CH-TI
Regulation concerning the financial management and accounting of the patricianates
Table of Provisions (24)
Statutory Text (24 Articles)
1 Financial management is governed by the principles of legality, financial balance, parsimony, economy, causality, and compensation of advantages.
2 Accounting must allow for a clear, complete, and truthful view of the financial management, assets, and liabilities of the *patriziato*.
… [1]
[1] Article repealed by R 11.11.2003; in force from 25.11.2003 - BU 2003, 365.
1 The accounts relating to bequests and special funds of any nature, entrusted to the administration of the Patrician Office, are subject to the approval of the assembly.
2 The bequests and special funds, administered by the Patrician Office, are integrated into the budget.
[2] 1 Accounting shall be kept using the double-entry system.
2 The Department of Institutions, Section for Local Authorities, shall develop the minimum requirements for the chart of accounts to be adopted for the introduction of double-entry bookkeeping. It shall also define the rules for adapting the budget.
[2] Art. amended by R 24.10.2012; in force since 1.1.2013 - BU 2012, 507.
1 The patricianates are required to keep the following accounting records
a) journal of entries;
b) ledger;
c) budgets and financial statements.
2 The two records, journal of entries and ledger, may be combined into a general ledger.
3 The register of budgets and financial statements may be kept in the form of loose-leaf pages or through an electronic data processing system.
1 In the journal of registrations, respectively in the ledger, all receipts and payments made through the postal current account, bank account, or in cash shall be entered in chronological order.
2 The journal of registrations and the ledger shall close on December 31st of each year.
The entries in the journal of recordings must bear the reference number, the date, and a brief description of the operation.
Supporting documents are marked with a reference number to be included in the journal of entries to allow for easy and rapid verification.
1. The master ledger (register or file) is composed of as many entries as there are articles in the provisional budget, and those necessary for registrations related to the outstanding balances from previous financial years and the investment account.
2. The daily ledger (register) is composed of as many entries as there are categories in the current management account, and those necessary for registrations related to the outstanding balances from previous financial years and the investment account.
Closing of the Financial Year
1. At the close of the financial year, the entries recorded in the ledger accounts, or rather, the general journal, are added up.
2. The totals of the various accounts must correspond in their entirety to the total of the incomes, or rather, the expenditures appearing in the journal of entries.
1. Payment transactions must ordinarily be carried out through a postal or bank current account.
2. Collections and payments made personally by hand ("BREVI MANU") are not permitted, with the exception of small cash operations; for this purpose, the Patrician Office designates the persons authorized to collect and pay on behalf of the patriciates.
Payments can only be made based on a resolution of the Patrician Office, with the exception of those recurring periodically.
... [3]
[3] Article repealed by R 11.11.2003; effective from 25.11.2003 - BU 2003, 365.
1. The current management account records the forecasts for revenues and expenditures pertaining to the financial year.
2. In particular, all expenses that are consumable in nature, interest, and depreciation shall be recorded.
1 The investment account shall record as expenditures
a) expenses for non-consumable goods whose useful life and utilization cover a period of more than one financial year;
b) expenses for the creation of new assets or for qualitative or quantitative improvements that go beyond the ordinary maintenance of existing assets.
2 As revenues, proceeds from the alienation of communal assets, from subsidies, or other contributions from third parties.
3 In accounts kept under the single-entry system, revenues from loans or mortgages shall also be recorded.
[4] 1 For patricianates using the single-entry accounting system, a minimum annual depreciation of 2.5%, calculated on the initial consolidated debt, must be charged to the current management account of the budget.
2 For patricianates using double-entry accounting, depreciation is determined based on the useful life of the asset, applying the rates indicated in paragraphs 3 and 4.
3 Administrative assets are depreciated, as a rule, respecting the following minimum and maximum percentage depreciation rates per category, calculated on the initial value of the investment
Categories
Minimum Rate
Maximum Rate
a)
undeveloped land (including forests and alpine pastures)
0 %
1 %
b)
civil engineering works
2,5 %
3,5 %
c)
buildings
2,5 %
4 %
d)
forestry works and renovation of alpine pastures
2 %
4 %
e)
furniture, machinery, vehicles, equipment, inventories
10 %
50 %
f)
investment contributions
depending on the financed object
g)
loans and participations
based on the actual loss in value
h)
other capitalized investment expenses
based on the useful life
4 Property assets are depreciated, as a rule, respecting the following minimum and maximum percentage depreciation rates per category, calculated on the initial value of the investment
Categories
Minimum Rate
Maximum Rate
a)
undeveloped land
0 %
1 %
b)
residential buildings
1 %
2 %
c)
commercial buildings
1 %
3 %
d)
hotels and restaurants
1 %
4 %
e)
factories, warehouses and artisan workshops
1 %
5 %
f)
furniture, machinery, vehicles, equipment, inventories
10 %
50 %
g)
loans and participations
based on the actual loss in value
h)
other capitalized investment expenses
based on the useful life
[4] Art. amended by R 22.3.2016; in force since 25.3.2016 - BU 2016, 179.
1. The expenses and revenues of the estimated account are divided into categories, and these into articles.
2. Each article must adhere to a single subject.
1 Supplementary credits, approved by the legislature, after the approval of the provisional budget must be entered therein.
2 The resolution of the legislature shall designate the article to which the approved supplementary credit refers, or shall establish the entry of a new article in the provisional budget.
1 The final account must have the same structure as the budget and is prepared according to the same principles.
2 … [5]
3 The final account must be accompanied by all supporting documents and records evidencing the operations performed.
[5] Paragraph repealed by R 11.11.2003; in force since 25.11.2003 - BU 2003, 365.
1 The current management account must contain
a) revenues and expenditures related to the financial year, collected or paid, respectively, by December 31;
b) revenues ascertained or estimated and not yet collected and expenditures ascertained or estimated and not yet paid by December 31, relating to the financial year;
c) any greater or lesser revenues and any greater or lesser expenditures ascertained, from previous financial years.
2 If the accounting is kept by single-entry bookkeeping, the general operating surplus or deficit for the financial year must also be shown.
1 The balance sheet must indicate the assets and liabilities of the patriciate, as they appear at the close of the financial year.
2 Assets are classified so as to indicate patrimonial assets, administrative assets, and any deficit carried forward.
3 Liabilities are classified so as to indicate third-party capital and any equity.
4 Equity consists of the excess of the sum of the book values of administrative and patrimonial assets over the sum of commitments: it changes according to the results of the financial year.
5 The balance sheet illustrates the financial position as of December 31st.
The Implementing Decree concerning the financial management and accounting of the patricianates of 9 January 1951 is repealed.
[7] Patricianates that keep their accounts using single-entry bookkeeping shall adopt the double-entry bookkeeping system within five years of the entry into force of this amendment.
[7] Art. introduced by R 24.10.2012; in force since 1.1.2013 - BU 2012, 507.
This Regulation shall be published in the Official Bulletin of Laws and Executive Acts of the Canton of Ticino and shall enter into force on 1 January 1995.
Published in BU 1994, 552.