From financial accounting to management accounting in Italian public universities: results of an empirical study

This study focuses on the main effects of the adoption of full accrual accounting and management control systems in Italian public universities, which was introduced in 2014 with decree n.18/2012. The research question was to determine whether implementation of accrual accounting and management control systems has led to meaningful changes as opposed to only formal changes in Italian public universities. Specifically, we explored the use or non use by decision-makers of financial and economic information deriving from accrual accounting and from other management control tools (budget, analytical bookkeeping and financial reporting). This empirical research is based on the case study method applied to four Italian public universities that were monitored from 2014 to 2017 through questionnaires and interviews. The results show that the implementation of budgets, accrual and analytical bookkeeping, and the new financial statements have not resulted in significant improvements in the four universities evaluated. It appears that, currently, Italian public universities do not use all the information deriving from management accounting that could improve their performance. Therefore, implementation of financial accounting and management control systems can lead to a substantial change only in a setting of a results-oriented managerial culture. Finally, management accounting tools can contribute also to the monitoring of university activities.