The Impact of Kallikratis Project on Accrual Basis Accounting of the First Degree Local Authorities : A Financial Analysis of the Municipalities of the Prefecture of Aitoloakarnania

In this paper an attempt is made to analyze the financial position of the 7 first degree local authorities of the Prefecture of Aitoloakarnania after Kallikratis Project. For this purpose, all municipalities of the Prefecture were chosen, for the years 2011-2012 (the first years of the implication of Kallikratis project) for analyzing 18 financial ratios. The results showed that there might be an inefficient management of the local authorities which probably leads to future cash flow problems. Furthermore, there are indications that cash inflows are collected too slowly compared to payments