Regulation concerning the Law on Financing through the Global Budget and the Performance Mandate of Autonomous Administrative Units (RLUAA) (RLUAA)

For the Autonomous Administrative Units (AAUs), the provisions on accounting, control, and financial management defined by the Law on State Financial Management and Control of January 20, 1986 (LGF) apply, with the derogations provided for in Art. 3 of the Law on Financing through Global Budget and Performance Mandate of Autonomous Administrative Units of October 12, 2015 (LUAA).

1 The Technical Commission is appointed by the Council of State and is composed of 7 members: a head and coordinator, a head of the Finance Section, and one representative for each department.

2 The Technical Commission is responsible for evaluating the suitability of services for transformation into UAA, providing its opinion to the Council of State.

3 During the trial period of the UAA, the Technical Commission and the relevant department ensure their monitoring.

4 The Technical Commission, in collaboration with the Human Resources Section, is required to prepare an annual report for the attention of the Management and Finance Commission, submitting it for an opinion to the Restricted Interdepartmental Coordination Group.

The procedure relating to investment expenditure remains the same as that applicable to the services of the cantonal administration.

Fixed-term hirings are authorized by the department concerned, after consulting with the Human Resources Section.

1 The expenses considered comprise solely the economic account expenditures related to the conduct of the UAA's activities. [1]

2 The revenues considered do not include taxes and duties not levied by virtue of the principle of causality, but do include any third-party funding strictly linked to the volume of the service offered.

[1] Par. amended by R 13.9.2022; in force from 16.9.2022 - BU 2022, 222.

1 In derogation of the principle of temporal specificity, unused global budget appropriations may be carried forward to the following year via the capitalization fund.

2 Internal debits and credits are, in principle, excluded from being carried forward.

3 The maximum annual carry-forward generally amounts to 10%. If there are grounds, the Department, after consulting the Finance Section, may decide to derogate from the 10% rate. The Council of State, in the budget phase, may decide on a reduction of up to a maximum of 50% of the carry-forward. [2]

4 The carry-forward occurs after negotiation with the Department and with the approval of the Finance Section.

5 The carry-forward is in principle permitted if it is due to factors endogenous to the activity, the rational use of resources, or unused appropriations that will certainly be spent in the future.

6 The carry-forward is not permitted if it is due, in particular, to factors exogenous to the activity, an overestimation of expenses, or an underestimation of revenues.

7 In derogation of the principle of quantitative specificity, it is possible to utilize an appropriation higher than that granted in the budget.

[2] Para. amended by R 13.9.2022; in force since 16.9.2022 - BU 2022, 222.

1 The capitalization fund is a balance sheet account used at the time of closing the accounts for carrying forward any unspent credits or for covering any credit overruns.

2 Year-end accounting entries occur by debiting or crediting the capitalization fund with an income statement account as the contra-account.

[3] The capitalization fund may be used within the limits of the tasks defined in the performance mandate and, as a rule, is not subject to structural or specific rehabilitation measures.

[3] Art. amended by R of 13.9.2022; in force since 16.9.2022 - BU 2022, 222.

1 When preparing the budget, the services account must provide at least the following information

a) a presentation of the income and expenses for the year preceding the budget;

b) a presentation of the budgeted income and expenses;

c) a description of the services provided by the UAA, their cost, and their quantitative and qualitative level;

d) the qualitative and quantitative objectives intended to be achieved and their respective indicators.

2 When preparing the final account, the services account must provide at least the following information

a) a presentation of the income and expenses for the preceding year;

b) a presentation of the budgeted income and expenses for the year of the final account;

c) a presentation of the actual income and expenses for the year of the final account;

d) a description of the services provided by the UAA, their cost, and their quantitative and qualitative level;

e) the objectives achieved.

1 Departments are required to provide, in the budget and in accordance with Art. 35 para. 2 FinA, the proposals for all expenditure and revenue items of the AUAs after conducting preliminary negotiations with the latter.

2 Service mandates are decided on the basis of the budgets presented by the State Council to the Grand Council. Any modifications to the budget shall be subject to an update of the service mandate.

1 The departments are responsible for negotiating and monitoring performance mandates.

2 The UAAs are required to prepare the Activity Report annually by February 28th of each year and to submit it to the Technical Commission for the drafting of the annual report addressed to the Management and Finance Committee.

Analytical accounting in the UAS is implemented consistently with the level of activity and in accordance with Art. 21 LGF.

In the first three years following the transformation, the UAAs will be subject to an annual review, subsequently to a periodic review based on the criteria established in the planning of the Cantonal Financial Control.

1 The Technical Commission is responsible for assessing the suitability of services for transformation into UAA.

2 The Technical Commission's preliminary opinion regarding the transformation into UAA is based on a feasibility study prepared by the services, which must particularly evaluate

a) the general characteristics of the administrative unit;

b) the future development needs of the unit and the potential benefits associated with management through a performance mandate and global budget;

c) the impact of the unit's transformation in relation to the structure of the competent department.

1 The Council of State may proceed with the revocation of a UAA's status

a) if the UAA fails to meet the requirements that allowed for its transformation;

b) upon the UAA's proposal if the expected benefits do not materialize or if maintaining the status is disproportionate to the benefits obtained.

2 UAA status is maintained until a contrary decision by the Council of State.

1 Monitoring during the trial period is ensured by the Department and the Technical Commission.

2 Annual reporting to the attention of the Management and Finance Commission is prepared by the Technical Commission, in collaboration with the Human Resources Section, which submits it for preliminary opinion to the Restricted Interdepartmental Coordination Group.

1 The management of the chart of accounts, as well as the movements of budget appropriations, by derogation from the principles of qualitative, quantitative, and temporal specificity, are carried out centrally by the Finance Section upon instruction from the UAA.

2 Appropriations transferred from other administrative units do not alter the overall budget. The transfer of appropriations from UAAs to other administrative units is, as a rule, not permitted; any exceptions may be granted through individual decisions of the State Council. [4]

3 Internal invoicing between UAAs and services of the cantonal administration is not permitted.

4 The quantification of internal services, the sole purpose of which is the calculation of the full cost of services, is performed exclusively in management accounting.

[4] Para. amended by R 15.5.2019; in force since 17.5.2019 - BU 2019, 151.

The Regulation on the Law on Financing via the Global Budget and the Performance Mandate of Autonomous Administrative Units of 28 November 2006 (RLUAA) is repealed.

This regulation is published in the Official Bulletin of Laws and enters into force immediately. [5]

Published in OB 2016, 160.

[5] Entry into force: March 18, 2016 – OB 2016, 160.