Financial Ordinance on the Financial Management and Financial Equalization of the Roman Catholic Corporation of the Canton of Zurich (FO) (FO)

1 The Financial Ordinance regulates for the Roman Catholic Corporation Subject and

of the Canton of Zurich (Corporation)

Scope of application

a. the financial management and accounting,

b. the management of the central treasury,

c. the right to incur expenditure.

the

2 Furthermore, it regulates for the Corporation and the parish communities

a. the contributions of the parish communities to the central treasury and their

use,

b. the design of the program concerning activities of overall social

importance,

c. the concretization of the negative earmarking of taxes from legal

entities,

d. the financial equalization between the parish communities.

For the purposes of these Financial Regulations, the following terms mean

1. **Expenditure:** Expenditure is defined as the commitment of financial assets for the fulfillment of public tasks.

2. **One-time Expenditure:** A one-time expenditure is an expenditure whose total amount is known in advance.

3. **Recurring Expenditure:** A recurring expenditure is an expenditure whose partial amount is known, but the duration of the obligation is uncertain.

Definitions of Expenditure Law

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182.25 Financial Regulations on Financial Management and Fiscal Equalization

4. **New Expenditures:** The following are considered new expenditures, in particular

a. the acquisition of land for a specific public purpose,

b. the granting of loans, the acquisition of participations, or the granting of building rights, if they serve a public purpose or the fulfillment of public tasks,

c. guarantees, guarantee obligations, and other contingent liabilities,

d. waivers of revenue.

Publication of Annual Accounts and Budget

The Synodal Council publishes the annual financial statements and the

budget of the corporation.

B. Organization

Consolidated Financial Statements of the

Corporation

and Church Parishes

1 The overall statement summarizes the expenses and revenues of the parish churches and the corporation, omitting the contributions of the parish churches to the central fund, the financial equalization contributions, and the building contributions as a lump sum.

2 It forms the basis for demonstrating that the revenues from church taxes of legal entities are not used for cultic purposes, in accordance with the negative earmarking pursuant to § 25 para. 2 of the Church Law3.

3 The Synodal Council prepares the overall statement annually. It forwards this statement to the corporation's auditing body7 by no later than the end of June of the year following the financial year.

Coordination Committee

Finance

1 The cantonal ecclesiastical bodies shall appoint a Coordination

Committee for Finance.

2 The Coordination Committee for Finance shall assist the cantonal ecclesiastical bodies in the coordination of budgeting, the overall

financial statement, activity programs, and reporting on the use of

cost contributions from the Canton and tax revenues of legal entities,

as required by cantonal law. It shall submit proposals to the executive bodies of the cantonal ecclesiastical bodies concerning the

details of representations for decision-making, particularly with

regard to the comparability of activity programs.

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Financial Regulations on Financial Management and Financial Equalization 182.25

3 The Coordination Committee for Finance shall, where necessary,

consult with the recognized Jewish communities.

4 The Synodal Council shall determine the representation of the body

in the Coordination Committee for Finance. It shall consult with the

other cantonal ecclesiastical bodies on the working methods of the

Coordination Committee and the applicable procedure.

To determine the central treasury contributions and financial equalization payments, the church parishes each submit their annual accounts and tax data to the corporation by May 16th.

Stellt die Kirchgemeinde die zur Berechnung von Zentral- Einschätzung

kassenbeitrag und Finanzausgleichsleistungen erforderlichen Unter- durch den

lagen nicht zur Verfügung, setzt der Synodalrat den Beitrag fest. Die Synodalrat

Kirchgemeinde kann gegen den Entscheid des Synodalrates bei der

Rekurskommission Rekurs erheben.

If the church parish does not provide the documents required for calculating the central assessment,

treasury contribution, and financial equalization payments, the Synodal Council shall determine the contribution. The by the

church parish may appeal the decision of the Synodal Council to the Appeals Commission. Synodal Council

2. Section: Principles of Financial Management

1 Principles of Budget Management

Budget management is based on the principles of legality, budget balance, economy, and the polluter pays principle.

2 Tangible assets must be continuously maintained to preserve their substance and usability and to prevent personal injury, property damage, or structural damage.

3 The fiscal year corresponds to the calendar year.

1 The budget and the annual accounts shall be structured according to the organizational units determined by the Synodal Council (institutional structure) and presented according to the chart of accounts established by the Synodal Council.

2 The corporation shall additionally prepare a breakdown by tasks (functional structure).

3 Separate accounts shall be kept for each individual property.

1 Accounting for the entire household of the corporation's unit is maintained as a single entity. It consists of

a. the main accounts, including special funds,

b. the special accounts.

Household

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182.25 Financial Regulations on the Financial Household and Financial Equalization

2 The corporation's revenues flow into the general financial household. Excluded from this are revenues that, due to their intended purpose, are to be allocated to a special fund or managed as a special account.

Special

funds

a. in

General

b. Pre-financing

of

investments

1 Special financing is managed when funds are earmarked due to a legal basis.

2 It is permissible for

a. welfare funds,

b. diocesan funds,

c. educational funds,

d. pre-financing of investment projects.

1 If future investment projects are included in the financial plan, they can be pre-financed up to the amount of the anticipated net investments.

2 The amount of a pre-financing is decided by the Synod as a matter of principle.

3 The contributions to the pre-financing are approved with the budget until the year in which the investment good comes into use. They must not lead to an expenditure surplus in the budget.

4 The accumulated funds will be released over the useful life of the investment good, starting from the commencement of its use.

5 If an investment project is abandoned or has not been pursued for five years, the already accumulated funds must be released.

Special Accounts

1 Special accounts are maintained for the management of funds in the

interest of third parties, from donations and testamentary dispositions

with a specific earmarking.

2 If the managed funds are insignificant, the Synodal Council may

waive the maintenance of a special account.

3 The earmarking shall be changed if it has become outdated or

ineffective. The competent body shall be determined according to

the rules on competences for commitment credits pursuant to §§ 36–38.

The total amount of managed funds shall be decisive.

4 Special accounts are presented in the appendix to the annual financial

statements. They are approved with the annual financial statements.

Financial Ordinance on Financial Management and Financial Equalisation 182.25

Section 3: Management of Financial Management

A. Budgetary Balance

1. The administrative assets should be covered by the unrestricted equity capital's own equalization.

2. Budgeted expenditure surpluses may not exceed 10% of the unrestricted equity capital.

Budgets

1. **Balance Sheet Deficit**

Expenditure surpluses not covered by unearmarked equity are shown as a balance sheet deficit in the balance sheet.

2. A balance sheet deficit must be amortised within a maximum of five years. The corresponding amortisation instalments are budgeted. They are dimensioned such that no balance sheet deficit remains after five years.

3. The first amortisation instalment is included in the next following budget.

B. Budget

The budget determines the financing of tasks for the next fiscal year.

The budget is based on the principles of annuality, qualitative, quantitative, and temporal commitment, completeness, comparability, and gross presentation.

1 The budget contains the income statement and the Contents

investment statement.

2 It shows a comparison with the previous year's budget and with

the most recent annual financial statement.

3 For foreseeable expenditures for which, at the time of the

resolution on the budget, the definitive approval of the Synod is still

pending, the budget appropriations shall be recorded with a blocking

note. They remain blocked until the approval is definitive.

1 The Synodal Council shall prepare the budget for the attention of the Synod. Procedure

at least eight weeks before the budget is discussed at the Synod meeting,

but no later than October 15.

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182.25 Financial Regulations on Financial Management and Financial Equalization

2 The budget shall explain the following under- and overspending compared to

the previous year's budget

a. for sums less than CHF 30,000: more than 25%,

b. for sums of CHF 30,000 and higher: more than 10%,

c. all under- and overspending from CHF 100,000.

3 Excluded therefrom are inflation-related salary increases.

C. Financial Plan

1 The financial plan serves for medium-term planning.

2 It contains

Financial Plan

a. the investment projects,

b. the pro forma income statement.

3 The Synodal Council shall prepare a financial plan covering at least three years and submit it to the Synod at the time the Synod determines the contribution rate of the parish churches to the central fund.

4 The financial plan shall be revised annually in the course of budget preparation and brought to the attention of the Synod. It shall include at least the following four years. The first planning year corresponds to the budget proposal.

Committed and

New Expenditures

Approval

Section 4: Expenditures

A. General

1. Expenditures are considered bound if the corporation

is obliged to make them by a legal provision or by a previous resolution of the competent

bodies, and if there remains no significant margin of discretion for it

factually, temporally, and geographically.

2. Otherwise, expenditures are considered new.

3. The division of an expenditure into a new and a bound share is permissible.

1 New expenditures require an appropriation loan and

new expenditures require a budget appropriation.

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Financial Ordinance on Financial Management and Fiscal Equalization 182.25

2 Without a budget appropriation being available, the Synodal Council is

granted the authority to approve new one-off expenditures up to CHF 75,000 for a specific purpose, up to a maximum of CHF 300,000, and new recurring expenditures up to CHF 15,000 for a specific purpose, up to a maximum of CHF 45,000 per year, within the current fiscal year.

1 Bound expenditures require a resolution of the Synod Council and, to the extent the expenditure is foreseeable, a budget appropriation for bound expenditures.

2 The Synod Council may delegate this power.

B. Commitment Appropriation

The commitment credit is the authorization to enter into financial obligations for a specific purpose and up to a certain amount.

a. Concept and Forms

1 The commitment credit includes all expenditures incurred for the planned project, in particular

a. Conversion of financial assets into administrative assets,

b. Land acquisition,

c. Construction costs, including costs for temporary facilities,

d. Equipment necessary for proper use,

e. Substantial own contributions by the corporation,

f. Taxes and duties.

2 The explanations for credit approval show the subsequent costs and revenues.

3 The Synodal Council determines from what amount own contributions are considered substantial.

1 If a commitment credit is insufficient, an additional credit must be obtained.

a. Scope of application

2 In the event of a significant change of purpose, a new commitment credit must be obtained.

1. Competence for the Approval of Supplementary Credits

b. Competence

The competence for the approval of supplementary credits is determined by the competence regulations for commitment credits in accordance with §§ 37 and 38.

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182.25 Financial Ordinance on Financial Management and Financial Equalisation

Assessment

Forfeiture and

Abolition

Control and

Accounting

Credit

Provision for

Investments

2 If the total amount of a commitment credit and a supplementary credit exceeds the competence of the body that decided on the commitment credit in accordance with §§ 37 and 38, the competence for the supplementary credit is determined by the amount of the total sum.

1 New expenditures for a specific purpose that are factually and

temporally related or mutually conditional shall be included in the same

commitment appropriation.

2 The commitment appropriation may be approved as a balance between

expenditures and revenues if the amounts of third-party contributions

are legally binding or if it is approved subject to specific third-party

performances.

1 An appropriation credit lapses if its purpose is fulfilled or the project is abandoned.

**2 If it is not claimed within five years, the competent body that approved the appropriation credit according to §§ 37 and 38 decides on its cancellation.**

1 The Synodal Council carries out an appropriation control

for appropriations approved by the Synod.

2 After completion of the project, it prepares an account

and submits it to the Synod for approval.

1 If, for investments, only minor finalization work is still

outstanding, a provision for this can be included in the annual

accounts.

2 The provision is dissolved within five years.

C. Budget Appropriation

The budget appropriation authorizes the Synodal Council to charge the annual account for the designated purpose up to the specified amount.

The budget appropriations are approved by the budget authority upon the adoption of the budget.

1 The Synod approves budget overruns together with the annual financial statements.

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Financial Regulations on the Financial Household and Fiscal Equalization 182.25

2 If, based on the expenditure competencies of the Synodal Council according to Art. 41 of the Church Regulations, a credit included in the budget is exceeded or underspent by more than 10%, or an expenditure not included in the budget is made, this must be justified, provided the deviation is greater than CHF 10,000.

3 For the obligation to provide justification, the total of the cost center per institution, and not the individual sub-item, shall be decisive.

1 For the realization of special events such as the reception of delegations or grants for anniversaries, the Synodal Council has a free credit totaling CHF 50,000 per year. The Rules of Procedure of the Synodal Council regulate its use.

2 The free credit is included in the budget.

D. Financial Powers

### Facultative Referendum

Resolutions of the Synod concerning new one-time expenditures exceeding CHF 3,000,000 or new, annually recurring expenditures exceeding CHF 300,000 are subject to the facultative referendum.

The Synod is responsible for

1. the approval of the budget,

2. the determination of contribution rates to the Central Treasury,

3. the acknowledgement of the financial plan,

4. the approval of new one-off expenditures exceeding CHF 500,000

for a specific purpose or exceeding CHF 1,000,000 for construction

projects, and of new recurring expenditures exceeding CHF 150,000

for a specific purpose,

5. participations and the granting of loans from administrative

assets in accordance with the authority to approve new expenditures,

6. the granting of building rights and the establishment of other

real rights over administrative assets,

7. the approval of the annual financial statements,

8. the acknowledgement of the annual report,

9. the approval of accounts for new expenditures that

have been resolved by the Synod,

10. the pre-financing of investment projects.

Synod

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182.25 Financial Ordinance on Financial Management and Financial Equalisation

The Synodal Council is responsible for

Synodal Council

1. executing expenditures,

2. approving committed expenditures,

3. approving new one-off expenditures included in the budget up to

CHF 500,000 for a specific purpose or up to CHF 1,000,000 for

construction projects, and new recurring expenditures up to

CHF 150,000 for a specific purpose,

4. approving new one-off expenditures not included in the budget

according to § 22 para. 2,

5. deciding on participations and granting loans from administrative

assets in accordance with its authority to approve new expenditures,

6. investments of financial assets,

7. deciding on the financial plan.

Purpose

Contributions to

Third Parties

Received

Church Taxes

Section 5: Central Treasury

A. General

The Central Treasury aims to

a. finance the tasks, functions, and projects of the corporation, as well as further tasks in accordance with the Church Order4,

b. finance building cost contributions and other services to the parish communities, insofar as these cannot be covered by state contributions,

c. provide the possibility of financing support contributions for parish community mergers, provided these are in the interest of the corporation.

1 Requests for contributions must be submitted in writing and with justification to the Synodal Council.

2 Contributions to third parties are charged directly to the income statement.

B. Contributions from Parish Congregations to the Corporation

1 The received church taxes for natural persons consist of

a. Income and wealth taxes natural persons fiscal year,

Financial Ordinance on Financial Management and Financial Equalization 182.25

b. Income and wealth taxes natural persons prior years,

c. Withholding taxes natural persons,

d. Active tax apportionments income and wealth taxes natural persons,

e. Supplementary taxes income and wealth taxes natural persons, interest on tax claims natural persons.

2 The received church taxes for legal entities consist of

a. Profit and capital taxes legal entities fiscal year,

b. Profit and capital taxes legal entities prior years,

c. Withholding taxes legal entities,

d. Active tax apportionments profit and capital taxes legal entities,

e. Supplementary taxes profit and capital taxes legal entities, interest on tax claims legal entities.

Here is the English translation of the provided text

**1.** From the received church taxes, for natural persons, the following expenditures or reductions in income may be deducted

a. Refund interest on taxes for natural persons,

b. Actual losses on tax and interest receivables for natural persons,

c. Passive tax allocations for income and wealth taxes of natural persons,

d. Lump-sum tax credit for natural persons,

e. Tax collection costs.

**2.** From the received church taxes, for legal persons, the following expenditures or reductions in income may be deducted

a. Refund interest on taxes for legal persons,

b. Actual losses on tax and interest receivables for legal persons,

c. Passive tax allocations for profit and capital taxes of natural persons,

d. Lump-sum tax credit for legal persons,

e. Tax collection costs.

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182.25 Financial Ordinance concerning Public Finance and Financial Equalization

1 The difference between church taxes received and deductions yields the net tax revenues.

2 These are to be calculated separately for natural and legal persons.

The parish churches pay annually the contributions to the Central Fund set by the Synod for two years.

1 To determine the Central Treasury Contribution, the net tax revenues of natural and legal persons are each divided by the tax rate of the church parish.

2 According to the calculation in para. 1, the tax capacity of the natural and legal persons of the church parish is determined. It is then multiplied by the established contribution rate.

3 The sum of the two partial amounts results in the Central Treasury Contribution of the church parish.

4 The contributions are calculated based on the tax revenues and the tax rate of the fiscal year preceding the contribution year.

The tax rate for legal entities is one and a half times higher than for natural persons.

The Synodal Council communicates the amount of the contribution for the current year to the parish churches by June 15.

The church parishes shall pay their contributions in three equal installments, the first installment with value date as of July 31, the second installment with value date as of October 31, and the third installment with value date as of January 31 of the following year.

Should a parish fail to make its contribution within the

stipulated deadlines, a default interest shall be levied, the rate of which corresponds to the passive current account interest plus commission for public-law institutions of the Zürcher Kantonalbank.

6. Section: Accounting and Reporting

A. General

The accounting aims to present the asset, financial, and earnings situation in accordance with the actual circumstances.

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Financial Regulations on the Financial Budget and Financial Equalization 182.25

1 The accounting is governed by the principles of comprehensibility, materiality, reliability, comparability, going concern, consistency, accrual basis, and gross presentation.

2 Deviations from the applicable accounting principles must be disclosed in the affected year, and the effect of the deviation must be presented in the annual financial statements.

B. Annual Financial Statements

1 The annual financial statements show the financial position of the corporation as well as its financial development in comparison to the previous year and the budget.

2 They contain in particular

a. the balance sheet,

b. the income statement,

c. the investment statement,

d. the cash flow statement,

e. the annex.

1 The balance sheet shows assets on the asset side, Balance Sheet

and liabilities and equity on the liabilities side.

a. in general

2 Assets are divided into financial assets and administrative assets.

3 Financial assets comprise those assets that can be disposed of without

impairing the performance of public duties.

4 Administrative assets comprise those assets that directly

serve the performance of public duties.

5 Obligations towards special accounts are allocated to

liabilities.

1. Equity comprises restricted equity and unrestricted equity.

2. Restricted equity includes

a. Welfare Funds,

b. Diocesan Funds,

c. Education Funds,

d. Pre-financing of investment projects.

3. Unrestricted equity comprises the balance sheet surplus.

in particular

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182.25 Financial Regulations on the Financial Household and Financial Equalization

Income Statement

Investment Statement

Cash Flow Statement

Appendix

Preparation and

Treatment

1 The income statement contains the expenses and revenues of a financial year.

2 The income statement by type of expense and revenue comprises, in particular

a. the result from operating activities,

b. the financial result,

c. the extraordinary result.

3 The extraordinary result comprises contributions to pre-financing and their reversal.

1. For administrative assets, the investment account includes all expenditures and revenues for assets that are capitalized in administrative assets.

2. For financial assets, the investment account includes all expenditures and revenues for tangible fixed assets of financial assets.

1 The cash flow statement provides information on the origin and

use of funds. It is divided into operating, investing, and financing activities.

2 Funds, in the sense of the cash flow statement, comprise cash and

cash equivalents and short-term financial assets with a maximum maturity of three

months.

The Notes

a. designate the accounting standards applied for financial reporting

and explain any deviations,

b. summarize the accounting policies, including the significant

accounting and valuation principles,

c. identify the organizational units covered by the annual financial

statements,

d. contain further information for assessing the asset, financial,

and earnings position.

1 The Synodal Council prepares the annual financial statements and justifies,

if necessary, budget credit deviations in accordance with § 34.

2 The annual financial statements are finally dealt with by the Synod within six

months after the end of the financial year.

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Financial Ordinance on Financial Management and Financial Equalization 182.25

C. Accounting and Asset Transfer

1. Assets in financial assets are recognized when they provide a future economic benefit and their value can be reliably determined.

2. Assets in administrative assets are recognized when they generate a future economic benefit or their use is intended for the fulfillment of public or ecclesiastical duties, their value can be reliably determined, and they exceed the capitalization threshold.

3. Liabilities are recognized when their origin lies in a past event, their settlement is certain or probable to result in an outflow of resources, and their value can be reliably determined.

1 Real estate used exclusively or primarily for the fulfillment of public or ecclesiastical functions shall be allocated to administrative assets.

2 Real estate used to a minor extent for the fulfillment of public or ecclesiastical functions may be proportionately allocated to financial and administrative assets. In all other cases, it shall be fully allocated to administrative assets.

1 The capitalization threshold for assets of the administrative assets is determined by the Synodal Council. It amounts to a maximum of CHF 50,000.

2 Expenditures for investments in administrative assets that exceed the capitalization threshold are recorded in the investment accounts. The total costs of the project or procurement transaction are decisive.

3 Expenditures falling below the capitalization threshold are charged to the income statement.

4 Regardless of the capitalization threshold, expenditures for real estate, investment contributions, loans, and participations are recorded in the investment accounts of the administrative assets.

1 Provisions are made for obligations if the following cumulative conditions are met

a. the obligation originates from an event before the balance sheet date,

b. an outflow of resources is probable,

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182.25 Financial Ordinance on the Financial Budget and Financial Equalization

c. the amount of the obligation can be estimated reliably,

d. the total amount exceeds the materiality threshold.

2 Provisions for personnel-related claims are maintained irrespective of the materiality threshold.

3 The materiality threshold corresponds to the capitalization threshold.

4 The formation, use, and release of provisions are accounted for via the expense and expenditure accounts. The transactions are explained in the provision mirror.

1 Financial assets are recognized at fair value.

2 Land, land shares, and buildings are revalued at least once per term of office.

3 Revaluation occurs immediately after changes in value, particularly due to

a. Investments in real estate,

b. Granting and revocation of easements,

c. Changes in building and zoning regulations,

d. Transfer from administrative to financial assets,

e. Discovery of contaminated sites.

4 Changes in value are recognized in the income statement.

5 If a new asset is not yet in use at the end of the year, it is recognized under the asset group "Assets under Construction." The transfer to the corresponding asset account in the balance sheet occurs upon commencement of use.

The positions of financial assets are valued as follows

a. cash and cash equivalents at nominal values,

b. receivables at nominal values,

c. money market and fixed-term deposits at nominal values,

d. loan and mortgage receivables at nominal values,

e. securities with market value at market value,

f. securities without market value at acquisition cost,

g. foreign currencies at market value,

h. accrued income and prepaid expenses at nominal values,

i. inventories and work in progress at acquisition cost or at production cost or at market value, if this is lower,

j. movable assets at fair market value, taking into account the useful life,

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Financial Ordinance on Financial Management and Financial Equalization 182.25

k. real estate at fair market value,

l. real estate encumbered with building rights based on the building lease interest, capitalized at a market-conform interest rate,

m. buildings at fair market value according to the formula: simple real value plus three times capitalized earnings value, divided by 4,

n. co-ownership shares formally separated in the land register according to the formula for buildings,

o. co-ownership shares not formally separated in the land register at capitalized earnings value.

1. **Valuation of Administrative Assets**

Administrative assets are recognized at acquisition cost, less contributions received (capitalization of net investments).

2. If a new asset is not yet in use at year-end, it is recognized under the asset category "Construction in Progress." The transfer to the corresponding asset account in the balance sheet occurs upon commencement of use.

Valuation of Debt Capital

Debt capital is valued at its nominal value.

1. Depreciation

and Revaluation

of Administrative

Assets

1 Administrative assets that depreciate through use are systematically

depreciated linearly over their determined useful life according to the

prescribed asset categories. In justified cases, the useful life may be

shortened.

2 Depreciation begins with the use. A full year's depreciation may be

recognized in the first year of use.

3 Land, loans, and equity investments classified as administrative assets

are not depreciated. If necessary, a revaluation takes place.

4 Loans without a fixed repayment date and contributions to private-law

foundations or associations for the formation of equity are capitalized as

investment contributions and depreciated over a useful life of 25 years.

5 Administrative assets are reviewed annually for permanent impairments

in value. If a permanent impairment has occurred for an item, its

carrying amount is extraordinarily depreciated or revalued.

6 Additional depreciation on administrative assets is impermissible.

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182.25 Financial Ordinance on the Financial Budget and Financial Equalization

Asset Transfer

and Asset Disposal

1 The transfer of assets between financial assets and administration assets is effected at book value.

2 Assets are sold to third parties at market value. The value may be set lower if there is an overriding public interest.

D. Accounting

Principles of Accounting

Information Carriers

a. Admissibility

b. Review and Data Transfer

1. The accounting is based on the principles of completeness, accuracy, timeliness, and verifiability.

2. Regardless of the information carrier, the principles of proper accounting and retention must be observed when keeping the books and recording the booking vouchers.

3. The accounts must be updated at least monthly.

4. The vouchers are filed chronologically.

1 On the Retention and Archiving of Books, Vouchers, and Business Correspondence

Immutable information carriers are permissible for the retention and archiving of books, vouchers, and business correspondence, namely paper, image carriers, and data carriers.

**2 Mutable information carriers are permissible if**

a. technical procedures are employed which guarantee the incorruptibility and authenticity of the stored information,

b. the time of storage of the information is provable in an incorruptible manner.

1 Data carriers are regularly checked for their integrity and legibility.

2 Data may be transferred to other formats or onto other data carriers, provided that

a. the completeness and accuracy of the information remain guaranteed, and

b. the availability and legibility continue to meet legal requirements.

3 The transfer of data from one data carrier to another shall be logged. The log shall be stored together with the information.

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Financial Ordinance on the Financial Budget and Financial Equalisation 182.25

1 The property, plant and equipment of the financial assets and the

administrative assets, which are used over several years, are recorded in

an asset accounting system.

2 It shows for each asset, in particular

a. the acquisition cost,

b. the contributions received,

c. the annual and accumulated scheduled depreciation,

d. the value adjustments and unscheduled depreciation,

e. the net book value,

f. the additions and disposals,

g. the reclassifications,

h. the asset category and the useful life.

3 The assets are classified according to the asset groups in the balance

sheet.

1. Internal recharges are credits and debits between administrative units. Internal Recharges

2. They are made when they are necessary for determining expenses and revenues or for the provision of economic services.

1. **Interest Accrues On**

a. the corporation's obligations towards special accounts,

b. the properties within financial assets.

2. The Synodal Council determines a market-standard internal interest rate.

3. The details of the internal interest rate are disclosed in the budget and in the annual financial statements.

**Internal Interest**

1 The corporation shall annually prepare an inventory.

2 The Synodal Council shall regulate the details of the inventory.

Inventory Management

1 The following retention periods apply

a. 50 years for budget, annual financial statements and business report,

b. 30 years for accounting and inventory,

c. 10 years for accounting vouchers.

2 The documents can be stored electronically.

Retention

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182.25 Financial Ordinance on the Financial Household and Financial Equalization

E. Financial Key Figures

Financial Key Figures

In the budget and in the annual financial statements, the following financial key figures are published

a. Degree of self-financing,

b. Interest burden ratio,

c. Net debt quotient.

Principle

Content and

Subject matter

of the financial-

technical audit

Auditing body

a. Expertise

and Reputation

b. Independence

c. Audit

report

7. Section: Audit of Accounts and Books

The Synodal Council presents the annual financial statements of the corporation to an audit body for financial technical review.

7 1 The auditing body must issue an opinion on whether the financial statements of the corporation comply with the applicable legal provisions and the regulations of the corporation.

2 The audit shall be conducted annually. The accounting of the individual administrative divisions shall be subjected to an in-depth audit in rotation, according to their importance.

3 The audits shall be carried out in accordance with recognized professional principles.

7 Audit assignments may be entrusted to independent, professionally qualified individuals or companies that are licensed as audit experts or auditors by the Federal Audit Oversight Authority.

1 The auditing body and the auditors must be independent of the commissioning Synodal Council.

2 The auditors and persons superior to them or closely associated with them may in particular

a. not belong to any authority of the commissioning Synodal Council,

b. not be in any employment or other contractual relationship with the commissioning Synodal Council.

7 1 The reporting on the audit of the annual financial statements by the

Audit Committee shall take the form of an audit opinion (short report).

2 The Audit Committee shall, where necessary, prepare a written report

on the audit of the annual financial statements.

3 The written report shall include information on the subject of the audit,

the audit objective, an assessment, and, where applicable, recommendations.

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Financial Ordinance on the Financial Household and Financial Equalization 182.25

4 The reporting shall be made to the Finance Committee of the Synod

and to the Synodal Council.

5 The short report shall be submitted by the Synodal Council to the Synod

as part of the annual financial statements for information.

7 The Synodal Council reports reportable offenses in accounting, of which it becomes aware, to the competent authority.

7 The Synodal Council decides, based on the report of the auditing body, whether and, if applicable, which measures are to be taken to rectify points that have been objected to.

Measures based on the Audit Report

The audit body can request the Synodal Council to issue the documents necessary for its audit.

Documents and Information

Section 8: Design of the Activity Program

1 The activity program according to § 19 par. 2 of the Church Organization Act comprises the areas of education, social affairs, culture, and further activities.

2 The Synodal Council may subdivide the individual areas, provided that the summary of activities by area is maintained.

1 The areas of the activity program include

a. the description of the activity,

b. the intended effects,

c. the target audience,

d. the financial key figures,

e. a commentary.

2 Details from these areas can be elaborated in an appendix to the

activity program.

Areas

1 Reporting on the use of contributions from a six-year contribution period according to § 20 para. 1 of the Church Law and on the effectiveness of the activity program follows its structure.

2 It provides information, in particular, on any deviations between the intended and actual impact of the recorded activities.

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182.25 Financial Regulations on the Financial Management and Financial Equalization

Competence

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

1 The Synodal Council decides which activities of the parish

churches and the corporation are significant for society as a whole

within the meaning of § 19 para. 2 of the Church Law.

2 It draws up the activity program for a period of six years

and provides reporting on the use of cost contributions for a contribution period. It submits the activity program and

the report to the competent Directorate of the Government Council.

3 It submits the activity program and the report

on the use of cost contributions for a contribution period to the Synod for its information in the year of submission.

Principle

Proof

Calculation

9. Section: Negative Earmarking

The revenues from church taxes of legal entities are subject to negative earmarking in accordance with § 25 para. 2 of the Church Law. They may not be used for cultic purposes.

1. Proof of compliance with the negative earmarking requirement is considered to be provided if, according to the overall financial statement, the revenues of the church parishes and the corporation, minus the proceeds from church taxes of legal entities and the contributions from the Canton, cover or exceed the expenditure for religious purposes.

2. The Synodal Council submits the calculation for proof of compliance with the negative earmarking requirement, together with the overall financial statement, to the corporation's auditing body for confirmation.

3. The confirmation from the auditing body forms part of the corporation's annual report.

1 Basis for calculating the cultic expenses of the

parishes and the corporation are the personnel expenses

for pastors and vicars, as well as for deacons or pastoral assistants

with parish leadership functions, and

the direct material expenses for cultic acts.

2 The cultic expenses correspond to the sum of a share

of the personnel expenses and a share for the lump-sum consideration

of further cultic expenses. The two shares

are calculated as a percentage of the personnel expenses according to para. 1

and as a percentage of the resulting amount.

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Financial Regulations on the Financial Management and Financial Equalization 182.25

3 The Synodal Council determines the two percentages upon proposal of the

Coordination Committee for Finance. It reviews their level

periodically.

The parish communities annually obtain the revenues from church taxes of legal entities from the municipal tax authorities and detail these in the annual financial statements according to the chart of accounts determined by the Synodal Council.

10. Section: Financial Equalization

A. General

The financial equalization promotes

a. the targeted and economical fulfillment of tasks,

b. the reduction of differences in tax burdens,

c. the autonomy and self-responsibility of the church parishes.

Purpose

1 These objectives are achieved through a compensation of the appropriate instruments

basic needs of the parishes (standard expenditure equalization).

2 A financial equalization fund is established for financing and

administered by the corporation. Its alimentation is provided by

contributions from parishes with above-average tax capacity

(tax capacity deductions).

3 In exceptional cases, special payments from the Canton to the corporation, intended for the parishes, may also be allocated to the fund by decision of the Synodal Council.6

B. Standard Expenditure Equalization

Church parishes whose standard expenditure exceeds their standard income receive an annual contribution to cover this difference.

1 Standard expenditure consists of the following expenditure groups

a. operational standard expenditure,

b. capital costs,

c. Central Treasury contribution.

2 Standard expenditure corresponds to the net expenditure, which results

after deduction of direct income for the individual expenditure groups.

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Principles

Standard Expenditure

182.25 Financial Regulations on the Financial Management and Financial Equalisation

3 Operational standard expenditure is generally calculated based on

the number of members of the church parish according to data from the Statistical

Office of the Canton of Zurich.

4 Capital costs and the Central Treasury contribution are accounted for at recognized

actual values.

Operational

Standard Expenditure

1 The operational standard expenditure includes the following parts of the

income statement of the church parishes

a. Authorities, administration, parish office,

b. Worship service,

c. Diakonia and pastoral care,

d. Education,

e. Culture,

f. ecclesiastical properties.

2 It is calculated from a basic contribution per church parish

and a member-proportional surcharge graduated according to the size of the church parish.

proportional surcharge, graduated according to the size of the church parish. For membership figures between 4001 and

8000, the member-proportional surcharge is reduced by 10%, and from 8001 members

it is reduced by 20%.

3 For the church parish of Winterthur, which consists of seven territorial

parishes, seven times the basic contribution is calculated, and for each

parish, one seventh of Winterthur's total membership figure is

taken into account.

4 Church parishes with fewer than 2000 members and multiple

territorial parishes may be allocated an additional basic contribution for further parishes

of a maximum of 50% of the ordinary basic contribution.

5 The allocation of a multiple of the basic contribution to other

church parishes with multiple territorial parishes is carried out by the Synod upon application

by the Synodal Council.

Capital Costs

and Central

Treasury Contribution

1 Capital costs comprise the following parts of the income statement

a. Interest,

b. Depreciation and value adjustments on administrative assets.

2 They are calculated from the effective expenditures according to the

annual financial statements of the parish councils, less any consequential

costs of investments which, when assessing building cost contributions,

are designated as expenses not recognized for financial equalization.

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Financial Ordinance on Financial Management and Financial Equalization 182.25

3 The central treasury contribution corresponds to the contribution of a

parish council determined for the respective financial year.

Neutral expenses and any further expenses do not belong to the standard expenditure. Non-creditable expenditure

1 Special Expenses

In exceptional cases, the Synod, upon application by the Synodal Council, may increase the standard expenditure of a parish by special expenses. These may include, in particular, inter-parish tasks or extraordinary renovation services.

**2** Special expenses may also be credited to the standard expenditure upon request if, in order to fulfill its pastoral mission, the parish must levy a tax rate that is more than three percentage points above the standard tax rate. The Synodal Council, together with the Church Council and the pastoral team, reviews the financial situation of the parish and decides, in agreement with the Vicar General, on the amount of an creditable special contribution.

1 The standard expenditure is determined annually and takes into account the average expenditures of the parishes.

Calculation bases

2 The Synodal Council determines the basic contribution and the variable contribution per member. It issues detailed calculation guidelines.

3 It publishes annually the calculation bases and standard expenditures of the parishes.

The standard yield of church parishes is calculated based on the tax capacity of natural and legal persons. This total tax capacity is multiplied by the standard tax rate set for the respective year.

The Synodal Council annually determines the standard tax rate. The standard tax rate takes into account the weighted average of the tax rates of all church parishes and, where applicable, the tax expectations for the current year.

The Synodal Council communicates the contributions for the compensation of expenses related to meeting deadlines to the parish congregations by September 15 at the latest and pays these by December 15. Advance payments are possible.

1 The Synodal Council shall reduce or deny the equalization contribution for standard expenditures if the church parish cannot use it in accordance with its mandate or if its tax rate falls below the standard tax rate.

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Reduction and

Denial

182.25 Financial Ordinance on Financial Management and Financial Equalization

2 The equalization contribution for standard expenditures shall be reduced to the following extent

a. by 20% if the church parish tax rate falls below the standard tax rate by 0.5 to 1.0 percentage points,

b. by 55% if the church parish tax rate falls below the standard tax rate by 1.1 to 2.0 percentage points,

c. by 100% if the church parish tax rate falls below the standard tax rate by more than 2.0 percentage points,

d. by 50% if the unrestricted equity of the church parish, calculated in state tax percentages, exceeds the standard tax rate by 2 times,

e. by 100% if the unrestricted equity of the church parish, calculated in state tax percentages, exceeds the standard tax rate by 2.5 times.

3 The reduction shall be made retroactively in connection with the processing of the accounting values of the church parishes for the publication of the calculation bases for financial equalization.

C. Tax Capacity Abstraction

Tax Capacity

Abstraction

Abstraction

Rates

Calculation

Bases

If the tax capacity per member of a church community exceeds the weighted average of all church communities, a portion of the surplus is skimmed off.

1 The Synodal Council sets the skimming rates such that the total skimming approximately covers the sum of the standard expenditure equalization contributions for the year.

2 The skimming rate for taxes from legal entities is one half higher than that for natural persons.

1 The portion of tax capacity above the average per member is divided, according to the shares of legal and natural persons in the total tax capacity, into a surplus share for legal persons and a surplus share for natural persons.

2 These surplus shares are each multiplied by the number of members of the parish and the respective absorption rate. The sum of these two amounts yields the tax capacity absorption of the parish concerned.

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Financial Ordinance on the Financial Management and Financial Equalization 182.25

The Synodal Council communicates the clawback contributions to the church parishes no later than September 15. The parishes pay these contributions by November 30. If a church parish does not pay its contribution within the set deadline, a default interest according to § 49 will be charged.

1. Levy Contributions; Contribution Reduction

The levy contributions shall be reduced to the extent that they would cause the church tax rate to rise above the standard tax rate.

2 The levy contribution shall be reduced to the following extent

a. by 30% if the church tax rate exceeds the standard tax rate by 0.5 to 1.0 percentage points,

b. by 60% if the church tax rate exceeds the standard tax rate by 1.1 to 2.0 percentage points,

c. by 100% if the church tax rate exceeds the standard tax rate by more than 2.0 percentage points.

3 It shall be reduced, irrespective of the church tax rate, to the extent that it would exceed the amount of 1.5 tax percentage points of the church parish concerned.

D. Further Provisions

The corporation maintains a financial equalization fund to offset financial short-term differences between standard expenditure equalization contributions and tax revenue abatements.

11. Section: Transitional and Final Provisions

Applications for Funding Contributions for Church Parish Mergers

Applications for funding contributions for church parish mergers according to § 39 lit. c, which were submitted to the Synodal Council two years prior to the entry into force of the Financial Regulations, can be processed retroactively.

1. The Synodal Council shall prepare an opening balance sheet as of January 1, 2019, as follows

a. Financial assets shall be revalued at fair market values.

b. Provisions and accruals/deferrals shall be revalued at nominal values.

c. Administrative assets shall be transferred to the opening balance sheet at their existing residual book value and depreciated degressively at 10% of the residual book value. If the residual book value falls below the capitalization threshold, it shall be fully depreciated.

2. The Synodal Council shall review the classification of assets as administrative or financial assets.

3. Assets that, by virtue of a resolution, serve a public purpose and have been erroneously accounted for as financial assets, shall be reclassified as administrative assets when preparing the opening balance sheet.

4. The assets concerned shall be disclosed in the balance sheet adjustment report, stating their book value.

1 The Synodal Council shall prepare a balance sheet adjustment report regarding the revaluation of the balance sheet.

2 The balance sheet adjustment report shall be subject to a financial technical audit. The auditing body shall record the results in an audit report.

3 The Synodal Council shall approve the balance sheet adjustment report.

4 The approved balance sheet adjustment report shall be submitted to the Synodal Finance Commission for their information.

1 The corporation shall apply the provisions of this Financial

Ordinance for the first time to the 2019 budget. This shall show at least

a comparison with the 2018 budget.

2 The 2019 annual financial statements shall show at least a comparison with

the 2019 budget.

3 For the 2018 annual financial statements, the substantive

budgetary provisions of the Regulations on the Financial Management and

Financial Equalization of the Roman Catholic Corporation of the Canton

of Zurich (Financial Regulations) shall be applied for the last time.

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1 Official Collection 73, 398; for reasoning see Official Gazette 2018-06-08.

2 Entry into force: January 1, 2019.

3 Legal System 180.1.

4 Legal System 182.10.

5 Obsolete.

6 Inserted by Resolution of November 7, 2019 (Official Collection 75, 19; Official Gazette 2019-11-29). In force

since January 1, 2020.

7 Version according to Resolution of November 7, 2019 (Official Collection 75, 19; Official Gazette 2019-11-29). In force

since January 1, 2020.