Act on Performance-Based Administrative Management (WoV-G) - Purpose (WoV-G)

1. Results-Oriented Public Administration Aims to Achieve the Following Goals

a) Aligning governmental actions with their outcomes;

b) Assessing task performance based on outcomes achieved;

c) Political governance of state services;

d) Citizen and customer-friendly public service;

e) Efficiency in service delivery.

2. It is Based on the Following Principles

a) Linking of services and finances;

b) Globalization of budgeting;

c) Consistency of tasks, competencies, and responsibilities.

1. This Act regulates

a) the conduct of administration,

b) budget management, and

c) the position and tasks of financial control.

1. This law applies to the cantonal administration and the court administration.

2. The application of this law to the legally independent cantonal institutions and to Solothurner Spitäler AG is governed by special legislation.

1. **Cantonal Council and Government Council**

The Cantonal Council and the Government Council direct the administration within the scope of their competencies through performance objectives and performance specifications as well as through balance directives. They supervise the usage of available resources in accordance with the set objectives.

2. **Setting of Performance Objectives and Specifications**

Performance objectives and specifications are established in the following forms of resolution

a) Long-term, fundamental, and important objectives in the legislation;

b) Medium-term objectives in the legislative plan and in the integrated task and financial plan, as well as in other political plans;

c) Short-term objectives in the budget.

3. **Balance Directives**

The balance directive is established as an obligation credit, as a budgetary credit, or as a target for revenue surplus. The revenue surplus target requires a positive balance of expenses and revenue in the profit and loss statement within a global budget.

1. Law and Regulation Bind Authorities in the Management of Services and Finances.

1. Political planning and global budgets are oriented towards impact objectives, for which impact indicators are established wherever possible.

2. If the impact assessment is limited to performance indicators, the correlation assumed between performance and impact must be justified.

3. With the mandate and the planning decision, the Cantonal Council can oblige the Government Council to investigate the correlation between objectives, performance, and impacts in a specific area.

1. Planning and budgeting ensure the connection between services and finances.

1. The Executive Council ensures systematic controlling at all levels of the administration. This constitutes a comprehensive and coordinated management process of goal setting, planning, implementation, and monitoring at the levels of the government, departments, and offices. The controlling pertains to processes, services, outcomes, and finances; it relies on a quality management system.

2. A level-appropriate reporting system supports the management of the administration by superiors and the Executive Council, as well as the supervisory oversight by the Cantonal Council. It also captures commercial activities and third-party contracts.

3. Special forms of controlling relate to the maintenance of the capital of financial and administrative assets in the event of the Canton’s participations and the assurance of contribution goals in the case of state contributions.

1. The authorities of the canton direct their actions towards the goals set by the constitution, law, legislative plan, integrated task and financial plan, and budget.

2. These include particularly

a) the preservation of the precedence of constitutional and legal requirements;

b) the implementation of legal and political objectives into goal-compliant and impact-oriented services;

c) preliminary impact assessments;

d) subsequent impact evaluations.

1. The administration directs its activities towards services that it provides for the public.

2. Administrative services are generally described as products, the scope and quality of which are agreed upon within the framework of product group objectives.

1. The product is the independent unit of service, which can be utilized by its recipient within or outside of the administration and is suited as a cost bearer.

2. The product is defined by a task and objectives, which include performance specifications. The fulfillment of the specifications is verified by performance indicators.

3. Costs and revenues are allocated to the product.

1. The product group generally consolidates multiple products that form a strategic unit with a clear focus within a specific area of responsibility. It corresponds to the political significance of the task to be fulfilled and allows for efficient service delivery.

2. Each product group is described with a task and objectives. The objectives contain impact specifications; where this is not possible, performance specifications are provided. Fulfillment of the specifications is reviewed using impact or performance indicators.

3. Costs and revenues are allocated to a product group.

4. The costs and revenues of a product group in the income statement include the expenses and income of the income statement, the controllable internal service allocations of the global budget, as well as the imputed costs, overhead costs, and other internal allocations, insofar as they are not already included in the global budget.

1. A global budget can be created within the framework of the operating statement. It includes at least one product group and contains a balance of expenses and revenues, as well as a performance mandate for each product group. The performance mandate sets objectives, indicators, and standards.

2. ...

3. Global budgets correspond to the fiscal significance of the administrative tasks aggregated within them and allow for efficient financial management.

4. In exceptional cases, global budgets without a performance mandate may be approved for tasks over which the canton has no significant influence.

5. Global budgets are adopted with a multi-year commitment and are included as part of the budget estimate for one year.

1. The Executive Council organizes the tasks of the canton into areas that are substantively and politically related. These areas of responsibility form the highest level of political planning. They are divided into product groups.

1. The legislative plan outlines the political priorities of the term of office. It specifically provides information on which political goals are to be achieved with which measures and within what timeframe.

2. The governing council prepares the legislative plan and submits it to the cantonal council for acknowledgment by the end of October of the election year.

1. The integrated task and financial plan is a rolling plan; it is prepared by the Government Council annually for the upcoming budget year and the three subsequent years. It ensures a comprehensive overview of task and financial development in all areas of responsibility and includes tax and debt planning.

2. Significant changes compared to the integrated task and financial plan of the previous year as well as within the planning period are identified and justified. To correct undesirable developments, it contains an action plan.

3. At the beginning of the legislative period, the integrated task and financial plan is aligned with the content of the legislative plan.

4. The Government Council submits the integrated task and financial plan annually to the Cantonal Council for acknowledgment.

1. By means of the planning resolution, the Cantonal Council mandates the Government Council to develop a state task in a specified direction. The planning resolution obliges the Government Council to prepare or adjust the legislative plan, the integrated tasks and financial plan, or the planning in specific areas of responsibility in accordance with the directive.

2. The planning resolution may set fulfillment deadlines. If no deadline is set, it must be fulfilled within one year.

3. The planning resolution takes precedence over the planning of the Government Council. In justified cases, the Government Council may deviate from it.

4. The procedure is governed by the rules of procedure of the Cantonal Council.

1. Upon the request of the Government Council, the Cantonal Council defines the tasks for which global budgets are created and describes the product groups.

2. The Government Council establishes the budget structure based on the resolutions of the Cantonal Council.

1. The Cantonal Council determines the objectives of the product groups for each global budget and sets a balance of expenses and revenues.

2. The Executive Council determines the products, as well as the indicators and standards for the product groups. It informs the Cantonal Council about this in its report.

1. The Cantonal Council decides on the multi-year objectives for each product group global budget and the commitment credit or the revenue surplus target.

1. The Cantonal Council may delegate its budgetary authority for specific tasks to the Government Council through a framework global budget for a maximum of four years.

2. The Government Council annually determines the performance mandate and the balance specification.

1. At the beginning of the budgeting process, the Executive Council issues budget directives for the departments based on the integrated task and financial plan. Prior to this, it consults with the Finance Commission of the Cantonal Council.

1. The Executive Council submits the budget proposal to the Cantonal Council annually.

2. The budget proposal contains forecast values, in particular

a) Focal points of short-term government policy;

b) Economic key data of the state budget;

c) The income statement;

d) The capital expenditure plan;

e) The global budgets;

f) ...

g) ...

h) State contributions;

i) Special financing.

3. If the Cantonal Council does not decide on the budget proposal by the end of a year, the Executive Council shall submit a new budget proposal in the next session. Until the Cantonal Council makes a decision on the budget proposal, the Executive Council is authorized to incur expenditures essential for administrative activities.

1. The majority of the members of the Cantonal Council may, in exceptional cases, approve a budget that results in an expenditure excess.

2. If the capital relevant to the deficit brake shows a negative balance, it must be covered within four years from its initial occurrence.

3. The capital relevant to the deficit brake is composed as follows

a) Assets according to the balance sheet;

b) Less liabilities according to the balance sheet;

c) Less special financing in equity;

d) Plus the remaining obligation from the full financing of the Pension Fund of the Canton of Solothurn, which will be amortized over 40 years from January 1, 2015, using an annuity.

1. The Government Council submits to the Cantonal Council in the annual business report the performance and finances of the previous year for approval.

2. The business report provides a concise comparison of the targets with the performance of the departments and offices. The targets are derived from the goals and measures of the legislative plan, the integrated task and financial plan, as well as the budget.

3. The business report presents the performance and finances for all product groups, comments on past and future developments, and highlights special events and new or amended legal foundations.

4. The business report particularly includes

a) statements on the focal points of government activity;

b) economic key figures of the state budget;

c) the profit and loss account;

d) the investment account;

e) the global budgets;

f) the balance sheet;

g) the appendix;

h) the cash flow statement;

i) the state contributions;

j) the special financings;

k) the commitment credit control;

l) the consolidated accounts;

m) the annual accounts, insofar as these are not included in the state accounts;

n) the legacies and foundations;

o) the audit report of the financial control.

5. The procedure is governed by the rules of procedure of the Cantonal Council.

1. The Executive Council administers governance according to the principles of legality, citizen proximity, efficiency, and results orientation.

2. The Executive Council, its members, and the State Secretary

a) grant the subordinate bodies the necessary degree of autonomy and ensure an appropriate delegation of tasks, competencies, and responsibilities;

b) establish and maintain modern management and organizational tools;

c) determine the guidelines of their leadership, set objectives for the administration, and establish priorities;

d)* assess the administrative activities and periodically review the achievement of the set objectives;

e)* ensure, as far as possible, a low density of regulations in the decrees and minimize administrative burdens on private individuals and organizations.

1. The government council ensures early and effective coordination of activities between the departments and the state chancellery.

2. The state chancellery plans and coordinates interdepartmental matters, unless a department is responsible for or tasked with doing so.

3. Furthermore, all parties involved are responsible for providing timely mutual information and appropriate coordination of administrative activities on their own initiative.

1. Based on the legislative plan and the integrated task and financial plan, the departments shall prepare an annual plan.

1. Based on the legislative plan, the integrated task and financial plan, and the global budgets, the government council allocates the services to be provided to the departments and their offices and assigns them the balance targets. It may divide global budgets among multiple offices.

1. Based on the legislative plan, integrated task and financial plan, annual plan, global budget, and the allocation of performance and balance by the government council, the head of department agrees with their own offices as well as with public and private service providers on their tasks, competencies, and responsibilities.

### 1. The Government Council may by decree stipulate that, in the case of efficient service delivery, appropriate portions of the cost savings or additional revenues achieved compared to the budget forecast be made available to the departments operating with global budgets for use in subsequent years.

### 2. In the creation of collective incentive systems, the following guidelines are adhered to

a) The usage must be for operational purposes;

b) The basis for deriving incentive components is product-related performance and financial controlling;

c) The varying budgetary capabilities of the departments must be taken into account;

d) Credits or distributions to departments must not circumvent credit resolutions of the Cantonal Council;

e) Incentive components must not be used to increase or expand state contributions;

f) Credits to departments must not be distributed to employees;

g) Performance-adjusted additional expenditures or shortfalls from previous years must be compensated.

1. Agencies may, with the approval of the government council, provide commercial services to third parties, insofar as these are factually related to their main tasks and, in comparison to the main tasks, are only of minor scope. They shall invoice on the basis of all attributable costs at market-based prices.

2. The commercial activity must not impair the fulfillment of the main tasks.

1. The government council regulates in an ordinance the outsourcing of partial services that are necessary for the fulfillment of administrative service mandates and can be better performed by third parties.

2. If the creation of an independent service, particularly a complete product, is to be delegated to third parties, a legal basis is required.

1. The Executive Council determines which services are to be procured internally within the administration.

2. Internal administrative services are charged if necessary for cost transparency, for invoicing third parties, for the burdening of special financing, for the comparability of accounts, or to ensure efficient task fulfillment.

3. The Executive Council determines which internal administrative services are to be charged at what costs. In doing so, it adheres to market-oriented principles. It may permit lump-sum amounts.

4. If a department provides internal administrative services in competition with private providers, it calculates the prices according to market conditions and based on all attributable costs.

1. The Executive Council can enter into program agreements with the Federation in the areas designated by federal law, subject to the approval of the credit by the Cantonal Council.

2. The Cantonal Council grants final approval for expenditures related to program agreements.

1. The financial reporting presents a true and fair view of the asset, financial, and earnings situation.

2. The principles of proper financial reporting and bookkeeping are

a) Financial reporting is based on the assumption that the canton, along with its independent institutions and enterprises, will continue to exist indefinitely. Therefore, balance sheet valuation is conducted on a going concern basis.

b) Financial reporting particularly follows the principles of understandability, materiality, reliability, consistency in presentation and valuation, gross accounting, and accrual-based allocation of expenses and revenues.

c) The key principles of proper bookkeeping include: completeness, accuracy, the documentation principle, and clarity of bookkeeping.

d) For the budget and accounting, the key principles are primarily legality, annuality, precedence, accuracy, and the qualitative and quantitative binding and specification of credits.

e) The financial and accounting system complies with recognized accounting standards. The governing council designates the underlying set of rules.

1. The fiscal management of the financial budget is primarily conducted through the income statement and the investment account.

2. The services and finances of the administration are controlled through the planned product group results.

1. The Executive Council and the administration ensure the auditability of the financial and accounting systems and the financial information systems.

2. The Executive Council regulates the retention of records.

1. The Financial Statements comprise

a) the Balance Sheet;

b) the Income Statement;

c) the Capital Expenditure Statement;

d) the Cash Flow Statement; and

e) the Notes.

1. The income statement includes the expenses and income of a calendar year. It shows the operating result, the non-operating result, the extraordinary items, as well as the overall result.

2. The balance of the income statement alters the equity or the loss carried forward.

1. The capital budgeting accounts for financial transactions that create significant proprietary or subsidized assets with a multi-year useful life.

2. The balance of the capital budgeting (net investments) alters the assets in the administrative assets of the balance sheet.

3. The government council determines by regulation the minimum amount from which the capital budgeting is to be charged.

1. The balance sheet comprises the assets and liabilities.

1. The assets consist of financial assets, administrative assets, as well as any loss carryforwards from special financing and the general financial budget.

2. Administrative assets comprise those assets that directly serve the fulfillment of public duties.

3. Financial assets consist of the assets that can be disposed of without impairing the fulfillment of public duties.

4. The loss carryforward consists of the sum of liabilities and obligations for special financing that exceed the assets.

5. The government council decides on the financial assets and facilitates the transfer of administrative assets no longer needed into financial assets.

1. Liabilities consist of debt capital, obligations for special financing, and any potential equity capital.

2. The equity capital corresponds to the assets that exceed the obligations.

1. Assets in financial assets are recognized on the balance sheet when they bring future economic benefits and their value can be reliably measured.

2. Assets in administrative assets are recognized on the balance sheet when they cause future inflows of assets or provide multi-year public benefits and their value can be reliably measured.

3. Liabilities are recognized on the balance sheet when their fulfillment is expected to lead to an outflow of resources and their value can be reliably measured.

4. Provisions are formed for existing obligations where the timing of settlement or the amount of future outflow of resources is subject to uncertainties.

1. Special financing are statutorily designated funds for the fulfillment of a public task. They must be periodically reviewed for their necessity.

1bis. Special financing is only permissible if it is prescribed by higher law or if it does not need to be accounted for within the equity.

2. All costs incurred by the administration of the special financing are charged to the special financing.

3. A loss carried forward in the special financing is only permissible if the designated revenues temporarily do not cover the expenses. It must accrue interest.

4. The equity of special financing must accrue interest if

a) the law explicitly provides for interest;

b) the special financing is not solely funded by state resources.

5. Special financing can be part of global budgets.

6. ...

1. Legacies and Dependent Foundations are assets of the Canton without separate legal personality, transferred voluntarily by private individuals for a specific purpose.

2. Funds from Legacies and Dependent Foundations can be used complementarily within the scope of the intended purpose to fulfill the legal responsibilities of the Canton.

3. Legacies and Dependent Foundations, whose intended purpose ceases to exist or can no longer be appropriately pursued, shall be consolidated by the Executive Council with other Legacies or Dependent Foundations with a similar objective.

**1. The Appendix to the Annual Financial Statement**

a) states the accounting framework applied to the financial reporting and provides reasons for any deviations;

b) summarizes the accounting principles, including the essential principles for recognition and measurement, such as depreciation methods and depreciation rates;

c) contains the statement of changes in equity;

d) includes the provisions schedule;

e) contains the investment and warranty schedule;

f) presents details about capital investments in an investment schedule;

g) provides additional information that is significant for assessing the asset and earnings position, obligations, and financial risks.

1. Liabilities and financial assets are valued at their nominal value.

2. Investments in financial assets are initially recorded at acquisition cost upon initial recognition. If no expense arises, they are recorded at fair value at the time of recognition. Subsequent valuations are carried out at fair value on the balance sheet date, with a systematic revaluation of financial assets occurring annually and of other assets periodically.

3. If a permanent impairment in value is foreseeable for a financial asset position, its recorded value shall be adjusted.

4. ...

1. Assets in administrative property are recorded at acquisition or production cost. If no costs are incurred or no price is paid, the market value is recorded as the acquisition cost.

2. Assets in administrative property, which are subject to depreciation due to use, are regularly depreciated on a straight-line basis according to their assumed useful life, categorized by asset type. An asset accounting system must be maintained. The details are regulated by the government council.

3. If a permanent impairment of value is foreseeable for an item of administrative property, its recorded value shall be adjusted.

1. The cash flow statement provides information on the development of liquidity and its causes. It shows the origin and use of cash and cash equivalents, divided into operating, investing, and financing activities.

1. The Government Council may decide on the application of special accounting models in a regulation.

1. The product group results systematically represent all services of the canton and link them with costs and revenues. They are based on the definition of products and product groups and outline the service mandates in the form of impact and performance objectives as well as indicators and standards.

1. An expenditure is defined as the permanent commitment of state financial resources for the fulfillment of public duties.

2. An expenditure results in the consumption of resources in the income statement, and in the increase of administrative assets in the capital expenditure statement.

1. Every expenditure requires a legal basis, a budget credit, and an expenditure approval from the competent authority.

2. New expenditures approved by the Cantonal Council within its competence replace the legal basis.

1. In the case of one-time expenditures, the spending authority is determined by the total expenditure for the same item.

2. Expenditures that are mutually dependent must be aggregated. The expenditure authorization must include those expenditures that are substantively and temporally related.

3. Temporally staggered expenditures that serve a purpose, which will definitely be achieved within a certain, foreseeable period, must be aggregated.

4. For the determination of the spending authority, the net expenditure is taken into account.

1. Expenses that serve a continued purpose are recurring expenses.

2. To determine the authority for expenditures in the case of recurring expenses, the net expenditure incurred in one year is considered.

**1. An expenditure is considered obligatory if:**

a) it is mandated in principle and in scope by a legal provision or court judgment;

b) it is absolutely necessary for the fulfillment of a legally regulated administrative task;

c) it is compulsory due to the fulfillment of a contract approved by the competent authority;

d) it is required in construction measures for the preservation and modern equipment of existing building structures;

e) it is necessary for rental costs incurred for administrative units that are either pre-existing or accommodated in rented premises; or

f) it is necessary for the replacement of existing, technically outdated, or defective facilities and installations.

**2. An expenditure is generally considered new if the authority responsible for granting expenditure approval has relatively significant discretion with respect to the amount, timing, or other essential modalities.**

**3. Approvals for expenditures must be accompanied by a cost-effectiveness analysis starting from an amount to be determined by the government council.**

1. In granting a public-private partnership model, the investments are considered as new and the operating and subsequent costs are regarded as committed expenditures.

2. The capital expenditures should be decided as a one-time expense. For expenditures staggered over time, the authority to spend shall be determined based on the sum of the agreed annual installments.

1. The commitment credit authorizes the Governing Council to enter into obligations up to a certain amount for

a) a specific purpose, or

b) the fulfillment of a service mandate.

2. The commitment credit according to paragraph 1, letter a) must be obtained particularly for investments, investment contributions, non-recurring operational contributions, and contingent liabilities. The annual maturities shall be approved gross as budget estimates unless they are part of a commitment credit under paragraph 1, letter b).

3. The commitment credit approved in connection with a global budget under paragraph 1, letter b) corresponds to the balance of expenses and income in the income statement. The annual maturities shall be approved net as budget estimates.

4. A commitment credit under paragraph 1, letter a) expires when the purpose is achieved, the project is abandoned, or it is not claimed within a reasonable period. The Governing Council determines the time of expiration.

5. A commitment credit under paragraph 1, letter b) expires at the end of the global budget period.

1. A supplementary credit must be obtained if it becomes apparent before or during the execution of a project, or during the global budget period, that the approved commitment credit is insufficient.

2. The same procedure must be followed to obtain consent if a revenue surplus is not achieved.

3. No supplementary credit is required for additional expenditures due to inflation or currency fluctuations, provided that the spending authorization includes a price level or exchange rate clause.

4. The supplementary credit may be urgently approved pursuant to the procedure described in § 60 if an unforeseeable, unavoidable, and necessary task must be fulfilled.

1. The budget credit authorizes the government council to incur expenses up to the specified amount

a) for the designated purpose, or

b) under a global budget, provided that the specified services are delivered.

2. Unused budget credits lapse at the end of the fiscal year, subject to paragraph 3.

3. The government council may allocate unused budget credits to reserves, subject to paragraph 3bis, if

a) a project-related delay occurs;

b) services within a global budget can only be provided in the following year, or

c) the achievement of service objectives results in lower expenses or higher revenue compared to the budget.

3bis. The authority to allocate to reserves is exercised within the global budget by

a) the council office for parliamentary services;

b) the finance commission for state supervisory activities, and

c) the judicial administration commission for courts.

4. The government council regulates the allocation of unused budget credits to reserves by means of an ordinance.

5. Changes in reserves are disclosed to the cantonal council in the appendix to the annual report.

1. A supplementary credit is to be requested if

a) the budget contains no credit or if a budget credit is insufficient to fulfill an unforeseeable, unavoidable, and necessary task;

b)* a balance of expenses and revenues in the income statement will result in higher expenses or a lower revenue surplus than was resolved in the budget;

c)* ...

2. For supplementary credits under paragraph 1, letters b) and c), the justification must explain whether the deficit can be compensated within the framework of the global budget or whether the performance mandate can be adjusted to the approved credit.

3. The Cantonal Council, within the scope of its financial authority and upon the request of the Government Council, approves supplementary credits. § 60 remains reserved.

4. The Government Council approves supplementary credits

a) within the scope of its financial authority;

b) if the additional expenditure is covered by increased revenues concerning the same subject or by increased contributions;

c) if an expense surplus is higher or a revenue surplus is lower than was determined, but the difference can be covered by reserves;

d)* ...

e) if the annual balance target cannot be maintained within a framework global budget.

5. Supplementary credits under paragraph 4, letter c, are to be reported to the Cantonal Council for their information.

1. Supplementary credits under the jurisdiction of the Cantonal Council, which cannot be deferred, may be utilized before approval by the Cantonal Council if the Finance Commission gives its consent.

2. Consent is deemed granted if no member of the Finance Commission lodges an objection within 10 days of receiving the Government Council's decision.

3. The Finance Commission decides on objections. If it rejects the premature use of the supplementary credit, the Government Council may submit the credit for approval to the Cantonal Council pursuant to the procedure outlined in § 59.

1. The Financial Audit Office is the highest technical authority of financial supervision.

2. It supports

a) the Cantonal Council, particularly its Finance Commission, in exercising oversight over all authorities and bodies that perform cantonal tasks, and

b) the Government Council, the departments, and the Judicial Administration Commission in exercising supervision.

3. The Financial Audit Office is technically independent, autonomous, and not bound by instructions. It ensures appropriate organization and is bound only by the constitution, law, and recognized professional principles of audit and oversight in fulfilling its duties.

4. It establishes an annual activity program and communicates this to the Finance Commission, the Government Council, and partially to the Judicial Administration Commission. It may also conduct unannounced audits.

5. The Financial Audit Office is administratively assigned to the department responsible for finances.

**1. Subject to Financial Supervision by the Financial Control Are:**

a) the accounting of the Cantonal Council;

b) the cantonal administration;

c) the administration of the judiciary;

d) the cantonal institutions and foundations, subject to paragraph 2;

e) organizations and individuals outside the cantonal administration to whom the canton transfers public duties, grants state contributions, or in which it holds a significant interest.

2. The financial control also exercises financial supervision over cantonal institutions and foundations where, according to law or statutes, an independent audit or control body is established.

2bis The Pension Fund of the Canton of Solothurn is exempt from financial supervision.

3. The financial supervision over the municipalities is governed by the Municipalities Act.

4. The financial control coordinates its activities with other bodies that perform auditing tasks.

5. The auditing activity for organizations and individuals receiving cantonal contributions or services is carried out in coordination with the department responsible for overseeing these services.

1. The financial audit is led by a professional individual with proven expertise in auditing.

2. The Cantonal Council appoints the head of the financial audit upon the recommendation of the Finance Commission.

3. The Cantonal Council may terminate the employment relationship of the head of financial audit for important reasons pursuant to § 28 of the State Personnel Act. Legal protection is otherwise governed by the State Personnel Act and the Court Organization Act.

4. The salary of the head of the financial audit corresponds to salary class 29 of the cantonal administration.

1. The legislation concerning state personnel and the collective labor agreement apply to the staff of the Financial Control.

2. The head of the Financial Control is charged with the recruitment of personnel.

1. The financial supervision authority may engage experts if the performance of its tasks requires special expertise or cannot be ensured with its regular personnel.

2. The financial supervision authority may collaborate with private or public institutions for the joint resolution of tasks.

1. The Executive Council adopts the budget of the Financial Control unchanged.

2. The Financial Control independently executes its budget.

1. The allocation of internal service receipts and charges is governed by § 33.

2. For additional activities, namely as an auditing body according to § 72 paragraph 3, it is required to demand cost-covering compensation.

1. The Finance Commission engages an external audit firm to review the annual report.

2. The Finance Commission appoints a professionally suitable institution to conduct the periodic quality assessment of financial control.

3. The institution tasked with quality assurance shall subject the financial control to a quality assessment at least every five years. This assessment particularly includes compliance with legal requirements and professional standards, the management and organization of financial control, as well as task performance.

1. The Financial Control interacts directly

a) with the entities under its supervision;

b) with the Finance Commission;

c) with the heads of the departments.

2. The Finance Commission, the heads of the departments, and the head of the Financial Control meet periodically, ideally once a year, for a discussion. The Business Audit Commission may also invite for a discussion.

1. The Financial Supervision of Financial Control includes the examination of the regularity, legality, economic efficiency, appropriateness, frugality, and impact-orientation of budget management.

1. The financial control exercises its activities in a risk-oriented manner in accordance with the provisions of this law and recognized professional standards of auditing and supervision.

1. Financial Audit is responsible for examining the entire financial budget, particularly for

a) the audit of the management report and the separate accounts of the departments;

b) the audit of the annual financial statements of institutions according to special legislation;

c) the audit of internal control systems;

d) conducting system, project, and performance audits;

e) audits on behalf of the federal government;

f)* audits on behalf of the government council.

2. It is consulted in an advisory capacity in the preparation of regulations concerning budget management and accounting, as well as in the development and approval of accounting systems.

3. The Financial Audit may conduct additional audits as an audit authority if there is a significant public interest.

1. Parliamentary Investigation and Oversight Commissions, the Government Council, the Departments, the Judicial Administration Commission, as well as independent public-law institutions, may assign the Financial Audit Office special audit tasks and consult it on general financial oversight matters.

2. ...

3. The Financial Audit Office may refuse assignments according to paragraph 1 if the execution of the regular activity program is significantly jeopardized. This right does not apply to audit assignments from the Government Council, the Finance Commission, or parliamentary investigation commissions.

1. After the completion of the audit, the financial control discusses the audit results with the responsible individuals of the audited entity. The financial control also communicates the audit results in writing or electronically to the audited entity and the responsible department or supervisory authority in cases of audits outside the cantonal administration. Non-reportable deficiencies, particularly formal errors, are recorded in a meeting note. The financial control also communicates the results to the supervisory commissions in writing within the scope of their responsibilities.

2. The audit results of independent public law institutions are also communicated to their management and supervisory body. Excluded from this are independent public law institutions where the financial control acts as an auditing body or has a direct contractual relationship with the audited entity.

3. In audits of organizations and individuals outside the cantonal administration, the audit results are communicated to both these entities and the entities specified in paragraph 1. Excluded from this are organizations outside the cantonal administration where the financial control acts as an auditing body or has a direct contractual relationship with the audited entity.

4. If the findings of the financial control suggest that immediate action is necessary, it informs the financial commission without delay.

5. In the case of special mandates pursuant to § 73, reporting is directed to the audited and commissioning entity.

1. If deficiencies are identified, the financial control requests the audited entity to rectify the deficiencies within a reasonable period and to report on the matter or provide information on the actions taken or initiated.

2. If the audited entity does not rectify the identified deficiency or does not take measures to address it, the supervisory body decides on the necessary measures upon request by the financial control. The financial control may officially identify deficiencies that affect the correctness or legality. It may call upon the governing council, the relevant department, or the relevant organ of the organization to take the necessary measures.

a)* ...

b)* ...

3. ...

1. The Financial Control shall submit an annual report of its audit and supervisory activities to the Cantonal Council, the Government Council, and the Judicial Administration Commission. This report shall inform about the scope and focus of its activities, as well as findings and assessments. The report shall be published.

1. If there are indications of a criminal act, the financial control reports this to the competent department or the highest governing body of the affected organization. The informed authorities promptly ensure that the necessary measures are taken.

2. If sufficient measures are not undertaken, the financial control informs the finance commission of the indications it has identified.

1. Until the final resolution of an objection and for as long as an investigation by the financial control is not completed, neither new obligations may be entered into nor payments be made, which are the subject of the proceedings, without the consent of the financial control.

1. Decisions of the Cantonal Council and the Government Council, as well as of the bodies of autonomous public-law institutions within the revision and supervisory scope of the Financial Control, must be submitted to the Financial Control.

2. Decisions of the Government Council and autonomous public-law institutions with financial implications must be presented at the next meeting of the Finance Commission and can be reviewed at any time by its members at the Financial Control.

3. In other respects, the right to information and inspection is governed by the Cantonal Council Act.

4. The Financial Control has the right to access the data required for the exercise of financial supervision, including personal data, as well as internal documents and records, from the data collections of the organizations subject to its supervision. As far as the data are suitable and necessary for task fulfillment, the right of access also extends to particularly sensitive personal data.

5. The Financial Control may retain or store the personal data thus brought to its attention only until the completion of the review procedure. Accesses to the data collections and the purposes pursued must be documented.

1. Whoever is subject to supervision by financial control shall assist it in the performance of its duties. In particular, the necessary documents must be submitted and the required information provided upon request.

1. Organization units subordinated to financial supervision by financial control are required to immediately report any deficiencies of significant financial importance and substantial regulatory and legal violations to the financial control via official channels.

1. The Executive Council is entrusted with the execution of the law, insofar as other authorities are not responsible.

1. The Executive Council may issue a trial ordinance if

a) the regulation is necessary for testing new administrative processes or structures as well as new forms of administrative action;

b) the trial is subject to controlling and evaluation; and

c) the ordinance is issued for a maximum duration of five years.

2. The trial ordinance regulates

a) the subject matter and purpose of the trial;

b) the basic principles of the instruments to be tested;

c) the material and geographical scope;

d) the controlling;

e) the information provided to the parliamentary supervisory authorities;

f) the evaluation of the trial;

g) the duration of validity.

3. The trial ordinance may deviate from specifically listed cantonal legal provisions to the extent that this is essential for the execution of the trial. Exempted are legal provisions which grant private legal claims.

4. The Executive Council shall promptly inform the Cantonal Council about the issuance of trial ordinances.

5. The Cantonal Council may authorize the Executive Council to extend a trial ordinance once for a maximum of three years. A second extension of a maximum of two years may be approved if necessary to incorporate the trial into ordinary law.

1. The amendments have been incorporated into the respective decrees.