Implementing Ordinance to the Act on Municipal Finance (Municipal Finance Ordinance, GemFHV) (Gemeindefinanzhaushaltverordnung, GemFHV) (GEMFHV)

1. The chart of accounts includes the accounts of the balance sheet, the income statement, and the investment statement.

1. The balance sheet is structured according to the chart of accounts in accordance with the Harmonized Accounting Model of January 25, 2008, by the cantonal financial directors (HRM2) and the recommendations of the Swiss Accounting Standards Board for the Public Sector (SRS-CSPCP).

2. The first four digits of the classification in the HRM2 chart of accounts are binding.

1. The income and investment accounts shall be maintained according to the functional structure of the federal government.

2. The classification of individual accounts must comply with the HRM2 chart of accounts framework and the SRS-CSPCP recommendations.

3. The first four levels of the functional structure of the federal government and the first four digits of the HRM2 chart of accounts classification are binding.

1. The financial reporting must be carried out in accordance with HRM2 and the recommendations of SRS-CSPCP.

1. Real estate and land must be recorded in the balance sheet.

2. The following details must be recorded in the fixed asset accounting

1. The parcel number according to the land registry entry;

2. The area;

3. The zoning allocation in accordance with the municipality's spatial planning;

4. The property insurance amounts;

5. The value based on the area and zoning allocation for real estate and land of the financial assets;

6. The acquisition or production costs;

7. The additions and disposals;

8. The depreciation and value adjustments;

9. Other relevant information.

3. The value of a property or piece of land in the financial assets can be calculated using average square or cubic meter prices in the relevant zone. The values of real estate or land in the financial assets must be reviewed every 5 years.

4. The finance directorate can issue price recommendations to the municipalities for the respective zoning categories.

1. The capitalization threshold in individual cases is CHF 50,000.

2. The administrative board may capitalize investments starting from CHF 20,000 in individual cases by means of a resolution.

1. The Service Life of Tangible Fixed Assets for Administrative Property is as follows

1. Roads, bridges, cemetery facilities including communal graves: 40 years;

2. Municipal boat harbors: 25 years;

3. Torrent control structures: 25 years;

4. Road surfaces, street lighting, and specialized vehicles: 10 years;

5. High-rise buildings: 25 years;

6. Furniture, vehicles, and intangible assets: 5 years.

2. The service life for machinery may range between 5 and 10 years.

3. For refundable investment contributions to private individuals, municipalities, and the canton, the service life is determined by the asset financed.

4. For non-refundable investment contributions to private individuals, the service life is 10 years.

5. The Department of Finance determines the service life for cost-oriented enterprises based on recommendations from professional organizations.

6. The Department of Finance may establish the service life for assets if no specific provisions exist in this regulation.

1. In polluter-oriented enterprises, municipalities must make depreciation on the replacement value of the fixed assets.

2. The replacement value must be reassessed at least every 5 years.

3. The respective useful life according to § 7 is binding.

1. Consolidation shall be carried out by offsetting mutual claims and debts, as well as expenses and income. Sales between units to be consolidated can be recorded on separate accounts to facilitate offsetting.

2. The balance sheet is to be consolidated at three levels of the item classification of the HRM2 chart of accounts.

3. The income statement and the investment accounts are to be consolidated on a two-tier basis according to the functional classification of the Federal Government and at three levels of the item classification of the HRM2 chart of accounts.

4. The cash flow statement or the cash flow plan is also to be consolidated.

1. The budget and annual accounts, as well as the first stage of consolidation, shall be published at a minimum as follows

1. Tiered statement of income;

2. Functional classification of the income statement: 3-tiered;

3. Functional classification of the capital expenditure account: 3-tiered;

4. Balance sheet for the annual accounts: 3-tiered;

5. Cash flow statement;

6. Financial ratios;

7. Supplementary credits.

2. Eligible voters may request the delivery of a detailed budget and a detailed annual account.

1. If it becomes apparent before or during the utilization of the budget credit for an individual account that the approved credit will be exceeded by more than 5 percent, a supplementary credit must be obtained either at the next municipal assembly or on the occasion of the approval of the annual financial statements.

2. No supplementary credit is required for an excess up to CHF 10,000.

3. Exceedances of credit according to Art. 47 of the Municipal Financial Act (GemFHG) must be justified for each individual account if they exceed CHF 10,000.

**1. This Regulation shall enter into force retroactively on January 1, 2010.**