Resolution of the Standing Commission on Accounting - Purpose

1. This resolution regulates the financial reporting of the cantonal administration and the legally dependent public institutions of the canton.

2. The bodies of the canton are invited to adopt this financial reporting. The canton provides administrative support for the implementation.

| Asset Category | Useful Life * | Depreciation Rate |

| --- | --- | --- |

| Unbuilt Land | ... | 0% |

| Waterworks | ... | 7% * |

| Roads including Bridges | ... | 7% * |

| Wastewater Facilities | ... | |

| - Canal Constructions * | ... | 7% * |

| - Stormwater Basins | ... | 7% * |

| - Buildings for Pump Stations | ... | 7% * |

| - Buildings for Wastewater Facilities | ... | 7% * |

| - Technical Installations for Pump Stations | ... | 25% |

| - Technical Installations for Wastewater Facilities | ... | 25% |

| - General Drainage Plan | ... | 15% * |

| Waste Facilities | ... | 10% |

| Building Structures | ... | 8% * |

| Furniture, Machinery, Vehicles | ... | 35% * |

| Investment Contributions | ... | 8% * |

| Facilities Under Construction | ... | |

| Intangible Assets | ... | 50% |

| Information Technology | ... | 60% |

| Loans | ... | 0% |

| Participations | ... | 0% |

1. Financial reporting is conducted according to the principles of gross presentation, accrual basis, going concern, materiality, understandability, reliability, comparability, and consistency.

2. Specifically, the following applies

a) Expenses, revenues, assets, and liabilities, as well as investment expenditures and receipts, must be reported separately and in full without offsetting them against each other (gross presentation).

b) All expenses and revenues are to be recorded in the period in which they are incurred (accrual basis).

c) Financial reporting should be based on the assumption of the continuation of state activities (going concern).

d) All information necessary for assessing the asset, financial, and income situation is disclosed (materiality).

e) The information should be clear and understandable (understandability).

f) The information should be factually correct, credible, impartial, and neutral (accuracy and neutrality).

g) Financial reporting should reflect the economic essence (substance over form); the underlying estimates should be made prudently (prudence).

h) The financial statements should be comparable over time (comparability).

i) The principles of financial reporting should remain unchanged over a longer period where possible (consistency).

1. The budget consists of the income statement, investment account, and notes.

2. The annual financial statements consist of the income statement, investment account, cash flow statement, balance sheet, and notes.

3. The general structure of the chart of accounts for the Harmonized Accounting Model for the Cantons and Municipalities (HRM2) as issued in 2008 is applicable.

4. The Standing Commission shall present a budget and an annual financial statement annually. These align with the calendar year and include the previous year's figures and, where available, the budgeted data. They are to be published together with a written financial commentary for each, with the financial statement additionally accompanied by the audit report.

1. The income statement includes expenses and income. It is presented according to the classification by nature.

2. In the first stage, the ordinary result is shown with the operational and financial performance, while in the second stage, any extraordinary result including all reserve changes is displayed.

3. Income or expenses that could not have been anticipated and over which no influence could be exercised are considered extraordinary.

4. Only pre-financing and additional depreciation are possible as reserve changes.

1. The investment calculation includes the expenditures and revenues for investments in administrative assets.

2. Value-enhancing investments amounting to CHF 100,000 or more must be capitalized. Expenditures below the capitalization threshold are to be charged to the income statement.

1. The cash flow statement provides information on the origin and use of available funds.

2. It is divided according to operating, investing, and financing activities.

3. The balance from the cash flow statement corresponds to the change in available funds.

1. The balance sheet contains assets and administrative assets on the asset side, and liabilities and equity on the liability side.

2. Administrative assets include all assets that directly serve the fulfillment of public tasks. The remaining assets are financial assets.

3. Special financings are earmarked revenues for the fulfillment of a specific public task. They require a legal basis and are to be allocated to either liabilities or equity according to the degree of disposal freedom.

1. The Appendix to the Annual Financial Statements contains all information necessary for the assessment of the asset, financial, and earnings situation, as well as financial risks, in particular

a) a note on the principles according to HRM2 and any deviations therefrom;

b) the accounting principles, including essential balance sheet and valuation principles;

c) the organizational units included in the annual financial statements;

d) significant events after the balance sheet date;

e) the financial key figures;

f) the income statement by functional classification;

g) budget overruns with justification;

h) commitment credits, divided into utilized and open shares;

i) the equity statement, the investment schedule for tangible and intangible assets in administrative and financial assets, the participation schedule, the provisions schedule, and the warranty schedule.

2. The Appendix to the Budget contains all information necessary for the assessment of the requested budget and investment credits, in particular the information according to para. 1 lit. a-c.

1. Separate accounts shall be maintained for wastewater, roads, and waste management.

2. Each shall include an income and investment statement and a balance sheet.

3. Generally, each is charged with any direct and notional expenses and payments, and credited with all revenue and income.

4. The separate accounts shall be consolidated with the administrative account without internal revenues.

1. Assets must be recognized in the balance sheet if they provide a benefit for the fulfillment of a public task or a future economic benefit.

2. Liabilities must be recognized in the balance sheet if they are based on a past event and their fulfillment is expected to result in an outflow of resources. Provisions must be made for liabilities with uncertainties in maturity or amount.

3. Financial assets are to be valued at market values, administrative assets at acquisition or production costs, and liabilities at nominal values. Real properties within financial assets are revalued during an event that significantly affects their values or generally every five years.

1. The following are primarily relevant for assessing the financial condition

a) Net debt ratio;

b) Self-financing degree;

c) Interest burden proportion.

1. Administrative assets subject to depreciation due to use shall be depreciated on a declining basis. The depreciation rates are detailed in the appendix.

2. Additional depreciation beyond this is permissible, but only to the extent of the surplus according to the first stage of the income statement and insofar as this surplus is not used elsewhere. Both these additional depreciations and the resulting reduced depreciations in subsequent years must be disclosed in the second stage of the income statement (reserve changes).

3. If a permanent impairment of an asset is foreseeable, the book value must be adjusted.

1. Dedicated pre-financing reserves may be established for approved investments.

2. Pre-financing may be undertaken only up to the amount of the surplus according to the first stage of the income statement, insofar as this is not used elsewhere.

3. They must be dissolved starting from the commencement of use, distributed over the useful life, to benefit the second stage of the income statement.

1. Investments shall be disclosed, including any contributions from third parties.

2. Investment contributions granted to third parties shall be recognized on the balance sheet if a refund claim arises in the event of a misuse of the co-financed investment, and shall be depreciated over the useful life as administrative assets.

1. Tax revenues shall be recorded on an invoicing basis.

1. The financial statements for 2014 are presented in accordance with the previous law.

2. The financial reporting for 2015 is conducted entirely under the new law. Therefore, the budgeting for 2015 will be carried out according to the new regulations.

1. This decision shall enter into force on 1 January 2015.