on performance as much as financial and compliance issues. This change in role brings with it opportunities for the auditor to help public sector improvement but also challenges – as new skills are required for the new roles that the auditor takes on and audit independence is complicated by the cooperative nature of modern local government audit.

The 2008 economic and financial crisis has particularly hit Italy, forcing governments to cope with unprecedented shocks affecting their financial conditions. Drawing on the resilience concept, the chapter aims to investigate what capacities are deployed and developed by Italian local governments to respond to such shocks. Based on a multiple case study, it explores the role of organisational features and capacities, as well as the characteristics of the external environment, in affecting responses and the related results. From the analysis it emerges that different capacities have been deployed by Italian municipalities to anticipate and cope with financial shocks in recent years, leading to four main patterns of financial resilience: proactive and internally driven, fatalist, constrained and contented resilience. The contribution highlights that simply relying on (past) wealthy conditions, or accumulating resources, is not sufficient for coping with shocks. By contrast, it emphasises the importance of investing on anticipating the consequences of negative events.

The purpose of this paper is to understand what are the benefits in terms of improvement of performances that a local government organization (LGO) can achieve embracing ISO 9001 certification as a strategy. This research is aimed at contributing to the answering of this question by exploring the Italian situation, in particular organizations linked to Italian local government which provide services to the citizens.

This research is based on mixed methodologies. First, a qualitative interview based on a semi-structured interview guide was administered to ten LGO quality managers. From this first qualitative inquiry 11 hypotheses to be validated have been stated. A survey has been carried out to validate the hypotheses. By means of two distinct questionnaires each hypothesis has been transformed into a specific question. The question is based on the Likert scale which allows using a χ2-test and non-parametric test such as Cramer’s V. The results from the scale were augmented by the interviewees’ annotations, which comprised suggestions and comments, to each question. The questionnaires have been administered over the last five years to 201 LGOs.

From the findings it seems that ISO 9001 could improve performances in terms of effectiveness, such as citizens’ satisfaction, reduction of defectiveness and claims, as well as staff awareness of citizens’ needs. Moreover, ISO 9001 seems to have a negative effect on citizens’ participation, internal communication and teamwork as well as cost reduction. Controversial issues related to the bureaucracy of documentation and the external auditing process emerged.

The findings are linked to Italian LGOs therefore they need further validation in other European countries where LGOs are managed in a similar way.

The implications of this research are useful for consultants and managers who want to understand what the benefits and limitations of the ISO 9001 certification are in the LGOs. The results are also useful for local government managers and practitioners who are weighing the pros and cons of ISO 9001 certification.

The paper discusses in a quantitative way the benefits of ISO 9001 certification process on the performances of LGOs opening an interesting debate on the topic.