The Municipality of Arzano under scrutiny by the Court of Auditors

Arzano – The Municipality of Arzano's accounts remain under special surveillance. The complex and delicate issue of the Campania local authority's financial recovery returned to the forefront of institutional debate during the public meeting of the Regional Audit Section of the Court of Auditors for Campania.

The hearing represented a crucial moment to assess the effectiveness of the multi-year financial recovery plan (PRFP) adopted by the administration, a long-term plan designed to steer the municipality out of the doldrums of pre-bankruptcy.

The origins of the path and the passive mass

The story dates back to the fall of 2022, when the Arzano City Council approved the procedure established by Article 243-bis of the Consolidated Law on Local Authorities (TUEL), the instrument designed by the legislator for entities experiencing structural budget imbalances that risk causing financial collapse. That initial phase was followed, in December of the same year, by the formal approval of a ten-year plan (2022-2031).

At the heart of the economic and financial planning is a total liabilities estimated at €13.867.045,98. This impressive figure isn't a single item, but rather the result of several critical factors that have emerged over the years:

Off-balance sheet debts, estimated at over 4 million euros (exactly 4.086.694,59 euros) net of the coverage already foreseen and the reductions agreed with creditors.

The adjustment of the Litigation Risk Fund, for a significant amount equal to €6.056.630,06, calculated on the basis of internal methodologies adopted by the council.

The deficit resulting from the extraordinary review of active and passive residues pursuant to Article 243-bis of the TUEL, quantified at 3.723.721,33 euros.

In light of these liabilities, the institution has chosen a ten-year term (compared to the maximum fifteen years theoretically permitted by the ratio with current expenses in Title I of the latest approved financial statement), planning a repayment schedule scaled year by year until 2031.

The Ministry's judgment and the issue of collection

The plan's progress, however, is not without obstacles, as highlighted by the complex investigation conducted by the Commission for the Financial Stability of Local Authorities at the Ministry of the Interior. In its report submitted to the Court of Auditors, the ministerial body expressed a "partial" compatibility assessment, emphasizing that the plan appears only partially compliant with regulatory requirements and accounting guidelines.

The real Achilles heel for the Municipality of Arzano, according to preliminary investigations, lies in the chronic difficulties in collecting its own revenue. The Commission has highlighted that more efficient and regular management of local tax and fee collection could not only have prevented the need for rebalancing, but now constitutes the essential cornerstone upon which the municipality must base its entire restructuring process. Without a significant increase in collection capacity, the risk is that revenue forecasts will remain unfulfilled, compromising the balance of cash flows.

Recovery levers and future prospects

To reverse the trend, the municipal administration has focused on a mix of structural interventions and fiscal measures. Among the measures identified in the plan are an increase in the municipal income tax (IRPEF), enhanced efforts to combat tax evasion, increased revenues from fines for traffic violations, the collection of debts owed to the subsidiary Artianum, and a general policy of containment and rationalization of current expenditure, combined with the reduction of no longer necessary accruals.

Historical data and trends recorded up to the 2024 financial year show an institution that continues to operate within a perimeter of strong accounting scrutiny, classifying itself as structurally deficit-ridden despite recording slight improvements in some financial metrics.

Constant monitoring by the Regional Audit Section of the Court of Auditors will now serve to verify whether the corrective measures promised by the municipal administration will translate into concrete results, ensuring Arzano not simply a postponement of problems, but lasting and solid financial stability for the future of the local community. The audit by the Court of Auditors will be carried out biannually.