Financial Ordinance of the Evangelical Reformed Church of the Canton of Zurich

10. Subject Matter

This Ordinance governs

a. the principles of budget management for the parish churches and the regional church,

b. controlling and reporting for the parish churches and the regional church,

c. budget control and financial supervision of the parish churches,

d. the finances of the parish churches and the regional church,

e. financial equalization,

f. the contributions of the regional church,

g. the principles concerning the construction and management of properties of the parish churches and the regional church.

Church parish federations that have a uniform tax rate and central tax collection are considered church parishes within the meaning of this ordinance.

1 The cantonal ecclesiastical corporations shall appoint a Finance

Coordination Committee.

2 The Finance Coordination Committee shall support the cantonal

ecclesiastical corporations in the coordination of financial management, the overall accounts, the

activity programs, and the reporting on the use of

cost contributions from the Canton and tax revenues from legal

persons, as required by cantonal law. It shall submit proposals to the executives of the cantonal

ecclesiastical corporations for decision-making regarding the

details of presentation, particularly concerning the comparability of the activity programs.

3 The Finance Coordination Committee shall consult, where

necessary, with the recognized Jewish communities.

4 The Church Council shall determine the representation of the Regional Church in the

Finance Coordination Committee. It shall consult with the other

cantonal ecclesiastical corporations regarding the working methods of the

Coordination Committee and the applicable procedure.

In general

Legality

Budgetary balance

Budget

2nd Section: Principles of Financial Management

1 The financial management of the parish churches and the cantonal church is governed by the principles of legality, budgetary balance, and economy.

2 The provision of services is governed by the principles of effectiveness, sustainability, and financial viability.

1 Every expenditure of the church parishes and the cantonal church

requires a legal basis.

2 The legal basis can consist of:10

a. a legal provision,

b. a decision of the eligible voters at the ballot box, the church

parish assembly, the church parish parliament, or the

church synod,

c. a resolution of the church council or the church board,

d. a legally binding decision on an appeal.

1. The parish communities and the national church shall each balance their accounts in the medium term.

2. Expenditures must be reviewed for their necessity and financial viability.

1 The parish communities and the cantonal church determine in the budget for a calendar year the services to be rendered and the planned services, as well as their financing.

2 They prepare their budget according to recognized principles. They particularly observe the principles of annuality, clarity, and completeness.

Financial Ordinance of the Evangelical Reformed Cantonal Church

181.13

10 1 In their accounting, the church parishes and the cantonal church

Accounting follow the principles of understandability, materiality,

reliability, comparability, completeness,

going concern, and gross booking.

2 The accounts present a true and fair view of the assets, finances, and

earnings. All expenses and revenues are recognised in the

period in which they arise.

3 The Church Council designates in the implementing ordinance the applicable

accounting framework

a. for the accounting of the church parishes,

b. for the accounting of the central treasury,

c. for the consolidated accounts according to § 22.

The parish churches and the cantonal church shall administer their assets long-term with a view to fulfilling their mandate according to Church Order7.

a. Principle

1. **Administrative Assets**

Administrative assets comprise those assets that are directly used for the fulfillment of ecclesiastical tasks.

2. If administrative assets are temporarily not required for the fulfillment of ecclesiastical tasks, they are to be utilized as far as possible within the scope of their intended purpose in such a way that income can be generated.

1. Financial assets consist of those assets that can be divested without impairing the performance of ecclesiastical duties.

2. Financial assets must be invested in such a way that a loss of substance can largely be excluded.

3. Financial assets must be managed in such a way that long-term returns can be generated. In doing so, social, economic, and ecological aspects, as well as the balance between return opportunities and investment risks, must be observed.

1 The earmarking of pre-determined fixed portions of Prohibition of

church taxes to cover pre-determined individual expenditures earmarking

is excluded.

2 Reserved is the negative earmarking of the proceeds of

church taxes of legal entities in accordance with § 25 para. 2 of the

Church Law.

of Taxes

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181.13 Financial Ordinance of the Evangelical Reformed Cantonal Church

Polluter-

pays principle

Persons who cause special expenses or outlays generally bear the reasonable costs.

Purpose and

Content

Key Figures and

Indicators

Structure

Section 3: Controlling and Reporting

A. Controlling

1 Controlling supports the Church Council in its management task. It serves for reporting to the public and the competent authorities of the Canton.

2 The Controlling of the Church Council supports the setting of objectives, the planning of measures, as well as the steering and review of ecclesiastical activities.

3 It extends in particular to the following areas

a. Services and provisions of the parish congregations and the Regional Church in the four fields of action: Proclamation and Worship, Diakonia and Pastoral Care, Education and Spirituality, and Community Building and Leadership,

b. Finances and asset management of the parish congregations and the Regional Church,

c. Dealing with risks affecting parish congregations or the Regional Church.

1 The Church Council defines key parameters for controlling.

2 It periodically collects data on these key parameters from the parish communities as well as from institutions that receive contributions from the National Church.

3 It may collect key performance indicators from the parish communities as well as from institutions that receive contributions from the National Church.

B. Reporting

1 The church parishes and the cantonal church shall structure their reporting in the annual report and in the annual financial statements according to the four fields of action: Proclamation and Worship, Diakonia and Pastoral Care, Education and Spirituality, and Church Building and Leadership.

2 The annual financial statements shall present the essential results of the services and activities in the four fields of action, as well as the corresponding costs and revenues.

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Financial Ordinance of the Evangelical Reformed Cantonal Church 181.13

1 The annual reports of the parish congregations and the State Church provide an account of significant events and developments in the church's areas of activity during the reporting year. They report on the business activities of the Church Board or the Church Council.

2 The Church Board submits the annual report of the parish congregation to the Parish Assembly or the Parish Parliament for their information by the end of June of the year following the reporting year.10

3 The Church Council presents the annual report of the State Church to the Church Synod for approval by the end of September of the year following the reporting year.

1 The activity program according to § 19 Para. 3 of the Church Activity

Act comprises the areas of education, social affairs, culture, and other activities. program

2 The Church Council may subdivide the areas, provided that the summary of activities by area is maintained. This applies in particular to pastoral care in institutions.

1 The areas of the activity program include

a. the description of the activities,

b. the intended effects,

c. the target audience,

d. the type of service delivery,

e. the financial key figures,

f. a commentary.

2 Details from these areas may be listed in an annex to the activity program.

a. Structure

b. Areas

1. Reporting according to § 22 para. 1 of the Church Law concerning the use of the canton's cost contributions and the effectiveness of the implemented activity program follows its structure. In particular, it provides information on any deviations between the intended effect and the actual impacts of the recorded activities.

2. The annual report of the regional church refers to the activity program of the current contribution period and its implementation.

1 The Church Council designates the activities of the parish and the regional church that are significant for society as a whole within the meaning of § 19 para. 2 of the Church Law6.

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Financial Ordinance of the Evangelical Reformed Regional Church

2 It prepares the activity program for a period of six years and handles the reporting on the use of the canton's cost contributions. It submits them to the competent Directorate of the Government Council.

3 The Church Council submits the activity program and the report on the use of cost contributions for a funding period to the Church Synod for its information in the year of submission.

Overall

Accounting

a. Purpose

b. Content

c. Competence

Negative

Earmarking

a. Principle

b. Proof

1 The consolidated financial statement summarizes the essential parts of the financial statements of the parish congregations and the Regional Church.

2 It serves as proof that, in accordance with § 25 Abs. 2 of the Church Law, the revenues from church taxes of legal entities are not used for religious purposes.10

10 The consolidated statement summarizes the expenses and revenues of the parish communities and the cantonal church, omitting the contributions of the parish communities to the central fund, the payments from financial equalization, and the block grants from the cantonal church to the parish communities.

1 The parish councils shall annually submit their annual financial statements to the Church Council. The Church Council shall determine the form and timing of submission in the implementing ordinance.

2 The Church Council shall annually prepare the consolidated financial statements. It shall forward these to the auditing body of the Cantonal Church by no later than the end of June of the year following the financial year.

The proceeds from church taxes on legal entities are subject, according to § 25 para. 2 of the Church Law, to negative earmarking. They may not be used for religious purposes.

1 Proof of compliance with the negative earmarking

is deemed to have been provided if, according to the consolidated financial statements, the revenues

of the church parishes and the cantonal church, minus the proceeds

from church taxes of legal entities and contributions from the

Canton, cover or exceed the expenditure for religious purposes.

2 The Church Council submits the calculation for proof of compliance

with the negative earmarking together with the consolidated financial statements

to the auditing body of the cantonal church for confirmation.

3 The confirmation from the auditing body forms part of the annual

report of the cantonal church.

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Financial Ordinance of the Evangelical Reformed Cantonal Church

181.13

1. Expenditure of the Parishes and the National Church c. Calculation

for ecclesiastical purposes is composed of a share of personnel

expenditure and a share of material expenditure.

2. The calculation basis is the personnel expenditure for the parish

ministers. A percentage of this is allocated as personnel expenditure for ecclesiastical purposes.

3. The material expenditure for ecclesiastical purposes is calculated as a percentage share of the personnel expenditure for ecclesiastical purposes determined according to paragraph 2.

4. The Church Council sets both percentages upon proposal by the

Coordination Committee for Finance. It reviews their level

periodically.

d. Procedure

Each year, the parish councils collect the proceeds from church taxes on legal entities from the municipal tax offices. They use the form provided by the Church Council for this purpose.

1 The Church Council shall regulate in the implementing ordinance which documents the parish communities must submit to the Church Council in addition to the annual accounts for

a. the preparation of the activity program according to § 19 para. 3 of the Church Law6,

b. the reporting according to § 22 para. 1 and § 25 para. 2 of the Church Law6.

**2 It shall determine in the implementing ordinance the deadline for the submission of these documents.**

**Section 4: Finances of the Parish Communities**

10 Unless otherwise provided by the Church Order, this Ordinance, and the applicable

Implementing Ordinance, the Parish Act³ and the Parish Ordinance are subsidiarily applicable to the church parishes.

1 The parish councils determine the tax rate in such a way that, with efficient use of resources, they achieve a balanced budget in the medium term.

**2 An expenditure surplus may only be budgeted to the extent that it is covered by unappropriated equity.10**

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**Financing**

**181.13**

Financial Ordinance of the Evangelical-Reformed Regional Church

1 The parish communities shall finance their expenses through

a. the proceeds from church tax,

b. contributions from financial equalization,

c. contributions from the Regional Church,

d. proceeds from financial assets,

e. donations, bequests, and other endowments, as well as

revenue.

2 The financing of parish communities through funds according to para. 1

lit. e must be compatible with the interests and mandate of the parish communities

and the Regional Church as per the Church Order. The

Church Council shall decide on the admissibility of such

financing in cases of doubt.

3 If donations, bequests, and other endowments are made

without a specific purpose, the Church Council may

approve such a purpose for the parish communities in individual cases. The implementing ordinance shall regulate the

details.

**Budget Structure**

**Depreciation**

**Budget Control**

10 1 The church parishes structure their budget and annual accounts

in accordance with § 16 para. 1 by tasks (functional classification)

and according to a uniform chart of accounts.

2 The Church Council determines the functional classification and the chart of accounts.

It considers the requirements of financial statistics and ensures comparability and transparency.

10 The Church Council may regulate the depreciation of administrative assets in the implementing ordinance, deviating from the Municipal Law³ and the Municipal Ordinance⁴.

10 1 The Audit Commission performs the duties assigned to it in

accordance with the Church Order7, the Municipal Law³, and the Parish

By-laws. It examines, particularly from a financial policy perspective

a. the financial management and accounting of the parish,

b. proposals from the Church Council to the eligible voters in the parish

assembly and at the ballot box or to the parish parliament with financial

implications.

2 The provisions of the Municipal Law³ and the Municipal Ordinance⁴

are subsidiarily applicable to the financial audit of the financial management

and accounting of the parishes.

3 Parish associations according to § 2 shall transfer the financial

audit of the financial management and accounting of the association to an

external audit body.

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Financial Ordinance of the Evangelical Reformed National Church

181.13

4 The Church Council may transfer the financial audit of the financial

management and accounting of the parishes to an external audit body.

10 1 District Ecclesiastical Administrations, within the scope of their supervisory duties, monitor the financial management and accounting of district ecclesiastical parishes in the district. They may perform this task in cooperation with the body designated by the Ecclesiastical Council in accordance with § 38 para. 1.

**2 The ecclesiastical parishes submit to the District Ecclesiastical Administration, together with the annual financial statements, the proposals of the audit committee and the corresponding resolutions of the ecclesiastical parish assembly or the ecclesiastical parish parliament.**

1 The Church Council, in accordance with Art. 220 para. 2 lit. m of the Church Ordinance, exercises supreme supervision over the financial management and accounting of the parishes.

2 It defines in a regulation which documents the parishes must submit to the Church Council for the exercise of its supreme supervision.10

b. Church Council

10 1 The Church Council designates an office which supports the district church administrations in the performance of their duties in accordance with § 36 para. 1.

2 The supervision of the financial management and accounting of the church parishes is carried out on the basis of the documents submitted by the church parishes.

3 The Church Council may order further audits to be carried out by the district church administration or conduct them itself.

4 The Church Council shall regulate the details in an ordinance.

5. Section: Finances of the National Church

A. Central Treasury

1 The Regional Church has a central treasury.

2 The Regional Church has at its disposal the funds from the central treasury and the funds within the equity of the Regional Church to fulfill its tasks.10

**Inventory**

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181.13

Financial Ordinance of the Evangelical Reformed Regional Church

**Purpose**

10 1 The purpose of the Central Treasury is

a. the financing of the services, institutions, and tasks of the Regional

Church in accordance with the Church Order7,

b. the payment of remuneration to the members of the authorities

and bodies of the Regional Church,

c. the financing of tasks of the authorities and bodies of the

ecclesiastical districts,

d. the remuneration of pastors and employees

of the Regional Church in the overall Church Services,

e. the payment of contributions to the parish churches,

f. the financing of tasks and the payment of contributions

to organizations that are related to the mission of the Regional Church.

2 For the funds of the Regional Church, the following apply

a. for funds within equity, the specific purpose designations

determined by the competent body,

b. for funds within debt, the specific purpose designations

assured to or determined by the founders.

Revenue

a.

Contributions

from Parish

Churches

a. Principle

b. Calculation

b.

c.

The expenditures of the Central Treasury are financed by

Contributions from the parish communities,

Cost contributions according to § 19 of the Church Law as well as contributions from the Canton based on other legal grounds,

Income from financial assets,

d.10 Donations, legacies and other unrestricted gifts to the Regional Church as well as proceeds.

1 The church parishes pay annual contributions to the central treasury to cover the expenditure surplus of the regional church.

2 The Church Synod determines the contribution rate within the framework of Art. 240 para. 3 of the Church Order.

1 For the determination of a parish's contribution to the Central Fund, the net church tax revenue of the parish is divided by its tax rate and multiplied by the contribution rate in accordance with § 42 para. 2. 10

2 The contribution is calculated based on the tax revenues and the tax rate of the preceding financial year.

3 The contribution rate shall not exceed 3.5. 10

Financial Ordinance of the Evangelical Reformed Church of the Canton

181.13

1 The sum of the annual contributions to the Central Fund in accordance with

The Church Council regulates in the implementing ordinance

a. the calculation of the net church tax yield,

b. for the parishes, the time of submission of the necessary

bases for calculating the contribution rate,

c. the due date of the contribution to the central fund and any default

interest.

c. Implementation

1. The Church Council may take out loans up to the amount of 300,000 Swiss Francs in individual cases. The Church Synod decides on loans exceeding this amount.

2. 11

The Church Council may, within the scope of its expenditure authorisations pursuant to Art. 221 para. 1 of the Church Constitution, acquire or dispose of real estate.

1 Financial Planning

1 The Church Council bases the use and administration of the financial resources of the Central Treasury on financial planning.

2 It submits the financial plan annually to the Church Synod for acknowledgement. This occurs together with the Church Synod's decision on the budget of the Central Treasury and the determination of the contribution rate for the contributions of the parishes to the Central Treasury.

3 The Church Council reports to the Church Synod and proposes measures for a sustainable reduction of expenditures if the medium-term balancing of the Central Treasury's accounts is endangered.

**B. Budget Management**

1 The Church Council manages the Central Treasury and the Funds Principle

within the equity of the Regional Church in accordance with this Ordinance,

the Implementing Ordinance, and the applicable framework

of regulations pursuant to § 8 para. 3 lit. b.10

2 In asset management, it ensures sufficient liquidity of the Central Treasury.

1 The Church Council prepares the annual budget of the income

and expenses of the Central Treasury.

a. Principle

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181.13 Financial Ordinance of the Evangelical-Reformed Church of the Canton

2 The Church Synod sets the budget by December 31.

3 If no budget is available on January 1, the Church Council is authorized

to make the expenditures indispensable for the ordinary and economical fulfillment of tasks.

b. Budgetary appropriation § 49 a.9 1 The budgetary appropriation authorizes the Church Council to charge the Central

Treasury of the Cantonal Church for a specific project up to the specified amount.

2 Budgetary appropriations are approved with the setting of the budget.

c.10 Supplementary

appropriation

The Church Council requests a supplementary credit from the Church Synod if a budget credit is insufficient and the supplementary credit exceeds the expenditure powers of the Church Council according to Art. 221 para. 1 of the Church Order.

d. Credit overrun

1 The Church Council may approve an overdraft

a. for urgent projects, if postponement would have detrimental consequences for the cantonal church,

b. if superior law prescribes an expenditure,

c. based on a legally binding appeal decision,

d. for value adjustments.

2 Overdrafts approved by the Church Council shall be brought to the attention of the Church Synod in an appropriate form.

e. Fund transfer

Funds

1. If a project cannot be completed within the accounting period, the funds allocated for it in the budget that have not yet been claimed may be carried forward to the new accounting period. The Church Council shall regulate the details in the implementing ordinance.

2. Carried-forward appropriations may only be used for the project originally intended. If the project is financed by other means or is no longer pursued, the appropriation transfer shall lapse.

10 1 The funds of the Regional Church are earmarked resources for

financing specific church tasks.

2 The Church Council manages the funds of the Regional Church in

accordance with the existing earmarking provisions. It discloses

them in the annual financial statements.

3 Unless otherwise provided by this Ordinance, the assets and liabil-

ities of the Regional Church's funds may bear interest. The Church

Council decides on the interest rate.

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Financial Ordinance of the Evangelical Reformed Regional Church 181.13

C. Expenses

1 The spending powers of the Church Synod and the Church

Council are governed by the Church Order and this Ordinance.

2 The Church Council shall regulate, in the implementing ordinance, in particular,

the definition of expenditures and the calculation of the determining

expenditure amount.

10 1 Expenditures are considered bound if the Church Council is obliged to incur them by a legal provision, by a decision on an appeal, by a decision of a supervisory authority, or by previous resolutions of the competent authorities and bodies, and if no significant discretionary scope remains for it in terms of subject matter, time, and location.

2 Otherwise, expenditures are considered new.

3 New expenditures require an appropriation credit and a budget credit.

4 Bound expenditures require a resolution of the Church Council and, insofar as the expenditure is foreseeable, a budget credit.

5 New and bound expenditures for the same project are approved separately.

The commitment appropriation is the authorization to enter into financial commitments for a specific project and up to a specific sum. It must be obtained before entering into commitments.

1 Expenditures for a specific project that are factually and chronologically related or mutually dependent must be included in the same commitment credit.

**2 The commitment credit can be approved as a balance between expenditures and revenues if any third-party contributions are legally established or if it is approved subject to specific financial contributions.**

**3 It may contain a price adjustment clause, according to which the approved expenditure is adjusted for inflation.**

1 The commitment credit is decided

a. for a single project as an object credit,

b. for a program as a framework credit for the total expenditures

and as object credits for the expenditures of the individual parts of the

program.

2 The Church Council decides on the division of a framework

credit into individual object credits.

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c. Forms

181.13 Financial Ordinance of the Evangelical Reformed Regional Church

d. Supplementary credit

1 If a commitment credit is insufficient to realize a project, a decision to reduce the services or, before incurring new financial obligations, an additional credit must be obtained.

2 The authority for approving an additional credit is determined by the total credit sum required for the project as a whole.

3 In urgent cases, the Church Council decides. It informs the Church Synod without delay.

e. Reduction and Abolition

If an approved commitment credit is not claimed,

decisions regarding its reduction or cancellation are made by

a. the Church Synod upon application by the Church Council, provided the amount

of the reduction exceeds the limit for an optional referendum according to

1 The Church Council decides on the use of an approved commitment credit.

2 It settles a commitment credit as soon as the relevant project or program has been completed and any contributions from third parties have been received.

3 The Church Council submits the settlement of a commitment credit, which it approved by special resolution, to the Church Synod for approval.

D. Annual Financial Statements

Elements

1. The annual financial statements comprise the components prescribed by the rules and regulations applicable pursuant to Section 8 para. 3 lit. b.

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

Principles

a. Accounting

10 Accounting is performed in accordance with the provisions of

10 1 Positions of administrative assets and financial assets are valued according to the provisions of the regulations applicable pursuant to § 8 para. 3 lit. b.

2 Assets are to be divested to third parties at market value. In cases of predominant ecclesiastical interest, a lower value may be determined.

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Financial Ordinance of the Evangelical Reformed Regional Church 181.13

10 1 The impairment of administrative assets is taken into account by c. Depreciation

their systematic depreciation over their estimated useful life. and Impairment

2 The Church Council shall regulate in the Implementing Ordinance the estimated useful life and the capitalization threshold for each asset category.

3 Impairments of administrative asset items shall be corrected in accordance with the provisions of the applicable regulatory framework pursuant to § 8 para. 3 lit. b.

1 The Church Council shall have the annual financial statements of the Central Auditing

Office and the funds of the Cantonal Church audited by an expert and

independent auditing body. It shall adopt the audited

annual financial statements for submission to the Church Synod.

2 The Finance Commission of the Church Synod shall receive the audit

report in advance for the approval of the financial statements by the Church Synod.

E. Real Estate

The Church Council ensures the maintenance and administration of properties owned by the Regional Church.

Maintenance and Administration

6. Section: Financial Equalization

A. Principles

10 1 Parishes with above-average tax capacity in principle

contribute to financial equalization within the framework of tax capacity absorption.

2 Payments from financial equalization may be made to parishes

with insufficient financial capacity.

3 The Church Council levies contributions from the parishes, manages financial equalization, and approves payments from it.

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181.13 Financial Ordinance of the Evangelical Reformed Regional Church

Deadlines

Principle

Calculation

a. Tax Capacity

b. Clawback Amount

Reduction

10 1 The Church Council shall regulate in the implementing ordinance, in particular

a. the time of notification of the amount of the contribution of the parishes to the financial equalization,

b. the due date of the contributions to the financial equalization,

c. the deadline for submitting applications for benefits from the financial equalization to the Church Council,

d. the time of the decision on pending applications,

e. the time of disbursement of benefits from the financial equalization.

2 Contributions due to the financial equalization are to be transferred within ten days after the due date. In case of default, a default interest rate determined by the Church Council may be levied.

B. Fiscal Capacity Equalization Levy

1 Parish congregations whose tax capacity per member exceeds the cantonal average for parish congregations are subject to tax capacity equalization.

2 The tax capacity equalization skims off a portion of the difference between a parish congregation's tax capacity per member and the cantonal average for parish congregations.

10 Calculation of Taxable Capacity per Member of a Parish

For the calculation of the taxable capacity per member of a parish, its net church tax revenue according to § 44 lit. a is divided by its tax rate, and this result is then divided by the number of members of the parish.

1 The amount of tax capacity equalization of a parish results from the difference between its tax capacity per member and the cantonal average of the parishes, multiplied by the tax capacity equalization rate and the number of parish members, respectively.

2 The Church Council determines the tax capacity equalization rate in such a way that contributions to and payments from financial equalization are balanced.10

10 1 Parishes which, in order to finance their contribution to the

financial equalization scheme, are obliged to levy a tax rate more than one

percentage point above the weighted cantonal average of church

tax rates, may petition the Church Council for an appropriate reduction

of their contribution.

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Financial Ordinance of the Evangelical Reformed Church of the Canton of Zurich

181.13

2 They must credibly demonstrate that their budget and the resulting

tax rate comply with § 4. They shall append the necessary documents to their petition,

at least the annual financial statements and the budget. The Church Council may request further proof.

3 There is no entitlement to a reduction of the contribution to the financial

equalization scheme. In its decision, the Church Council shall particularly consider

the financial situation of the petitioning parish, the financial equalization scheme, and the Regional Church.

C. Benefits from the Financial Equalization Scheme 10

10 1. Parishes that require a tax rate exceeding the weighted cantonal average of eligible church tax rates by three or more percentage points may apply to the Church Council for financial equalization payments.

2. They may finance expenditures not covered by the financial equalization payments through a tax rate that exceeds the weighted cantonal average of church tax rates by more than three percentage points.

3. The weighted cantonal average of church tax rates for the current year is decisive for financial equalization payments in the coming year.

4. The Church Council shall regulate the calculation of the weighted cantonal average of church tax rates in the implementing ordinance.

10 Church Parishes shall append the necessary documents, at a minimum their annual financial statements and budget, to their request for equalization payments. The Church Council may require further documents and evidence.

10 1 Based on the financial statements of the past financial year and the budget for the

Assessment upcoming year, the Church Council reviews the budgeted revenues and expenditures

and determines the equalization payments for each parish for the upcoming year. In

doing so, it comparatively considers relevant key figures of other parishes and the equity

of the requesting parish.

2 Parishes that already receive equalization payments or that would become eligible for

equalization payments due to the creation of new positions, construction projects, or the

commencement of similar undertakings must obtain the approval of the Church Council

for such undertakings before submitting the credit request to the parish assembly or the

parish parliament.

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Financial Ordinance of the Evangelical Reformed Church of the Canton of Zurich

3 No equalization payments will be granted for

a. Contributions to special funds,

b. extraordinary expenditures for which the Church Council's approval has not been

obtained,

c. expenditures that can be financed elsewhere.

10 1 If the annual financial statements reveal that a church

parish has not utilized, or has only partially utilized, the payments from the financial equalization scheme, the Church Council shall oblige it to refund the unclaimed amount to the financial equalization scheme.

2 The Church Council may set off the amount to be refunded against future payments from the financial equalization scheme. In exceptional cases, it may waive a refund in order to improve the financial situation of the church parish.

Refund

Terms

a. Contributions

b. Cost shares

c. Subsidies

Section 7: Contributions from the Regional Church10

A. Fundamentals

10 1 Contributions from the Regional Church are earmarked financial

benefits for the fulfillment of tasks in the interest of the regional church.

2 They are provided as cost shares or subsidies. They are not or only conditionally reclaimable.

10 1 Cost shares are contributions from the Regional Church, to which an

edict grants a claim and the amount of which results from an edict.

2 Cost shares are tied expenditures.

10 1 Subsidies are contributions from the Regional Church for the sup-

port or maintenance of services in the interest of the Regional Church,

to which no legal entitlement exists.

2 Subsidies are considered tied expenditure if

a. the purpose of the subsidy and the maximum rate are fixed by a decree,

b. they are provided from a framework credit provided for in a decree,

c. a decree provides for approval through a budget appropriation and

the assurance, processing, and disbursement occur in the same fiscal year.

Financial Ordinance of the Evangelical Reformed Regional Church

10 Contributions from the Regional Church

1 Contributions from the Regional Church shall be granted at most within the scope of the approved credits, according to the financial capacity of the recipients of contributions and the extent of the Regional Church's interest.

2 Expenses of the recipients of contributions shall be taken into account when assessing contributions, insofar as they are sustainable, necessary for the effective, economical, and frugal fulfillment of tasks, and do not exceed the expenses of the Regional Church for similar services.

3 For investments, a fixed amount shall generally be granted.

10 1 Annually recurring contributions from the State Church will be paid for a maximum period of three years.

**2 If contributions according to para. 1 are paid for more than three years, they will be separately itemized in the budget of the State Church.**

10 1 The allocation of contributions by the Regional Church requires

**that a written application with the necessary documents be submitted.**

**2 In the case of temporary eligibility for contributions, the expediency of continued eligibility for contributions must be demonstrated with the application for extension.**

10 1 The decision concerning the granting of a contribution from the

National Church shall particularly stipulate

a. the legal basis,

b. the basis of calculation, the calculation, the maximum amount

and the period of validity,

c. conditions and requirements, in particular concerning the designated

use of the contribution and the duration of a specific purpose commitment,

d. a corresponding reservation, as long as the credit approval is still

pending.

2 The granting of a contribution from the National Church may, in

particular, be made conditional upon

a. assurance existing regarding the fulfillment of requirements and conditions

pursuant to para. 1 lit. c,

b. reasonable own contributions being provided,

c. third-party contributions being fully claimed by the beneficiaries,

d. parish communities cooperating with each other if the fulfillment

of a task by several parish communities is more effective

or more economical.

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181.13

181.13 Financial Ordinance of the Evangelical Reformed National Church

c. Reduction and

Refusal

d. Disbursement

Securing the Purpose

of the Contribution

a. Specific Purpose

Commitment

b. Exemption

10 1 Contributions from the State Church shall be reduced or refused if

a. conditions and requirements according to § 85 para. 1 lit. c and the

requirements according to § 85 para. 2 are not, no longer, or not

fully met,

b. they exceed the expenditures.

2 Contributions from the State Church shall be reduced if recipients of

contributions have entered into financial obligations before the decision of

the competent authority and without its authorization.

9 Contributions from the State Church are disbursed as soon as

**the calculation bases are available and the conditions and requirements**

**according to § 85 para. 1 lit. c and the prerequisites according to § 85**

**para. 2 are met. The Church Council may set a different time for disbursement.**

**2 Contributions from the State Church that do not reach the minimum amounts set**

**by the Church Council will not be disbursed.**

**3 The Church Council regulates partial payments of contributions from the State Church**

**in the implementing ordinance.**

10 1 The contributions of the Regional Church must be used in accordance with their purpose and subject to the conditions and requirements pursuant to § 85 para. 1 lit. c.

**2 The earmarking pursuant to § 85 para. 1 lit. c shall last for a maximum of 20 years from the date of disbursement pursuant to § 86a para. 1.**

The Church Council may, if the conditions and requirements

under § 85 para. 1 lit. c are no longer met or other important

reasons exist, approve changes in purpose or grant exemptions from

individual conditions and requirements. The right to reclaim disbursed contributions

remains reserved.

c. Revocation,

Reclamation,

Statute of Limitations

9 The provisions of the State Contribution Act are sub-

sidiarily applicable to

a. the revocation and recovery of contributions from the regional

church, with the exception of the recovery of debt relief

contributions pursuant to § 88 b,

b. the statute of limitations for claims to contributions from the regional church and

to recoveries.

20

Financial Ordinance of the Evangelical Reformed Regional Church 181.13

B. Contributions to Merged Parishes

10 Amalgamation of Parishes

The amalgamation of parishes can be supported with contributions if it leads to the formation of a suitably delimited parish and if the interests of the other parishes and the regional church are taken into account.

Church parishes can receive contributions towards project costs for preparing a merger. Contributions to Project Costs

## 9 Debt Relief Contribution

1. To settle the accounts of a merged parish in accordance with § 6, a debt relief contribution may be paid to it for the parishes involved in the merger.

2. Contributions according to subsection 1 may be reclaimed if the merged parish acquires new assets, particularly through the sale of real estate. The claim for reclamation lapses after ten years from the date of payment of the contribution.

The Church Council shall regulate the conditions, the amount, Bestimmungen

the eligible costs, and the procedure for contributions according to §§ 88 a and Supplementary

88 b para. 1, as well as for the repayment of contributions according to § 88 b para. 2, in the implementing ordinance.

8. Section: Properties of the Parishes and the Regional Church

10 1 **Principle**

Parishes and the Cantonal Church shall, when constructing, maintaining, and using church properties, particularly consider ecclesiastical-cultural values, aspects of sustainability, and the proven future need.

2 The Church Council shall periodically assess the space and maintenance needs of the parishes.

3 It may designate experts who, upon request from parishes, shall

a. review and accompany their construction projects,

b. support them in the management of their properties.

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181.13 Financial Ordinance of the Evangelical Reformed Cantonal Church

**Real Estate Strategy**

**Multifunctionality**

**Ecological and Economic Construction**

**Monument Preservation**

9 1 Ecclesiastical parishes which, in the context of renovations as well as

conversions, extensions and new builds of ecclesiastical properties, make

significant structural investments relative to their financial capabilities, shall

establish a real estate strategy.

2 The purpose of the real estate strategy is, in particular, to

a. identify spatial opportunities that exist or are planned within the

ecclesiastical parish, the relevant political municipalities and school

districts, as well as in neighbouring municipalities;

b. examine construction projects within the regional context;

c. present the socially responsible and community-oriented use of

ecclesiastical properties, taking into account potential improvements

in use and revenue;

d. outline the expected expenditure for the future maintenance of the

ecclesiastical properties.

Parish communities plan, during renovations and new constructions, rooms in ecclesiastical properties in such a way that they can be used for various purposes and can be adapted for other purposes with proportionate effort.

9 Environmental Responsibility

1 The parishes and the Regional Church bear a special responsibility towards the environment and for the careful and economical use of available resources.

2 They take ecological and economic aspects into account during renovations, alterations, and new constructions, as well as in the maintenance and operation of church properties.

3 They apply recognized standards in the selection of materials and with regard to energy and other resource consumption.

9 1 Renovations and alterations of ecclesiastical properties

shall take into account their historical and cultural value, as well as the possibilities

for contemporary use of the property concerned.

2 In the case of renovations and alterations of ecclesiastical properties

of historical and cultural value, the parish churches shall consult

the body designated by the Church Council. The Church Council shall regulate its

mandate.

Financial Ordinance of the Evangelical Reformed Church of the Canton of Zurich

181.13

Section 9: Final and Transitional Provisions 10

1 The Church Council ensures the fair and consistent implementation of the financial regulations. In doing so, it supports the church boards and the executive bodies of parish associations.

2 It issues the implementing provisions in accordance with the Church Order7 and these regulations.

1. **Abolition of Previous Law**

The Regulations on the Financial System of the Evangelical-Reformed Church of the Canton of Zurich (Financial Regulations) of August 26, 1980, and the Regulations on Financial Equalization of the Evangelical-Reformed Church of the Canton of Zurich (Financial Equalization Regulations) of November 20, 1984, are hereby repealed upon the entry into force of these Ordinances.

2. Ordinances, guidelines, directives, and resolutions of the Church Council, the church parishes, and the associations of church parishes that contradict these Ordinances are hereby repealed upon the entry into force of these Ordinances.

1 This Ordinance is applicable to applications for contributions from the financial equalization or for a building contribution that are pending at the time of its entry into force.10

2 The Church Council shall issue further transitional provisions.

The Church Council determines the date of entry into force² of this

Ordinance.

Transitional Provisions for the Amendment of 2 May 2017

(OS 72, 578)

I. Parishes that have fixed their tax rate in half percentages shall fix

it in whole percentages at the beginning of the year following the year of

the entry into force of the partial revision of the Financial Ordinance of

2 May 2017.

II. §§ 31 para. 2 and 33 shall be applicable for the first time to the

budget following the year of the entry into force of the partial revision of

the Financial Ordinance of 2 May 2017.

III. Contributions to municipal associations according to §§ 88–88c

shall not be disbursed retroactively.

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181.13

Financial Ordinance of the Evangelical Reformed Church

IV. The entitlement of parishes to construction contributions assured

by the Church Council at the time of the entry into force of the partial

revision of the Financial Ordinance of 2 May 2017 remains. §§ 83, 84, 86

and 87 of the Financial Ordinance in the version of 19 January 2010

remain applicable to such construction contributions.

1 OS 65, 634.

2 Entry into force: 1 January 2011.

3 LS 131.1.

4 LS 131.11.

5 LS 132.2.

6 LS 180.1.

7 LS 181.10.

8 LS 181.131.

9 Inserted by Resolution of 2 May 2017 (OS 72, 578; ABI 2017-05-12). In force since

1 January 2018 (ABI 2017-10-13).

10 Version according to Resolution of 2 May 2017 (OS 72, 578; ABI 2017-05-12). In force since

1 January 2018 (ABI 2017-10-13).

11 Repealed by Resolution of 2 May 2017 (OS 72, 578; ABI 2017-05-12). In force

since 1 January 2018 (ABI 2017-10-13).

24

Abs. 1 lit. c der Kirchenordnung übersteigt,

b. der Kirchenrat in den übrigen Fällen.

f. Verwendung

und Abrech-

nung

***

(1) lit. c of the Church Order,

b. the Church Council in other cases.

f. Use

and Accounting