The public administration reform process,started in 1990, has particularly affected the local authorities with two different phenomena: administrative descentralization and fiscal federalism. Administrative decentralization has been carried out in order to: transfer functions from the central administration to local authorities; reinforce the local powers; make government more close to citzens. Fiscal federalism has been carried out in order to:transfer financial resources from central administration to local authorities; reduce financial transfers from central government; reduce local authorities financial dependence from central government. The results obtained relative to both phenomena are the following: improving approach between local administrations and local authorities; the improvement of management and financial autonomy in local authorities. The improvement of management and financial autonomy in loal authorities are tithtly correlated to each other. They are responsible for cultural and orgnaizational changes inside local authorities. Inside local autorhities relevant changes have been produced in financial management. Consequentely the introduction of new management tools has been necessary. In particular financial management has undertaken a strategic importance and a tightly correlation with strategic and operative planning inside local authorities, and so the definition and implementation of a real financial function have been necessary