1 Foundations and Organization, Public Levies » 14 Authorities and Administration » 144 Financial Budget and Financial Control of the Canton (FKG)

Principle

1 The Financial Control is the specialized body for the financial supervision of the Canton.

2 It provides independent and objective audit and advisory services aimed at reducing financial risks, preventing financial damage, creating added value, and improving administrative processes.

3 All personal designations refer equally to women and men.

Position

1 The Financial Control is professionally independent and autonomous.

2 It supports

a) the State Economic Commission in exercising parliamentary financial super­

vision;

b) the Government Council and the cantonal courts in exercising financial ser­

vice supervision.

3 It is administratively assigned to the Department of Finance.

4 It communicates directly with those bodies subject to its financial supervision,

in particular also with the Government Council, the cantonal courts, and with

the organs of the Cantonal Council.

Personal

1 The management of the Financial Control is entrusted to a specialist with proven

expertise in financial supervision matters. The Government Council elects the head of the Financial Control

for a term of four years.

2 The election, re-election, non-re-election, and premature termination

require confirmation by the State Finance Committee.

3 The employing authority for all other employees of the Financial Control is the

head of the Financial Control.

Finances

1 The Government Council shall submit the credit requests of the Financial Control to the Cantonal Council for decision, unchanged.

2 The Financial Control shall dispose of the credits approved by the Cantonal Council within its own competence.

3 Overruns of credits shall be approved by the Cantonal Council upon request of the Financial Control.

Quality and Performance Assessment

1 With the consent of the State Finance Committee, the Government Council mandates an external body with the periodic quality and performance assessment and with the audit of the Financial Control's accounts.

2 The mandated body submits its complete report to the State Finance Committee and the Government Council for their information.

II. Financial Oversight

General Duties

1 Within the framework of financial supervision, the Financial Control Office shall

a) examine compliance with the applicable principles for proper accounting;

b) examine compliance with the applicable principles for budget management;

c) assess the internal control systems;

d) examine the regularity of data regarding the execution of performance mandates

and compliance with global budgets;

e) undertake the impact evaluation of administrative units endowed with a

performance mandate.

2 The auditing activities of the Financial Control Office shall be guided by generally

accepted principles.

3 The Financial Control Office shall annually determine an audit programme and

submit it to the State Economic Commission, the Government Council, and the

cantonal courts for their information.

Special Duties

1 The State Economic Affairs Commission and the Government Council may assign the Financial Control Office special audit mandates and involve it as an advisory body in matters of financial supervision.

2 It may refuse such audit mandates if this would jeopardise the execution of the ordinary audit programme or its independence.

3 It manages the secretariat of the State Economic Affairs Commission.

4 It may not be entrusted with cantonal executive tasks. Tasks arising from federal law remain reserved.

Aufsichtsbereich

1 The financial supervision by the Financial Control is subject to

a) the accounting of the Cantonal Council;

b) the accounting of the cantonal courts;

c) the cantonal administration;

d) the institutions of the Canton;

e) organisations as well as natural and legal persons outside the cantonal

administration to whom the Canton delegates public tasks;

f) organisations as well as natural and legal persons outside the cantonal

administration to whom the Canton grants financial aid, in which it

participates financially or over which it exercises supervisory functions.

2 The Financial Control also exercises financial supervision where, according to law

or statutes, an independent audit or control body is commissioned, whereby the

supervision is generally limited to the assessment of the results of the audit or

control reports.

3 Excluded from the financial supervision of the Financial Control are independent

public-law institutions of the Canton, insofar as their supervision and audit

are exhaustively regulated by special legislation.

Cooperation with Third Parties

1 The Financial Control Authority may mandate experts and private auditing companies to assist it.

2 The Financial Control Authority may cooperate with private or public institutions and professional organizations for the joint resolution of tasks.

3 The Government Council may conclude intercantonal cooperation agreements in this area upon application by the Financial Control Authority.

Right of Access and Use

1 The Financial Audit and third parties commissioned by it have the right to access and use all factual and personal data necessary for the performance of their duties.

2 Insofar as the Financial Audit and third parties commissioned by it gain knowledge of facts subject to statutory confidentiality obligations, they are, in turn, bound by them.

3 Resolutions and orders concerning the financial budget of the canton must be sent to the Financial Audit without request.

**III. Reporting and Objections**

Reporting

1 The Financial Audit Office reports in detailed written form to the audited body, the

affected department or the State Chancellery, and to the Department of Finance.

2 The Financial Audit Office reports significant audit findings in summarised written

form to the State Finance Committee and provides it with the detailed audit

findings upon request.

3 The Financial Audit Office prepares an annual activity report, which is published.

Complaints / Objections

1 In the event of material complaints, the department concerned must submit a written statement within three months. The Financial Control Department may submit proposals in its report.

2 If the Financial Control Department discovers indications of a criminal offense, it shall report these to the competent department and the Department of Finance or the competent court.

3 The Government Council or the competent court shall make a final decision on disputed audit remarks.

Immediate Measures

1 If, during an audit, the Financial Control Office identifies an immediate need for action at the audited body, it shall immediately inform its superior authority, which shall take the necessary measures within the scope of its powers.

2 If insufficient measures are taken, the Financial Control Office shall inform the Government Council and the State Finance Committee of its findings.

3 As long as the audit by the Financial Control Office has not been concluded, payments shall be suspended, and no new obligations that would conflict with the investigation or the measures taken may be entered into.

IV. Final Provisions

Amendments to Existing Law

1. The Ordinance on Financial Management of 22 October 1986 is amended as

follows

Section 1 para. 1

This Ordinance regulates budget management, in particular financial planning,

the budget, the annual accounts and the types of credit.

Organisational Title VI. Financial Control and Sections 32 to 37 are repealed.

2. The Ordinance on Performance-Oriented Management of 17 March

1999 is amended as follows

Section 13 paras. 2 and 3 are repealed, the previous para. 4 becomes para. 2.

Referendum, Publication, Entry into Force

1 This Act is subject to a referendum in accordance with §§ 34 or 35 of the Cantonal Constitution.

2 It shall be published in the Official Gazette and, after its entry into force, included in the Collection of Laws.

3 The Government Council is entrusted with its enforcement. It shall determine the date of its entry into force.

1 This Act was enacted as an ordinance subject to an optional referendum: GS 23-34 with amendments of December 17, 2013 (Government Council Resolution adapting to the new Cantonal Constitution, GS 23-97) and of May 25, 2022 (PG, GS 26-79a).

2 SRSZ 100.100.

3 Paras. 1 to 3 in the version of, Para. 4 repealed on May 25, 2022, former Para. 4 becomes Para. 3.

4 GS 17-599; SRSZ 144.110.

5 GS 19-384; SRSZ 143.210.

6 Heading, Paras. 1 and 2 in the version of December 17, 2013.

7 Entered into force on July 1, 2012 (Off. Gaz. 2012 1539); amendments of December 17, 2013 on January 1, 2014 (Off. Gaz. 2013 2974) and of May 25, 2022 on January 1, 2023 (Off. Gaz. 2022 3081).