Ordinance of the Evangelical Church Council of the Canton of Thurgau on Administration and Accounting - Purpose

1. This regulation governs the financial budget, credit law, accounting, and budget control.

2. This regulation supports administrative management according to business principles and ecclesiastical needs. The prudent and effective use of resources shall be promoted, and budgetary balance maintained.

1. This regulation applies to the administration and accounting of the parish communities and the Evangelical State Church.

1. Financial assets include those assets that can be sold without impairing the fulfillment of public duties.

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

1. Revenues are payments from third parties that increase assets.

2. An expenditure is the commitment of financial assets for the fulfillment of public tasks. It requires a legal basis or a credit.

1. An expenditure is considered new if there is a wide scope of discretion regarding the necessity of its timing or other circumstances.

2. An expenditure is considered committed if it is not considered new within the meaning of paragraph 1.

1. Expense is defined as the depletion of value, while income is defined as the increase in value within a specific period.

1. The income statement reflects the revenues and expenses of the parish or the Evangelical Church of the Canton for the accounting period.

1. The investment accounting includes items with a useful life of multiple years, which are capitalized, as well as the related revenues.

2. The following capitalization thresholds apply

1. Investment expenditures up to CHF 25,000 are charged to the income statement.

2. Amounts starting from CHF 100,000 are to be allocated to the investment accounting.

3. For amounts between CHF 25,000 and CHF 100,000, the income from a tax percentage of the parish is decisive.

3. The investment accounting is closed at the end of the year through capitalization or liability recording via the balance sheet.

1. The chart of accounts prescribed by the church council for the parishes is binding for the preparation of the budget and the annual financial statement.

1. The management of the budget adheres to the principles of legality, budget balance, frugality, truth, urgency, completeness, clarity, accuracy, and economy, and is committed to Christian ethics.

2. Fixed portions of the church tax from natural and legal persons, as well as the portion of property capital gains taxes, may not be used to cover individual expenditures through special financing or directly for the amortization of specific expenditures.

1. The financial plan must be prepared by the competent authority every two years for at least the three years following the budget.

2. For small and medium-sized municipalities (with fewer than 3,000 members) without planned investments, a financial plan may be omitted.

3. The financial plan of the church congregation must be submitted for information to the church congregation assembly, and that of the state church to the synod.

1. The Financial Plan Shall Contain At Least

1. the framework conditions

2. an overview of the expenses and income in the income statement

3. an overview of the investments

4. the anticipated financial requirements

5. an overview of the development of assets and liabilities

1. The competent authority prepares the annual budget draft and submits it to the church congregation assembly or the synod for approval.

2. If no budget is available by the deadline established in § 62, the church council or the church board is authorized to undertake expenditures necessary for the fulfillment of ordinary tasks.

1. The budget is structured according to the functional classification. The chart of accounts is based on the guidelines of the Church Council (see also § 9).

1. The Budget Contains

1. Expenses to be approved and expected revenues in the profit and loss statement

2. Expenditures to be approved and expected income in the capital budget

2. Along with the budget, the parish assembly or the synod must be informed about the financing and the significant changes compared to the last budget and the previous year's accounts.

1. The competent authority manages the loans granted by the parish assembly or the synod.

1. The creation or dissolution of a renewal fund requires the approval of the parish assembly or the synod.

2. The renewal fund is considered dedicated equity capital and serves the purpose of long-term pre-financing of the renovation and maintenance costs of buildings and facilities.

3. Deposits and withdrawals must be approved by the budget resolution or by the decision on the use of the financial statement results.

4. Renewal funds do not accrue interest.

1. The Parish Office Donation Fund is considered designated equity and serves the parish office for assisting needy individuals both within and outside the church community.

2. It is funded by donations, contributions, deposits, and collections and must be recorded as a fund in the balance sheet and reported in the church community’s accounts.

3. Deposits from general funds must be approved by the budget resolution or the resolution on the appropriation of the financial statement’s results.

4. Parish donation fund accounts are not regularly budgeted, do not accrue internal interest, and do not require a regulation.

5. Within the specified purpose, the pastor is responsible for the disbursement of funds.

6. The church board regulates the management of the fund or account, its responsibility, the oversight of fund management, and auditing. In doing so, the confidentiality of the support services provided should be maintained.

1. The formation of reserves for projects not yet approved (pre-financing) can be budgeted or carried out with the financial statement. They require a resolution by the Parish Assembly or the Synod. They are shown as extraordinary expenses.

2. Pre-financing can only be formed if the prescribed minimum depreciations are covered and there is no existing balance sheet deficit, nor is one created as a result.

3. The formation of pre-financing at the expense of existing equity capital is not permissible.

4. Subject to other legal regulations, pre-financing must be dissolved as soon as it is established that the investment project will not be executed, but no later than five years after its initial formation.

5. Pre-financing accumulated from general tax funds does not accrue interest.

6. The Parish Assembly or the Synod can resolve to extend this period or change the purpose.

1. Special financings are funds allocated for a specific purpose through a parish resolution or a decree of the synod for fulfilling a public task. They are to be approved like expenditures.

2. Deposits into special financings must not exceed the earmarked revenues or the budgeted amounts.

3. Advances to special financings are permitted only when earmarked revenues temporarily do not cover expenses. Balances of special financings are to be accounted for in the balance sheet.

4. Obligations and advances in special financings are to generally accrue interest at market rates. The competent authority determines the interest rate.

5. A special financing must be dissolved if its purpose ceases to exist or has not been pursued for five years.

1. For bequests, donations, and funds designated for specific purposes belonging to the church congregation or the regional church, accounts must be maintained in the balance sheet and, if applicable, in the income statement.

2. Bequests, donations, and funds must bear interest, unless they have been accumulated from the church's own resources. Any provisions of the fund regulations remain reserved.

3. For the bequests, donations, and funds of the church congregation or the regional church, these entities must establish the corresponding regulations, which must provide at least information on the purpose of use, authorization, and interest accrual.

1. The sale of immovable property as well as of cultural and art objects is subject to the approval of the Church Council and must generally occur at market value.

2. The Church Council may impose stipulations and conditions on the approval of the sale of immovable property in connection with the use of the proceeds from the sale.

1. The cumulative result of the income statement must be balanced within eight years.

2. If the balance sheet shows a deficit, it must be reduced annually by at least 20 percent of the residual book value; the corresponding amounts must be taken into account in the budget.

1. The church congregations calculate the financial ratios according to the directives of the church council.

2. The financial ratios particularly include

1. Self-financing ratio

2. Interest burden share

3. Net debt/net assets per member

4. Net debt ratio

3. The ratios can be adjusted according to nationwide developments and church recommendations.

1. A credit is the authorization to incur financial obligations up to a certain amount for a specific purpose.

2. Credits must be obtained prior to entering into new obligations. They must be applied for in the form of commitment credits, supplementary credits, budget credits, or additional credits.

3. They are to be used for the purpose for which they were approved.

4. They are determined based on careful estimates of the anticipated needs.

1. Object Loans must be specially resolved in the form of commitment loans. They generally extend over more than one calendar year.

2. The object loan grants the authorization to incur commitments for an individual project up to the approved amount.

1. The requirement for commitment appropriations for the calendar year must be included in the respective budget.

1. In the financial statement, an account must be given of the closed or possibly obsolete commitment credits.

1. Ongoing control must be maintained over the current commitment appropriations.

1. A supplementary credit is the addition to an insufficient commitment credit.

2. If it is revealed before or during the execution of a project that the approved, inflation-adjusted commitment credit is exceeded by over 10%, but at least by the amount for the activation threshold according to § 8, the church council or the church board must request a supplementary credit before entering into new commitments.

3. Additional costs due to mandatory expenses do not require a supplementary credit.

1. Through the budget appropriation, the parish assembly or the synod authorizes the competent authority to charge the annual account for the specified purpose up to the determined amount.

2. Unutilized appropriations expire at the end of the fiscal year.

1. Foreseeable Expenses or Expenditures from Commitment Credits for which the decision by the Church Community Assembly or the Synod regarding the budget resolution is still pending must be included in the budget with a suspension note. They remain suspended until the legal basis comes into force.

1. The supplementary credit is the increase of an insufficient budgetary credit.

2. If it becomes apparent before or during the utilization of the budgetary credit that the approved amount is insufficient, the competent authority must request a supplementary credit before entering into new obligations. The possibility of exceeding the credit for non-controllable expenses according to § 33 remains reserved.

3. If an extraordinary assembly of the parish or the synod would result in disproportionate effort, the church executive committee or the church council is authorized to decide on it beforehand. They or it must request discharge from the competent body at its next meeting.

4. Decisions on supplementary credits are made by the eligible voters, unless the church executive committee or the church council is responsible.

1. If the incurrence of an expenditure or expense for which no sufficient credit has been approved in the budget cannot be delayed without adverse consequences for the church community or the regional church, or if it concerns a mandatory or non-influenceable expense, the church council or church board may authorize an overrun of the credit.

2. Credit overruns are also permissible for expenditures and expenses that have corresponding specifically-related revenues and income within the same accounting year.

3. The church council or church board must inform the eligible voters about the credit overruns with the financial statements, providing the justifications.

1. The financial reporting shall present a picture of the financial position that corresponds to the actual assets, financial, and income situation.

1. The financial reporting is based on the principles of gross presentation, accrual, going concern, materiality, understandability, reliability, comparability, and consistency.

1. An impairment is recorded as an extraordinary depreciation. These extraordinary depreciations are to be made based on business considerations. They are undertaken in cases where the asset is no longer available before the end of its useful life.

1. The annual financial statements shall include the following elements

1. Balance sheet

2. Income statement

3. Statement of investments

4. Notes

2. The notes shall specifically include the statement of changes in equity, the participation and guarantee report, the fixed asset schedule, the accounting principles, and additional information relevant to financial assessment.

1. In the balance sheet, the active (assets) and the passive (liabilities and equity) components are compared.

2. The assets are categorized into financial and administrative assets.

3. The liabilities are categorized into debt capital and equity.

1. The income statement presents the operating result on the first level and the extraordinary result on the second level, each with the respective expense or revenue surplus. Furthermore, it shows the overall result, which affects the equity.

2. Expenses and revenue are considered extraordinary if they could not have been anticipated in any way and are beyond influence and control, or they do not belong to the operational area. Extraordinary expenses or extraordinary revenue also include additional depreciation, the elimination of the balance sheet deficit, as well as contributions to and withdrawals from equity.

1. The investment calculation compares the investment expenditures and the investment revenues.

1. The Statement of Changes in Equity shows the causes of changes in equity.

1. The investment schedule contains the total of the asset book values and the accumulated depreciation (aggregated with the accumulated impairments) at the beginning and end of the period.

1. Both equity participations and the organizations significantly influenced by the church communities must be listed in the participation register.

1. In the warranty schedule, circumstances must be listed that could result in a significant obligation for the parish or the national church in the future.

1. Assets in financial assets are generally recorded at acquisition cost. Valuation adjustments must be made if the market value significantly differs from the book value.

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

2. Financial assets are accounted for at acquisition cost upon initial recognition. Subsequent valuations are conducted at fair value on the balance sheet date, with a systematic revaluation of financial assets annually and of other assets periodically.

3. If a permanent impairment of a financial asset is foreseeable, its recorded value is adjusted.

1. Assets in administrative property are accounted for at acquisition or manufacturing costs.

2. Assets of administrative property subject to wear and tear through use are depreciated properly according to the assumed useful life for each asset category; only straight-line depreciation is permissible. The manual stipulates further details. The asset categories and corresponding depreciation rates are listed in the annex.

3. Additional depreciation is permissible. It must be recorded as an extraordinary expense. In cases of negative financial outcome, additional depreciation is not possible.

4. If a permanent impairment is foreseeable for an item of administrative property, its accounted value is adjusted.

1. The holder of the office of caretaker is responsible for the management of the accounting of the church community.

2. The church council may delegate the operational bookkeeping.

1. The accounting shall adhere to the principles of completeness, accuracy, timeliness, and verifiability.

2. The bookkeeping records both external business transactions and internal allocations in a chronological and systematic manner.

1. The account and budget to be submitted to the church congregation for decision can be delivered in a detailed or summarized form. In the message to the eligible voters, it must be pointed out that the detailed account and the detailed budget can be obtained free of charge from the church congregation.

2. The summarized version of the budget and account must contain at least

1. * Balance Sheet (only in the account, four-digit account number, beginning and ending balance)

2. * Income Statement

2.1 * Multi-level Profit and Loss Statement (cost types in two digits)

2.2 * Functional Classification (functions in three digits)

3. * Capital Budget (functions/cost types, four-digit)

4. * Notes to the Annual Financial Statement

4.1 * Additional Information pursuant to § 37 Sections 2 and 3

4.2 * Equity Statement pursuant to § 41 (including pre-financing pursuant to § 18)

4.3 * Asset Schedule pursuant to § 42

4.4 * Financial Ratios pursuant to § 23 (recommended for publication)

4.5 * Audit Report pursuant to § 60

4.6 * Participation Schedule pursuant to § 43

4.7 * Warranty Schedule pursuant to § 44

5. * ...

1. The parish communities or the regional church shall keep the records together with the accounting in a damage-proof manner for ten years. Further-reaching provisions in special legislation are reserved.

2. The filing and archiving plan shall be applied mutatis mutandis.

1. The church congregations ensure the proper delivery of the data requested by the church council.

1. Budget Control is Conducted

1. For the Parish Church Account by

1.1 The Church Council

1.2 The Audit Commission

1.3 The Audit Office of the Church Council, consisting of the Presidency and the Treasury

2. For the Regional Church Account by

2.1 The Church Council

2.2 The Business Audit Commission of the Synod

1. The church council formally and materially reviews the parish account, while the church board reviews the account of the state church with regard to compliance with resolutions.

1. The internal control system comprises regulatory, organizational, or technical measures.

2. The church council or church board takes the necessary measures to protect assets, ensure the appropriate use of funds, prevent or detect errors and irregularities in bookkeeping, and ensure proper accounting and reliable reporting.

3. In doing so, it considers the risk situation, the cost-benefit ratio, and the size of the parish.

1. The Audit Commission of the Church Parish audits the accounting and annual financial statements of the Church Parish and joint funds, while the Business Audit Commission of the Synod audits those of the Regional Church in both formal and substantive terms.

2. They prepare a written report for the relevant authority and the bodies responsible for approval.

3. They are entitled to request the presentation of books and documents such as invoices, receipts, resolutions, contracts, and all other information they deem necessary for conducting a proper audit.

**1. The audit shall particularly include:**

1. compliance with the budget and financial competences

2. compliance with the legal provisions concerning capitalizations

3. compliance with the legal provisions concerning depreciations

4. compliance with the chart of accounts

5. the voucher system

6. the mathematical accuracy of the vouchers and the annual financial statement

7. the existence and completeness of assets and liabilities

8. the propriety of valuation

9. the efficiency of task performance

10. compliance with the printed versions of the budget and financial statement

11. compliance with the changes noted in the audit report

**2. The accounting audit committee of the church congregation may engage experts to audit the annual financial statement.**

**3. The business audit commission of the synod may engage an auditing company to audit the financial statement of the national church.**

1. The Audit Commission or the Business Audit Commission or the appointed auditing firm may conduct interim audits and unannounced inspections of the cash holdings, bank accounts, and securities holdings during the year.

1. The results of the audits shall be recorded in a report signed by the members of the Audit or Business Audit Committee. This report shall be published in the communication to the eligible voters and appended in its original form to the annual financial statements.

2. Details of the audit shall be documented in the audit report to be provided to the church leadership and the audit office and church council.

3. The audit report shall be signed and serves for the mutual information of the audit committee, the findings, and the follow-up of any proposed changes.

1. The auditing office of the Church Council examines the accounts of the parishes on a random sampling basis after approval by the parish.

2. The parishes selected for sampling submit the accounts to the Church Council for examination.

3. The Church Council specifies the documents that must be submitted along with the account for examination.

4. ...

1. The auditor's office conducts a formal examination of the accounts. Notably, the mathematical accuracy of the documents and the annual financial statements, the document arrangement, and the accuracy of account postings are not reviewed. Similarly, there is no assessment regarding the appropriateness, economy, and correctness of financial transactions.

2. If the auditor's office identifies irregularities, it refers the matter to the church council, which can issue instructions and, if necessary, arrange for corrections.

1. The following deadlines apply within the parish communities

1. Decision on the budget and determination of the tax rate: by the end of March at the latest

2. Preparation of the annual financial statements for audit: end of March

3. Approval of the annual financial statements by the parish community: end of June

4. Provision of the approved financial statements and records for the supervisory authorities: end of July

2. The following deadlines apply to the national church’s budget

1. Decision on the budget and tax rates at the regular autumn synod

2. Approval of the annual financial statements at the regular summer synod

1. Existing administrative assets will not be re-evaluated. They are typically depreciated linearly over ten years.

2. If excessive burdens arise from large investments in recent years, these may be depreciated based on their remaining useful life.

3. If the residual value is below the capitalization threshold, it can be directly depreciated.