Executive Ordinance to the Financial Ordinance

Scope of Application

This Ordinance applies

a. subject to § 30 FiVO, to parish churches and to parish church federations within the meaning of § 2 FiVO,

b. to the National Church.

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

Church parishes and the State Church are subject to the provisions of cantonal law regarding public procurement for their administrative and financial assets.

**Procurement**

**Section 2: Principles of Financial Management**

1 Accounting of Church Parishes and the Regional Church Accounting

shall be governed by the provisions of this Ordinance and the Finance

Ordinance.

(§ 8 FinO)

a.

2 The following are considered the set of rules within the meaning of § 8 para. 3 FinO:14

for the Church Parishes, subject to deviating provisions of the Finance

Ordinance and this Ordinance, the Municipal Ordinance and the

Handbook on Accounting for Zurich Municipalities,

b.11 for the Central Treasury of the Regional Church, the Swiss GAAP

FER Standard.

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Implementing Ordinance to the Finance Ordinance

Budgetary

Balance

(§§ 6 para. 1

and 31 para. 1

FinO)

18 1 For the calculation of the medium-term budget equalization,

the results of the annual financial statements of the last three financial

years, the budgeted result of the current year, and the results

of the following three years according to the financial plan are taken into account.

2 The sum of the results according to para. 1 may be negative for a maximum of

five consecutive years.

3 If the sum of the results according to para. 1 yields a negative

amount, this must be justified. The church board shall demonstrate with which

measures the medium-term budget equalization will be achieved within the next

five years.

Risk

management

(§ 14 para. 3

FiVO)

a. In

General

Legislative Goals

and Legislative

Report

Section 3: Controlling and Reporting

A. Controlling

1 The Church Council shall establish a risk management system for the Regional Church.

2 This system shall specifically support the Church Council in

a. assessing the risks and the probability of damage occurring, as well as the resulting potential damage;

b. taking appropriate measures to avoid or reduce risks and to remedy damage that has occurred.

3 The Church Council shall regulate the details.

15

1 The Legislative Goals of the Church Council** are based on the mission and tasks of the cantonal church. They outline the objectives that the Church Council pursues for the cantonal church, considering its importance in society, during the legislative period. They provide information on the measures for their implementation and their financial implications.

**2 The Legislative Goals of the Church Board** are based on the mission and tasks of the parish in the areas of activity as defined, taking into account the legislative goals of the Church Council.

1 Components of the financial plan include

a. key financial and economic policy data,

b. a projected income statement,

c. essential elements of the balance sheet,

d. an investment plan.

2 The financial plan outlines the development for the following four years, in particular

a. of revenues and expenditures,

b. of the equity of the parish or the regional church,

c. of the tax rate of the parish or the central fund contribution rate,

d. of the equalization of tax capacity.

3 The financial plan specifically identifies projects that

a. are related to the legislative goals,

b. have a significant financial impact,

c. are otherwise significant for the parish or regional church.

4 Parish associations according to § 2 maintain a joint financial plan for their parishes.

B. Reporting

The annual report of the Regional Church contains an overall view of the Regional Church in the reporting year. It refers to the priorities set by the Church Council for the reporting year and presents the most important events as well as the status of the implementation of the legislative goals. It highlights the achievements of the Regional Church in political and civil society contexts.

The Annual Report of the Parish will particularly present

a. the essential activities in the reporting year within the fields of action according to

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181.131

Financial Plan

Annual Report

(§ 17 para. 1

FiVO)

a. Regional Church

b. Parishes

181.131

Implementing Ordinance to the Financial Ordinance

Negative

Appropriation

(§ 27 para. 4

FiVO)

Activity

Programme and

Reporting

(§ 29 FiVO)

Deadlines

(§§ 24 para. 1,

28 and 44

lit. b FiVO)

14 The Church Council instructs the Finance Coordination Committee to review the percentages according to § 27 para. 2 and 3 FiVO as soon as it determines a significant change in the calculation bases.

14 1 The Church Council shall designate the data and documents required for the

preparation of the activity program pursuant to § 19 para. 3 of the Church Act,

as well as for reporting pursuant to §§ 22 para. 1 and 25 para. 2 of the Church Act,

as needed. It shall inform the church parishes thereof in good time.

2 The church parishes shall submit the data and documents pursuant to para. 1 to the Church Council in the form designated by the latter by September 30 of the third-to-last year before the start of a contribution period pursuant to

1. Parish communities that do not belong to a parish association

pursuant to § 2 shall submit their annual accounts, approved by the

parish council, to the Church Council by March 31 of the year

following the financial year.

2. Parish associations pursuant to § 2 shall submit the annual accounts of

the parish association, approved by the executive board, to the Church

Council by April 30 of the year following the financial year.

3. The parish councils shall report to the Church Council, in the form

designated by the latter, by March 31

a. the revenue generated in the past financial year from church taxes

on legal entities,

b. income generated and expenses incurred in the past financial year,

c. the tax rate of the parish community in the past financial year.

4. For parish communities that belong to a parish association pursuant to

1 The earmarking of donations, bequests, and other contributions that have been made to a church parish without a specific purpose (§ 32 para. 3 FiVO) must be decided according to the schedule of responsibilities for expenditures.

2 The proceeds from funds earmarked pursuant to para. 1 shall be credited to these funds.

3 The Church Board shall separately disclose earmarked funds in the church parish's accounts.

1 The Church Council approves an earmarking of funds if

a. the purpose is precisely defined,

b. a corresponding resolution of the church congregation exists, and

c. the earmarked funds amount to at least CHF 100,000 in the individual case.

2 The Church Board revokes an earmarking of funds if

a. the purpose has been fulfilled,

b. the earmarking has become outdated or ineffective,

c. the earmarked funds amount to less than 10% of the originally approved amount in the individual case,

d. the purpose has not been pursued for five years.

3 The Church Board may, under the conditions of paragraph 2,

resolve to amend an earmarking of funds in accordance with § 16 paragraph 1.

4 The Church Board shall immediately notify the Church Council of any amendment or revocation of an earmarking of funds approved by the latter. It shall transfer any funds existing upon the revocation of an earmarking to the income statement of the church congregation.

a. Principle

b. Approval

and Revocation

22 1 If a parish church has a charitable fund or the charitable fund and

the rectory has a rectory cash fund, these are considered earmarked rectory cash fund

donations in accordance with § 91 of the Municipal Act of April 20, 2015

(GG)³.

2 The parish churches manage the charitable fund and the rectory cash fund

each as a special account. § 91 para. 2 GG³ is not applicable.

3 To the extent necessary to preserve professional secrecy,

the church council as well as the pastors shall manage the account

movements in the charitable fund and in the rectory cash fund in such a way that during

the audit and accounting review, no conclusions can be drawn about the beneficiaries.

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181.131 Implementing Ordinance to the Financial Ordinance

Provisions

for Contributions

Capitalization

threshold

(§ 34 FinO)

Inheritances and

Donations from

Third Parties

Oversight

(§§ 36-38 FinO)

14 Provisions for Contributions to the Central Fund and Financial Equalization

The parish churches form provisions for their contributions to the central fund and to financial equalization.

14 The capitalization threshold for assets of the administrative assets is CHF 50,000.

Abs. 1 of the Church Law applies.

3 For church parishes that belong to a church parish federation according to

The supervision of the district church administrations and the Church Council over the financial household and accounting of the church parishes is governed by the Ordinance on Supervision and Visitation in the Church Parishes.

5. Section: Finances of the Cantonal Church

A. Contribution to the Central Fund

Calculation

(§§ 43 and

44 lit. a FiVO)

Due date,

Default interest

(§ 44 lit. c FiVO)

Content

14 The net church tax revenue of a parish corresponds to the total revenue from church taxes of natural and legal persons within a calendar year, minus the expenses for tax collection and tax refunds to taxpayers in the relevant calendar year. Value adjustments to tax receivables are not taken into account.

1 The Church Council invoices the parishes for the contribution to

the central fund by July 31st of the current year. The

contribution becomes due for payment in four equal installments on January 31st, April 30th, July 31st, and

October 31st of the following year.

2 The parishes shall transfer the contribution within ten days

after the due date to the account designated by the Church Council.

3 If a parish fails to pay the contribution on time, the

Church Council may levy a default interest of 5%.

B. Budget

1 The budget of the Central Treasury is divided into an income statement and an investment statement.

2 The income statement is divided into a section based on the fields of action according to Art. 29 para. 1 of the Church Order and a section corresponding to the organizational structure of the Regional Church.

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Implementing Ordinance to the Financial Ordinance

181.131

3 The budget appropriation of the income statement is specified as the balance between expenditure and revenue. Expenditure and revenue are reported separately. Contributions to funds and withdrawals from funds are not included.

4 The budget appropriation of the investment statement comprises investment expenditures. Investment revenues are reported separately.

Undertakings Not Yet Decided Upon

If the voting members or the church synod have not yet decided upon a specific foreseeable undertaking at the time of budgeting, the corresponding items will be included in the budget.

1. Budget appropriations may only be used for expenditures of the cost center for which they are intended.

2. Underperformance and additional expenditure, as well as higher investment outlays, must be compensated within the budget appropriation of a department of the Overall Church Services.14

Indispensable expenditures according to § 49 para. 3 FiVO are in particular

a. personnel expenses for existing employment relationships and for

the re-filling of vacant positions, including expenditures

for inflation compensation and for individual salary increases,

b. expenditures for which, due to § 51 para. 1 lit. a–c FiVO, a credit

overrun could be approved,

c. expenditures for ongoing projects,

d. expenditures due to the use of a commitment credit according to

1 The request for a supplementary appropriation details

a. the causes of the increased credit requirement,

b. the examined and the undertaken compensations.

2 The supplementary appropriation increases the budget appropriation.

3 If, for a project for which a supplementary appropriation is requested,

a commitment appropriation is necessary, this must be decided by the Church Council

at the latest with the supplementary appropriation or requested from the Church

Synod.

4 If a budget appropriation from the income statement is insufficient because

revenues turn out lower than budgeted, no supplementary appropriation is required.

Budget Resolution

(Art. 49 para. 3

FinReg)

Supplementary Appropriation

(Art. 50 FinReg)

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181.131 Implementing Ordinance to the Financial Ordinance

Appropriation

Overrun

(Art. 51 FinReg)

Abs. 1 of the Church Order7.

3 In the Legislature Report, the Church Council and the Church

Parish Board, at the end of a legislative period, render an account

of

a. the achievement of the legislative objectives,

b. the fulfillment of the mandate and duties during the legislative

period.

2

Implementing Ordinance to the Financial Ordinance

1 A budget transfer is permissible up to the amount of the difference

between the budget appropriation and the invoice of a cost

center.

2 The Church Council approves budget transfers. The application for

the approval of a budget transfer shall state

a. the reasons for the delay of the project,

b. the amount of the requested budget transfer,

c. the difference between the budget appropriation and the invoice of a

cost center.

3 The budget appropriation of a cost center shall increase in the following year by

the amount of the budget transfer.

4 If a project continues to be delayed, a budget transfer must be requested

again in the following year.

Administration

(§ 53 FiVO)

C. Funds

14 Investments for the purposes of a fund are pre-financed by the Central Treasury. For refinancing purposes, depreciation and imputed interest are charged to the fund.

D. Expenditures

Definition (§ 54 para. 2 FinVO)

1 As expenditures within the meaning of § 54 para. 2 FiVO are considered in

particular

a. Reductions of financial assets for the purpose of providing the

services stipulated by the Church Order7, further decrees, and the resolutions

of the Church Synod and Church Council,

b. Transformations of financial assets into administrative assets,

c.14 project-specific contributions,

d. Loans,

e. Guarantees and surety obligations,

f. Waiver of revenue.

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Implementing Ordinance to the Financial Ordinance

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2 Reclassifications within financial assets and payments for the repayment of debts are not expenditures.

1 If a project affects both the income statement and

the investment budget, a single expenditure authorization must be

obtained.

2 If the Church Council is responsible for new and tied expenditures,

it approves the expenditures simultaneously. If the Church Council and the

Church Synod are responsible, the Church Council decides on the expenditures

within its area of competence, subject to approval

of the remaining expenditures, and simultaneously applies for the authorization

of these expenditures.

a.

Principle

of Unity (§ 55

para. 5 FiVO)14

Amount of expenditure

1 The following are included in the expenditure

All expenses incurred after the decision-making for the planned project (§ 54 para. 2 FiVO), in particular

1. Project planning costs, unless a separate decision has been made on these,

2. Land acquisition,

3. Conversion of financial assets into administrative assets,

4. Construction costs including costs for temporary facilities,

5. Demolition costs for rental properties,

6. Equipment required for proper use,

7. Reserves for unforeseen circumstances,

8. Taxes and duties.

b.14 expenses incurred for investment contributions prior to the decision-making, to the extent that they are to be capitalized according to the applicable regulations pursuant to § 4 para. 2 lit. b.

**2 The internal expenditure of a project is not included in the total expenditure.** Reserves for unforeseen circumstances are shown separately.

**3 Real estate from financial assets shall be transferred to administrative assets** at the current book value.

**4 For loans, their amount is decisive.**

**5 The amount of expenditure for guarantees and suretyship obligations** is determined by the maximum amount of the regional church's obligation. If the maximum amount cannot be reliably determined, the Church Synod shall decide on the guarantee or suretyship obligation.

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Leasing

Expenditure Authorization (§ 61 para. 1 FiVO)

a. Form

b. Content

Credit Settlement (§ 61 para. 2 and 3 FiVO)

1 Leasing without purchase intent (operating lease) is treated as a recurring expenditure, while leasing with purchase intent (finance lease) is treated as a one-time expenditure.

2 The economic viability of leasing expenditures must be demonstrated on a case-by-case basis.

Expenses are approved by resolution of the Church Council or by the signing of the invoice/receipt by the person authorized by the Church Council.

1 The Church Council presents in the explanations for the expenditure

authorization

a. the legal basis,

b. the conformity with the mission of the Cantonal Church and the

legislative goals,

c. the budget item claimed,

d. information on the useful life,

e. capital follow-up expenditures and revenues,

f. operational, personnel, and indirect follow-up expenditures and revenues.

2 In the decision regarding the use of an commitment

credit, it specifies

a. the workflow and organization of the project,

b. information on the conclusion of contracts for the use of the

credit,

c. the payment terms,

d. in the case of splitting a framework credit into object credits, with

the first object credit, the program for further object credits,

e. the billing rhythm for recurring expenditures.

a.

b.

1 The Church Council presents in the credit statement

a. the extent to which the goals of the project could be achieved,

b. the amount of the approved and the actual expenditures, including

the justification for any deviation,

c. the measures taken to comply with the expenditure authorization,

d. the inflation-related additional or reduced expenditures, if the

expenditure authorization contains a price index clause,

e. the use of reserves.

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2 Outstanding amounts of minor scope can be estimated.

3 Expenditures approved by the signature of the invoice receipt by the

person designated as authorized by the Church Council do not require

a credit statement in accordance with § 61 para. 2 FinO.

E. Revenue

1 The Church Council decides on the transfer of no longer needed assets from administrative assets to financial assets.

2 Such assets are to be revalued at the time of transfer and are transferred to financial assets at this value.

1 The Church Council is responsible for concluding contracts that lead to revenue after deducting the services of the Regional Church.

2 For contracts concerning the granting of building rights, the annual building lease interest is considered recurring revenue.

The Church Council decides on the acceptance of inheritances and third-party donations.

Inheritances and Third-Party Donations

F. Annual Financial Statements

§§ 42 and 43.15

14. The capitalization threshold for assets of the administrative capitalization

assets is CHF 100,000. The total costs of a project or acquisition threshold

transaction are decisive.

§§ 45-47.15

14 1 The depreciation of administrative assets generally takes place

on a straight-line basis according to the useful lives pursuant to para. 2.

2 The Church Council regulates the asset categories and the corresponding

useful lives in a regulation.20

3 Land, loans, and equity investments of administrative assets

are not depreciated. If necessary, a write-down

occurs.

§§ 49-53.15

Depreciation

(§ 65 paras. 1

and 2 FiVO)

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Investment

Guidelines

The Church Council issues guidelines concerning the investment

of the financial assets of the Cantonal Church.

§§ 55-58.15

Auditing Body

(§ 66 para. 1

FiVO)

G. Audit14

12 The Church Synod appoints the auditing body of the Regional Church.

Cantonal

Average of

Taxable Capacity

(§ 71 FiVO)

Weighted Average

of Church Tax Rates

(§ 75 para. 4 FiVO)

Taxable Capacity

Equalization

a. Calculation

Basis

(§§ 71 and 73

para. 1 FiVO)

b. Contribution

Payment

(§ 70 para. 1 lit. a

and b FiVO)

Section 6: Financial Equalization

The cantonal average of the tax capacity of the church parishes is calculated from the sum of the net church tax revenues of the church parishes per tax percentage divided by the number of members of the cantonal church.

1 For the calculation of the weighted cantonal average

of church tax rates, the tax rate of each parish is

multiplied by the number of taxpayers in that parish.

The sum of these results is divided by the number of taxpayers

in all parishes, and this result is rounded up or down to the nearest

whole number.14

2 The determining factor is the number of taxpayers in the parishes

on December 31 of the preceding financial year according to

the survey conducted by the Statistical Office of the Canton of Zurich.

1 The amount of the financial equalization contribution of a parish is calculated based on the net church tax revenue and the church tax rate of the preceding financial year.

2 Decisive is the number of members of the parishes and the national church on December 31 of the preceding financial year according to the population survey pursuant to § 15 of the Ordinance to the Church Law and the Law on the Recognized Jewish Communities.

1 The Church Council shall invoice the church communities subject to the skimming of tax revenue for the estimated contribution to financial equalization14 for the following year by July 31.

2 Contributions of less than CHF 1500 will not be invoiced. The tax revenue skimming rate will be adjusted as needed.

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3 Half of the contribution shall be due for payment on January 31 and the other half on July 31 of the following year.

4 The Church Council shall charge default interest for late contributions in accordance with § 23 para. 3.

Parish churches that apply for benefits from the financial equalization scheme14 benefits from

the financial

equalization scheme14

must include with their application

a. the financial statements for the preceding fiscal year,

b. the budget for the current year and the following year,

c. the key figures and performance indicators designated by the Church Council.

a. Application

(§ 76 FiVO)

1 If the Church Council obliges a parish to repay contributions from financial equalization, the amount to be repaid becomes due ten days after the relevant decision of the Church Council comes into legal force.

2 The Church Council levies default interest for late repayments in accordance with § 23 Abs. 3.

3 The claim for repayment of contributions from financial equalization expires after five years from the date of their disbursement.

1. Church parishes that wish to apply for payments from the financial equalization system14 c. Deadlines

must submit their application to the Church Council by September 10 at the latest (§ 70 para. 1

lit. c-e FiVO).

The Church Council must comment on the application by October 31 at the latest.

2. Payments from the financial equalization system14 are made

on September 30 of the year for which they are applied. The Church

Council may grant a church parish partial

or full payment of benefits before this date in justified cases.

3. Church parishes that have received payments from the financial equalization system14

must submit their annual accounts, approved by the church administration,

to the Church Council by March 31 of the year

following the accounting year. Church parish associations according to § 2 that have received payments

from the financial equalization system14 must submit their annual accounts, approved by the

board, to the Church Council by April 30 of the year

following the accounting year.

Section 7: Contributions

A. Contributions from the State Church

§§ 67-74.15

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Implementing Ordinance to the Financial Ordinance

Partial payment

(§ 86a para. 3

FiVO)

1 Partial payments of contributions from the regional church will be made, upon request, within the framework of § 86a paras. 1 and 2 FiVO, in accordance with the approved credits.14

2 A maximum of two partial payments can be made annually.

3...23

§§ 76-78.15

Contributions to

Project Costs

(§ 88a FiVO)

a. Types

b. Preconditions

c. Base Contribution

and Per Capita

Contribution

B. Contributions to Parish Mergers14

14 Contributions to Project Costs

1. As contributions to project costs in accordance with § 88a FiVO, the following shall apply: start-up financing, merger contribution, and integration contribution.

2. Start-up financing contributes on an expense basis to the costs incurred by a parish within the framework of a merger through the use of consulting services.

3. The merger contribution provides a flat-rate contribution to the costs of reorganizing a merged parish.

4. The integration contribution supports the growth of the merged parish on an expense basis by contributing to the costs incurred by it through the use of consulting services.

14 1 Initial funding will be provided to a parish that participates in a merger project with other parishes and avails itself of fee-based consulting services within the scope of such a project.

2 The entitlement to a merger contribution arises as soon as the resolution of the Church Synod, by which it approved the merger, has become legally binding.

3 The integration contribution will be provided to a merged parish as soon as the resolution of the Church Synod, by which it approved the merger, has become legally binding and provided that the merged parish avails itself of fee-based consulting services within the framework of a professionally guided integration process.

14 1 The contributions to project costs are composed of a base contribution and a per capita contribution.

2 The base contribution is determined by the number of parishes involved in an association.

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3 The per capita contribution is determined by the number of members of the applicant parish. Decisive is the number of members determined by the Statistical Office of the Canton of Zurich on December 31 of the year preceding the year in which the grant application is submitted.

4 The Church Council determines the base contribution and the per capita contribution within the scope and for the duration of the approved appropriations.

14 Contribution amount

1 Start-up funding and the integration contribution are only granted for consulting services actually obtained and designated.

2 Start-up funding and the integration contribution each correspond to a maximum of the sum of the basic contribution and the per capita contribution due to the applying parish.

3 The merger contribution corresponds to the sum of the basic contribution and the per capita contribution. It is granted irrespective of the actual expenditure.

21 1 Contributions to project costs shall only be granted once.

2 If a merged church parish participates in a further merger of church

parishes, it shall again be entitled to contributions to project costs.

3 If a church parish participates in several merger projects, the start-up

financing shall only be granted for the first merger project. For subsequent

merger projects, it shall be counted in the calculation of the basic contribution

according to § 80 para. 2.

4 The church parishes shall submit an application for contributions to the

project costs

a. for the start-up financing, within one year after the completion of the

merger project, but no later than one year after the legal force of the

approving resolution of the Church Synod regarding the merger,

b. for the merger contribution, within one year after the legal force of the

approving resolution of the Church Synod regarding the merger,

c. for the integration contribution, within five years after the legal force

of the approving resolution of the Church Synod regarding the merger.

5 The entitlement to contributions according to § 79 shall lapse three years

after the expiry of the deadlines according to para. 4.

6 In all other respects, the Church Council shall regulate the procedure.

e. Procedure

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Debt Relief

Contributions

(§ 88b FiVO)

a. Prerequisites

b. Basis for Calculation

c. Amount of Contribution

d. Procedure

13 A debt relief contribution in accordance with Section 88b (1) FiVO can be paid to a consolidated parish for each participating parish,

a. that has a maximum of 3000 members,

b. that has a net debt of more than 200 Swiss francs per member, and

c.17 that for three years had a tax rate that was at least three percentage points above the weighted cantonal average of church tax rates in accordance with Section 61 (1).

19 1 For the number of members according to § 83a para. 1 lit. a,

the number of members according to the survey of the Statistical Office of the

Canton of Zurich on December 31, 2017, is decisive.

2 The net debt according to § 83a para. 1 lit. b is calculated according to

Annex 2 item 3.4 of the Municipal Ordinance4. Decisive is the financial statement

approved by the Parish Assembly for the year 2017.

3 For the tax rate according to § 83a para. 1 lit. c, the years 2015,

2016, and 2017 are decisive.

13 1 For participating church parishes with a maximum of 2000 members, the debt relief contribution corresponds to the result of multiplying the amount by which the net debt per member exceeds 200 Swiss francs by the number of members of the church parish.

2 Participating church parishes with more than 2000 and a maximum of 3000 members receive a reduced debt relief contribution, which corresponds to the result of multiplying the following factors

a. Debt relief contribution according to paragraph 1,

b. 3000 minus the number of members according to § 83 b paragraph 1, divided by 2000.

3 The Church Council shall determine the debt relief contribution in individual cases, within the scope and for the duration of the approved credits.

13 1 Church parishes involved in a merger

must submit the application for a debt relief contribution in a timely manner

so that the Church Council can decide on it before the involved church

parishes resolve on the merger.

2 The disbursement of the debt relief contribution takes place after the entry

into legal force of the Church Synod's resolution on the merger,

to the merged church parish.

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3 A debt relief contribution shall be granted to each church parish involved

in a merger and to a merged church parish to which a debt relief contribution

was paid in accordance with para. 2, only once.

4 If the applications for a debt relief contribution exceed the budgeted

appropriation, the Church Council shall consider the following order

when deferring an application

a. the date of submission of the application,

b. the status of the respective merger project,

c. the financial situation of the involved church parishes.

13 1 Merged parishes that have received a debt relief contribution payment must submit their annual financial statements and balance sheet to the Church Council annually for ten calendar years following the payment of the debt relief contribution.

2 If the equity of a merged parish that has received a debt relief contribution increases by at least one and a half times the amount of the paid-out debt relief contribution within five years of its payment, particularly through the sale of properties, the conversion of administrative assets into financial assets, or through unrestricted donations from third parties, the debt relief contribution must be repaid.

3 If the increase in equity according to para. 2 occurs more than five years after the payment of the debt relief contribution, the amount to be repaid shall be reduced by one-fifth for each subsequent year.

4 The Church Council shall decide on the repayment.

5 The amount to be repaid becomes due for payment within 30 days of the decision according to para. 4 becoming legally binding.

Section 8: Properties of the Parishes

Here is the English translation of the provided text

**13 1** The specialists pursuant to Section 89 para. 3 and the specialist body pursuant to Section 89d para. 2 FiVO shall invoice the church parishes for the services rendered based on actual expenditure.

**2** If the specialists or the specialist body are part of the Overall Church Services, they shall ensure when billing for the expenditure that their revenues from the services provided to the benefit of the church parishes do not exceed their annual costs.

Specialist Body

(Sections 89 para. 3

and 89d para. 2

FiVO)

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Scope of Services Standard

13 1 In renovations, conversions, and new constructions of church

properties, a solid, simple, and functional finishing and installation

standard is to be chosen.

2 For parsonages and pastoral residences, §§ 94–97 of the Ordinance

on the Pastorate in the Landeskirche remain reserved.

Section 9: Transitional and Final Provisions14

Annual Report

Depreciations

The Parish Councils and the Church Council shall, for the first time, prepare their annual reports for the year 2011 in accordance with §§ 10 and 11.

1. **Depreciation and Value Adjustments**

Depreciation and value adjustments shall be made for the first time for the financial year 2012 in accordance with § 19 and §§ 48–50.

2. There shall be no revaluation of administrative assets.

3. The residual book values of items of administrative assets subject to depreciation existing at the beginning of the year 2012 shall be depreciated linearly. Depreciation shall occur over a period of at least five and a maximum of eight years. Church boards and the Church Council shall determine the period in individual cases.

4. If the depreciation according to para. 3 results in an excessive burden for a parish, for the financial equalization fund¹⁴, insofar as a parish receives benefits therefrom, or for the central fund, the Church Council may extend the depreciation period in individual cases to a maximum of 20 years.¹⁰

5. The fixed asset accounting in accordance with § 19 para. 2 and § 48 para. 2 shall be established no later than one year after the entry into force of this ordinance.

**Contributions to the Central Fund**

**Annual Financial Statements**

**Financial Equalization Fund**

**Contributions from the Regional Church and Construction Contributions**

The maturity and payment of contributions to the central fund, which were set before the entry into force of this regulation, shall be governed by § 23.

The annual financial statements of the Central Treasury will be prepared for the first time for the financial year 2011 in accordance with §§ 42–53.

The reimbursements of benefits from the financial equalization, which were granted before the entry into force of this Ordinance, shall be governed by Section 65.

Upon the coming into force of this Ordinance, it shall apply to contribution applications filed before its entry into force, as well as to contributions granted or disbursed by the State Church and building contributions.

18

Implementing Ordinance to the Financial Ordinance

181.131

With the entry into force of this Ordinance, the following shall be repealed: Repeal of pre-

vious provisions

a. the Ordinance on State Contributions for New Constructions, Conversions and

Renovations of Churches and Parsonages of September 24, 1980,

b. the Ordinance on the Granting of State Contributions for Churches

and Parsonages of October 22, 1980,

c. all guidelines, instructions, and resolutions of the Church Council, church parishes, and church

parish associations that contradict this Ordinance.

This Ordinance shall enter into force on 1 January 2011.

previous law

Entry into force

Transitional Provisions for the Amendment of 4 October 2017

(Official Collection 72, 592)

I. Unless otherwise provided, the substantive budget provisions of the Church Community Act and the Church Community Ordinance, as well as the partial revision of the Financial Ordinance of 2 May 2017 and the partial revision of the Implementing Ordinance to the Financial Ordinance of 4 October 2017, shall apply for the first time to the 2019 budget. This budget shows a comparison with the 2018 budget at the level of functional areas and account groups. Furthermore, §§ 47 paras. 2 and 3 and 48 of the Church Community Ordinance shall apply to church communities.

II. Church communities shall for the first time report dedicated and unrestricted equity capital in accordance with § 122 of the Church Community Act in the 2019 annual financial statements, based on the values of the closing balance sheet as of 31 December 2018.

III. Church communities shall prepare an opening balance sheet as of 1 January 2019, in which the following shall be revalued

a. financial assets at fair values,

b. provisions and accrued/deferred items at nominal values.

IV. Administrative assets shall not be revalued.

1.4.23-120

19

181.131 Implementing Ordinance to the Financial Ordinance

V. For depreciations ongoing at the time of the entry into force of the partial revision of the Implementing Ordinance to the Financial Ordinance of 4 October 2017, §§ 19 para. 4 and 48 of the Implementing Ordinance to the Financial Ordinance in the version of 19 January 2010 shall remain applicable.

VI. The entitlement of church communities 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 shall remain in effect. §§ 79–81 and 83 of the Implementing Ordinance to the Financial Ordinance in the version of 19 January 2010 shall remain applicable to such construction contributions.

VII. For assured or disbursed construction contributions, § 82 of the Implementing Ordinance to the Financial Ordinance in the version of 19 January 2010 shall remain applicable.

VIII. Contributions to project costs that were granted before the entry into force of the partial revision of the Implementing Ordinance to the Financial Ordinance of 4 October 2017 shall be considered start-up financing in accordance with § 79 para. 2.

IX.16 Church communities may record the contributions to the central fund and payments to the financial equalization scheme to be reserved according to § 18 as non-profit-affecting entries in the balance sheet (equity to provisions) for the financial years 2019 and 2020. The church council shall decide on this uniformly for both years, at the latest together with the decision on the 2019 budget.

Transitional Provision for the Amendment of 3 February 2021 (Official Collection 76, 118)

lit. b of the Church Order7,

e. further expenditures if, without undertaking them, the principle

of economical financial management or the principle

of good faith would be violated.