Regulations on the Financial Management of Roman Catholic Church Parishes in the Canton of Zurich (FKG) (Financial Regulations for Church Parishes) (RFPAR)

### 1 Subject Matter

1 This regulation governs the financial management of Roman Catholic church parishes.

2 The provisions of this regulation also apply to special purpose associations, insofar as they are compatible with their specific characteristics.

3 The Synodal Council issues a binding manual on the financial management of Roman Catholic church parishes.

The scope of the financial regulations of the parish includes the financial household of all Roman Catholic parishes. Excluded from this are assets and liabilities, as well as expenses, revenues, expenditures, and income of ecclesiastical foundations.

Definitions

**1.1.19-103**

For the purposes of these Regulations

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

2. **One-off Expenditure:** A one-off 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 commitment is uncertain.

4. **New Expenditures:** New expenditures include 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, suretyship obligations and other contingent liabilities,

d. waivers of revenue.

***

182.63

Financial Regulations for Parish Communities

The Church Council publishes the annual financial statements and the budget.

Section 2: Principles of Financial Management

1. **Principles of Budget Management**

Budget management is governed by the principles of legality, budgetary balance, economic efficiency, the polluter-pays principle, and the prohibition of earmarking church taxes.

2. The fiscal year corresponds to the calendar year.

1 The budget and the annual accounts are structured according to tasks (functional classification) and presented according to a uniform chart of accounts for public budgets.

2 The parish can additionally provide for a classification by organizational units (institutional classification).

3 The parishes use the chart of accounts and the functional classification determined by the Synodal Council.

1. The accounts shall be kept for the entire budget of the church

parish as a single unit. They consist of

a. the main accounts including special funds,

b. the special accounts.

2. The revenues of the church parish flow into the general

church parish budget. Excluded from this are revenues that,

due to their earmarked purpose, are to be allocated to a special fund

or administered as special accounts.

1. Special funds are managed when funds are earmarked on the basis of a legal provision.

2. They are permissible for

a. Proprietary establishments,

b. Real estate funds,

c. Pre-financing of investment projects.

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1 The church parishes may establish administrative units as proprietary b. Proprietary

businesses, provided this is stipulated in the church parish regulations. businesses,

2 The Synodal Council examines whether the prerequisites for their establishment

and operation are met.

Competencies

1. Self-supporting enterprises are administrative units that are managed according to the principle of self-financing.

2. The operating statement of self-supporting enterprises includes all costs for their fulfillment of tasks, especially interest and depreciation.

3. Operating profits and operating losses are carried forward to special financing accounts. Their balance is determined by the requirements of a cost-causer-appropriate operating financing.

4. Contributions from the church congregation's tax revenues to self-supporting enterprises are not permissible.

5. The regulation regarding the balance sheet deficit according to § 16 applies mutatis mutandis.

1. **Real Estate Funds**

Parish congregations may form real estate funds for residential and commercial properties within their financial assets that are utilized by third parties. These constitute earmarked equity.

2. Real estate funds require regulation in a parish decree.

3. Funding shall exclusively derive from revenues generated by the residential and commercial properties.

4. The fund's resources shall be used for value-preserving renovations and maintenance.

5. Fund withdrawals shall be approved in the same resolution that grants the expenditure authorization for renovations or maintenance.

1 Future investment projects, if included in the investment plan, can be pre-financed up to the amount of the anticipated net investments.

2 The amount of a pre-financing is decided by the Parish Assembly as a fundamental decision.

3 Deposits into the pre-financing are decided with the budget until the year the investment asset begins to be used. They must not lead to an expenditure surplus in the budget.

4 The accumulated funds will be dissolved from the start of use over the useful life of the investment asset.

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

e. Pre-

financing of

investments

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182.63 Financial Regulations of the Parish Congregations

Special

accounts

Maintenance

obligation

Budget

equalization

Balance sheet

deficit

1 Special accounts are maintained for the management of funds

a. in the interest of third parties,

b. from donations and testamentary dispositions with a specific

earmark.

2 If the managed funds are insignificant, the parish council may

waive the maintenance of a special account.

3 The earmark will be changed if it has become outdated or

ineffective. The competent body is determined according to

the schedule of competencies for commitment appropriations. Decisive is

the total amount of the managed funds.

4 Special accounts are presented in the annex to the annual financial statements.

They are approved together with the annual financial statements.

Real assets are to be maintained on an ongoing basis in such a way that their substance and serviceability are preserved and no personal injury, property damage, or building damage occurs.

3. Section: Management of the Financial Budget

A. Budgetary Balance

1 The church tax rate is generally set so that the income statement of the budget is balanced annually.

2 An expenditure surplus may be budgeted for, provided that unrestricted equity is available.

3 The expenditure surplus may not exceed 20% of the unrestricted equity.

1 Expenditure surpluses not covered by unrestricted equity are reported in the balance sheet as a balance sheet deficit.

2 A balance sheet deficit must be repaid within a maximum of five years. The corresponding repayment quotas are budgeted. They are dimensioned in such a way that no balance sheet deficit remains after five years.

3 The first repayment quota is included in the next following budget.

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B. Investment Plan

1 The investment plan serves for the medium-term planning of investments and contains the investment projects.

2 It is determined annually for at least the following four years. The first planning year corresponds to the budget submission.

3 The Church Council decides on the investment plan and presents it to the Church Assembly for information simultaneously with the budget submission.

C. 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 includes the income statement and the investment- Content

statement.

2 The budget shows a comparison with the previous year's budget

and with the last annual financial statements.

3 The parish churches shall use the standard set of forms for the budget

provided by the Synodal Council.

4 For foreseeable expenditures for which, at the time of the decision-making

on the budget, the legally binding approval of the voters

is still pending, the budget appropriations shall be included with a

blocked note. They shall remain blocked until the approval is legally binding.

1 The Church Council prepares the budget proposal and justifies

in particular significant changes to the previous year's budget.

2 The Parish Assembly decides on the budget. The tax rate

is decided at the same meeting.

3 The budget and tax rate are to be decided by the end of the year at the latest.

If no legally binding resolutions are available, the Church Council

is authorized to incur the expenditures essential for ordinary and economic

administrative activities.

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Financial Regulations for Parish Municipalities

b. Special-

purpose associations

Budgetless

state

Tied and

new expenditures

Approval

of new expenditures

Approval

of tied

expenditures

Commitment

credit

a. Definition and

forms

The budget shall be decided by

a. the Delegates' Assembly, provided that the special-purpose association possesses this body,

b. the Church Boards of the member communities in all other cases.

The Synodal Council may determine the budget and the parish

tax rate if a parish has not set these by the end of March.

4th Section: Expenses

A. General

1 Expenditures are considered bound if the church parish

**is obligated to incur them by a legal norm, a decision of a court or**

**a supervisory authority, or a prior resolution of the competent organs**

**or authorities, and if it has no significant discretion remaining regarding**

**the subject matter, timing, or location.**

**2 Otherwise, expenditures are considered new.**

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

1. New expenditures require an authorization credit and a budget appropriation.

2. The Parish Regulations govern whether and to what extent the Church Council is granted the authority to approve new expenditures in the current financial year without a budget appropriation. The Parish Regulations stipulate an annual total amount for new one-time and recurring expenditures.

Tied expenditures require a resolution by the Church Council and, to the extent the expenditure is foreseeable, a budget appropriation.

B. Commitment Appropriation

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

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1. The commitment credit includes all expenses incurred for the planned project, particularly

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. Significant own contributions from the parish,

f. Taxes and duties.

2. The explanations accompanying the credit approval shall detail the follow-up costs and revenues.

3. The parishes shall determine the amount from which their own contributions are considered significant.

The church community regulations determine, based on monetary limits, the **c. Competence**

competence for the approval of commitment credits.

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

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

a. Scope of Application

1. Jurisdiction for the approval of supplementary credits (b. Jurisdiction) is determined by the schedule of competencies for commitment credits.

2. If the total amount of the commitment credit and the supplementary credit exceeds the jurisdiction of the body that decided on the commitment credit, the jurisdiction for the supplementary credit is determined by the amount of the total sum.

1 New expenditures for a specific purpose, which are in a calculated material and temporal connection or are mutually dependent, shall be included in the same commitment appropriation.

**2 The commitment appropriation may be approved as a balance between expenditures and revenues if the contributions of third parties are legally established in their amount, or if it is approved subject to specific performances by third parties.**

1 A commitment credit lapses when the purpose is achieved Lapse and

or the project is abandoned.

Annulment

2 If a commitment credit is not claimed within five years,

the competent body that approved the commitment credit

decides on its annulment.

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Financial Regulations for Parish Councils

Control and

Accounting

Credit Provision

for Investments

Definition

Procedure

Supplementary Credit

Credit

Overrun

Purpose

1 The Church Council conducts an appropriation control.

2 For appropriations approved by the voters, the Church Council prepares a statement of accounts after completion of the project.

3 The statement of accounts requires approval from the Church Assembly.

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 church council to charge the annual account for the designated purpose up to the stipulated amount.

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

1 If a budget appropriation is insufficient, a supplementary appropriation must be obtained from the budget body.

2 The obtaining of a supplementary appropriation can be dispensed with if

a. the exceeding of the budget appropriation is covered by the commitment appropriation in terms of amount, or

b. the Parish Council, in accordance with § 25 para. 2, has the authority to approve expenditures of the corresponding amount outside the budget.

1 The Parish Assembly approves credit overruns together with the annual financial statements.

2 The Church Council justifies significant credit overruns.

Section 5: Accounting and Reporting

A. General

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

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B. Annual Financial Statements

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

1 The annual financial statements show the financial position of the church parish and the financial development compared to the previous year and to 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 notes to the financial statements.

3 Church parishes may waive the presentation of a cash flow statement.

4 Church parishes shall use the standard set of forms for the annual financial statements prescribed by the Synodal Council.

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 earmarked equity and b. Equity

unearmarked equity.

2. Earmarked equity comprises

a. the commitments and advances to special funds of

proprietary businesses,

b. the real estate funds,

c. the pre-financings of investment projects.

3. Unearmarked equity comprises the balance sheet surplus.

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in particular

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Financial Regulations for Parish Communities

Income

Statement

Investment

Statement

Cash Flow

Statement

Notes

Procedure

a. Parish

Communities

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 includes contributions to pre-financings and their dissolution.**

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. The funds within the meaning of the cash flow statement comprise cash and cash equivalents and short-term financial assets with a maximum maturity of three months.

The Annex

a. designates the accounting framework applied to the financial statements and explains any deviations,

b. summarizes the accounting principles, including the significant recognition and measurement principles,

c. identifies the organizational units covered by the annual financial statements,

d. contains further information for the assessment of the assets, financial position, and earnings.

1 The Church Council prepares the annual financial statements.

2 These are approved by the Parish Assembly within six months of the end of the financial year.

3 The Church Council submits the annual financial statements, the resolutions of the Audit Committee, and those of the Parish Assembly to the supervisory authority.

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The annual financial statements are approved by

a. the Delegates' Meeting, provided the special purpose association has such a body,

b. the municipal councils of the member municipalities in other cases.

C. Accounting and Transfer of Assets

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 fulfillment is certain or probable to lead to an outflow of resources, and their value can be reliably determined.

1. Properties used exclusively or primarily for the fulfillment of public or ecclesiastical duties are assigned to the administrative assets of the properties.

2. Properties that serve to a subordinate extent for the fulfillment of public or ecclesiastical duties may be proportionally assigned to financial and administrative assets. Otherwise, they are fully assigned to the administrative assets.

Here is the translation into English, preserving the structure and formatting

1 The capitalization threshold for administrative assets is determined by the church council. It shall not exceed CHF 50,000.

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

3 Expenditures below the capitalization threshold shall be charged to the income statement.

4 Irrespective of the capitalization threshold, expenditures for real estate, investment contributions, loans, and equity investments shall be recorded in the investment account of the administrative assets.

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Capitalization

threshold for

administrative

assets

Provisions

Valuation

of financial

assets

a. in general

b. in particular

182.63

Financial Regulations for Parish Councils

1 Provisions shall be formed for obligations if

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

b. an outflow of resources is probable,

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

d. the total amount exceeds the materiality threshold.

2 Provisions for claims under personnel law shall be maintained regardless of the materiality threshold.

3 The materiality threshold corresponds to the capitalization threshold.

4 The formation, use, and dissolution of provisions shall be recorded via the expense and expenditure accounts. The transactions shall be explained in the provision schedule.

1 Financial assets shall be capitalised at fair value in accordance with § 56.

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

3 A revaluation shall take place immediately after changes in value, in particular due to

a. Investments in real estate,

b. Granting and cancellation of easements,

c. Changes in building and zoning regulations,

d. Transfer from administrative to financial assets,

e. Identification of contaminated sites.

4 Changes in value shall be booked in the income statement.

5 If a new asset is not yet in use at the end of the financial year, it shall be capitalised in the asset group "Assets under construction". The transfer to the corresponding asset account in the balance sheet shall take place at the beginning of its use.

The positions of financial assets are valued as follows

a. liquid funds 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,

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Financial Regulations of the Parish Communities

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

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

k. real estate at fair value,

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

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

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

o. co-ownership shares not segregated in the land register, at capitalized earnings value.

1. **Valuation of Administrative Assets**

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

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

Debt capital is valued at its nominal value.

Valuation of

Debt Capital

Here is the English translation

**1 Depreciation and Impairment of Administrative Assets**

1. Administrative assets that are impaired through use are systematically depreciated on a straight-line basis over their defined useful life, according to the specified asset categories. In justified cases, the useful life may be set shorter.

2. Depreciation commences with the asset's use. In the first year of use, a full year's depreciation may be applied.

3. Land, loans, and equity investments forming part of the administrative assets are not depreciated. An impairment adjustment shall be made if required.

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. If a permanent impairment has occurred for an item, its carrying amount is extraordinarily depreciated or its value is adjusted.

6. Additional depreciation on administrative assets is not permissible.

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182.63

Financial Regulations of the Church Communities

1 Transfers of assets between financial assets and administration

assets are made at book value.

2 Assets are sold to third parties at fair market value. The value may be set

lower if there is a predominant public interest.

D. Business Report

The Church Council may present an account of the most important developments and transactions of the past year with the annual report. It will be brought to the attention of the voters.

E. Accounting

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 The information carriers are regularly checked for their integrity and legibility.

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Financial Regulations for Parish Communities

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

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

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

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

1 Fixed Asset Accounting

The fixed assets of financial assets and administrative assets that are used over several years are recorded in a fixed asset accounting system.

**2 It shows for each asset, in particular:**

a. the acquisition cost,

b. contributions received,

c. the annual and accumulated scheduled depreciation,

d. value adjustments and unscheduled depreciation,

e. the residual book value,

f. additions and disposals,

g. reclassifications,

h. the asset category and the useful life.

**3 The assets are categorized according to the asset groups in the balance sheet.**

1 Internal charges are credits and debits between administrative units.

2 They are made when necessary for the determination of expenses and revenues or for economic performance.

Offsetting

**Internal Interest**

**1 Interest is accrued on**

a. the obligations of the church parish towards special accounts,

b. the assets and obligations of the church parish towards special

and pre-financings of self-sustaining enterprises,

c. the real estate of financial assets,

d. the administrative assets of self-sustaining enterprises.

**2 The church council determines an arm's length internal interest rate.**

**3 The details of the internal interest rate are disclosed in the budget

and in the annual financial statements.**

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Financial Regulations for Church Parishes

Inventory Management § 68. **1 Church parishes shall annually prepare value and physical

inventories.** Value inventories include assets recorded in the balance sheet; physical

inventories include unrecorded assets, supplies, and stock levels.

**Custody**

**2 The inventories shall be checked once per term of office for the

existence of the listed holdings.**

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 may be stored electronically.

Financial

Key Figures

F. Financial Key Figures

## 1 Financial Ratios

1 In the budget and in the annual financial statements, the following financial ratios are published

a. Degree of self-financing,

b. Interest burden share,

c. Net debt ratio,

d. Net debt I per parish member.

2 The Synodal Council determines the calculation of the key figures in the manual.

## Audit Deadlines of the Auditing Commission

## Budget

### Section 6: Deadlines

The Auditing Commission generally handles matters submitted to it within 30 days. If the matter is to be addressed at the church assembly, it submits its report and motion to the Church Council at least 15 days before the church assembly. If a ballot vote is conducted on the matter, the deadline is 40 days.

1 Deadlines for the preparation of the budget are as follows

a. Adoption of the draft by the Church Council and submission to the President of the Financial Audit Committee by October 31,

b. Review and proposal by the Financial Audit Committee by November 30,

Financial Regulations for Parishes

182.63

c. Approval of the budget and the tax rate by the Parish Assembly by December 31.

2 The supervisory authority may extend the deadline if necessary.

1. For the preparation of the annual financial statements, the following deadlines apply

a. Submission to the President of the Church Board by February 28,

b. Adoption by the Church Board and submission to the President of the Audit Committee by March 31,

c. Review and motion by the Audit Committee by May 15,

d. Adoption by the Church Assembly and referral to the supervisory authority by June 30.

2. The supervisory authority may extend the deadlines in exceptional cases.

6 The deadline for submitting the annual accounts and the Central Treasury tax data is determined by § 6 of the Financial Regulations on the financial contributions budget and financial equalization of the Roman Catholic Corporation of the Canton of Zurich³.

7. Section: Accounting and Auditing

A. General

Parish communities submit their financial accounts to an external financial audit body for financial-technical auditing if no member of the technical audit commission meets the requirements according to § 61 para. 1 Audit and 4 of the Regulations of the Roman Catholic Corporation of the Canton of Zurich concerning parish communities (Parish Community Regulations).

1 The external audit body or the audit committee, which is

commissioned with the financial audit, examines whether the accounting

and financial reporting comply with legal provisions and

the regulations of the respective church community.

2 The subject of the audit includes, in particular, the annual financial statements,

the accounting of selected administrative areas, and cash transactions.

Content and

Subject of

the Financial

Audit

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182.63

Financial Regulations of the Church Communities

The audit is carried out annually. The accounting of individual

administrative areas is subjected to an in-depth audit on an alternating basis according to their importance.

Audit Report

1 The financial audit office shall submit a comprehensive report to the church council (Kirchenpflege), the audit committee, and the supervisory authority on the conduct and results of the financial audit.

**2 Furthermore, after auditing the annual financial statements, it shall prepare a brief report. This report shall contain:**

**a. the audit result,**

**b. the recommendation for approval or non-approval of the annual financial statements,**

**c. the confirmation that the legal requirements for the auditors have been met.**

**3 The brief report shall be an integral part of the annual financial statements.**

The heads of the financial-technical audit

report all criminal offenses of which they become aware during the audit

to the competent authority.

Duty to report

Measures

based on

the audit

report

1 The Church Council decides on the basis of the report of the

financial auditing body whether and, if so, what measures

are to be taken to remedy disputed points.

2 It communicates its decision to the financial auditing body, the

Auditing Commission, and the supervisory authority.

Provision of Documents

and Information

The financial auditing body can

a. require the Church Council to release the documents necessary for its audit,

b. obtain the information necessary for its audit from the Church Parish Administration with the consent of the Church Council.

External

Auditing Body

a. Expertise

and Reputation

B. External Auditing Body

1 The persons involved in the financial audit (auditors) possess the necessary professional expertise and an unblemished reputation within the meaning of Art. 4 para. 1 of the Federal Act of 16 December 2005 on the Admission and Oversight of Auditors (Auditor Oversight Act – RAG)5.

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2 The leadership of the financial audit requires the following as qualified professional expertise

a. training within the meaning of Art. 4 para. 2 and 3 RAG and

b. two years of professional experience in auditing the accounts of legal entities under private or public law.

3 The audit shall be carried out according to generally accepted auditing principles for public law bodies, unless the supervisory authority issues specific instructions.

1 The financial audit body and the auditors must be independent of the client parish.

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

a. not belong to any authority of the client parish,

b. not have any employment or other contractual relationship with the client parish.

8. Section: Transitional and Final Provisions

1. Parish councils may resolve to make a one-time deposit into the real estate fund of up to 50% of the unrestricted equity in their real estate. The deposit can be made within five years of this regulation coming into force.

2. The parish council meeting shall decide on the amount of the deposit, subject to approval by the Synodal Council.

3. The Synodal Council shall examine whether the conditions for the deposit are met and comply with the requirements. For this purpose, the church board shall provide the Synodal Council with the real estate fund regulations, the resolution of the parish council meeting regarding the amount of the one-time deposit, and the building insurance certificate for the relevant property.

1 The Parish Municipalities shall prepare an opening balance sheet as at 1 January 2019

Opening balance sheet as follows

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

b. Provisions and accrued income and deferred expenses shall be

revalued at their nominal values.

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Financial Regulations for Parish Municipalities

c. Administrative assets shall be transferred to the opening balance sheet at their

existing residual book value and depreciated degressively at 10% on the

residual book value. If the residual book value is below the

capitalisation threshold, it shall be fully depreciated.

2 The Parish Municipalities shall review the classification of assets

as administrative or financial assets.

3 Assets that, by virtue of a resolution, serve a public or ecclesiastical

purpose and have been erroneously recognised as financial assets, shall be

transferred to 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 church parishes shall prepare a balance sheet adjustment report regarding the revaluation of the balance sheet.

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

3 The church council shall approve the balance sheet adjustment report.

4 It shall submit the balance sheet adjustment report together with the audit report to the supervisory authority by August 31, 2019, and inform the audit committee. The supervisory authority may review the balance sheet adjustment and request corrections.

1 The church parishes and special purpose associations shall apply the provisions of this Regulation for the first time for the 2019 budget. This budget 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 Municipal Act of June 6, 1926, in accordance with §§ 4 and 5 of the Regulation on Financial Management and Financial Equalization of the Roman Catholic Corporation of the Canton of Zurich (Financial Regulation), shall be applied for the last time.

1 OS 73, 28; for reasons, see ABI 2017-07-21.

2 Entry into force: January 1, 2019.

3 LS 182.25.

4 LS 182.60.

5 SR 221.302.

6 Version according to Decision of April 12, 2018 (OS 73, 432; ABI 2018-06-08). In force since January 1, 2019.

20