Notice Of The Regions ' Budget And Accounting, Auditing, Etc.

Original Language Title: Bekendtgørelse om regionernes budget og regnskabsvæsen, revision m.v.

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Read the untranslated law here: https://www.retsinformation.dk/Forms/R0710.aspx?id=114500

Overview (table of contents) Chapter 1 budgetary and accounting system for the regions

Chapter 2 the annual budget and multiannual budget estimate

Chapter 3 Accounting continuation period

Chapter 4 review, etc.

Chapter 5 date of entry into force of

Annex 1 The full text of the Executive order on the regional budget and accounting, auditing, etc.

Pursuant to article 18, paragraphs 1 and 2, article 19, paragraph 2, article 23, paragraph 1, article 24, paragraphs 1 and 2, and section 25, paragraphs 1 and 2 of law No. 537 of 24. June 2005 on the regions and on the closing of county municipalities, the capital's Development and the capital's Hospital community, as amended by section 40 of Act No. 499 of 7. June 2006, shall be based on:

Chapter 1

Budget and accounting system for the regions

§ 1 . Welfare Minister lays down in annex 1 of this notice on ' budgetary and accounting system for the regions ' rules relating to the form of the regions ' annual budget, the multiannual budget estimates and accounts, rules on specification of the areas within which there must be a balance between revenue and expenditure/cost on the annual budget and the multiannual budget estimates, see. section 3, paragraphs 2 and 3, rules on specification of the records on the annual budget, for which the Regional Council at its final adoption should take equitable production, as well as rules on the preparation and dissemination of information to the Regional Council and the municipal councils in the region about the region's economic conditions.

Chapter 2

The annual budget and multiannual budget estimate

§ 2. Proposal for the regions ' annual budget and multiannual budget estimate shall be prepared by the Executive Committee to the Council not later than the 15. August preceding the financial year in question.

(2). Region of the Council 1. treatment of the draft annual budget and multiannual budget estimate shall be made not later than 24. August and 2. treatment by 1. October.

(3). The proposal for the municipalities ' annual due contributions and development contributions, as contained in the draft budget, referred to in article 6. sections 6 and 7 of the law on the financing of the regions, to be discussed in the contact Committee between the region and the municipalities in the region no later than the 1. September.

(4). Municipal Councils in the region must not later than 10. September, in writing, notify the Regional Council their position on the proposal for a basic contribution and development contributions, see. (3).

§ 3. The regions ' economy is divided into three areas of activity: (a)) health, (b)) social and special education area as well as (c)) the regional development area regulation. § 1 of the law on the financing of the regions.

(2). Calculated according to expenditure-based principles must be in the area of health, be a balance between revenue and expenditure on the annual budget and the multiannual budget estimate.

(3). Calculated according to the principles of cost-based revenue must be greater than or equal to the cost of social and special education area on the annual budget and the multiannual budget estimate. Similarly for the regional development area. Over-and deficit relating to earlier years is regarded as revenue and expenses respectively.

(4). Amendments to the draft annual budget must indicate the appropriation the proposal is directed against, and with what amount the appropriation sought was changed, and how the balance calculated according to the provisions of paragraphs 2 and 3 respectively on each of the three areas of activity in the annual budget should be provided.

(5). The period of the multiannual budget estimate shall be set at 3 years. Amendment to the multiannual budget estimate should have such a specification that inventories in budgetary and accounting system, which either must be submitted to the State, or which shall be recorded in the context of the budgetary procedure, must be able to be completed immediately. Amendment to the multiannual budget estimate should specify with what amount the record desired changed, and how the balance calculated according to the provisions of paragraphs 2 and 3 respectively on each of the three areas of activity in the multiannual budget estimate shall be provided.

Chapter 3

Accounting continuation period

§ 4. The accounting continuation period runs from the end of the financial year to the end of February of the following financial year. The Regional Council may, in the region's cash-and the financial regulation lay down a shorter period, which however must not be supplements shall be set to expire before the 15. January.

(2). The accounting forsupplementsperiode includes december month in the year before the financial year. The Regional Council may, in the region's cash-and the financial regulations provide for a shorter forsupplementsperiode.

Chapter 4

Review, etc.

§ 5. Regional Council assume an expert review of the basic regulation. section 28 of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community.

(2). The Regional Council shall provide the review access to carry out the studies, the review considers necessary, and must ensure that the revision is, incidentally, get the information and the assistance which the Audit deems necessary for the performance of the duties.

(3). The Regional Council shall lay down the detailed rules on the review of audit regulation.

§ 6. The revision shall deliver an annual report on the review of the financial statements. The revision also delivers a report in the course of the year, when it is prescribed, or the Audit deems it appropriate (submit), see. section 29 of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community, see. section 42, paragraph 4, of the law on local government administration.

(2). The regional President of the Council shall ensure that the auditor's annual report and submit broadcast to Regional Council members no later than 7 days after receipt of the basic regulation. section 29 of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community, see. paragraph 42 (b) of the law on local government administration.

§ 7. In the performed audit as well as explaining the submit order relationship that has given rise to comments, or relation, incidentally, as the review has found reason to raise. The review should make note if it considers that the financial statement is not true, or that the transactions covered by the reporting, are not in accordance with the Regional Council's appropriations other decisions announced, laws and other regulations as well as with the agreements concluded and usual practice, see. section 28 (2), 2. paragraph, of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community. The revision should also make note if it considers that the management of the funds and the operation of the companies whose accounts are covered by the review, is not taken into account, cf. economic guilty section 28 (2), (3). paragraph, of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community. Audit observations after 2. points and 3. item must appear separately from the report.

(2). The report shall be submitted to the Executive Committee and with regard to the comments that do not immediately regard the management, under the purview of the Executive Committee, together with the relevant regional authority to reply before the Regional Council in a meeting decides on audit observations and on any other matters relating to the relevant accounts.

(3). The report and the Council decision to that effect shall be submitted to the supervisory authority within three months after receipt of the report, at the latest at the same time as the decision on the audit report on the annual accounts referred to in article 6. § 8. At the same time sent the decision to the review.

§ 8. The financial statements presented by the Executive Committee of the Council, so that the financial statements may be made to the revision before the 1. June the following year.

(2). After the audit of the annual accounts is completed, this of the review shall be completed by the endorsement of the fact that the review is carried out in accordance with audit with provisions.

(3). The revision shall deliver before 15. August report on the review of the financial statements to the Council.

(4). Fremgangsmådeni section 7, paragraphs 1 and 2 shall also apply in respect of audit and the Regional Council's treatment of the financial statements. The financial statements shall also be approved by the Regional Council.

(5). The regions ' financial statements be sent before the end of september to the supervisory authority together with the audit report and the decisions taken by the Regional Council has taken in connection therewith. At the same time, the decisions will be sent to the review.

Chapter 5

Date of entry into force of

§ 9. The notice shall enter into force on 17 December. April 2008. At the same time repealed Executive Order No. 390 by 2. May 2006 on the regions ' budgetary and accounting, auditing, etc., Ministry of welfare, the 31. March 2008 Karen Jespersen/Søren h. T Annex 1

Budget and accounting system for the regions

Chapter 1



INTRODUCTION



Content Section



1 budgetary and accounting system's status as a rule set 1.0

2 budgetary and accounting system's building 1.1



Section 1.0



1.0 budgetary and accounting system's status as a rule set



The approved budget and accounting system includes a set of rules relating to the form of the regions ' annual budget, multi-annual budgetary estimates and accounts, etc. is firmly set Rules of Welfare Minister pursuant to §§ 24 and 25 of the Act on regions and of the decommissioning of the county municipalities, the capital's Development and the capital's Hospital community.



In the present Ordinance laid down a number of procedural provisions on the regions--particularly budgetary and accounting, auditing, etc.




Budget and accounting Committee, composed of representatives of the State and the municipal parties, shall give its recommendations to the Minister concerning the welfare adjustments in budgetary and accounting system, as the Committee deems necessary or desirable.



Changes or additions to the budgetary and accounting system be communicated electronically to the regions.



Section 1.1



1.1 budgetary and accounting system's construction



Budget and accounting system consists of two main parts. On the one hand, an authorized account plan with corresponding posting rules, and partly a set of form-and you re requirements regarding budgeting procedures, authorization submission, regnskabsaf put Spike, etc. Accordingly, this ring binder divided into two parts.



Part I includes an overview of the structure of the chart of accounts and General kon teringsregler (Chapter 2), the authorized account plan (Chapter 3) and the special accounting rules for each account (Chapter 4).



Chart of accounts as well as posting rules are binding for the regions.



Part II includes the form and procedure requirements, including the form and procedure requirements for the budget (Chapter 5), the concession rules (Chapter 6), rules concerning the bogfø ring, accounting and auditing (Chapter 7), rules on the recognition and measurement of tangible and intangible assets in the asset book and the balance (Chapter 8).



In part II, seems both binding rules as descriptions of more indicative and main character. The binding rules are, where possible and appropriate, marked with a highlighting of text.



Coverage of the system has been made from an account of the fact that it is Part of, as the people who work with budgetary and accounting system on a daily basis, most will need to look in. For individuals who are facing having to familiarize themselves with the regional concession-and budget-and regnskabssy stem, will a reading of part II before part I, however, be more natural.



PART I



CHART OF ACCOUNTS AND

POSTING RULES



Chapter 2



2 STRUCTURE of the CHART of ACCOUNTS and GENERAL

RULES FOR POSTING



Content Section



0 overview of account plan 2.0

1 main accounts, main functions and features 2.1

2 Dranst 2.2

3 Ownership and cost center 2.3

4 grouping 2.4

5 Arts Division 2.5

6 Vat 2.6



Section 2.0



2.0 overview of the chart of accounts

The main structure of the regional account plan is outlined in the table on the next page.



The chart of accounts is built up from a system where the total account number account number consists of 16 digits.



1. the digit-main account

Account number first digit divides the regional company in 6 main accounts. Of which relate to the main account 1-3 the three areas of activity, as the regional operating and construction is divided into (health, social welfare and special education and regional development). Main account 4 relates to operating and construction for public areas, while the main account 5-6 relating to the financial records, which are common to the three areas of activity. The main accounts are always authorized.



2. and 3 digit-head function

Main features consist of a specified range of functions relating to regional activities, which fall under the same general objective, URf.eks. » HOSPITAL SERVICE '. The main features are always authorized.



4. and 5. digit-function

Features includes a specification of the various regional activities for the same purpose. Through functional division specifies the regional activities relating to, for example, ' training ' at regional development tasks in the field of education and central administration of education. The features are always authorized.



6. digit-dranst

The term ' dranst ' is an artificially created expression consisting of the first 2 book spells from each of the words operation, installations and status. By the Declaration of dranst there is a specification of the records on the individual functions by type, IE. According to whether we are talking about an operational record, FA Ledger or similar. Chart of accounts inside holds a total of 7 dranst-values and Declaration of dranst-value is always authorized.







7. digit-ownership

In 7. digit is made a division of the regional activities after the ownership of the institutions, arrangements or similar, as activities related to. Ownership is always authorized.



A distinction is made in the chart of accounts between three forms of ownership



Own

Independent/private

Other public authorities



8, 9, 10. and 11. digit-cost center

By using the account number 8, 9, 10. and 11. digit may be a fragmentation of cost centers, IE. at the individual institutions, departments, etc. Specification on the cost center in the 8. -11. digit is authorized on the features 1.10.01 hospitals and 2.10.01 Social deals, special education and counseling.



12, 13 and 14. digit grouping

The groupings on account number 12.-14. digit is used for a videreopde of features on individual activities or areas.



Approved a transversal structure for grouping the main account 1-4. Grouping the digits are also authorized in certain cases, where one from the central authorities limit the page wants to be able to retrieve specific information of regional accounts. This is always the case for State reimbursement and for installations (in accounts) as well as a certain degree of operating accounts. The groupings are only authorized in the accounts.



15 and 16. digit-hovedart and art

By using the account number 15. digit specifies the region's ressourcefor use on main categories, IE. wages, purchases, services, etc., the main species 0-9 is always authorized in budget and accounting. Application of hovedart 0 estimated cost in the budget on main account 1 Health is, however, only mandatory, provided that it is agreed between the region and the Ministry of social welfare, to all or part of the region's budget in the health sector must be drawn up in accordance with the cost-based principles.



In the 16th century. digit is made a further specification of the individual main species on species. For example, the main species item purchases divided in five categories: food, fuels and propellants, purchase of land and buildings, acquisitions and other va rekøb. Arts specification is always authorized in the financial statements and in some cases also in the budget. There is, therefore, in the budget authorized a specification on the species 4.0, 4.5, 4.6, 4.7, 4.8, 4.9, 5.1, 5.2, 5.9, 7.1, 7.2, 7.6, 7.7, 7.8, 7.9, 8.5 and 8.6.



Section 2.1



2.1 main accounts, main functions and features



Location in the chart of accounts

Main accounts, main features and functions are always authorized. This means that in reporting on the budgets and financial statements to the Ministry of social welfare or Statistics may not be used other texts to ek sis ating funk tions than those used here. There should also not be created new ho by accounts, ho vedfunktioner or functions.



The main account is determined in the chart number 1. digit:



1 Health

2 Social and special education.

3 Regional development

4 common purpose and administration

5 Interest, etc.

6 Balance



There are thus a total of six main accounts. Main account 1-3 divides the regional operation and construction on a total of three main areas. Main account 4 includes common purpose and administration, such as using allocation keys are transferred to the main account 1-3 in connection with both the budget and the accounts. Main account 5 include financial records, which is distributed on the main account 1-4 in both the budget and the accounts. Main account 6 is the balance.



Main features include a specified range of functions laid down by account number 2. and (3). digit.



On the main account 5 and 6 are used as far as possible a parallel main functional and functional decomposition. Features:



5.10.05 Deposits at financial institutions, etc.

6.10.05 Deposits at financial institutions, etc.



shall be applied so as to record the interest on deposits in pen respectively ge departments, etc. (5.10.05) and be the attitude of deposits at financial institutions, etc. (6.10.05).



Assigned tracking

Through the chart tracking of main accounts, main features and functions happens a gradual breakdown of the regional expenditure and revenue for their purposes.



The main account establishes the overall purpose, URf.eks. main account 3: Regional development.



At the main functions happens then a breakdown on individual purpose or activity areas for the main item 3 should read:



10 COLLECTIVE TRAFFIC

20 CULTURAL ACTIVITIES

30 PROFESSIONAL DEVELOPMENT

40 TRAINING

50 ENVIRONMENT

60 MISCELLANEOUS COSTS and REVENUES

70 PROPORTION of COMMON PURPOSE and ADMINISTRATION

80 PROPORTION OF INTEREST, etc.

90 FUNDING



Finally happens at features a further breakdown on earmarked activities. Head BUSINESS DEVELOPMENT function is URf.eks. broken down by the following features:



3.30.20 Growth forums

3.30.21 Tourism

3.30.22 Innovation and new technology

3.30.23 business services and entrepreneurship

3.30.24 human resource development

3.30.25 Development of the outer rural areas

3.30.29 Central administration of business development area




Registration on the main functions and features

Registration in budgetary and accounting system must as far as possible be based on ascertainable fact, unless the posting rules in Chapter 4 specifically prescribes a calculative distribution of expenditure or revenue (see details in Chapter 5.2.5).



Expenses and revenues not specifically can be allocated to the individual main functions or functions must be registered on the features "various expenses/costs and revenues".



Section 2.2



2.2 Dranst



Location in the chart of accounts

The term ' dranst ' is an artificially created concept consisting of the first two letters of each of the words operation, installations and status. Dransten, there always is authorized, shall be recorded in account number 6. the digit with the following values:







 



Occurs on the following main accounts/features:







1 Operation





1 – 4 and 5.90.99







2 State reimbursement





1 – 4 and 5.80.95







3 Plants





1-4







4 Interest





5.10.05 – 5.75.78







7 Finance





1.90.90-93, 2.90.90-91 and 3.90.90-91







8 Assets





6.10.01 – 6.42.43 and 6.58.81-87







9 Liabilities





6.45.46-6.55.79 and 6.72.90-99









In the chart of accounts authorized in Chapter 3 is dransten indicated in those cases where the authorized special grouping digits for that function.



It shall not, however, apply for dranst 3 (works), since here are authorized General groupings, which is applicable to all company departments ner, see. section 2.4. This also applies to certain groupings at dranst 1 (operation), there also are applicable for all functions.



Use of dranst

With the dransten split the regional expenditure and receipts, etc. by type. Dranst 1-3 delimiter so the actual operating and construction, while the dranst 4 and 7 relates to the financial account and dranst 8-9 the balance.



With regard to the application of dranst-values and the distinction between these at registration applies these general rules.



1 (operating) and 2 (State reimbursement)

Dranst 1 (operation) must be used for operating expenses and operating income. The revenue from the State, which is recorded at dranst 2 (State reimbursements), will in all cases be explained by authorized groupings in chart of accounts. It is first and foremost about revenues from the actual reimbursement schemes. In addition, in some cases in the chart of accounts authorized groupings under dranst 2 for registration of certain subsidies from the State and from the EUROPEAN UNION. Other grants from the State (apart from General to shots, etc., see below), as well as payments from the State, which corresponds to a service is registered under dranst 1. All payments in relation to municipalities and other regions recorded during dranst 1, regardless of whether we are talking about a contribution or not.



1 (operating) and 3 (plant)

The distinction between operating expenses and capital expenditures made in the chart of accounts using dranst values respectively 3.



The distinction between operating and capital expenditures are not only important for the registration in the region's budget and accounting. There is also a difference between the villingsprocedurer, which must take precedence over expenditure. For driftsud gifternes he/she is authorising the issuance related to the adoption of the budget bid. For fixed expenditure happens concession on the other hand, at the time of the adoption of a fixed supplement appropriation for each construction project. Organisation læggelsen economic governance procedures around concession management and control-in other words, depending on whether it is a commercial or a fixed expense.



In the cost based system termed fixed costs, such as investments, which are defined as assets that meet the 3 General conditions for recognition and measurement of assets in the balance sheet, see. Cape 8.1.2 on general rules for the measurement and recognition of tangible assets:



The asset is expected to be used in more than one financial year (i.e. that the asset has a useful life/life of more than 1 year)

Value of the asset can be measured reliably

Asset has a value that is equal to or greater than us $ 100,000.



Indicative of whether an expenditure for maintenance and modification work should be regarded as a service or an investment, is partly about the work involves the improvement and longevity of existing buildings or installations increased, partly for the purpose of or the use of the building, etc. changed significantly. This is the case, the cost shall be charged as an investment (dranst 3).



Major purchases of equipment, fixtures m. v. that individually fall below de minimis, are recognised in the balance sheet as a single asset and be assimilated as an investment, if they form part of an overall system, have the same use and/or purchased in connection with new construction or major renovation, see. Cape. 8.3.1 on tangible fixed assets.



The following grants and expenses connected with the purchase of the following assets are considered investments, even if they do not meet the conditions for recognition in the region's balance:



Tangible assets, whose value for the region is primarily cultural or historical nature

Fixed grants to self-governing institutions and other public authorities



In addition, reference is made to it in Chapter 7, section 4.3, publicized continuity principle, where after which should not be made frequent changes in the accounting rules and procedures, which can help to hinder an assessment of the region's accounts.



2 (State reimbursements) and 7 (financing)

The General subsidy from the State, the activity-dependent on subsidies from the State and the municipalities in the area of health care, grants from the compensation system, bleed the objective funding from municipalities on social and special education area as well as local government and development contribution of functions 1.90.90-94 3.90.90-91, 2.90.91 and recorded during dranst 7 (financing). Under dranst 2 (State reimbursements) are recorded as mentioned alone revenues from repayment schemes, as well as certain subsidies from the State and from the EUROPEAN UNION, where this is authorized at group level in the chart of accounts. Other subsidies and payments from the State be registered under dranst 1 (operation).



4 (interest)

Dranst 4 (interest) occurs only on features 5.10.05 – 5.75.78.



7 (financing)

Dranst 7 (funding) is used in the registration of general subsidies from the State (the functions 1.90.90, 2.90.91 and 3.90.90), municipalities and development contribution (the functions 1.90.91 and 3.90.91), activity-dependent on subsidies from the State and the municipalities in the field of health (features 1.90.92-93), grants from the bleed compensatory scheme (1.90.94) and the objective of social and financial contribution of special education area (function 2.90.90).



8 (assets) and 9 (liabilities)

Dranst 8 (assets) and dranst 9 (liabilities) is used exclusively by the records of active and passive portion of main account 6.



Section 2.3



2.3 Ownership and cost center



Ownership

Ownership is established by the 7. digit in the chart of accounts and is always authorized. A distinction is made between three types of ownership



Own

Independent/private

Other public authorities



Ownership is not included in the authorized account plan in Chapter 3.



On each of the forms of ownership should be noted the following:



Proprietorship Own covers arrangements or institutions, where both the operation of accounting function falls within the region concerned. Where the region is returning to an independent institution with the operating agreement, the ownership must be entered as an independent/private, see. NE insiders holding jobs.



Ownership independent/private use by arrangements or institutions, which operated in independent or private, and which achieves operating and fixed subsidies from the region. As a general rule, there will be talk about a collective relationship between the region and the institutions concerned.



Non-profit and private institutions shall be included in the regional accounts according to the same rules applicable to regional institutions, if the operating agreement has been signed between the region and the question in determine.



There are no set rules regarding. the contents of an operating agreement. Generally, an operating agreement mean that the Regional Council will have a significant influence on the institution's operation, so that the independent/private institution is to equate with a regional institution.



As conditions that can describe an operating agreement, can be singled out:



The Regional Council shall approve the statutes of the institution.

The Regional Council has influence on the institution's operation. For example, with regard to the number of institutional spaces and who these are available, daily opening hours, number of posts and their art, appointment and dismissal of the head of the institution.


The Regional Council shall be borne by the institution's operating costs on the basis of the budget.

Budgetary, accounting and financial procedures: draft Budget drawn up by the Regional Council with assistance from the institution. The institution's obligation to meet the budget, tet, if necessary, seek additional appropriations and out out current budget control. The parties agree, who calculates and pays salaries and takes care of bookkeeping and accounting. The Regional Council shall approve the auditor.



The institution's budget and accounts recorded in the region, which has over enskomsten. Accounting is done on their respective functions during the re spektive main accounts except for interest and capital repayments, which are recorded on ho vedkonto 5 and 6.



The same is true for the fixed asset ledger entries for independent and private institutions (except private leader owned institutions), which before the commencement of the works entered into an agreement with. In cases where there is not a main agreement region, should it be agreed, which region to be budgeting and accounting lead relating to the institution.



For private Manager owned institutions included only operating expenses and operating mind tægter in the region's budget and accounts, with the institution's expenses for interest and principal payments are regarded as rent expense.



The ownership of other public authorities used for operating grants and charge payment to schemes and institutions in the public sector, but outside the region.



When paying for services delivered by private or self-governing institutions with whom there is no operating agreement entered into is used ejerforholds code 2 independent/private.



Cost center

Account number 8, 9, 10. and 11. digit is used to divide the region's cost ningssteder and authorized in the accounts.



In the budget, as well as the company's cost center authorized on function 1.10.01 hospitals and function 2.10.01 Social deals, special education and advice on institutional level.



The starting point is here that costs and revenues to what may be considered the institution's core service is covered by the authorized registration on cost center. Core performance is defined as the basic service that is associated with a relevant functional area, URf.eks. stay in a residential institution. Expenditure and revenue, which is necessary in order to ensure the regular production of core service – URf.eks. administrative expenditure of the institution, fixtures, water, heat, power Interior maintenance and cleaning-is also covered by the authorized registration on cost center.



Expenditure for premises in itself, IE. rent, and expenses for exterior maintenance must also be registered on the cost center.



Cost center on function 1.10.01 hospitals

Expenditure and revenue of the hospital area is recorded in the accounts at cost in accordance with Hospital Service Organization directory, SOR, at the lowest possible level. SOR is a classification system, which is run by the National Board of health in such a way that the classification system's top two levels (owner and health institution) alone maintained by the National Board of health, while levels including maintained by regions. SOR reflects the economic management relationships.



Registration at the lowest possible level means that the expense types can be registered at a given level without the use of allocation keys, must be recorded at this level. The approved site level in the financial statements is therefore "liquid", so that different instances of expenses linked to the lowest possible place level. An example is identified, the cost of medications in many instances can be registered at the paragraph level without the use of allocation keys, while the hospital management expenditure and revenue management can only be registered at the highest level in sick house organization.



In the budget must be registered at the hospital level, in accordance with the SOR, which is to say an independent organisational entity. A hospital may represent one or more geographical units depending on how the hospital system is organized.



In 2007 the regions may choose to record income and expenses at the lowest appropriate level in accordance with the SOR, but this is not mandatory. It is enough to register on the individual hospitals.



Section 2.4



2.4 grouping



The groupings on account number 12-14. digit is used for a further breakdown of expenditure and revenue within each function.



Chart of accounts contains a number of specific authorized groupings. These groupings have only relevance for a given function. In particular, on cases where the central authorities want to be able to retrieve specific information of regional accounts. In addition, there are authorized a transverse grouping structure to be used on all functions, unless otherwise indicated. It allows to extract information about general expenses and costs relating to the regional service production, and which cut across functions.



It should be noted that both the specific and transversal authorized groupings are exhaustive. It will say that there is no opportunity for the regions to apply unauthorized groupings.



Posting rules for the specific authorized groups are described under the relevant features, and the posting rules for the horizontal grouping structure is discussed according to the following overview of the transverse grouping structure:









 010 Staff







 015 service jobs







 016 wage subsidies







 017 Other offerings by failure to comply with the quota for wage subsidy style recommendations







 020 Courses







 030 work-related injuries







 







 110 Material and activity expenses







 310 Acquisitions, furniture, appliances







 320 operation and maintenance







 410 property charges







 420 Supply





 





 710 Subsidies and quotas







 720 EU-grants







 Internal transfers 790 730 Second





 





 810 Payments-other regions







 820 Payments – private hospitals and institutions 830 Payments – municipalities







 840 Payments – the State









Posting rules for the specific authorized groupings in chart of accounts are described under the relevant functions in Chapter 4. Posting rules for the cross-account plan during the "dranst"-the term "drift" is described in the following. The following provides the General rules for groups under "dranst" names: state refund, plant, interest and financial offsets, funding, as well as assets and liabilities.



Operation

The regions must apply the specifically authorized groupings on the individual functions, as well as the cross-group structure. This means that the application of the authorized factions is exhaustive for the region's costs and revenues.



The specially authorised groupings under dranst 1 (operation), not recognized by the transverse grouping structure, always the arest account plan on the functions, where they occur.



Below are listed with detailed rules for posting on the official cross-cutting groupings



010 Staff

Here are recorded all expenditure and revenue relating to the remuneration of staff. It includes payment for payroll systems, severance pay, temporary work agencies, pension insurance premiums, the anniversary bonus, medical certificates, BST, welfare measures for staff remuneration to staff not employed in the region, relieving Corps, lending of personnel, lønrefusioner, service drive, diets – hour/per diems, liability insurance, travel insurance, staff-related consultancy services, telephone allowance and directly paid pension.



015 service jobs

Here the regions recorded expenses/costs relating to the persons employed in service jobs, see. law on abrogation of the law on service jobs.



It should be noted that servicejobordningen is discontinued, see. Act No. 140 by 25. March 2002, so that there can no longer be created and/or occupied new service jobs after the 1. April 2002, while there may continue to be paid subsidies to already created and occupied service jobs.



In addition, agreements on job training and posted to the feature pool jobs concluded before 1. July 2003.



016 wage subsidies

Here the regions recorded expenses/costs for the recruitment of insured unemployed in jobs with wage subsidies (formerly job training) in the regions, see. section 51 (1) of the Act on an active employment efforts.




017 Expenditure to other offerings by failure to comply with the quota for wage subsidy posts, see. section 56 of the Act on responsibility for and management of active employment efforts and § 2, paragraph 4 of Act No. 176 of 27. February 2007

Here recorded expenses/costs, as the region incur in the event that the region does not meet the quota for the wage subsidy jobs and not on time can make a wage subsidy space available upon request, see. section 56 of the Act on responsibility for and management of active employment efforts and § 2, paragraph 4 of Act No. 176 of 27. February 2007.



020 Courses

Here are recorded all expenditure and revenue relating to the training of staff in addition to hospital care internal system of education of physicians and other healthcare professionals. It can be external courses, conferences and seminars. It also includes expenditure for educational material, transportation related to the course, diets and hour/daily subsistence allowance related to the course.



030 work-related injuries

Here recorded expenditure and revenue connected with the employee's work-related injuries.



110 Material and activity expenses

Here recorded expenditure and receipts for goods sold and services linked to the activity in question, which are not covered by the specific groupings 120-150 on main account 1. For example, it could be food, newspapers, Office supplies, telephone, consulting, auditing, legal, representation costs, printed matter, cleaning supplies, etc.



310 Acquisitions, furniture, appliances

Here recorded expenditure and income to assistive devices and spare parts, Machines/TA, Investigative apparatus, IT machines and programs, Beds and bedding, Sterilization equipment, Communication facilities, Art/decorating, Processing equipment and spare parts, Driving equipment, office machinery, cleaning equipment, Kitchen equipment – machines, Radio and television installations and sales of old fixtures.



320 operation and maintenance

Here recorded expenditure and revenue of the operating and maintenance costs associated with acquired IT equipment, fixtures and equipment. It could for example be gasoline expenses, maintenance expenses, fixtures and theft insurance, licenses, and the like.



410 property charges and property maintenance

Here recorded expenditure and revenue for security firms, cleanliness, pest control, maintenance of grounds and road construction, fire safety, insurance related to the property, maintenance of the property, renovation, driving away of waste, rental income, technical installations and installations, refrigerator-freezer, ventilation systems, maintenance of technical installations and property tax.



420 Supply

On the grouping recorded all expenditures and revenues for heating, water, electricity and other fuels.



710 Subsidies and quotas



720 EU grants



730 internal transfers

The grouping is used in connection with the fact that both in the budget and the accounts should be transferred shares of common purpose, administration and interest from main account 4 and 5 to the main account 1-3.



790 Second

Here recorded expenditure and revenues that cannot be detected on the other groupings in the authorized group structure, URf.eks. inheritance and donation.



810 payments to and from other regions



820 payments to and from private hospitals, social institutions and foreign nationals, etc.



830 payments to and from municipalities



840 payments to and from the State



State reimbursement

The groupings below dranst 2 (State reimbursements) are always authorised either in the form of cross-cutting groupings or specially authorised groupings on the individual function.



The specially authorised groupings under dranst 2 (State reimbursements), not recognized by the transverse grouping structure, always the arest account plan on the functions, where they occur.



Under dranst 2 authorized the following cross-cutting groupings



051 service jobs

052 Corrigenda concerning service jobs

053 wage subsidies

054 Corrigenda concerning wage subsidies



Below are listed with detailed rules for posting on the official cross-cutting groupings



051 service jobs

When hiring people in service jobs, the State pays a subsidy referred to in article 6. law on abrogation of the law on service jobs. Under dranst 2 authorized transverse grouping 051 for registration by the governmental subsidies for the regions ' recruitment of insured unemployed in service jobs.



052 Corrigenda concerning service jobs

There are additionally on dranst 2 further an authorized lateral grouping 052 Corrigenda concerning service jobs.



053 wage subsidies

Recruitment of insured unemployed in a job with a wage subsidy in the regions shall pay the State a grant referred to in article 6. the Act on an active employment efforts. Under dranst 2 authorized transverse grouping 053 for registration by the governmental subsidies for the regions ' recruitment of insured unemployed in jobs with wage subsidies.



054 Corrigenda concerning wage subsidies

There are additionally on dranst 2 further an authorized lateral grouping 054 Corrigenda concerning wage subsidies.



Plant

For all fixed asset accounts are authorized the following general groups:



010 Fixed grants

020 Purchase/sale of land

030 Purchase/sale of buildings

040 Properties

050 Acquisitions, furniture, appliances



For the individual groups can be assigned the following short description:



010 Fixed grants

In the expense column for this grouping recorded fixed grants to selvejen de/private institutions or other public authorities. In the revenue column recorded grants from other public authorities as well as from private to that installation.



020 Purchase/sale of land

Under this grouping recorded expenditure and income in connection with the purchase and sale of land plots. Where the region already own the land el clay grounds taken into use in connection with works, registers the value of those properties is not performed as a fixed expense under the one individual works.



030 Purchase/sale of buildings

The grouping is used in a similar way, as a group, ring 020. Determines whether there will be registration at the Group ring 020 or 030 is whether land or buildings constitute the economic largest share.



040 Properties

Grouping used for registration of capital expenditures on property. By buying and selling of properties used grouping 020 or 030.



050 Acquisitions, furniture, appliances

Under this grouping recorded acquisitions, fixtures and appliances, which are defined as plants.



The non-authorized group numbers can be used freely by the individual region.



Interest rates

Authorized groupings under dranst 4 (interest) on the main account 5 Interest, etc. The authorized factions is clear from the chart of accounts in Chapter 3.



Financing

Authorized groupings under dranst 7 (funding) on the main account 1 Health and main account 2 Social and special education.



Assets and liabilities

Authorized groupings under dranst 8 (assets) on Chapter 6 Balance. The same applies to dranst 9 (liabilities), where there also are authorized groupings on main account 6.



Section 2.5



2.5 Arts Division



The authorized arts Division

Account number last two digits contains a breakdown of the regional and income, etc. after marrying out hovedart-it 15. digit-and art-the 16 digit.



There is in the chart of accounts authorized a total of 9 main species, which in turn are divided on a number of authorized species.



The authorized arts Division is the following:









The MAIN SPECIES SPECIES







0 calculated costs 0.0 Status postings







 0.1 Depreciation







 0.2 Stock offsets





 





0.3 Pension provision relating to officials





 





0.4 Return







 0.5 transferred costs 0.6 Other calculated costs 0.7 Holiday money







 0.8 Calculated and transferred income







 0.9 the offsetting account





 





1 Wages





 





2 item purchases







 2.2 food







 2.3 Fuels and propellants







 2.6 the purchase of land and buildings







 2.7 Acquisition







 2.9 Other purchases





 





4 services, etc.







 4.0 services without VAT







 4.5 Construction and craftsman's services








 4.6 the Payments to the State







 4.7 Payments to municipalities







 4.8 payments to regions







 4.9 Other services etc.





 





5 Subsidies and transfers







 5.1 civil service pensions, etc.







 5.2 transfers to persons







 5.9 Other subsidies and transfers







6 Financial expenses





 





7 revenue







 7.1 Own rent income







 7.2 Sale of products and services







 7.6 Payments from the State







 7.7 Payments from municipalities







 4.8 Payments from regions







 7.9 other revenue





 





8 Financial revenues 8.1 Financial earnings







 8.5 grant from municipalities







 8.6 the State grants





 





9 Internal expenditure and revenue







 9.1 uploaded salaries







 9.2 the transferred item purchases







 9.4 transmitted Services 9.7 Internal Revenue











Purpose and application

With arts division there is a specification of the regional expenditure and receipts, etc., by their very nature-wages, purchases, services, etc.-and thus according to the nature of the resource usage view, they entail.



A main justification for the arts Division is that the central authorities need to be able to quantify the resource consumption, as the regions ' activities gives rise to. On the one hand, overall – among other things. for use by the materiality of the national rain community and partly within individual sectors.



Arts Division also form the basis for the central authorities ' statement of price and wage developments in the regional sector for use by the regulation of the General grants, etc.



Arts Division at the different purposes in the individual serves the regional budget and accounting.



In addition to enable assessments of developments in each of the regions res source consumption, applied arts Division, among other things. by the inclusion of the estimates of price and wage increases in the budget.



Also be carried out through the arts Division a splitter on VAT coated and non-coated VAT expenses, which is necessary for the purposes of administration of the VAT refund scheme. This is done by the arts Division provides a clear separation between species with VAT relating to expenditure-namely art 2.2, 2.3, 2.7, 2.9, art 4.5 and 4.9 and the other species. The special relationship around re gistreringen in connection with VAT is referred to in section 2.6.



Finally, use the authorized species under hovedart 0 calculated costs for registration of calculated costs such as depreciation. Registration on hovedart 0 shall be carried out in order to be able to register in the cost budget and accounting system.



Rules for posting on the species

In the budget should at least be a specification of expenses and income, etc. on the approved main species.



Additionally, in authorised a budget specification at art 4.0, 4.5, 4.6, 4.7, 4.8, 4.9, art 5.1, 5.2, 7.1, 7.2, art 5.9, 7.6, 7.7, 7.8, 7.9 and 8.6.



For the sake of budgeting on the governmental VAT refund scheme, it will also be appropriate for the region budget the VAT-bearing expenditure categories, IE. art 2.2, 2.3, 2.7, 2.9, as well as art 4.5 and 4.9. However, there is no requirement that art 2.2, 2.3, 2.7 and 2.9 shall be reflected in the budget.



In the financial statements shall show the charges and income, etc. are specified on the approved species.



To the extent that in the regions ' expenditure and revenue annex contained a specification that includes several species, must as a rule be carried out registration at each of these. An exception to this is, however, the costs of installation, repair and maintenance, which is not done by the region's own staff, including purchases and procurement related. These expenses are recorded together, under art 4.5 Construction and craft services.



They did not use numbers in the arts Division of the regions, may be used freely if you want a further specification. In this case, however, in the reports to the central authorities, in accordance with article 3. Chapter 7, spoon a summary to the authorized species.



The application of hovedart 9 for registration of internal transfers of costs and revenues is required for that, both in the budget and the accounts should be transferred shares of common purpose, administration and interest from main account 4 and 5 to the main account 1-3. In addition, it is voluntary for each region, see. in more detail below. Want the region to take advantage of hovedart 9, however, this must be done by the use of the including authorized species. The species under hovedart 9 may not be used for purposes other than those listed.



Detailed rules for posting are listed below on each of the main species and species.



HOVEDART 0 CALCULATED COSTS

The introduction of cost-based principles in budgetary and accounting means that a distinction must be drawn between expenditure and costs. Expenditure is recorded either on payment or the time of delivery, while costs are recorded in line with resource use.



Hovedart 0 is used to record the estimated costs and revenues such as depreciation. Registration on hovedart 0 shall be carried out in order to be able to register the cost in the budget and accounting system as well as to include tangible assets, etc. in the balance sheet.



Several of the species, among others. Art 0.1 depreciation and art 0.2 Inventory shifts, refers to the cost of the items, which is calculated in the asset book for tangible assets and are then transferred to hovedart 0. CF. also the description of tangible assets in Chapter 8 and Chapter 9 on costs.



Registration of the calculated costs shall be carried out under the species 0.1-0.7, while calculated revenue recorded during the art 0.8. Transactions under art 0.1-0.7 and 0.8 is offset at art 0.9 Internal account on main account 6. Included in the budget or accounts, 0 hovedart available a cost budget/accounts on main account 1-5. Hovedart 0, skipped a budget/accounting based on expenditure-based principles.



Calculated costs, etc. in the arts Division is divided in 9 species:



0.0 Status postings

0.1 Depreciation

0.2 Stock offsets

0.3 Pension provisions in respect of officials

0.4 Return

0.5 transferred costs

0.6 Other calculated costs

0.7 Holiday money

0.8 Calculated and transferred income

0.9 the offsetting account



Relating to conditions that apply to every species, can point to the following:



0.0 Status postings

In the expenditure-based system expensed assets by approach (and recognised as income on departure) as operating or capital expenditures (revenues), while status is not affected by the approach/exit. In the cost based system must, on the contrary, be affected by the approach/departure status of all assets.



Value is the only assets with a value of over 100,000 euros which it is obligatory to include in the status. This corresponds to the assets with which the region must record in asset book, see. Cape. 8.



The absorption of the cost of acquisition is done by this "omkonteres" to the relevant balance sheet accounts via the main item 6 and use of nature 0.0. By "omkonteringen" to balance the same dranst value as by posting the acquisition cost.



There must be procedures in place to ensure that the registration of acquisitions in the asset book also factored into the status, so that there is always consistency between entries and exits in the asset book and movements on the main account 6.



Example:

The example shows the "omkonteringen" of the acquisition cost of the balance sheet at the purchase of a plot of land to 2 million. KR. Why must this example used for the construction of an annex to an institution.







 



Investment x-institution

2.01.3. place 10.26.



 



Checkout

601.5. zzzz. zz. zz







1) purchase price





2,000



 

 

 



2,000





 

 

 

 

 

 









 



Investment x-institution

2.01.3. place. 10.00



 




Land and buildings

681.5. xxxx. roadblocks







2) "Omkontering" for status via art 0



 



2,000



 



2,000



 



 

 

 

 

 

 



 

 

 

 

 







0.1 Depreciation

Assets included in the production/performance of the products/services will typically be consumed. As part of the statement of costs is recorded such a usage in the form of calculated depreciation on buildings, furniture, equipment, etc. These write-offs recorded during the art 0.1 depreciation.



Application of art 0.1 depreciation is compulsory. Depreciation is recorded at the site level, where this is authorized in the chart of accounts. On other areas recorded depreciation on the functional level.



0.2 Stock offsets

In connection with the statement of costs, there is a need to make an accrual of expenditure. There can thus be no question of costs to cost of goods sold, which is not the expense recorded in the year in which the consumption takes place, because there are consumed from inventory. Conversely, registered cost of goods should not be included in the cost accounting, in so far as that alone is talking about stockpiling. The registration of such shifts consumption from or concerning respectively the building of storage is done by registering offsets on art 0.2 Inventory shifts.



0.3 Pension provisions in respect of officials

Art 0.3 used to cost tracking changes in the region's pension obligation relating to civil servants. Cost registration to take place annually at the same level as the depreciation referred to in article 6. above under art 0.1.



The payment of insurance premiums recorded by use of hovedart 1.



0.4 Return

In a given activity will typically be tied a certain capital. By cost calculation, there is a need to recognize a return on the capital invested in related to the activity. Return to URf.eks. is calculated in connection with internal loans granted for investments in the social and special education area, the regional development area and a common purpose and administration. In the calculation of the rate of return used market interest rates. Registration is done at the art 0.4 Return.



0.5 transferred costs

That may seem calculated costs, which may be relevant in each cost calculations. Examples include the indirect costs associated with the regional delivery of offers for adults with disabilities, URf.eks. share of common costs to management, administration, rent, etc. These are recorded under art 0.5 transferred costs.



0.6. Other estimated cost

Art 0.6 used to record the costs that cannot be detected through the use of art 0.1-0.4.



0.7 Holiday money

Art 0.7 used to record the costs of holiday pay.



0.8 Calculated and transferred income

During art 0.8 recorded calculated and transferred the revenue that should not influence the region's accounts.



0.9 the offsetting account

During art 0.9 offset registrations made under art 0.1-0.5, IE. registration at art 0.9 is done with the opposite sign of registration at art 0.1-0.8. Internal account is a technical account, which ensures that only records with financial impact can exert influence on the region's overall expense accounts. It is thus the internal account function to neutralize the new transactions in relation to expenditure. Internal account kept at main account 6.



HOVEDART 1 WAGES

On hovedart 1 Wages recorded the region's wage costs, including salary contributions of any kind.



Compensation of employees ' expenses in connection with the service, IE. cost of representation, travel, use of a private motor vehicle and the like, are not recorded under hovedart 1 Wages, but under hovedart 4 services, etc., the same applies to the remuneration of experts and specialists in the field of liberal professions as well as ve derlag and similar to members of commissions, councils and boards, where with the limbs are neither regional employees or members of the Regional Council.



In certain cases it may be difficult to distinguish between wages and services. It will be crucial to whether the person is regionally hired. Payments to persons who are not employed in the region, is not recorded as salaries, but under hovedart 4 services, etc.



Region rådsmedlemmer is considered in this context as regional staff. Taxable allowances, remuneration and fees of rådsmedlemmer is recorded in the hovedart region 1 Wages, while non-tax tepligtige diets and similar to these persons are recorded on hovedart 4 Service establishment and to provide services, etc.



Pension insurance premiums must be registered at hovedart 1, while directly paid pension, wait for money, rådighedsløn and support registered at hovedart 5 Grants and transfers.



Bonus and the like relating to pension insurance schemes, as well as reimbursement of subsistence expenses relating to regional staff to be credited as expense under hovedart 1 Salaries.



It should be noted that the payroll cost to people in regional Flex jobs and light jobs recorded at art 1 under the regional institutions, where they are employed. On the same functions also credited wage subsidy on art 1.



Under hovedart 1 is no authorized species. As examples of posting under hovedart 1 may be indicated:

1 Wages

Employers ' student refund (AER)

Labour Market Occupational Security (AES)

Arbejdsmarkedsuddannelses Fund

ATP

Clothing allowance (tax liability)

Directly paid salaries

Døgnplejeløn

Holiday pay

Fund for the training of Union representatives

Reimbursement of subsistence expenses fund adj. salary during maternity

Reimbursement of subsistence expenses fund adj. disease over 5. week

Course reimbursement from unemployment funds

Employees ' guarantee fund

Allowances, fees and remuneration of members of the Regional Council (taxable)

Overtime compensation

Pension insurance schemes

Wage subsidies for individuals in fleks-and light jobs

Lost wages, compensation for the taxpayers.



HOVEDART 2 ITEM PURCHASES

Under hovedart 2 item purchases recorded the region's spending on sales tax item purchases, as well as the purchase of covered land and buildings.



Sale of goods is in the arts Division is divided in 5 categories:



2.2 food

2.3 Fuels and propellants

2.6 the purchase of land and buildings

2.7 Acquisition

2.9 Other purchases



As examples of posting on each species under hovedart 2 can be entered:



2.2 food

Bread

Quick-frozen foodstuffs

Coffee, tea and cocoa

Potatoes, vegetables and fruit

Colonial goods

Canned goods

Meat, poultry and fish

Dairy products

Beer, soft drinks and other beverages



2.3 Fuels and propellants

Petrol

Diesel oil

Electricity

Solid fuels (coal, coke)

District heating

Liquid fuels (oil)

Supply undertakings purchases energy for resale

Gas

Petroleum



2.6 the purchase of land and buildings

Purchase of land

Purchase of buildings



2.7 Acquisition

Here recorded major and costly purchases of objects with a lifetime of over 1 year (exclusive purchase of land and buildings), URf.eks.:



Machines

Motor vehicles and other materiel

Technical installations and installations, URf.eks. lifts, incinerators, ke delanlæg, refrigeration, sanitary facilities, heating and ventilation systems, larger appliances such as URf.eks. x-rays, scanners, etc.



2.9 Other purchases

Building materials, URf.eks. concrete items, bricks, cement, gravel and timber

Office supplies, URf.eks. paper and printed matter

Medical articles, URf.eks. apparatus and instruments, processing apparatus, laboratory equipment, forbindsstoffer, medicines, prostheses, x-ray supplies, dental care articles and transfusion materials

Cleaning supplies, URf.eks. waste bags, laundry and dishwashing products, toiletar articles and disinfectants

Furniture, URf.eks. faucets, carpets, furniture, beds and service

Learning resources URf.eks. books, films, tapes, collections, håndgernings materials, writing implements, woodwork materials and goods to the school kitchen



HOVEDART 4 SERVICES, etc.

Hovedart 4 services, etc., are recorded on the expenditure related to the purchase of services, delivered by strangers.



Hovedart 4 includes only services which directly comes from omver the a. Services and performance provided by the region's own institutions or departments, is not recorded under hovedart 4, see. more information about the registration of internal out marries under the reference hovedart 9 Internal expenditure and revenue below. Each of the activity areas actual shares of the region's general administrative expenditure on main account 4 is recorded also by the use of hovedart 9.




Purchases of goods and services from another public authority (i.e., the State, municipalities or other regions), which in the relevant area of activity is registered for VAT, and therefore settles deliveries incl. VAT, shall be registered on the momsbæren the expense categories and not at art 4.6-4.8.



Apart from the purchase of taxable goods and services from another public authority applies to purchases from the State, municipalities or other regions recorded at art

4.6-4.8.



With regard to the distinction between hovedart 4 services, etc., and the main art 1 Wages, please refer to the commentary on the hovedart 1.



At art 4.0 services without VAT registered the services which is not VAT. In addition, at the art 4.0 should be posted certain expenses, which are not actual services, but more in the nature of purchases and acquisitions, which, however, are not subject to VAT (URf.eks. avisabonnemen ter and the purchase of certain works of art).



At art 4.9 Other services, etc., may only be charged VAT plated benefits.



Payments between regions re gistreres under art 4.8 (respectively 7.8).



Payments between municipalities and regions are recorded under art 4.7 (respectively, 7.7).



Services in the arts Division is divided in 6 categories:



4.0 services without VAT

4.5 Construction and craftsman's services

4.6 the Payments to the State

4.7 Payments to municipalities

4.8 payments to regions

4.9 Other services etc.



As examples of posting on each species under hovedart 4 can be entered:



4.0 services without VAT

Certain administrative services, URf.eks. quotas for regional associations, non-taxable diets to region rådsmedlemmer, porto, some newspapers and magazines

Taxes, certain fees and insurance, URf.eks. property taxes, vehicle tax, building insurance, fire insurance and homeowners insurance

Health services, URf.eks. General medical and health plejemæssig bi condition payment to private hospitals, payment for various studies

Some transport costs, URf.eks. Universal reimbursement, patient transport and non-VAT-covered expenses for bus transport

Purchases and acquisitions, there is no VAT coated, including URf.eks. share of heating costs charged by non-VAT registered housing associations and the like.

Payment of order. human diagnostic analyses.



4.5 Construction and craftsman's services

All costs for the construction, repair and maintenance, which is not done by the region's own staff



Payments to the State



4.7 and 4.8 Payments to municipalities, respectively, regions

Outpatient examinations and treatments in hospitals in other regions

Admissions to special treatment at hospitals in other regions

Studies



4.9 Other services

Certain administrative services, URf.eks. ads and it spending as well as the remuneration of experts, etc.

Freight

Review and phone etc.

Sanitary services, URf.eks. cleaning, drive and burning of falls, chimney sweeping, dredging, washing and cleaning and window cleaning

Cost of water



HOVEDART 5 GRANTS and TRANSFERS

On hovedart 5 Grants and transfers shall be recorded as a general rule, the cost of which is not directly matched by performances with the beneficiary. In addition, the recorded expenditure in connection with medical coverage at the hovedart 5.



Direct pensions paid out will be recorded on the function 4.40.31.



Subsidies and transfers in the arts Division is divided in 3 categories:



5.1 civil service pensions, etc.

5.2 transfers to persons

5.9 Other subsidies and transfers



As examples of posting on each species under hovedart 5 may be indicated:



Civil service pensions, etc.

Direct pensions and benefits paid out (but not premiums for employee pension insurance schemes, since the pension insurance premium tes registers res under hovedart 1)

Pension transfers at the transition between State and regions or between two regions (paying region: debit, recipient region: credit)

Pension payments accruing to the region (credit)

Wait for money and rådighedsløn



5.2 transfers to persons

Substitutes

Diet allowance for residents of institutions, etc.

Cost of health insurance



5.9 Other subsidies and transfers

Grants to associations and institutions

Subsidies to staff clubs

Subsidies for transport companies



HOVEDART 6 FINANCIAL EXPENSES

Hovedart 6 Financial expenses are recorded on the expenditure, as implemented on the main account 5. Outside of this main account used hovedart 6 only in connection with the return of the region's seizure on the individual areas of activity on the main account 1-3. Under hovedart 6 is no authorized species.



As examples of posting under hovedart 6 can be entered:



6 Financial expenses

Exchange rate losses

Interest expenses



HOVEDART 7 REVENUE

On hovedart 7 revenue recorded revenue from the sale of products and services to the State, municipalities, other regions, as well as private. For these revenues fall fare payments for municipalities the use of institutions in the region. UN der hovedart 7 also recorded revenue from the sale of immovable property, as well as proceeds from the rental of facilities belonging to the region.



It should be noted that the State reimbursements, reason and development contributions from municipalities as well as block grants from the State registers of res during hovedart 8 Financial revenues.



Revenue is in the arts Division is divided in 6 categories:



7.1 Own rent income

7.2 Sale of products and services

7.6 Payments from the State

7.7 Payments from municipalities

4.8 Payments from regions

7.9 other revenue



Payment between regions is illustrated under the auspices of art 7.8 (4.8).



Payments between municipalities and regions are recorded under art 7.7 (4.7). As examples of posting on each species under hovedart 7 may be indicated:



7.1 Own rent income

Contractually fixed rent payments for the property owner as well as the region itself heat contribution in connection therewith, if heating costs are included in the VAT refund scheme

Contractual rent payment for staff housing (housing, medical teacher housing, etc.) the region itself owns as well as heat contribution in connection therewith, if heating costs are included in the VAT refund scheme.



At art 7.1 Own rent revenues are recorded all rent payments, heat contribution, etc. on own properties to residential as well as other purposes.



In doing so, used the criterion, which is located behind the drawback system in VAT refund scheme, see. section 2.6.2. In the case of a complex benefits view-so a performance, which in addition to rent, heat, etc. relating to contributions own properties contain other elements-should there be a breakdown of the nature of art 7.2 or 7.1 and 7.9 of the relevant parts of the service, if this is possible. Otherwise, re gistreres income at art 7.1. For housing in the region's own judgments, the entire property rental income, the contribution of heat, etc. (as well as Government grants residents egenbeta ling) recorded at art 7.1.



Rent income which is member of a VAT registered company, shall be recorded at art 7.9.



Residents ' payment for rent in institutions for the elderly and handicap for the adults must be registered at art 7.2.



It should be pointed out that rent payments, contributions, etc., heat on own property judgments from the State, municipalities or other regions must be recorded at art 7.1 (or art 7.9, in the case of revenue, which is member of a VAT registered company) and not on the species 7.6-7.8.



7.2 Sale of products and services

Outpatient studies and treatments for even paying patients

Other care and therapeutic services

Work performed for private

Residents ' payment for rent and service package in institutions for the elderly and adults with disabilities

The use of the protected housing

Parents pay for day care centers, etc.

Canteen sales to patients, visitors and staff

Cure and care for inpatients even paying patients

Sale of apparatus and instruments, etc.

Sale of books, etc.

Sale of furniture

Sale of food portions and food waste

Sales of machinery and transport equipment

Sale of technical equipment and installations

Sale of goods

Studies and treatments for insurance companies



7.6 Payments from the State

Outpatient studies and treatments

Hospitalized military patients

Services rendered



7.7 and 7.8 Payments from municipalities respectively regions

Deals on social and special education area

Outpatient studies and treatments

Patients to special treatment



7.9 other revenue

Charges and fees

Compensation from insurance companies

Rent payment for land and land

Rent payment for fixtures

Contractually fixed rent payments for properties region le you as well as heat contribution in connection therewith;

Contractual rent payment for staff housing (housing, medical teacher housing, etc.) as well as hot bearings contributions in the region related

Sales of land and buildings




HOVEDART 8 FINANCE INCOME

On hovedart 8 Financial income recorded revenues kept on main account 5. Outside these main accounts used hovedart 8 in connection with State reimbursements, as well as by governmental subsidies on main account 1-4.



Hovedart 8 is divided in 3 categories:



8.1 Financial earnings

8.5 grant from municipalities

8.6 the State grants



By repayments/after adjustments by grants from municipalities and Government subsidies used debit transaction on art 8.5 and art respectively 8.6.



As examples of posting under hovedart 8 may be indicated:



8.1 Financial earnings

Exchange rate gains

Interest income

Grants from EU



8.5 grant from municipalities

The basic contribution

Development contributions

Municipal activity depending on the contributions in the field of health



8.6 the State grants

General grants

State refunds

Repayments/after adjustments of government subsidies

Activity-specific grants from the State in the field of health



It should be noted that payments from the State, which corresponds to a service, continue to be recorded at art 7.6 Payments from the State.



HOVEDART 9 INTERNAL EXPENDITURE and REVENUE

Registration of expenditure and income in connection with internal settlements between different functions and cost centers in the region can be made in 2 ways in budgetary and accounting system. Either by using the plus-/minusposteringer or through the use of the internal species at hovedart 9.



Each region shall take a decision on the registration form itself, it wants to use. Regardless of the registration form should the internal settlements as far as possible reflect the ascertainable transfers.



By plus/minus transactions recorded settlement positive on "buying institution" and negatively to "sell the institution". To arts Division can continue to show the correct distribution of expenditure and revenue of the individual species, plus/minus transactions happen on the same species.



Tax refund be taken home by registration on the "buy the institution". Furthermore, it should be stressed that the starting point must be registers ring on the external species when settling VAT plated services between accounts relating to VAT registered company and accounts relating to the VAT refund scheme. This is due, inter alia, that the statement of the VAT in momsrefusionsord ningen is done on the basis of the registration on the external species.



Select the region to register internal settlements under hovedart 9, it shall do so by applying the including authorized species.



In order to avoid an artificial increase in the region's expenditure and income in connection with the transfers are considered hovedart 9 always as an expense category. This implies that the internal revenue (art 9.7) on both the budget and the accounts should be re gistreres as negative expenditure.



Internal expenditure and revenue are in the arts Division is divided in 4 categories:



9.1 uploaded salaries

9.2 the transferred item purchases

9.4 transmitted services

9.7 Internal Revenue



In connection with that, both in the budget and the accounts should be transferred shares of common purpose, administration and interest from main account 4 and 5 to the main account 1-3, it is obligatory to use hovedart 9 to record the internal transfers. In this situation must not be used plus/minus transactions.



Section 2.6



2.6 sales tax



It is the general rule in the regional budget and accounting system that costs and revenues on both operating as a fixed account should be recorded net of VAT in the regional budgets and accounts.



From this general rule are individual-specific exceptions, which are further discussed in section 2.6.2 purchase tax.



A distinction is made in the regional budget and accounting system between two types of VAT



Registered VAT, IE. VAT settled with the payment of taxes in connection with VAT registered business in the region

Purchase VAT, IE. VAT is included in the regional VAT refund system



Posting rules are different for the two types of VAT. The rules are gene nemgået in the following sections.



2.6.1 REGISTERED VAT

Registered VAT is used here to describe the settlement of VAT with TAX, which will take place in connection with VAT registered business in the regions.



The legal basis for this settlement is found in lovbekendtgørelse nr. 906 of 14. October 2005 on the value added tax law. The rules include the regional institutions in the marketing of goods or taxable services which looks to private, State or other regions



Both amounts for incoming and outgoing sales tax as the settlement of VAT with TAX in the regional budgets and accounts must be registered on the function 6.52.59 intercompany account.



Creates a kontosæt for each VAT registration, consisting of the following accounts:



XX sales tax receivable

XX udgående moms

XX Settlement of VAT



The settlement must be done separately for each VAT registration.



For purchases of goods, that both are used in connection with VAT registered company and for other purposes, shall be carried out at a breakdown of the sales tax amount at line bet. The part relating to the VAT registered company, shall be recorded as input tax in the company's tax accounting. The second part of the VAT refund via notification to the VAT refund scheme over, see. section 2.6.2. Reg Les for the allocation of VAT amounts can be found in the Tax Ministry's consolidated Act on value added tax (VAT).



2.6.2 PURCHASE VAT

Purchase VAT is used here to describe the VAT, as the regions be talking through the purchase of goods and services that are not part of a VAT registered business in the regions.



In accordance with Act No. 497 of 7. June 2006 on competitive equality between municipalities and regions self-generation and the purchase of services from external suppliers in relation to expenditure on value added tax, etc., as well as on tax Foundation can expand the regions as a general rule the purchase VAT refunded through a reimbursement scheme.



The purpose of this refund system is to strive for a level playing field between private industry and the manufacture of services for their own use. Reimbursement of purchase VAT means that each region in the choice between accomplishing tasks in-house or by forward mede services can ignore the purchase tax.



Below is a detailed explanation of accounting rules in connection with purchase tax. There must, in addition, reference is made to the provisions of the above-mentioned Act No. 497 of 7. June 2006, as well as in the Ministry of the Interior Decree on the municipal and regional VAT refund scheme.

Posting of purchase tax

Purchase VAT and the reimbursement thereof shall be recorded in the regional budgets and accounts on function 5.80.95 Refund of purchase tax. Under the function is authorized two groupings:



002 reimbursement of purchase tax

003 Expenditure to purchase VAT



Registration on the groupings must in all cases be carried out by use of hovedart 6 Financial expenses.



Reimbursement of purchase tax and refund of grants pursuant to the VAT refund scheme, the positive list budgeted and accounted for in the Group ring 002. Since hovedart 6 Financial expenses used for registration, should this be in the form of a negative expense transaction.



Costs of purchase VAT and indirect costs to the purchase VAT, see. VAT refund scheme, the positive list, budgeted and accounted for in the Group ring 003. In addition, budgeted and accounted for in the Group ring 003 back payment of momsrefu sion in connection with income covered operating company (rent receipts), purchase VAT of fixed costs of disposal of assets, within 5 years and repayment of 17 ½% of grants from foundations, private associations, institutions and the EUROPEAN UNION, etc., the rules mentioned below in the section for "refund arrangements concerning the VAT refund scheme".



Reimbursement of purchase tax

The amount of VAT refundable through the reimbursement scheme, includes VAT expenditure incurred on main account 1-4, with the exception of the auspices are registered for VAT, see. section 2.6.1.



From this general rule is that the following specific exceptions:

Tax expenditure of operational and capital expenditures on function 3.10.01 For shots to transport companies and function 2.10.30 General senior housing.

 Vat expenditure on capital expenditure for independent or private institutions tions on main account 2, provided the institution has rented it in or will let them into the premises owned or performed by other than the institution, or if there is no signed agreement with the region before engineering activities starting

 Vat expenditure related to corresponding fixed expenditure for independent or private institutions on function 1.10.01 hospitals and 2.10.01 Social deals, special education and counseling, to the extent that these accounting rules should be included in the regional budgets and accounts



You mentioned the tax expenditure may not be reported for reimbursement. As a result, in these cases as exceptions to the general rule be subject to registration costs include VAT in the regional budgets and accounts.



The VAT-bearing species

The administration of VAT refund scheme is organised in such a way that the regions incurred to purchase VAT shall report monthly to the Ministry of social welfare for the purpose of reimbursement.




In order to ensure a uniform and unambiguous determination of the costs of purchase tax, which is included in the reimbursement scheme, is arts Division structured so that there is only on some specific species recorded expenditures with purchase tax.



It is all about:



Art 2.2 foods

Art 2.3 Fuels and propellants

Art 2.7 Acquisitions

Art 2.9 Other purchases

Art 4.5 Contractor and craftsman's services

Art 4.9 Other services etc.



This Division of the species implies that at art Other services, etc. may only be 4.9 charged VAT plated benefits.



Services that are not covered, on the other hand, must be charged sales tax on art 4.0 services without VAT. It is essential for posting at the art 4.0 is, therefore, that in the case of non-VAT-covered services. Whether art or art 4.9 4.0 must be used in connection with the registration of allowances (telefongodtgø, hotel allowance etc.), based on whether the allowance is paid in accordance with the Bill, where the amount is included in the sales tax expenditure.



At art 4.0 must also be charged certain expenses, which are not actual services, but purchases and acquisitions, which are not subject to sales tax. Examples include newspaper subscriptions and the purchase of certain works of art.



As discussed in section 2.5, it is voluntary for regions, whether they want to apply the species under hovedart 9 Internal expenditure and revenue by the registration of internal accounts, except in the case of transfer of shares of expenditure on common purposes from the main account 4 and 5 to the main account 1-3.



In the interests of the administration of VAT refund scheme, however, it is necessary that the regions as a starting point, registering on the external species in connection with settlement of VAT plated services between accounts relating to VAT registered company and accounts relating to the VAT refund scheme. It is due to the fact that the inventory of the VAT in the VAT refund scheme carried out on the basis of the registration on the external species.



Internal billing of services, which are VAT-stoned, must therefore only be recorded with the use of hovedart 9, when settlement occurs between accounts, as in relation to sales tax payments are the same. When settling VAT plated benefits between accounts, as in relation to VAT settlement is different, the amount debited, which moved through the use of an external nature. The account from which the amount is credited is moved using the same external nature.



The administration of VAT refund scheme involves, Furthermore, that the purchase of goods or services from the State or other regions in the relevant area of activity is VAT registered and, therefore, settles their shipments including VAT, should be posted on one of the VAT-bearing expenditure categories and not at art 4.6, 4.7 or 4.8.



A region may, however, be good when it buys goods and services abroad for delivery in Denmark, review the import VAT and VAT is settled at the acquisition tax to reimbursement in the Welfare Ministry. Momsafløftningen happens here in the same way as if the purchase was made in Denmark (i.e. through posting on the VAT-bearing species).



The positive list

In addition to expenditure on the VAT-bearing species can regions report a percentage of certain payments and reimbursement for reimbursement under the reimbursement scheme. The background for this is that a number of regions seems activities perform by private or associations. If the share of these payments or grants that cover VAT costs, could not be declared to the refund, it would counteract the intended competitive neutrality and favoring the execution of tasks in the regional framework.



The grants, etc., that can be reported to reimbursement, be counted as a percent of the posted expenses on certain functions and species. Rules laid down in the Welfare Ministry's Decree on the municipal and regional VAT refund scheme, and the list of payments and subsidies that can be notified to refund – the so-called positive list – are annexed to this section.



The part of the grant, as may be notified to the refund does not post on main account 1-4, but at function 5.80.95. Reimbursement of purchase tax.



Joint regional activities

For the sake of the reimbursement scheme applies to joint regional activities, as in one of the community's regions accounted for with full artsspecifika tion on main account 1-4, to the other regions in the community must expense payments for this at art 4.7. VAT expenditure shall be notified as to the reimbursement of the returning region, which will then forward the Bills excluding VAT to the other regions of the community.



However, this does not apply if the returning region is registered for VAT in the area concerned. In this case to be settled including VAT, without prejudice. the comments above on the use of an external expense category, in the case of settlement of deliveries including VAT.



Common regional companies that for administrative reasons, is independently returning, can-if there is approval from the Ministry of welfare-review purchase tax for reimbursement through the regions of the community, with the exception that undertaking, which may be assigned to functions, 1.10.01 hospitals are exempt from approval.



We are not talking about a grant or transfers should be posted at art 5.9, the community can purchase VAT will be refunded as follows. Regional payments to the Community shall be specified on a VAT-bearing payment charged to at art 4.9, and a non-VAT-bearing payment charged to at art 4.0. The split on VAT-bearing and non-load-bearing VAT payment shall be made on the basis of how large a portion of the payment relating to VAT plated, coated, respectively, to non-VAT expenditure. This is an on-account payment with the community, should the allocation shall be made on the basis of the proportion of allowances were paid by be relating to VAT-stoned, respectively non-VAT-covered expenses. In the final financial reporting must amounts on art 4.9, respectively, shall be adjusted so that the art 4.0 comes to correspond to the actual distribution of Community expenditure on VAT-bearing and non-VAT-bearing expenditure.



By actual purchases of goods and services from a community which is even stændigt returning, there shall be charged on any of the usual expense categories.



Particularly on independent/private institutions

On the independent and private institutions, which are independently returning after the region's standardized accounting plan, accounting made inclu sive purchase tax.



The transfer of the budget to the institution can the VAT-bearing species to be purchase VAT, so that authorization to the control of the institution continuously carried out on the basis of costs including purchase tax.



The institution's budget shall be shown in the region's annual budget without purchase VAT, and by the institution's reporting of financial statements to the region should cost registers res on the relevant species in the normal way, whereby the purchase VAT automatically extract les and attributed to the function 5.80.95.



Inclusion of fixed asset ledger entries for independent and private institutions (except private leader owned institutions), with whom there is the operating agreement entered into before the commencement of the works, means that there may be granted VAT refund of incurred capital expenditures. In cases where an institution has hired into el clay will let them into buildings owned by other than the institution, shall not be eligible for tax refund of the construction costs of the basic regulation. also above.



Refund arrangements concerning the VAT refund scheme

For revenue covered the operating company shall purchase VAT, covered by rent income, exempt from reimbursement. This is done by 7.5% of the posted own rent income on the monthly balance by leaving art 7.1 inventory of purchase VAT refund. Rent revenue registered at art 7.1.



For other forms of income covered operational activities are not offsetting.



In the interests of a correct statement of the repayment amount and reconcile regulatory reasons it is necessary to use a special category for registration of own rent revenues.



Posting rules are therefore designed in such a way that art 7.1 reserved rent revenue not derived from underlease. Revenue in the form of heat contribution (including on-account contribution) in connection with the said leasehold shall also be recorded at art 7.1. All other rental income must be recorded at art 7.2 or art 7.9.



The repayment amount will be minus record in the monthly saldoop lication to Ministry of welfare of the amount for VAT refunds must be registered on the 5.80.95 function, grouping 003. The registration of counterparts to back beta lingsbeløb must be on the relevant function, where the income that has caused the repayment shall be posted.



For fixed expenses, refunded the purchase VAT shall be refunded to the VAT refund scheme, if the plant is sold within a period of 5 years. This refund rule is administered as a starting point, therefore, that the repayment be calculated on an ongoing basis in connection with the sale of the plant.



In case of sale of total plant is sufficient to account for the repayment by the Regional Council's approval of the construction company. In the case of multi-stage sale of a plant in URf.eks. building plots, the repayment be made regularly or at least once a year, so that refunded purchase VAT reimbursed for the parts of the plant that is established for a period of up to five years before the sale




Reimbursement of purchase tax, which must be refunded shall be determined on the basis of an additional expenditure on the company's VAT-bearing species. Repaid another part of the reimbursement equal to sales revenues, the share of total expenditure in the financial statements including. VAT. The repayment, however, may not exceed the refund paid.



Repayment shall be entered in the balance statement to the Ministry of social welfare as a minus record under grouping, 003. Registration of the balancing entries to the refund amount must be made on the relevant function, where the sales income, which caused the repayment shall be posted.



For the payment of compensation for damages or similar must purchase tax refun suspended in connection with the rectification of the damage in question will not be refunded.



Purchase VAT expenditure incurred in the purchase of goods and services, funded by grants to the region from foundations, private associations, institutions, etc. are not subject to refund. This applies mutatis mutandis to the fixed grant from the EU structural funds distributed by the Danish State, and directly fixed grant from the EU. (Grants from government agencies and other public bodies are generally not covered by the reimbursement scheme the repayment rule).



This rule is administered by, to an amount equivalent to 17.5% of the mentioned types of grants will be refunded for VAT refund scheme.



It is true, however, as an exception, to research grants recorded on function 1.10.01 hospitals not covered by the refund rule.



Repayment shall be entered in the balance statement to the Ministry of social welfare as a minus record under grouping 003 with counterpart at the relevant function, where the subsidy, which has caused the repayment shall be posted.



Example:

The example shows the accounting of expenses and purchase tax and refund them in for occupation health









Account for hospitals





Cash account





Account for purchase VAT (in function 5.80.95, group 003)





Account for reimbursement of purchase VAT (in function 5.80.95, (Group 002)





 

 

 

 

 

 

 

 





6001)



 

 



6001)



 

 

 

 



 

 

 



1501)



 

 

 

 





3002)



 

 



3002)



 

 

 

 



 

 

 



752)



 

 

 

 





5003)



 

 



5003)



 

 

 

 



 

 

 



1253)



 

 

 

 





3004)



 

 



3004)



 

 

 

 



 

 

 



754)



 

 

 

 



 

 

 

 



4255)



 

 

 



 

 



4255)



 

 

 



4255)



 







Notes to account the sketches:

Expenditure on other goods-art 2.9

Expenditure on acquisitions-art 2.7

The costs of construction and craft services-art 4.5

Expenses for other services etc.-art 4.9

Costs of purchase tax

Reimbursement of purchase tax-shown as "negative cost" in the function 5.80.95, group ring 002









 



ANNEX positive list for regionergældende from and with accounting 2007



 





Artkonto





Function



 



VAT cooperative percent





 

 

 



(Operation: DR1)





(Asset: DR3)







4.07)





1.10.01





Hospitals





36 *





-







4.04)





2.10.01





Social promotions, special education and counseling





25





-







5.91)





3.10.01





Subsidies for transport companies





10 *





-







5.9





3.20.10





Grants for cultural activities





40





85









* Vat percentage includes a payroll cooperative cooperative percent.

1) is valid only for registrations on grouping 001.

4 only applies to registrations on ejerstedkode 2) independent/private institutions without an operating agreement with the municipality/region.

7) applies to non-profit/private hospitals, etc. as well as passenger transport performed by private URleverandører.mv.



Calculation of VAT and payroll cooperative percentages:

For each function on the positive list is calculated a VAT percentage that reflects the cooperative, what proportion of the cost of the benefit in question, which are subject to VAT. Similarly, there are, for those with * marked the relevant benefits, calculated a payroll cooperative percent, reflecting how great a proportion of the total cost of the benefit in question, there is wage costs. Payroll cooperative percentage is subsequently converted into VAT cooperative percentage by multiplying the percentage of cooperative with payroll (3.08/103,08)/(25/125), with private suppliers in the relevant fields, paying a payroll tax on 3.08% of the wage bill + surplus/deficit. Then is the converted lønsumsandelprocent and VAT percentage added together into one cooperative VAT and payroll cooperative percent. FX is payroll cooperative percentage for bus services 65%, giving a sales tax and payroll cooperative percent on 10 (65 * (3.08/103,08)/(25/125) = 9.7).



Figure example of the amount for reimbursement for regions:

Given grant of 1,000 DKK (function 1.10.01 hospitals, art 4.0).

Amount of refund: 1,000 DKK x 36% x 25/125 = 72 USD.

In the example, the following is recorded in the budgetary and accounting system for regions:

– Expense, excl. the calculated sales tax charge IE. 1,000 DKK – kr = 928 us $ 72. recorded on function 1.10.01 hospitals, art 4.0.

– the calculated sales tax charge, IE. 72 USD is registered on the function 5.80.95, grouping 003.

-sales tax reimbursement, IE. 72 USD is registered on the function 5.80.95, grouping 002.



Chapter 3



3 the AUTHORISED ACCOUNT PLAN



Content Section



1 Health 3.1

2 Social and special education 3.2

3 Regional Development 3.3

4 common purpose and administration 3.4

5 Interest etc. 3.5

6 Balance 3.6



Section 3.1



1 Health



HOSPITAL SYSTEM

1.10.01 hospitals

1 Operation

120 Medicine

130 Implants

140 Other medical articles

150 Clinical analyses

210 Patient Insurance

220 Patient injury compensation, hospitals

230 Patient injury compensation, practice and private hospital



HEALTH INSURANCE, ETC.

1.20.10 General medical care

1.20.11 medical advice

1.20.12 Medicine

1.20.13 Dental treatment

1.20.14 Fysiurgisk treatment

1.20.15 Chiropractor

1.20.16 Glasses

1.20.17 travel medical insurance

1.20.18 Podiatrists

1.20.19 Psychologist treatment

1.20.20 Other health care costs

1.20.21 Nutritional preparations

1.20.22 Prophylactic pregnancy tests

1.20.23 medical examinations of children

1.20.24 Vaccinations

1.20.30 Specialized dental care deals



MISCELLANEOUS EXPENSES AND INCOME


1.60.40 Central administration of health

1.60.41 Other expenses and income



SHARE OF COMMON PURPOSE AND ADMINISTRATION

1.70.50 common purpose and administration expenses regarding. health



THE SHARE OF INTEREST, ETC.

1.80.60 Interest, etc.



FINANCING

1.90.90 block grants from State

1.90.91 Municipal due contributions

1.90.92 Municipal activity depending on the contribution

7 Finance

833 Stationary somatik

834 Mobile somatik

835 Inpatient Psychiatry

836 Outpatient Psychiatry

837 Practice sector (health insurance)

838 Rehabilitation during hospitalization



Activity-specific grants from the State

Grants from bleed the compensation system



Section 3.2



2 Social and special education



SOCIAL PROMOTIONS AND SPECIAL EDUCATION

2.10.01 Social deals, special education and counseling

2.10.30 General senior housing

1 Operation

501 Performance support regarding senior housing

502 rent default

503 rental income



MISCELLANEOUS COSTS AND REVENUES

2.60.40 Central administration of social welfare

2.60.50 Other costs and revenues



SHARE OF COMMON PURPOSE AND ADMINISTRATION

2.70.60 common purpose and administration costs. social promotions and special education



THE SHARE OF INTEREST, ETC.

2.80.70 Interest, etc.



SPECIAL ADMINISTRATIVE TASKS

2.85.80 special administrative tasks



FINANCING

2.90.90 Objective financial contribution

7 Finance

831 Objective funding – social area

832 Lens financing – special education area



2.90.91 block grants from State



Section 3.3



3 Regional development



PUBLIC TRANSPORT

3.10.01 subsidies for transport companies

1 Operation

001 subsidies for transport companies relating to services performed by private suppliers



CULTURAL ACTIVITIES

3.20.10 grants for cultural activities



BUSINESS DEVELOPMENT

3.30.20 Growth forums

3.30.21 Tourism

3.30.22 Innovation and new technology

3.30.23 business services and entrepreneurship

3.30.24 human resource development

3.30.25 Development of the outer rural areas

3.30.29 Central administration of business development area



TRAINING

3.40.30 Regional development tasks in the field of education

3.40.39 Central administration of regional development in the field of education



ENVIRONMENT

3.50.40 soil pollution

3.50.41 raw materials

3.50.49 Central administration environment



MISCELLANEOUS COSTS AND REVENUES

3.60.50 Other costs and revenues



SHARE OF COMMON PURPOSE AND ADMINISTRATION

3.70.60 common purpose and administration costs. business development (function 3.30.20-29)

3.70.61 Common costs and administration costs. regional development tasks in the field of education (3.40.30-39)

3.70.62 common purpose and administration costs. soil pollution and raw materials (3.50.40-41)

3.70.63 Common costs and administration costs. other regional development tasks (3.50.49-3.60.50).



THE SHARE OF INTEREST, ETC.

3.80.70 Interest



FINANCING

3.90.90 block grants from State

3.90.91 Municipal development contributions



Section 3.4



4 common purpose and administration



POLITICAL ORGANIZATION

4.10.01 common purpose

4.10.02 Cor rådsmedlemmer

1 Operation

040 Remuneration, etc. for politicians

4.10.04 Choice, etc.



ADMINISTRATIVE ORGANISATION

4.20.12 Secretariat and administrations



LØNPULJER

4.30.21 Lønpuljer



CIVIL SERVICE PENSIONS

4.40.31 civil service pensions

1 Operation

050 payment of pensions to civil servants resigned before 1.1.2007.

2 State reimbursement

050 reimbursement of pension payments. officials resigned before 1.1.2007.



MISCELLANEOUS COSTS AND REVENUES

4.60.51 Other costs and revenues



THE SHARE OF INTEREST, ETC.

4.65.61 Interest, etc.



TRANSFER to MAIN ACCOUNT 1-3

4.70.99 Transmission-common purpose and administration



Section 3.5



5 Interest, etc.



INTEREST ON LIQUID ASSETS

5.10.05 Deposits at financial institutions, etc.

5.10.08 mortgage bonds

5.10.09 Municipality credit bonds

5.10.10 government bonds, etc.

5.10.11 liquid assets issued in other EU/EEA countries



INTEREST ON SHORT-TERM LOANS AND ADVANCES IN ADDITION,

5.28.14 accounts receivable in payment checks

5.28.15 Other receivables concerning main account 1-4

5.28.18 financial assets belonging to the self-governing institutions with operating agreement

5.28.19 receivables from communes and other regions



INTEREST ON LONG-TERM RECEIVABLES

5.32.20 mortgages

5.32.21 Shares and cooperative evidence, etc.

5.32.22 receivables from property owners

5.32.23 lending to residents ' deposits

5.32.25 other long-term loans and receivables

5.32.26 non-liquid bonds

5.32.27 deposited amount for loans, etc.



INTEREST on the OUTLAY for MAIN ACCOUNT 2 and 3

5.35.30 interest on the outlay adj. main account 2-3

4 Interest

002 Social tasks

003 Regional development



INTEREST ON SHORT-TERM DEBT TO FINANCIAL INSTITUTIONS

5.50.50 overdrafts and bridging loans



INTEREST ON SHORT-TERM DEBT TO THE STATE

5.51.52 other Payables



INTEREST ON SHORT-TERM DEBT IN ADDITION

5.52.54 Municipalities and other regions

5.52.56 Other short-term debt with domestic payment recipient

5.52.57 Other short-term liabilities with foreign payee

5.52.59 intercompany account

5.52.61 self-governing institutions with operating agreement



INTEREST ON LONG-TERM DEBT

5.55.63 self-governing institutions with operating agreement

5.55.64 State and mortgage bank

5.55.65 Municipalities and other regions

5.55.66 local government pension insurance

5.55.67 other insurers

5.55.68 mortgage

4 Interest

001 Regional senior housing

the municipality of 5.55.70 Credit

4 Interest

001 Regional senior housing

5.55.71 financial institutions

4 Interest

001 Regional senior housing

5.55.74 Public debt securities emitted in foreign countries

4 Interest

001 Regional senior housing

5.55.75 Other long-term debt with domestic vendor

4 Interest

001 Regional senior housing

5.55.76 Other long-term debt with foreign creditors

4 Interest

001 Regional senior housing



EXCHANGE LOSSES AND GAINS

5.75.78 capital loss and exchange rate gains, moreover,



REIMBURSEMENT OF PURCHASE TAX

5.80.95 Refund of purchase tax

2 State reimbursement

002 reimbursement of purchase tax

003 Expenditure to purchase VAT



TRANSFER to MAIN ACCOUNT 1-4

5.90.99 transfer – interest rates, etc.



Section 3.6



6 Balance



LIQUID ASSETS

6.10.01 Cash holdings

6.10.05 Deposits at financial institutions, etc.

6.10.08 mortgage bonds

6 October 2009 Municipality funds bonds

6.10.10 government bonds, etc.

6.10.11 liquid assets issued in other EU/EEA countries



LOANS AND ADVANCES TO STATE

6.15.13 receivables from the State

8 Assets

001 Cash amount owed by the State as a result of sharing agreement



SHORT-TERM RECEIVABLES, MOREOVER,

6.28.14 accounts receivable in payment checks

6.28.15 Other accounts receivable

6.28.17 between the Bills with previous and next financial year

6.28.18 financial assets belonging to the self-governing institutions with operating agreement

6.28.19 receivables from communes and other regions

8 Assets

001 Cash advances to municipalities as a result of sharing agreement

002 Cash receivables from the regions as a result of sharing agreement



LONG-TERM RECEIVABLES

6.32.20 mortgages

6.32.21 Shares and cooperative evidence, etc.

6.32.24 Deposits in the country's building Fund, etc.

8 Assets

001 Grundkapital deposits (Deposits in the country's building Fund)

002 Basic capital to senior housing

6.32.25 other long-term loans and receivables

8 Assets

001 Lending to municipalities as a result of sharing agreement

002 lending to regions as a result of sharing agreement

003 Lending to the State as a result of sharing agreement

6.32.26 non-liquid bonds

6.32.27 deposited amount for loans, etc.



The ATTACHMENT of the MAIN ACCOUNT 2 and 3

6.35.30 Attachment adj. main account 2-3

8 Assets

002 Assets-Social tasks

003 Assets – Regional development

9 004 Liabilities – Social tasks

005 Liabilities-Regional development



ASSETS RELATING TO AMOUNT TO LEVYING OR PAYMENT FOR OTHER

6.38.36 Municipalities and regions, etc.

6.38.37 State



ASSETS OF THE FUND AND SCHOLARSHIPS



6.42.42 Scholarships

6.42.43 Deposits



LIABILITIES OF THE CORRESPONDING FUNDS AND SCHOLARSHIPS




6.45.46 Scholarships

6.45.47 Deposits



LIABILITIES RELATING TO AMOUNT TO LEVYING OR PAYMENT FOR OTHER

6.48.48 Municipalities and regions, etc.

6.48.49 State



SHORT-TERM LIABILITIES TO FINANCIAL INSTITUTIONS

6.50.50 overdrafts and bridging loans



SHORT-TERM LIABILITIES TO THE STATE

6.51.52 debt to the State

9 Liabilities

001 Cash compensation to the State as a result of sharing agreement



MOREOVER, SHORT-TERM DEBT

6.52.54 Municipalities and other regions

9 Liabilities

001 Cash compensation to municipalities as a result of sharing agreement

002 Cash compensation to other regions as a result of sharing agreement

6.52.55 holiday pay

6.52.56 Other short-term debt with domestic payment recipient

6.52.57 Other short-term liabilities with foreign payee

6.52.59 intercompany account

6.52.61 self-governing institutions with operating agreement

6.52.62 Voting and control account



LONG-TERM LIABILITIES

6.55.63 self-governing institutions with operating agreement

6.55.64 State and mortgage bank

9 Liabilities

001 Loans from the State as a result of sharing agreement

6.55.65 Municipalities and other regions

9 Liabilities

001 Loans from municipalities as a result of sharing agreement

002 Loans from other regions as a result of sharing agreement

6.55.66 local government pension insurance

6.55.67 other insurers

6.55.68 mortgage

the municipality of 6.55.70 credit

6.55.71 financial institutions

6.55.74 Public debt securities emitted in foreign countries

6.55.75 Other long-term debt with domestic vendor

6.55.76 Other long-term debt with foreign creditors

6.55.77 long-term liabilities relating to elderly housing

6.55.79 Debt on financial leased assets



TANGIBLE FIXED ASSETS

6.58.81 land and buildings

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



6.58.82 Technical plant, machinery, more specialist equipment and means of transport

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



6.58.83 Fixtures – including computers and other IT equipment

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



6.58.84 tangible fixed assets under construction and advance payments for tangible fixed assets

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



INTANGIBLE FIXED ASSETS

6.62.85 development projects and other acquired intangible assets

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



CURRENT ASSETS-INVENTORIES

6.65.86 inventories/stocks

8 Assets

001 hospitals and health – regional 002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



CURRENT ASSETS – PHYSICAL PLANT FOR SALE

6.68.87 land and buildings destined for resale

8 Assets

001 hospitals and health – regional

002 hospitals and health care – independent institutions

003 Social tasks – regional

004 Social tasks — self-governing institutions

005 Regional development tasks

006 Not allocated assets



LIABILITIES



NON-CURRENT LIABILITIES

6.72.90 non-current liabilities

9 Liabilities

001 non-insurance covered the civil service pensions



EQUITY

6.75.95 Reserve for revaluation surpluses

6.75.96 Cumulative result for health

6.75.97 Cumulative result for social and special education area

6.75.98 Cumulative result for the regional development area

6.75.99 Balance account

9 Liabilities

001 Primo equity per 1.1.2007 (opening balance sheet

002 Counterpart for value adjustments



Chapter 4



4 POSTING RULES



Content Section



Main account 1 Health 4.1

Main account 2 Social and special education 4.2

Main account 3 Regional Development 4.3

Main account 4 common purpose and administration 4.4

Main account 5 Interest etc. 4.5

Main account 6 Balance 4.6



Section 4.1



Main account 1 Health



The main account includes the expenditure and revenue relating to regional hospitals and related institutions, etc., as well as the expenditure and revenue relating to health insurance. Furthermore, the recorded expenditure and revenue connected with the administration of the health sector.



In connection with the release of appropriations is applied to the main account expenditure-based principles, while in the company used both expenditure and cost-based principles.



HOSPITAL SYSTEM



1.10.01 hospitals

On this feature recorded expenditure and revenue relating to the region's hospitals as well as expenditure and revenue relating to hospital services provided outside of the region's hospitals, URf.eks. Hospice stay and treatment in other regions or abroad.



Registration on the cost center are authorized. Expenditure and revenue of the hospital area is recorded in the accounts at cost in accordance with Hospital Service Organization directory, SOR, at the lowest possible level. This means that the expense types can be registered at a given level without the use of allocation keys, must be recorded at this level, see. section 2.3.



In the budget must be registered at the hospital level, in accordance with the SOR, which is to say an independent organisational entity. A hospital may represent one or more geographical units depending on how the hospital system is organized.



Specifically for 2007 applies, that the region can choose to record income and expenses at the lowest appropriate level in accordance with the SOR, but this is not mandatory. It is enough to register on individual hospitals, see. section 2.3.



The transverse grouping structure is authorized on the function, just as it is on the other features in the chart of accounts for the regions. In addition, on a number of authorized groups feature, which is specific to the function, URf.eks. grouping 120 Medicine.



Registration on the individual hospitals

Expenditure and revenue relating to the individual hospitals are recorded at the cost office numbers in accordance with SOR at the lowest appropriate level. The regions must ensure that it is possible for the central authorities for each cost center number to derive information about the organisational unit address, head of specialty o.s.v.



Payment for services that are exchanged between the region's own hospitals transferred between cost points for those hospitals using the internal species under hovedart 9 or plus-/minusposteringer in the same art. However, the registered resource use by outpatient treatment and studies, which are the result of referrals between the region's own hospitals, only at the hospital, where the activity aims to go.



Revenue from other regions for hospitalizations, outpatient care el clay studies recorded also on individual hospitals, under the application view of art 7.8.



Joint account

Common expenses and revenues relating to the hospitals is recorded at cost place 0001. On the joint account recorded expenditure and revenue which are not objectively can be allocated to the individual hospitals.



Payments to other regions regarding admissions, am bulant treatment or investigations in somatic hospitals must also be recorded on the common cost center and by the use of grouping 810 Payments – other regions. If the individual hospital disposal costs to other regions in connection with admissions, outpatient treatment or investigation see can be recorded by subdividing the joint account and let the simple tea hospitals dispose of a part of it. Registration should not be at the cost of ningsstederne for individual hospitals.




Payments to other government authorities is registered under ejerforholds code 3 Other public authorities. Payment for inpatient care at private hospitals and for hospitalization in foreign hospitals registered under the ejerforholds code 2 independent/private and by the use of grouping 820 Payments – private hospitals and institutions



Independent and private hospitals, with which the region has operational presence, be included in the region's budget in line and accounts in accordance with the rules of non-profit and private institutions, listed in section 2.3.



It should be stressed that there must be an actual operational agreement, IE. that the region must have influence on a wide range of aspects of the operation, see. What is applicable to non-profit and private institutions with operating of contracts in the social sphere. Track access agreements alone justifies so not to independent/private hospitals are admitted in the region's budget or accounts. Recording a private/non-profit hospital in the budget and the accounts, no matter where that the General rules on interregional payments (use of art 4.8 respectively 7.8) in the event that other regions using seats at that hospital.



The provisions concerning the inclusion of independent and private hospitals in the region's budget and accounting also applies to institutions with a service of enskomst, provided that they fall within a hospital. It is in this respect, un derordnet, whether they receive patients for inpatient or outpatient treatment.



Help functions

In addition, a number of ancillary activities recorded feature that are resolved at common ground within the region's hospital system, and which do not directly have to do with patient care. It relates to the activities, which are often undertaken by independent organisational units, URf.eks. course departments, central laundries, central kitchen, transport of patients.



HEALTH INSURANCE, ETC.



On this main feature is recorded the regional expenditure and revenue with before the law on public health insurance.



There are authorized the following comprehensive features for the registration of the various categories of expenditure:



1.20.10 General medical care

1.20.11 medical advice

1.20.12 Medicine

1.20.13 Dental treatment

1.20.14 Fysiurgisk treatment

1.20.15 Chiropractor

1.20.16 Glasses

1.20.17 travel medical insurance

1.20.18 Podiatrists

1.20.19 Psychologist treatment

1.20.20 Other health care costs

1.20.21 Nutritional preparations

1.20.22 Prophylactic pregnancy tests

1.20.23 medical examinations of children

1.20.24 Vaccinations

1.20.30 Specialized dental care deals



It should be noted that on all other expenses are recorded, 1.20.20 function URf.eks. to shot to rideterapi, grants for training and treatment as well as out to an interpreter in connection with marries medical treatment.



In connection with public health insurance is used as a starting point art 5.2.



Art 5.2 shall be applied so as to record the expenditure for payment of bills, which can be specified on the individual patient, including the cost of medications and supplements for glasses. In addition, apply the General rules of arts features for posting.



In connection with the use of art 5.2 must be by transfers of services or products from a different account area in the region to the main function of a recovery are taken registration of fore sale on the account area from which the sales fo retages (URf.eks. function 1.10.01) through the use of art 7.2 or 7.9. For other transfers, see General rules for internal payments apply.



Only health care costs to the region's own citizens must be reflected in the main funk combination. Outlay for health care costs for other regions must therefore either be recorded on an intercompany account or may be covered by kredite ring.



It should be noted that the expenditure and revenue relating to health insurance certificates must be registered under the auspices of function 1.60.41



MISCELLANEOUS EXPENSES AND INCOME



1.60.40 Central administration of health

On this feature recorded costs to be incurred by central units in connection with the administration of the health sector, including the salaries of administrative staff, wholly or predominantly concerned with health matters. Expenditure on administration, which will take place in hospitals and institutions relating to these, re gistreres on the other hand, on function 1.10.01.



1.60.41 Other expenses and income

On this feature recorded expenses and income that cannot be allocated to functions 1.10.01-1.60.40.



SHARE OF COMMON PURPOSE AND ADMINISTRATION



1.70.50 common purpose and administration expenses regarding. health

In the context of both the budget and the accounts debited function by use of art 0.5 or 9.1-9.4 and grouping 730, internal transfers, a share of the common purpose and administration from function 4.70.99. The allocation key set by the regions, taking into account the three regional activity areas load of common area.



THE SHARE OF INTEREST, ETC.



1.80.60 Interest

In the context of both the budget and the accounts debited function by use of dranst 1. Art 0.5 or art 9.4 and grouping 730, internal transfers, a proportion of interest expenses and income from the function 5.90.99 of the basic regulation. the distribution key referred to in section 5.2.5.



FINANCING



This main function includes the General and activity dependent on subsidies from the State and municipalities for the financing of the health sector. The grants are recorded under dranst 7 and using hovedart 8 Financial revenues. By grants from the State applied art 8.6 State subsidies. Other revenue is recognized on function 1.10.01-1.60.41.



1.90.90 block grants from State

In this function the General Government subsidies for the financing of the health sector, see. § 3 of the law on the financing of the regions. Using plus-/minuspostering at art 8.6 transferred the portion of block grants that relate to social and special education area to function 2.90.91.



1.90.91 Municipal due contributions

On this feature are recorded due contributions to finance health care, paid by the municipalities in the region, see. § 6 and 19 of the law on the financing of the regions.



1.90.92 Municipal activity depending on the contribution

This function is registered the municipal activity-dependent contribution, which consists in the fact that a municipality pays a share of the region's spending



per inpatient and outpatient treatment at hospitals for patients from the municipality,

per delivered health insurance benefit to patients from the municipality,

for rehabilitation, which is granted under the inpatient at the hospital for patients from the municipality,



without prejudice to article. sections 13 and 14 of the law on the financing of the regions.



Approved an operational grouping for each of the activity-dependent contribution:



Stationary somatik

Mobile somatik

Inpatient Psychiatry

Outpatient Psychiatry

Practice Sector (Health Insurance)

Rehabilitation during hospitalization



1.90.93 activity-specific grants from the State

On this feature are recorded the State of activity-dependent contribution to the regional hospital system, see. section 15 of the law on the financing of the regions.



1.90.94 Grants from bleed the compensation system

On the function is registered only grants from the compensatory scheme. The region corresponding to the compensatory scheme are deducted from the General grant and thus included in the recorded amount of function 1.90.90 block grants from the State.



Section 4.2



Main account 2 Social and special education



This main account include the costs and revenues in connection with the regions ' statutory duty of the supplier in relation to the municipalities for a variety of social and educational offerings. Regions receiving payment from local authorities for the operational tasks, as they assume for them.



Payments from the municipalities recorded on grouping 830 and using art 7.7 payments from municipalities, however, recorded with objective financial contributions relating to social welfare and special education area, see. function 2.90.90, 831 and 832 grouping respectively and for the purposes of hovedart 8.



Activities at the function 2.85.80-Specific administrative tasks-financed as an exception in the case of transfer of parts of health bloktilskuddet from the State to function 2.90.91 block grants from the State. By statement of balance the requirements of budgetary and accounting for the three areas of activity, as the regions ' economy is divided into are combined the two functions for main account 1 Health.



In connection with the release of appropriations is applied to the main account cost-based principles, while in the budget and the accounts should be used both expense and cost-based principles.



SOCIAL PROMOTIONS AND SPECIAL EDUCATION



2.10.01 Social deals, special education and counseling

On this feature recorded costs and revenue relating to:



special day care and special clubs under section 32 and section 36 of the service law,

foster families and places of residence, etc. for children and young people under section 66 of the service law,

preventive measures for children and young people, including young people from 18 to 22 years, under section 52, paragraph 3, nr. 1-7 and 9-10, section 52, paragraphs 4 and 5, section 54 and section 76, paragraph 2 and paragraph 3, nr. 2 and 3 of the service law,


relating to residential institutions for children and young people placed outside the home under section 52, paragraph 3, nr. 8, § 58 and § 75 of the service law regulation. section 66 of the service law,

24-hour stay in residential institutions for 18-22-year-old, see. section 76, paragraph 3, nr. 1 of the law on social services,

implementing stay in residential institutions for 18-22-year-old, see. section 76, paragraph 3, nr. 4 in service law,

secured residential institutions for children and young people, including to the secured sections related to a residential institutions, pursuant to section 123 of the service law,

personal and practical assistance (home help) under section 83 of the service law,

relief, relief, and help, etc. for people with significant disabilities, see. Service Act §§ 84, 85 and 102,

support for assistive devices, consumer goods, interior design and transport for persons with permanent reduced physical or mental functional ability, see. Service Act §§ 112-117,

counselling institutions, including national-and State-wide advisory institutions and centres for children and young people, see. Service Act § 11, and child psychiatric advice, there is not a hospital performance,

treatment of drug addicts after service health § § 101 and 142,

for long-stay residential facilities for people with significant and permanently reduced physical or mental functional ability, see. Service Law § 108,

residential accommodation for temporary stay of persons with significant and permanently reduced physical or mental functional ability or special social problems, see. Service Law § 107,

contact person-and accompanying schemes for people with significant and lasting reduced physical and mental performance, see. service law § § 45 and 96-99,

sheltered employment to persons under 65 years with significantly impaired physical or mental functional ability or special social problems, see. Service section 103,

activity and of communion offers to people with significant reduced physical or mental functional ability or special social problems, see. Service Law § 104,



Costs for rehabilitation and maintenance training, see. Service Act section 86 shall be posted under function 1.10.01 hospitals



Also be recorded on the feature costs and revenues relating to the country-and regional-wide offer of special education and educational institutions with special education for persons with speech, hearing or sight impairment (communications centre).



2.10.30 General senior housing

The former County municipally owned General senior housing is basically in accordance with the law on social housing, etc., transferred to the regions on 1 January. January 2007. With regard to the establishment of new General older homes for this group of people is the only Municipal Council who decides. Each Municipal Council may, however, decide that the homes must be built and operated by the Regional Council, which in turn may decide to leave the building and operating the task to a non-profit housing organization or an independent institution.



There is on function authorized foals lowing operating groups, depending on the structure of ownership is used as indicated below:



501 Performance support regarding senior housing

502 rent default

503 rental income



Regional-owned General senior citizen:

The following costs are recorded on the function 2.20.30:



Rent default, etc., including lack of rental, recorded at 502 with counterpart on grouping grouping 503.

Residents ' full rent payments recorded on grouping 503. That use des art 7.1. It should be noted that the then function 6.52.60 be separate registration of the part of the residents ' rents, which relates to provisions for maintenance, with the balancing entry on process writes. The balance must be specifi ed in accordance with the rules of the law on public housing and rent Act.

The property's general operating costs.

Fixed costs, including jordværdien, taken over real estate and calculated rate of return and management contributions.



Other regional costs and revenue, including the financing of housing, are recorded as follows:



 Home being inflation-indexed loans are recorded at the main item 6 under function 6.55.77 long-term liabilities relating to elderly housing. At the end of the year are written down and indexed loans at function 6.55.77 with the balancing entry on process writes.

 the region's deposits of share capital shall be increased on the function 6.32.24, grouping 002 with the balancing entry on balance sheet account 6.75.99. Residents ' refund part of the rent, and is regulated in accordance with the following in the status.



Repayments on loans relating to regional General senior housing is charged function 6.55.77.



Interest on debt relating to the regional General senior citizen inclusion in one of the functions 5.55.68-5.55.76 depending on the loan creditor



Older homes owned by non-profit housing associations, self-governing institutions or pension funds

The following costs are recorded on the function 2.20.30:

 any loss on the guaranteed inflation-indexed loans are recorded at grouping 502 ...



Other regional costs and revenue is recognized as follows:

 the region's deposits of capital recorded at function 6.32.24, grouping 002. At the commencement of the repayment of capital shall be credited to the function 6.32.24 for the annual installments.



It should be noted that the operating and construction costs relating to General senior citizen cannot be declared to the tax refund.



MISCELLANEOUS COSTS AND REVENUES



2.60.40 Central administration of social welfare

On this feature recorded costs incurred by central units in connection with the administration of social services and special education area, including the salaries of administrative staff, wholly or predominantly concerned with social and special education area.



2.60.50 Other costs and revenues

On this feature recorded costs and revenues that cannot be allocated to functions 2.10.01 and 2.60.40.



SHARE OF COMMON PURPOSE AND ADMINISTRATION



2.70.60 common purpose and administration costs. social promotions and special education

In the context of both the budget and the accounts debited function by use of art 0.5 and art 9.1-9.4 and grouping 730, internal transfers, a share of the common purpose and administration from function 4.70.99. The allocation key set by the regions, taking into account the three regional activity areas load of common area.



THE SHARE OF INTEREST



2.80.70 Interest, etc.

In the context of both the budget and the accounts will be debited the function using dranst 1, art 0.5 or art 9.4 and grouping 730, internal transfers, a proportion of the interest costs and revenue from the 5.90.99 function, see. the distribution key referred to in section 5.2.5.



SPECIAL ADMINISTRATIVE TASKS



2.85.80 special administrative tasks

On feature recorded costs for working with municipal statements, preparation of and follow-up to the framework agreements, coordination of country-and regional-wide deals, etc. on social. – and of special education area. Costs financed by health bloktilskuddet from the State, see. function 2.90.91.



FINANCING



2.90.90 Objective financial contribution

On the function registered the objective funding from municipalities to use the country-and regional-wide deals on both the social area and of special education area.



Who is on authorized the following function groupings:



831 Objective funding – social area

832 Lens financing – special education area



Registration shall be carried out under the dranst 7 and hovedart 8 by application of Financial income.



2.90.91 block grants from State

On the function of the part of the block grant is recorded in the health area, as Regional Council determines to be used for specific administrative tasks on social and special education area (preparation of framework agreements m. v). The transfer is made from operation 1.90.90 block grants from the State through the use of plus-/minusposteringer at art 8.6.



Section 4.3



Main account 3 Regional development



On the main account 3 recorded costs and revenues relating to the region's tasks related to urban transport, cultural activities, business development and growth fora, education and environment.



In connection with the release of appropriations is applied to the main account cost-based principles, while in the budget and the accounts should be used both expense and cost-based principles.



PUBLIC TRANSPORT



3.10.01 subsidies for transport companies

Here is recorded the region's contribution to the traffic company, see. § 3 of the law on transport companies.



The region's grants are recorded with art 5.9 Other subsidies and transfers.



On the function are authorized the following grouping:

001 subsidies for transport companies, relating to services performed by private suppliers

Here is recorded the part of the region's subsidies for transport companies, relating to services performed by private suppliers. The traffic company must itemize how large a share of the region's contribution to the traffic company, relating to payment for services performed by private suppliers.




It should be noted that the function is exempt from VAT refund scheme, see tax refund. section 2.6.2. VAT refund scheme can however get regions via refund indirect expenses to payroll tax charged to to grouping 001 when the traffic company in the region employ private supplier.



CULTURAL ACTIVITIES



3.20.10 grants for cultural activities

On the function registered supplements for stand-alone cultural activities.



BUSINESS DEVELOPMENT



3.30.20 Growth forums

On feature recorded costs associated with the holding of meetings, conferences, etc. in regional growth forums. The administrative costs associated with growth forums, including the Secretariat of the control must be registered on the function 3.30.29.



3.30.21 Tourism

On this feature recorded costs and revenue relating to tourism promotion activities, URf.eks. grants for tourism development companies, exhibition and conference facilities geared toward the business tourism and tourism marketing, see. law on business promotion section 9.



Furthermore, the registered EU grants for similar activities and payments associated with it.



The region's central administrative costs associated with tourism is registered on 3.30.29.



3.30.22 Innovation and new technology

On this feature recorded costs and revenues relating to the promotion of innovation (and the use of new technologies), e.g. grants for developing parks, cooperation between enterprises and knowledge institutions and facilities for the promotion of culture-professions-interaction and associated analyses, see. law on business promotion section 9.



Furthermore, the registered EU grants for similar activities and payments associated with it.



The region's central administrative costs in connection with innovation and use of new technologies is registered on 3.30.29.



3.30.23 business services and entrepreneurship

On this feature recorded costs and revenues related to business services and entrepreneurship, URf.eks. grants for Business Council, investment promotion organizations and entrepreneurial advice, see. law on business promotion section 9.



Furthermore, the registered EU grants for similar activities and payments associated with it.



The region's central administrative costs in connection with business services and entrepreneurship is registered on 3.30.29.



3.30.24 human resource development

On this feature recorded costs and revenues relating to the development of human resources with a view to promoting business development URf.eks. co-financing of social fund projects (for example, skill development activities that is in addition to the General offer), see. law on business promotion section 9.



3.30.25 Development of the outer landdistriksområder

On this feature recorded costs and revenues related to trade promotion activities, which have as main objective to strengthen the development of peripheral areas (weak areas), as well as rural development, URf.eks. projects under the EU's rural development programs and IT houses in the outer areas of the basic regulation. law on business promotion section 9.



The region's central administrative costs in connection with the development of peripheral areas and rural development is recorded at 3.30.29.



3.30.29. Central administration of business development area

On this feature recorded costs incurred by central units in connection with the administration of the business development area, including the salaries of administrative staff, wholly or predominantly concerned with economic development, among other things. preparing regional business development strategies, carry out analyses on growth conditions and tasks to support thereof, as well as secretarial operate regional growth forums.



Costs for consultants, outgoing staff and other operating costs in connection with business development, etc., are recorded on the aforementioned relevant functions.



In addition, other central administrative costs are recorded here, directly attributable to the business development area.



TRAINING



3.40.30 Regional development tasks in the field of education

Here is recorded the region's cost for educational institutions (high schools, ADULT EDUCATION CENTRES, social-and health schools, etc.) in connection with the financing of local development projects and other types of projects with the aim of promoting education and developing institutions.



Administration in connection with coordination and planning functions be registered at 3.40.39.



Grants to institutions registered with art 5.9 Other subsidies and transfers.



3.40.39. Central administration of regional development in the field of education

On this feature recorded costs incurred by central units in connection with the administration of regional development tasks, including salaries for administrative staff, wholly or predominantly concerned with regional development of education.



In addition, other central administrative costs are recorded here, directly attributable to the task.



ENVIRONMENT



3.50.40 soil pollution

Here is recorded the region's costs for soil contamination. Administration in connection with the coordination and scheduling functions are recorded on master account 3.50.49.



3.50.41 raw materials

Here is recorded the region's operating costs relating to the mining area. Administration and planning tasks in connection therewith shall be registered at 3.50.49.



3.50.49 Central administration environment

On this feature recorded costs incurred by central units in connection with the administration of the business development area, including the salaries of administrative staff, wholly or predominantly concerned with drawing up regional development plans.



The administrative tasks are, inter alia: to coordinate efforts between State and municipalities regarding. spatial planning, planning on environmental objectives for bodies of water and water supply, identify and monitor contaminated sites as well as map out raw material instances and drawing up of mining plans.



Costs for consultants, outgoing staff and other operating costs in connection with environmental matters shall be recorded on the relevant functions.



In addition, other central administrative costs are recorded here, directly attributable to the environment.



MISCELLANEOUS COSTS AND REVENUES



3.60.50 Other costs and revenues

On this feature recorded costs and revenues that cannot be allocated to functions 3.10.01-3.50.49.



SHARE OF COMMON PURPOSE AND ADMINISTRATION



3.70.60 common purpose and administration costs. business development (function 3.30.20-3.30.29)

3.70.61 Common costs and administration costs. regional development projects in the area of education (function 3.40.30-3.40.39)

3.70.62 common purpose and administration costs. soil pollution and raw materials (3.50.40-3.50.49)

3.70.63 Common costs and administration costs. other regional development tasks (3.10.01, 3.20.10 and 3.60.50)



In the context of both the budget and the accounts debited functions by use of art 0.5 and art 9.1-9.4 and grouping 730, internal transfers, a share of the common purpose and administration from function 4.70.99.



The allocation key set by the regions, taking into account the regional activity areas load of common area.



THE SHARE OF INTEREST



3.80.70 Interest

In the context of both the budget and the accounts will be debited the function using dranst 1, art 0.5 or art 9.4 and grouping 730, internal transfers, a proportion of the interest costs and income from 5.90.99, see. the distribution key referred to in section 5.2.5.



FINANCING



3.90.90 block grants from State

In this function the General Government subsidies to finance the regional development tasks, see. § 3 of the law on the financing of the regions.



Registration shall be carried out under the dranst 7 and using art 8.6 State grants



3.90.91 Municipal development contributions

On this feature recorded development contribution to the financing of regional development tasks that are paid by the municipalities in the region, see. § 7 and 19 of the law on the financing of the regions.



Registration shall be carried out under the dranst 7 and using hovedart 8 Finance income



Section 4.4



Main account 4 common purpose and administration



This main account include the costs and revenues related to the region's political activities, the administration and planning company, centra le miscellaneous costs and revenues, as well as lønpuljer and choice.



For the registration of administrative costs and revenues the following ho vedregler:



Costs and revenues relating to the central administration shall be recorded only on the main account 4, in the case of cross-cutting task types that are not clearly attributable to one of the three areas. This is true regardless of whether the central administration is sam easily at regional station, or whether it is divided on several geographical units.




Costs and revenues relating to the administration, which takes place on and relate to the individual institution registered under the institution.



Labour costs for employees with administrative tasks are recorded on master account 4 If the employee fully or predominantly concerned with cross-cutting tasks, there is no unique can be assigned to one of three regional main areas.



The three main areas regional shares of the region's common purpose and administration costs are transferred in connection with budgeting and financial reporting from the main account 4 to each area on the main account 1-3, where the amounts are charged when using art 9.1-9.4. On the main account 4 credited amounts function 4.70.99 using art 9.7 Internal Revenue.



In connection with the release of appropriations is applied to the main account cost-based principles, while in the budget and the accounts should be used both expense and cost-based principles.



POLITICAL ORGANIZATION



4.10.01 common purpose

On this feature recorded costs and revenues that cannot be allocated to functions 4.10.02-4.10.04, URf.eks. reception of delegations, etc.



4.10.02 Cor rådsmedlemmer

On this feature are recorded all costs relating to the regions rådsmedlemmer, including remuneration, compensation for loss of work deserve ste, allowances, subsistence allowance, travel costs, costs for training courses, meetings and requirements in the pension and early retirement for Presidents as well as tion, etc. Function include both the costs of members ' participation in the region's own business as membership of councils and boards.



Remuneration, etc., which is the taxable income of the recipient is registered under hovedart 1, while other non-taxable allowances and the like are recorded under art 4.0.



Approved an operational grouping 040 for registration of remuneration, etc. for politicians.



4.10.04 Choice, etc.

On this feature recorded costs and revenues relating to the Regional Council elections.



Diets for election officers, valgsbestyrelsesmedlemmer and authorized to be registered under hovedart 1, where these are employed in the region, and under art 4.0, provided that they are not employed in the region.



ADMINISTRATIVE ORGANISATION



4.20.12 Secretariat and administrations

On this feature recorded costs and revenue relating to cross-cutting features, that is not attributable to one of the three regional areas of activity. This applies, among other things. for:



the Regional Council Secretariat,

the Regional Director's Office and Secretariat,

various staff functions (central economy, accounting, human resources, information technology Office, etc.)

other costs and revenues relating to the region's central administration.



The directly attributable costs, that uniquely can be related to one of the three regional areas of activity must be recorded on the relevant function on each of the main accounts.



Also be recorded here common costs for the Administration-URf.eks. audit, it, canteen operations, printing and copying, telephone and postage.



On the function is registered also consulting, organizational assessments, etc., that will replace or complement the performance of the above tasks.



LØNPULJER



4.30.21 Lønpuljer

This function is used for budgeting of costs relating to special contractual lønpuljer, that cannot be allocated by the budget's adoption that is installed, URf.eks. local-and cheflønspuljer. The costs are transferred to the respective functions, when the pots are distributed. It should be noted that other costs to pay, including URf.eks. costs for temporary workers, over/extra work, etc., must be recorded on the features that cost concerns.



Non-allocated costs for lønpuljer to be in connection with the adoption of the budget and financial reporting to be allocated to areas on the main account 1-3 with a distribution key laid down by the region.



CIVIL SERVICE PENSIONS



4.40.31 civil service pensions

On the function of the staff pensions paid out expenditure are recorded by use of art 5.1. Payments are recorded centrally and thus must not follow the employment area.



A deposit from a pension company for total or partial coverage of pension payments must be credited to the function with the use of art 5.1. In cost accounting does this for insured regions that function to be credited with the net payment (pension payment for civil servants minus deposit from insurance) and is charged 6.72.90 provisions with art 0.9.



EVS. net cost of pension insurance premiums (including bonus) recorded also at the function but with the use of art 1. Also be recorded on the function of pension transfers by officials ' job change (in omkostingsregnskabet paying region: credit, receiving region: debit). Both types of posting has counterpart on the inventory of the pension obligation for civil servants to functions 6.72.90 provisions.



Since the pension payout does not involve a cost in cost accounting, pension obligations, but simply to neutralize the payments by crediting the function with the use of art 0.2 and charge function 6.72.90 provisions.



At the function, there are authorized the following profit and loss pooling:



050 payment of pensions to civil servants resigned before 1.1.2007.

Here is recorded the costs of payment of pensions to civil servants who have resigned the former county municipalities before 1.1.2007 with right for current or deferred pension referred to in article 6. section 3 of the Ordinance on civil obligations in the context of local government reform.



There are also under dranst 2 authorized a grouping 050 to the registration of the refund, as the State of the outermost regions for the costs that are recorded in the profit and loss pooling 050, see. section 4 of the Ordinance on civil obligations in the context of local government reform.



The cost of civil servants corresponding to the change in the pension obligations are charged at the appropriate cost centers, where these are authorized, otherwise the function under the main account 1-4 for the purposes of art 0.3. The cost is calculated as a percentage charge of 20.3% of the pensionable salary of the civil service employees employee. Costs shall be credited on the function 6.72.90, grouping 001, non-insurance covered the civil service pensions.



Exempted from authorisation of a discretionary fixed cost for civil service pension of 20.3% of total salaries expense to serve man's employees are the institutions, which provides services under the framework agreements on social and special education area. Here apply the fixed cost via the concluded framework agreements. These costs shall be charged in addition, in accordance with the rules of budgetary and accounting system for the regions.



MISCELLANEOUS COSTS AND REVENUES



4.60.51 Other costs and revenues

On this feature recorded costs and revenues that cannot be allocated to functions 4.20.12-4.40.31.



THE SHARE OF INTEREST, ETC.



4.65.61 Interest, etc.

In the context of both the budget and the accounts will be debited the function using dranst 1, art 9.4 and grouping 730, internal transfers, a proportion of the interest expense from the function 5.90.99 of the basic regulation. the distribution key referred to in section 5.2.5.



TRANSFER to MAIN ACCOUNT 1-3



4.70.99 Transmission-common purpose and administration

The three main areas regional shares of the region's costs and revenues to the common purpose and administration is transferred in connection with budgeting and financial reporting from the main account 4 to each area on the main account 1-3.



To display a correct breakdown of main account 1-3 on the expenditure-based records (hovedart 1-9) and the cost-based records (hovedart 0), it is necessary that the distribution/transfer of the cost-based records from the master account must be made through hovedart 4 0, while the expenditure-based records is distributed by use of hovedart 9. The transfer happens at grouping 730 internal transfers.



This function shall be credited to the amounts using respectively art 0.9 or art 9.7 Internal Revenue and grouping 730 internal transfers. The allocation key set by the regions, taking into account the regional activity areas load of common area.



Section 4.5



The financial accounts: main account 5 and 6



Chart of the main account 1-4 include the region's actual operating and an extra company. In contrast, relate to the main accounts 5 and 6 the fi nancial area and balance.



Main account 5 is used for registration of interest, etc., including financial revenues.



The main item 6 shows the inventory of regional balance. Assets ne shown by features 6.10.01-6.42.43 and 6.58.81-6.58.87. The commitments shown by the functions 6.45.46-6.55.79 and 6.72.90. The difference between assets and liabilities shown by main function "Equity" (features 6.75.91-6.75.99).

In connection with the clearance of accounts made some up and downs of status records under the main item 6 with counterpart on balance sheet account. For example, regulation of bond holdings after the price per 31. December.



On the main account 5 and 6 are used as far as possible a parallel main function and functional building.



Features:




5.10.05 Deposits at financial institutions, etc.

6.10.05 Deposits at financial institutions, etc.



shall be applied so as to registration of, respectively:



Interest rates of deposits in financial institutions etc. (5.10.05)

Holdings of deposits in financial institutions etc. (6.10.05)



Main account 5 Interest, etc.



Main account 5 is used for registration of interest income and expenses, as well as capital losses and gains as well as reimbursement of purchase tax.



In relation to interest rates applied only hovedart 6 and 8, so that hovedart 6 used in connection with interest expenses and losses and hovedart 8 in connection with interest income and exchange rate gains. When recording income and expenditure relating to the VAT refund scheme dranst 2, hovedart 8.



The three main areas regional shares of the region's expenditure and revenue relating to the interest transferred in connection with budgeting and financial reporting from the main account 5 for each area on the main account 1-4, where the amounts are charged by the use of hovedart 9. On the main account 5 credited amounts function 5.90.99 also by the use of hovedart 9.



INTEREST ON LIQUID ASSETS



5.10.05 Deposits at financial institutions, etc.

On this feature recorded interest income from deposits in financial institutions, etc.



Also be recorded here fees related to deposits at financial institutions.



Registration is done at the time of the attribution of interest. Interest tilskri ves no later than 31 December 2006. December, attributed to the old fiscal year.



5.10.08 mortgage bonds

5.10.09 Municipality credit bonds

5.10.10 government bonds, etc.

5.10.11 liquid assets issued in other EU/EEA countries



On these features recorded interest income of the securities in question.



Registration is done by the payment. By purchase or other acquisition of compulsory tions between two periods are recorded as negative interest paid into recovery if any interest in the acquisition.



Function 5.10.10 includes both government bonds as bills, government loans with variable interest rate and Treasury bills.



Function 5.10.11 include return of foreign mortgage and Treasury bonds, which are issued in an EU/EEA country, in an EU/EEA currency and listed on a stock exchange in an EU/EEA country, see. section 6, paragraph 1 of the Executive order on the placement of funds in funds and Board remuneration.



INTEREST ON SHORT-TERM LOANS AND ADVANCES IN ADDITION,



5.28.14 accounts receivable in payment checks

5.28.15 Other receivables concerning main account 1-4

5.28.18 financial assets belonging to the self-governing institutions with operating agreement

5.28.19 receivables from communes and other regions

On these features recorded interest income of those tilgodehaven there.



The registration is made by means of broadcasting or upon payment, dependent for the teams for the various interest-bearing receivables-for function 5.28.18 however, see nest in connection with registration of the company for the self-governing institutions tion.



Rate of return on outlay on the social sector and the regional development area is not recorded on the function 5.28.15, but on the function 5.35.30



INTEREST ON LONG-TERM RECEIVABLES



5.32.20 mortgages

5.32.21 Shares and cooperative evidence, etc.

5.32.22 receivables from property owners

5.32.23 lending to residents ' deposits

5.32.25 other long-term loans and receivables

5.32.26 non-liquid bonds

5.32.27 deposited amount for loans, etc.



On these functions is recorded the region's interest income of those long-term receivables, including stock dividends, etc.



The registration is done on the futures date, irrespective of whether payment is made in cash, or the interest rate must be attributed to the principal amount (residual receivable).



Interest income for the deposited amount for loans, etc., can-in order to avoid arbitrary distributions-as income on the respective functions instead of the function 5.32.27.



If the region subsidizes an institution, etc., for the payment of interest of one of the region granted loans, this is to be regarded as interest relief. This means that there is no record of contribution and interest income.



INTEREST on the OUTLAY for MAIN ACCOUNT 2 and 3



5.35.30 interest on the outlay adj. main account 2-3

On this feature recorded the region's interest income and expenses of out put the social sector and the regional development area. Receivables and debts are remunerated at market rates.



Registration is done at the latest at the clearance, and the offset transaction fo regår on main account 2 and 3 respectively.



INTEREST ON SHORT-TERM DEBT TO FINANCIAL INSTITUTIONS



5.50.50 overdrafts and bridging loans

Registration of interest expenses and commissions shall be effected by the attribution of interest in pen geinstituttet. Interest attributed to 31. December, attributed to the old fiscal year.



On the function registered rates (capital loss) of certificates and REPO business Distri-ger.



INTEREST ON SHORT-TERM DEBT TO THE STATE



5.51.52 other Payables

Registration of interest expenses is made by payment.



INTEREST ON SHORT-TERM DEBT IN ADDITION



5.52.54 Municipalities and other regions

5.52.56 Other short-term debt with domestic payment recipient

5.52.57 Other short-term liabilities with foreign payee

5.52.59 intercompany account

5.52.61 self-governing institutions with operating agreement



On these features recorded interest expense relating to the debts.



On the function of 5.52.56 is recorded, among other things. interest on cash deposits and by mellemreg ing with scholarships, etc.



The registration happens at maturity or upon payment, depending on th dene for individual obligations; for the function 5.52.61 at the latest in connection with registration of the company for the independent institution.



INTEREST ON LONG-TERM DEBT



5.55.63 self-governing institutions with operating agreement

5.55.64 State and mortgage bank

5.55.65 Municipalities and other regions

5.55.66 local government pension insurance

5.55.67 other insurers

5.55.68 mortgage

the municipality of 5.55.70 Credit

5.55.71 financial institutions

5.55.74 Public debt securities emitted in foreign countries

5.55.75 Other long-term debt with domestic vendor

5.55.76 Other long-term debt with foreign creditors



On these functions is recorded the region's interest expense related to debt, including administrative contributions langfri stet and proportion of reserve funds.



The registration is done on the futures date, irrespective of whether payment is made at the same time, or the interest rate is set aside for the payment of a delinquent account. Made purchases of debt issued by the municipality itself, before the due date for the purpose of interest expense is recorded by amortisa tion acquisition. Receipt of interest in connection with borrowing between the two compounding is considered negative expense interest.



EXCHANGE LOSSES AND GAINS



Under this main function registered capital losses and gains, however, recorded losses in connection with borrowing directly on balance sheet account 6.75.99.



5.75.78 capital loss and exchange rate gains, moreover,

The registration is done as a starting point, at the time of the sale and be counted as the difference between the book value and the value after disposal from the drag of trade costs, IE. brokerage, fees, etc.



Registration shall be carried out under the dranst 4.



After the establishment of the central securities depository can market capitalisation of each extracted bonds are not detected. This means that a region cannot distinguish between whether an extracted or disposed of bond is acquired before 1. January or in the current fiscal year.



Exchange gain by extraction or sale of bonds within view rie, where the region as at 31 December 2003. December had a book and later are enlisted further bonds, must therefore be calculated in relation to a weighted average of the value per 31 gen. December and the value of later acquired compulsory tions within that series.



It should be noted that the regions that want to register exchange gain/-loss compared to the original purchase price above the adjusted market capitalisation as at 31 December 2003. December, have the opportunity to apply the following procedure:



The event of the transfer or extraction of bonds registered the difference between the purchase value (purchase price) and the sales value/pull-out value as capital gain or capital loss on the function 5.75.78, and at the same time, reversed the difference between purchase rate and market value per 31 of previous years. December as an ascent or write-down of status on the main item 6 with counterpart on balance sheet account 6.90.99.



See it referred to in section 7.0 continuity principle, whereby, for the sake of vur sessment of the municipal accounting should not be carried out frequent changes in registration, it is appropriate that the region decides to put itself firmly on the one of the described registration ways.



REIMBURSEMENT OF PURCHASE TAX



5.80.95 Refund of purchase tax

On this feature recorded revenue and expenditure of the State reimbursement system from purchase tax.




Registration shall be carried out under the dranst 2, hovedart 8, on the depletion of mende, subsequently authorized lineups to individual groups to associate foals lowing observations.



Grouping 002 reimbursement of purchase VAT and grouping 003 expenses to purchase VAT budget be laid with equal amounts.



It should be noted that since reimbursement revenue on grouping 002 is recorded as ' negative expenditure ', grouping and grouping 003 002 for one specific rain year offset each other.



The contents of the component groups 002 and 003 is determined by expenditure on main account 1-4 because reimbursable purchase VAT shall be charged to the Group ring 003-and not on the individual functions, see the main account 1-4.



On accounting in the continuation period is subject to the following:



Purchase momsrefusion measured on the basis of supplementary accounts shall-to the extent that the reimbursement is paid after first continuation period-re stanceføres in the accounts for the previous financial year.



TRANSFER to MAIN ACCOUNT 1-4



5.90.99 transfer – interest rates, etc.

The regional main areas shares (incl. common purpose and administration) of the region's spending and revenues to interest payments, etc. transferred in connection with budgeting and financial reporting from the main account 5 for each area on the main account 1-4, where the amounts are charged by the use of dranst 1, art 9.1-9.4 and grouping 730 internal transfers. This function shall be credited to the amounts using dranst 1, art 9.7 Internal Revenue and grouping 730 internal transfers. Internal interest transferred in the same way, but using hovedart 0. Main account 1-4 are charged when using art 0.5, while this feature is credited with the use of art 0.9. The distribution takes place in accordance with the distribution key referred to in section 5.2.5.



The region's interest income and expenses relating to the out put of the social sector and the regional development area shall be allocated not, since the offset transaction to 5.35.30 be made directly on the main account 2 and 3.



Section 4.6



Main account 6 Balance



Main account 6 constitute the region's overall balance. The balance consists of the parent material, intangible assets and financial assets and liabilities, liabilities shall mean the sum of equity and obligations.



The balance sheet provides information on the value of the region's land and buildings, technical installations, machines and more specialized equipment, equipment, means of transport, etc. Also contains the information about the region's financial assets and the value of commitments.



The main item 6 shall not apply in budgeting, as budgeting and recording of dislocations on balance accounts is shown by the balance sheet and the cash flow statement, which the Council must approve, in connection with both the budget and the accounts. The functions 6.42.43 and 6.51.81-6.68.87-6.10.01 is active accounts be registered under dranst 8. Functions 6.45.46-6.55.79 and 6.72.90-6.75.99 are liability accounts, registering under dranst 9.



It is not obligatory to use species in the balance sheet, except for the hovedart 0, which in certain cases according to the posting rules are requirements to apply. This is true URf.eks. by omkontering of investments, the recording of depreciation and pension costs.



LIQUID ASSETS



With a view on the possibilities for the control of compliance with credit card rule, see. The Welfare Ministry's Decree on regional borrowing and with the reign of guarantees, etc., must be organised in such a way that the cash inventory can be a reconstruction of the balances on function 6.10.01-6.10.11 daily in the order within an accuracy of 12 month period (see also function 6.50.50).



6.10.01 Cash holdings

The balance shall correspond to the present inventory. Imprest funds will often contain supporting documents for expenditure during the year (and possibly revenue) as part of inventory.



It should be noted that the social area and the regional development area's debt to the region do not at any time exceed the region's cash and cash equivalents (the sum of the floor your on features 6.10.01-6.10.11) conferred on the available features on the region's line of credit. Please refer to paragraph 10.3.1 and 10.3.2.



6.10.05 Deposits at financial institutions, etc.

The balance of this feature should correspond to what is known as available on the account. Foreign bank accounts at the end of the financial year shall be converted to the new exchange rate with the balancing entry on balance sheet account 6.75.99.



6.10.08 mortgage bonds

6 October 2009 Municipality funds bonds

6.10.10 government bonds, etc.

6.10.11 liquid assets issued in other EU/EEA countries



Opening balance as well as of the year offsets shall correspond to the quantity on hand calculated according to the exchange rate at the end of the previous year or dividends received by the approach of the year. At the end of the accounting year shall be converted value to market capitalisation as at 31 December 2003. December with the balancing entry on balance sheet account 6.75.99.



LOANS AND ADVANCES TO STATE



6.15.13 receivables from the State

The balance shall be equal to the total receivable, there always must be able to be specified on individual entries.



There are authorized the following grouping:



001 Cash accounts receivable as a result of sharing agreement

There is on feature grouping 001 authorized to record the cash advances to the State as a result of the rules on compensation for authorities in connection with the sharing agreement, see. section 41, paragraph 1 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform.



SHORT-TERM RECEIVABLES, MOREOVER,



6.28.14 accounts receivable in payment checks

6.28.15 Other accounts receivable



The balance of these features shall be equal to the total receivable, there always must be able to be specified on individual entries.



Uncollectible amounts departure transfer balance account 6.75.99 or of the account where the income in his time was posted.



6.28.17 between the Bills with previous and next financial year

The balance shall be equal to the sum of:



the claims that exist at the end of the year, but which has been deposited in the new fiscal year,

the amounts relating to the old fiscal year registered at the end of the year, but first will be paid in the new fiscal year,

prepaid amount in the old fiscal year relating to the new fiscal year,

prepaid amount in the old fiscal year relating to the new fiscal year.



By the clearance of accounts must balance of the function 6.28.17 in the old fiscal year correspond to the sum of the postings to function 6.28.17 in the new fiscal year with courage put accidentals.



The balance can be both positive and negative and can therefore both be an asset as well as a liability. Registration is made, however, under dranst 8 in any event.

6.28.18 financial assets belonging to the self-governing institutions with operating agreement

The balance must be by the clearance of accounts correspond to the total financial assets of self-governing institutions with agreement.



6.28.19 receivables from communes and other regions

The balance shall be equal to the total receivable, there must always be speci imports on single records.



On the function registered cash debts owed by municipalities and regions in the context of sharing agreement, see. section 41, paragraph 1 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform. The amount of compensation are recorded directly on the function with the balancing entry on 6.75.99 Balance account.



Authorized two groupings:



001 Cash advances to municipalities as a result of sharing agreement

002 Cash receivables from the regions as a result of sharing agreement



LONG-TERM RECEIVABLES



6.32.20 mortgages

The balance shall correspond to the State of the remaining receivables. Bad debt tilgodeha turns or receivables that are converted into grants, departure transfer balance account 6.75.99.



6.32.21 Shares and cooperative evidence, etc.

The balance must correspond to the market value of listed shares per 31. December. Exchange adjustment is carried out over balance sheet account 6.75.99.



Receipt of bonus shares as well as up-and write-down of shares shall be recorded only on the main printing please di account 6-with the balancing entry on balance sheet account 6.75.99.



For non-listed shares and other equity securities (certificates, certificates of deposit and similar cooperative) made their capture after the equity method determined in accordance with the latest cast-off annual accounts or interim financial statements of the companies which have investments in the region. The company's intrinsic value is its equity capital. The method implies that the region on the balance sheet must include a share of the company's equity value corresponding to the region's stake. Equity method shall also apply to shares in common regional companies. In the notes to the financial statements shows the calculation of the internal value for each company. The value adjustment is made with the balancing entry on balance sheet account 6.75.99.



6.32.24 Deposits in the country's building Fund, etc.


As a result of the very favourable loan terms, with, among other things. rentefrihed and afdragsfrihed, which granted significant deposits Country construction fund, etc. should the balance at the end of the financial year will be marked with "-" in the region's balance. The regulation of the National Building Fund deposits in unsettled, etc. is done with the balancing entry on balance sheet account 6.75.99.



In the notes on the accounts must set out for the nominal value of the region's unsettled deposits in the country's building Fund, etc.



In the balance sheet calculated primo for the following year shall be the value adjustment is reversed, so the account again shows the nominal receivables.



There are authorized the following groupings:



001 Grundkapital deposits (deposits in the country's building Fund)

Including registered grundkapital deposits in general construction, see. section 120 of the Act on public housing. In connection with the sale of public housing, there will be a refund of grundkapital deposits.



002 Basic capital for General senior housing

Including grundkapital deposits into recorded older homes that will be built by the region, but not by a non-profit housing organization, see. section 121 of the Act on public housing.



6.32.25 other long-term loans and receivables

New loans and receivables are recorded at nominal value.

The balance must be by the clearance of accounts correspond to the total of the amounts receivable resttilgodehaven with write-downs of expected losses on amounts receivable. The write-down may be carried out at the end of the accounting year as a percentage of the various types of receivables based on historical experience and must be able to be documented.

Depreciation shall be carried out by crediting the appropriate functions with the use of art 0.6 and charge function 6.32.25 using art 0.9.



In the notes on the accounts must set out for the nominal value of receivables and loans.



In the balance sheet calculated primo for the following year shall be the value adjustment is reversed, so the account again shows the nominal receivables.



Management of repayable benefits can take place on the function 6.32.25 with the balancing entry on balance sheet account 6.75.99.



Who is on authorized the following function groupings:



001 Lending to municipalities as a result of sharing agreement

002 lending to regions as a result of sharing agreement

003 Lending to the State as a result of sharing agreement



The groupings are recorded on lending to other authorities, see. section 41, paragraph 2 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform. The amount of compensation are recorded directly on the function with the balancing entry on 6.75.99 Balance account.



6.32.26 non-liquid bonds

Opening balance as well as the offsets in the course of the year shall correspond to the quantity on hand calculated according to the exchange rate at the end of the previous year or dividends received by the approach of the year. At the end of the accounting year shall be adjusted value after the current market capitalisation with counterpart on balance sheet account 6.75.99.



After each of the regions provision can book instead either re gistreres to the acquisition value or the nominal value. Exchange adjustment in connection with this happens over balance sheet account 6.75.99.



6.32.27 deposited amount for loans, etc.

The balance must be by the clearance of accounts correspond to the total amount deposited in connection with the recording of loans, guarantees or the conclusion of the le jemål and lease agreements, etc.



The ATTACHMENT of the MAIN ACCOUNT 2 and 3



6.35.30 Attachment adj. main account 2-3

At these functions be registered attachment of liquidity on the main account 2 and 3. The liquidity position between being shown by the cash flow statements, see. Chapter 5, section 2.7. c and 4.2 both positive and negative attachment remunerated at market rates.



There is on function authorized an active-passive cluster, respectively for each of the two areas, Social and Regional development tasks.



Calculated interest amount be posted directly on the features on the main account 2 and 3 and offset on the features 5.35.30.



ASSETS RELATING TO AMOUNT TO LEVYING OR PAYMENT FOR OTHER



6.38.36 Municipalities and regions, etc.

6.38.37 State

Balances consists of claims to third parties as well as the inventory of assets (postal giro-instructions).



ASSETS OF THE FUND AND SCHOLARSHIPS



6.42.42 Scholarships

The balance shall correspond to deposits in financial institutions, as well as the nominal value or market capitalisation of scholarship capital holdings of securities. Furthermore, the inside keeps the balance property values of the Fund's real estate. By reassessment will be adjusted on this feature with counterpart at function 6.45.46.



6.42.43 Deposits

The balance must correspond to the nominal value of the assets.



LIABILITIES OF THE CORRESPONDING FUNDS AND SCHOLARSHIPS



6.45.46 Scholarships

The balance is an expression of the sum of the nominal capital value or market capitalisation Scholarship with the addition of any mortgage debt of property and of unused operating amount and deduction for any overuse of operating amount.



The difference between 6.45.46 and 6.42.42 is equivalent to legaternes between Bill with the region.



6.45.47 Deposits

The balance is an expression for the sum of cash deposits and the nominal value of other deposits.



The difference between 6.45.47 and 6.42.43 is similar to what the region has received as cash deposits.



LIABILITIES RELATING TO AMOUNT TO LEVYING OR PAYMENT FOR OTHER



6.48.48 Municipalities and regions, etc.

The balance must correspond to it for that region unsettled by analogy, whether it is charged with a third party or not.



The difference between the function 6.48.48 and 6.30.36 correspond to the sum of what the region has charged to third man, but not yet settled into the anmoden the municipality.



6.48.49 State

The balance shall correspond to the similarly unsettled against the State, whether requirements with a third party is charged or not.



The difference between the function 6.48.49 and 6.30.37 correspond to the sum of the charged, than now uncleared amounts, and received but not yet paid government subsidies.



SHORT-TERM LIABILITIES TO FINANCIAL INSTITUTIONS



6.50.50 overdrafts and bridging loans

The balance shall be equal to the current between the being with the Bank loan in question, account relat leaked.



With a view on the possibilities for the control of compliance with credit card rule, see. The Welfare Ministry's Decree on regional borrowing and with the reign of guarantees etc., statement of bank overdrafts and loans used write into telægges so that there can be a reconstruction of the function's daily balances (excluding construction loans that later will be converted to long-term loans) in the course of ne 12-month period.



SHORT-TERM LIABILITIES TO THE STATE



6.51.52 debt to the State

On feature recorded accounts payable to the State.



Authorized a grouping for the recording of cash compensation to the State in connection with the sharing agreement, see. section 41, paragraph 1 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform. The amount of compensation are recorded directly on the function with the balancing entry on 6.75.99 Balance account.



MOREOVER, SHORT-TERM DEBT



6.52.54 Municipalities and other regions

The balance shall correspond to the amount due, which must be able to be specified on individual entries.



Authorized lineups to registration of cash compensation to the municipalities and other regions in the context of sharing agreement, see. section 41, paragraph 1 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform. The amount of compensation are recorded directly on the function with the balancing entry on 6.75.99 Balance account.



6.52.55 holiday pay

Holiday pay from the previous optjeningsår for the holiday, which has not yet been held, must be recorded and are recorded on the function by the end of the financial year.



It should be noted that there should be a registration of guilty holiday money in accounts 2007, unless the region has made a registration obligation in the opening balance sheet for 2007.



Adj. staff who have a right to paid leave

Holiday savings in cost accounting include registration to all vested vacation pay for this personnel group. This is to say the general holiday pay at 12.5% of the wage bill and the 5 special holidays.



Vacation days earned in the calendar year and are held during the holiday this year, which runs from the 1. May to 30. April the following year. This means that there is a possibility of earning 16 months before the holidays may be settled and thus reversed in the balance sheet. This implies that the vacation pay owed by each clearance shall include:



Vacation pay earned in the current calendar year, and

Holiday pay from the previous optjeningsår that have not yet been held, but to be held in the period from the balance sheet date and for 30. April the following year, provided that there are no agreements on the transfer of vacation.




Vacation pay are expensed by the use of nature 0.7 on the relevant functions with the balancing entry on function 6.52.55, Owed vacation pay. Holiday savings payment include either salary during vacation, allowance for the five special holidays or deposit to the labour market's Holiday Fund. In cost accounting involves payment of holiday pay not a cost for the region, but only that the payment obligation is reduced. This means that payments be neutralized by crediting the appropriate functions with the use of art 0.6 and charge function 6.52.55 Holiday money.



Adj. staff who are not entitled to wages during vacation

Holiday money owed by each clearance shall include:



Vacation pay earned in the current calendar year, and

Holiday pay from the previous optjeningsår that have not yet been held, but to be held in the period from the balance sheet date and for 30. April the following year, provided that there are no agreements on the transfer of vacation.



Accrued vacation pay constitutes 12.5% of the wage bill and recorded continuously on the relevant functions with the balancing entry on 6.52.55, Owed vacation pay. Payment of holiday pay shall be carried out as a balance sheet offset by debiting 6.52.55, Guilty vacation money, and crediting the liquid assets. For this staff group is expense-cost accounting identical.



6.52.56 Other short-term debt with domestic payment recipient

6.52.57 Other short-term liabilities with foreign payee

6.52.59 intercompany account

The balance shall correspond to the amount due, which must be able to be specified on individual entries. Exchange adjustment of possible debts in foreign currency effected by rain's end with offset on balance sheet account 6.75.99.



6.52.61 self-governing institutions with operating agreement

In the financial statements are the balance expression of debt with self-governing institutions with agreement. Furthermore, the act here between the Bills with the agreement the region.



6.52.62 Voting and control account

The balance must be brought in zero clearance.



LONG-TERM LIABILITIES



6.55.63 self-governing institutions with operating agreement

The balance represents the year-end balance outstanding relating to the self-governing institutions of residues long term debt.



6.55.64 State and mortgage bank

6.55.65 Municipalities and other regions

6.55.66 local government pension insurance

6.55.67 other insurers

6.55.68 mortgage

the municipality of 6.55.70 credit

6.55.71 financial institutions



The balance of the above functions shall correspond to the amount of the balance outstanding on the loan in question. All loans are recorded as follows with the nominal value, in that a possible exchange losses recorded on balance sheet account 6.75.99.



Regulation of remaining debt as a result of the distribution of reservefonds shares in the context of ordinary payments of futures services directly on the main item 6 with counterpart on balance sheet account 6.75.99. Deposit from Credit Union of reserve fund shares in addition to the residual debt as income at function 5.75.78.



Through the use of swaps or other financial instruments exchange rate adjusted at year-end, if the use of financial instruments affects the value of the balance outstanding. Exchange rate adjustment is made on the feature where the original loans are registered with the balancing entry on balance sheet account 6.75.99.



All borrowing is associated with the region. Where, on the cost-based fields of activity are the needs for financing investments are assumed to be this covered by an internal loan remunerated at market rates.



On function 6.55.64, there are authorized the following grouping:



001 Loans from the State as a result of sharing agreement

Here registered debt on loans from the State in relation to the sharing agreement, see. without prejudice to article. section 41, paragraph 2 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform.



On function 6.55.65, there are authorized the following groupings:



001 Loans from municipalities as a result of sharing agreement

Here registered debt on loans from municipalities as a result of the rules on compensation for authorities in connection with the sharing agreement, see. section 41, paragraph 2 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform.



002 Loans from other regions as a result of sharing agreement

Here registered debt on loans from the regions as a result of the rules on compensation for authorities in connection with the sharing agreement, see. section 41, paragraph 2 of Decree No. 877 by 16. September 2005 on the allocation of assets and liabilities, rights and obligations and employees as a result of the relocation task 1. January 2007 in the context of local government reform.



6.55.74 Public debt securities emitted in foreign countries

The balance outstanding on foreign loans (function 6.55.74) is adjusted at the end of each rain year over balance sheet account 6.75.99 after the currency exchange rate as at 31 December 2003. December, why only the balance outstanding at the end of the fiscal year can be expected to be registered for ak of any currency exchange rates.



6.55.75 Other long-term debt with domestic vendor

The balance shall correspond to the balance outstanding on the loan in question.



6.55.76 Other long-term debt with foreign creditors

Balance corresponds to the current remaining debt converted into Danish kroner. Restgæl the end of each financial year over the adjusted balance account 6.75.99 after the currency exchange rate as at 31 December 2003. December, why only the balance outstanding at the end of the fiscal year can be expected to be registered for current exchange rates.



6.55.77 long-term liabilities relating to elderly housing

The balance shall correspond to the balance outstanding on the loan in question. Indexation is done by the end of the year with the balancing entry on 6.75.99.



6.55.79 Debt on financial leased assets

Commitment to the lessor are recognised in the balance sheet as a leasing obligation in the same way as a regular loan must be recognised as a liability.



The size of the debt obligation corresponds at the time of the award to the value of the recognised asset. Asset and lease obligation is therefore equal on the award date. Leasing obligation shall be credited and debited function 6.55.79 function 6.75.99. The asset is debited in function 6.58.81-6.68.87 and 6.75.91-6.75.93 feature is credited.



The lease payments are divided into financing costs (interest), and installments that reduces the lease obligation. The interest rate shall be distributed in such a way that a constant periodic rate of interest is recognised on the balance outstanding in each financial year. Leasing costs in the cost-based accounting is made up of interest and depreciation, while leasing costs in it expenditure-based accounts are interest and capital repayments (= leasing performance).



The carrying amount of the asset and the lease obligation will evolve differently over the lease term depending on the depreciation on the asset and calculated mortgage leasing debt, why the recognised assets and liabilities will rarely have the same size through the lease term.



TANGIBLE FIXED ASSETS

Tangible fixed assets are defined as a fixed asset with physical substance to continued use, and that were acquired for use in the production of goods and services, rental or for administrative purposes. Examples are real estate, machinery, transport equipment and fixtures.



6.58.81 land and buildings

The function is divided into 6 groups.



Primo opening year, the value of 6.58.81 be an expression of the current total value of the region's land and buildings, measured in accordance with the selected accounting principles. It will, as a general rule, say original acquisition cost less accumulated depreciation. This value will then each year by the clearance be regulated with depreciation as well as possibly. UPS and downs. Then the value must be adjusted for approaches and departures of assets.



Entries and exits through the purchase and sale of land and buildings are recorded directly on 6.58.81.



On receipt of the assets shall be debited to the relevant function/first place under the main account 1-4 with the use of the authorized generic posting. The balancing entry will be a liquid account or vendor account.



The next step is "omkontering" of the acquisition, so that it comes true with in the balance sheet as an asset to be depreciated. This is done by use of nature 0.0. The appropriate function/omkostningssted under the main account 1-4 are credited, while account is debited and 6.58.81 6.75.91-94 credited depending on which main account acquisition relates.



Care must be taken to ensure that there is consistency between entries in the accounts and asset book.



Depreciation, amortisation and write-downs are expensed by debiting under main account 1-4 with the use of art 0.1. The counterpart is a credit on 6.58.81 with the use of art 0.9 and a charge of 6.75.91-94 depending on hvilekn main account depreciation relates.



EVS. revaluation carried out by debiting and crediting 6.58.81 6.75.95.



The balance of the function 6.58.81 at the end of the financial year must be identical with the book value shown in the category "01 land and buildings" in the asset book.




Older properties in the opening balance sheet 2007 must be measured to the public property valuation per 1. January 2004 adjusted for amortisation and write-downs and revaluations carried out in the period 2004-2006.



6.58.82 Technical plant, machinery, more specialist equipment and means of transport

6.58.83 Fixtures – including computers and other IT equipment

Please refer to posting rules concerning function 6.58.81.



6.58.84 tangible fixed assets under construction and advance payments for tangible fixed assets

The feature is an interim post, an intercompany account in which advance payments and costs relating to the acquisition and in-service assets under construction not temporarily placed. Depreciation shall not start before the assets are brought into use, IE. While the payments are included in this feature are transferred to one of the features 6.75.91-94.



The function is similar to the other tangible fixed assets, divided into 4 groups.



Please refer to posting rules concerning function 6.58.81.



INTANGIBLE FIXED ASSETS

Intangible fixed assets are defined as identifiable non-financial assets without physical substance to persistent use.



Intangible fixed assets can typically be purchased IT software applications, greater investment in IT systems, including upgrades of existing standard systems, patents, licenses.



Internally generated intangible assets, URf.eks. internal development projects, including IT systems, can be included, if the asset is central and essential to task performance. Intangible assets should only be included if the value can be measured reliably. It is therefore a requirement that the project can be delimited and resource utilisation is calculated reliably URf.eks. by means of a time-recording systems or similar. It is the only expenditure incurred during the development phase and subsequent costs incurred in the operation phase in the form of improved functionality, which has to be factored. Expenses in the operating phase should not be included, since these do not contribute to an increase in value.



It must be stressed that the activation of the internal process makes considerable demands on the intangible assets documentation of the actual resource usage.



6.62.85 development projects and other acquired intangible assets

Please refer to posting rules concerning function 6.58.81.



CURRENT ASSETS

Current assets are defined as all assets other than capital assets.



INVENTORIES

Inventories comprise stocks of raw materials and auxiliary materials, products, work in progress and finished goods of all kinds for resale. Inventories also includes reserves and cost items that are not intended for re-sale



6.65.86 inventories/stocks

Trade stocks with a value in excess of 1 million. DKK, must always be registered. Inventories include in this context item categories that are registered on the same function. Warehouses under the de minimis limit of 100,000 DKK is not recorded.



Warehouses between de minimis and 1 million. DKK must be registered, if there are shifts in the item stored, which is assessed to be essential. Materiality criteria must be documented.



Primo opening year, the value of 6.65.86 be an expression of the current total value of the region's inventories, measured in accordance with the selected accounting principles. This value will then each year by the clearance be regulated with EVS. up-and downs, if these are deemed to be essential. In addition, the value must be adjusted for any changes in the. approach or departure. There cannot be written off on inventories.



Inventories should be measured in the context of the opening balance sheet. Adjustment of inventories should then take place at the end of each year. Please refer to posting rules concerning function 6.58.81, except that changes in inventories are recorded for the purposes of art 0.2.



6.68.87 land and buildings destined for resale

Please refer to posting rules concerning function 6.58.81.



NON-CURRENT LIABILITIES



6.72.90 non-current liabilities

Non-current liabilities have arisen as a result of past events, and if the settlement is expected to result in the sale of future economic benefits. Provisions is contrary to financial obligations to be seen in terms of size or bonds, and they must relate to the financial year or previous years.



Provisions are recognised in the balance sheet when the can:



region at the balance sheet date have a legal or actual obligation as a result of a past event, and

It is likely that the settlement thereof will cause a drag on the region's economic resources, and

There can be a reliable quantitative measurement of the obligation



By probability means that there must be greater risk of a drag on the economic resources than the opposite.



As an example of regional provisions can hover on the civil service pensions. Other regional provisions can URf.eks. be obligations derived from a lawsuit, claim, environmental pollution, etc.



Obligations related to an asset should not be included as a provision, URf.eks. should a contaminated ground is reduced by the costs associated with the redemption of the obligation.



As non-current liabilities is uncertain. for size or maturity, they can not be measured accurately at the balance sheet date. Accrued obligations must therefore be recognised as the best estimate of the costs on the balance sheet date is necessary to run the obligation.



Provisions differs from contingent liabilities by that the latter cannot be measured with sufficient reliability, and that it is not likely that the settlement will cause a drag on the region's economic resources.



There are authorized the following grouping for non-current liabilities:



Grouping 001 non-insurance covered the civil service pensions:

The grouping should show the region's debt obligations in the form of pension commitments, there is no insurance uncovered.



The uncovered pension obligation is calculated in relation to the opening balance sheet on 1 January 1999. January 2007 actuarially. Then, the pension obligation at minimum recalculated actuarially every 5 years.



The pension obligation is calculated actuarially with effect from 2007 on the basis of realistic assumptions accounts in terms of earnings and longevity, a retirement age of 62 years, as well as a base interest rate of 2%, this is equivalent to the usual prerequisites, which are most often used for the actuarial calculation of the non-insured pension burden. The obligation is calculated both for the retired, vacated and working officials.



Regions that are reinsured shall not recognise pension obligation in the balance sheet, where the latter are fully hedged. Are there elements of self-insurance in the insurance contract, URf.eks. in connection with the dismissal of officials or early retirement to the uncovered obligation is calculated. Likewise, a pension obligation covered by other authority not factored in the calculation of the accrued obligation for civil service pensions.



Changes in pension obligation occurs continuously in the following manner:



(a)) Increased by active civil servants earn pension rights

(b)) change as a result of expected changed mortality, departure age, dismissal, etc. among economically active, vacated and retired officials

c) Reduction through ongoing payments to retired and moved from officials



The change in pension obligations, as set out in point (a)), the equivalent of the cost of civil service pensions in the profit and loss account in the cost-based accounting, while section c) corresponds to the cost of the expenditure-based operating company.



Re item (a)):

Costs are charged to the appropriate cost centers, where this is authorized, otherwise direct on function under the main account 1-4 for the purposes of art 0.3. The cost is calculated as a percentage charge equivalent to 12.6% of the pensionable salary of the civil servants. Costs shall be credited to the function 6.72.90 non-current liabilities, group ring 001, Not insurance covered the civil service pensions.



Exempted from authorisation of a discretionary fixed cost for civil service pension of 20.3% of total salaries expense to serve man's employees are the institutions, which provides services under the framework agreements on social and special education area. Here apply the fixed cost via the concluded framework agreements. These costs shall be charged in addition, in accordance with the rules of budgetary and accounting system for the regions.



Re item (b))

By the actuarial calculation of the pension obligation for officials up-or are written down the book value of this function, so that there is consistency between the book value of the function and the actuarially determined liability. Up-or depreciation shall be carried out with the balancing entry on the balance sheet. Thus, no allocation is made back at cost points of the corrected statement of costs based on the actuarially calculated accrued pension obligation of the function.



Re item (c))


Ongoing pension payments, reducing the pension obligation must be registered through the use of art 5.1 at function 4.40.31. It should be noted that in cost accounting, pension payouts do not imply a cost for the region, but only that the pension obligation is reduced, since this has already been accrued in the financial statements. This means that payments be neutralized by crediting function 4.40.31 with the use of art 0.6 and charge function 6.72.90, non-current liabilities.



EQUITY



Shareholders ' equity represents the difference between the region's assets and liabilities. Shareholders ' equity is, in this way, an expression of the region's wealth. Equity must be specified on the functions 6.75.95-6.75.99. Movements in shareholders ' equity must be indicated in the notes on the accounts in the financial statements.



6.75.95 Reserve for revaluation surpluses

The function is a kind of non-financial equity. The purpose of this feature is to be able to quantify how much of the value of non-financial assets value, which can be attributed to not realized positive adjustments.



Appreciation transactions must also be apparent from a separate fixed asset list for the region's accounts.



6.75.96 Cumulative result for health



6.75.97 Cumulative result for social and special education area



6.75.98 Cumulative result for the regional development area

Accounts will be at the clearance of express the accumulated results of the cost centers



6.75.99 Balance account

On the function are authorized two groupings:



001 Primo equity p from 1 (opening balance)

002 Counterpart for value adjustments



The State grants in 2007 is credited directly to the cash function and are charged the main function "liquid assets".



PART II



AUTHORIZATION rules

PROCEDURES AND

OVERVIEWS



Chapter 5



5 FORM and PROCEDURE REQUIREMENTS for the BUDGET



Content Section



0 Introduction to part II 5.0

1 procedural requirements for budget adoption 5.1

2 the Form requirements for budget 5.2

3 Overview of deadlines in connection with budget adoption 5.3

4 Annex to Chapter 5 5.4



Section 5.0



3.1 Introduction to part II



The regions Act §§ 17-29 provides for the regions ' budgeting, allocation and accounting, etc., while donation § § 60-65 provides for preparatory committees economics and finance. Furthermore, the law authorizes the Minister of welfare to lay down detailed rules on a number of points. Such administered rules exist in the present Ordinance.



Part II of the budget‑ and the accounting system accommodates both real rules as a guide to the provisions of the Act and the administrative provisions. The actual rules are, as far as possible and appropriate, marked with a frame around the text.



Section 5.1



5.1 the procedural requirements for the adoption of the budget



Regional law and this Ordinance contains a number of provisions concerning procedures and deadlines in connection with budget preparation and adoption:









Within 15. August Executive Committee shall prepare the proposals to the Council for region's annual budget for the coming fiscal year, which runs from the 1. January to the 31. December 1), the proposal shall be accompanied by budget estimates for a 3-year period. 2)





 





The Bureau draft annual budget and budget estimate shall be subject to two treatments at the Regional Council with at least three weeks apart 3) first reading shall be carried out no later than 24. August 4) The proposal for the municipalities ' annual due contributions and development contributions, as contained in the draft budget, referred to in article 6. sections 6 and 7 of the law on the financing of the regions, to be discussed in the contact Committee between the region and the municipalities in the region no later than the 1. September 5)





 





Municipal Councils in the region must not later than 10. September in writing communicate to the Regional Council of their position on the proposal for a basic contribution and development contribution. 6)





 





At second reading, which occurs within the 1. October, adopted the draft annual budget and multiannual budgetary estimates of Regional Council. 7)









1) see § 2 (1) of this Ordinance.

2) see section 3, paragraph 3 of this Ordinance.

3) section 19 (1) of the Act.

4) see § 2 (2) of this Ordinance.

5) see § 2 (3) of this Ordinance. In 2007 are basic and development contributions set at respectively 1,000 USD and DKK 100 (2003-price-and wage level) in accordance with sections 4 and 5 of law No. 500 by 7. June 2006 about restrictions in the printing of the 2007 municipal tax and regulation of the municipal contribution to the regions in 2007.

6) see § 2 (4) of this Ordinance.

7) section 19 (2) of the Act and § 2, paragraph 2 of this notice.



The regions have a statutory obligation of the supplier in relation to the municipalities for a variety of social deals and some special offers. The Regional Council shall, in accordance with the sectoral legislation no later than the 15. October included an annual framework agreement with the municipalities located in the region of, among other things. the total number of seats and offers, Regional Council provides to the municipalities in the region. Since the framework agreements are a key prerequisite for both local and regional budget planning, however, it is appropriate that the discussion and adoption of the framework agreements are organised and tap into the budget process in an appropriate way for both regional councils and municipal councils.



The notice also contains rules concerning the specification of the areas within which there must be a balance between revenue and expenditure/cost on the annual budget and the multiannual budget estimates, see. more detail in section 5.2.



The notice also contains individual procedural rules. Under section 3, paragraph 2 of the notice on the regions ' budgetary and accounting, auditing, etc. amendments to the draft budget must indicate the appropriation the proposal is directed against, and with what amount the appropriation sought was changed. This rule is related to the requirement that the budget must be immediately suitable for realization. It excludes that amendments can be made in more common terms such as held: ' Regional Council wants a priority of cancer in relation to the Executive budget proposal '. Similar rules apply to the budget estimates.



It is a requirement that any expense or cost-increasing amendment must be accompanied by a proposal for financing the increased costs and the costs of the basic regulation. section 3, paragraph 4, of the Decree on the regions ' budgetary and accounting, auditing, etc.



It is clear, moreover, of the section 20, that the finally adopted annual budget and multiannual budgetary estimates should be available for the region's residents. A brief account of the content of the annual budget and the financial perspective must in the coming financial year will be published after the Regional Council quantification.



Section 5.2



5.2 Form requirements for budget



Laid down a number of provisions on how the regional budgets must be drawn up which records they must cover, etc., these formalities must be seen in conjunction with the various tasks that the budget must solve. A distinction is made in rule between the financial task, the budgeting task and task information.



The financial task

The budget has a financial function means that the budget not only provides an overview of the region's income and expenses/costs, but that, in addition, establish a financial budget/cash flow statement showing how the financing of the budgeted activity is provided within each of the three areas of activity referred to in article 6. below. The budget is thus an expression of an overall balancing of cost would in the face of income opportunities. Block grants from the State, basic and development contributions from municipalities and social tariffs and special education area may not be set up in the course of the year, and which is also laid down restrictions on overdraft and borrowing. Budget financial function therefore plays a more central role for the regions, than the URf.eks. is the case in private companies.



The budgeting task

According to § 21 of the regions, (1) specifies the entries on the annual budget, for which the Regional Council at budget adoption has taken the position of equitable, the binding rule for next year's regional administration.



The appropriations entered in the budget is thus an expression of the Council adopted by the regional allocation of financial resources between the different regional task areas. Budget specifies the size of the room for manoeuvre which is left to the Regional Council, the Executive Committee and to the management and institutions, when in the course of the year must make financial dispositions on the region's behalf.




Play space for the prioritization of regional economy is limited by the fact that it is divided into three distinct parts: health, development and operation of institutions of social and special education area. The three areas of activity must rest in itself, so that expenditure on the health sector, including shares of administrative and financial common costs, financed by revenue earmarked for this area – and similarly for the other two areas.



The informational task

The budget is aimed as a source of information against the region's citizens, vendors, employees with multiple as well as against the central authorities. The central authorities collect forecast data for the purpose of calculating the total resource consumption in the regional sector. It is, among other things. the purpose of this data collection, to put in place common accounting rules, which are mandatory for all regions.



As a special aspect of the information task included that budget and budget proposals must be suitable tools for politicians in connection with decisions on economic priorities. This priority task is, among other things. searched safeguarded by the chart of accounts as far as possible, is structured so that amount to coherent purpose performs overall.



5.2.1 REGION DESEGREGATED BUDGETS



5.2.1.1 operating budgets and balance requirements

According to section 3 of this Ordinance lays down rules concerning the specification of the areas within which there must be a balance between revenue and expenditure/cost on the annual budget and the multiannual budget estimate.









The regions ' economy is divided into three areas of activity: health, social and special education area as well as the regional development area regulation. § 1 of the law on the financing of the regions.





 





Calculated according to expenditure-based principles must be in the area of health, be a balance between revenue and expenditure on the annual budget and the multiannual budget estimate.





 





Calculated according to the principles of cost-based revenue must be greater than or equal to the cost of social and special education area. Similarly, the regional development area.









The health sector can by agreement with the Ministry of social welfare is administered by cost-based principles.



At the economy management of regional promotions in the social field must opærksomheden is drawn to the fact that it is clear from the comments to the financial rules set out in law No. 573 of 24. June 2005, that these should be financed by the municipalities. The starting point for the municipal finance is a rate payment for the individual regional deals, there are determined on the basis of the total cost, the region will have the type of offer in relation to the framework agreement with the municipalities. This implies that there is only the opportunity to subsidize prices for offerings targeted at the same audience. URF.eks. can a loss relating to a residential institutions for disabled children not covered by increasing tariffs on residential facilities for mentally ill-in contrast, the same deficit can be covered by raising tariffs on all residential institutions for disabled children, etc. It is a prerequisite that the municipalities agree tariffication in the annual framework agreement.



The Division of regional economy in the three areas of activity involves using allocation keys to be made to the Division of administrative regions common costs and financial costs, and that they should be distributed in three areas, see. section 5.2.5.

The regions ' current income as a starting point, is reserved for one of the three areas. This applies both to the grants from the State and contributions from the municipalities.









The operation of institutions and of special education in the social area is apart from some specific administrative tasks financed entirely through tariff payment from local authorities. These tasks rests in itself and therefore does not net costs or income for the regions. The area must be budgeted with an expected annual results, that is equal to or greater than zero. The size of the expected results and the total accumulated results discussed in the contact Committee. Over-and deficit relating to earlier years is regarded as revenue and expenses respectively.





 





By deficits in one year this must be settled at the latest after 2 years.





 





Net costs in the regional development area will be funded by block grants from the State and the earmarked contributions from municipalities and shall thereby appropriated an expected annual results, that is equal to or greater than zero. Over-and deficit relating to earlier years is regarded as revenue and expenses respectively.





 





By deficits in one year this must be settled at the latest after 2 years.









The requirement for an annual results that are greater than or equal to zero, is an expression of that year operating costs equivalent to operating income, and that this year's resource consumption is financed, and that the change in capital adequacy (depreciation) can recover properly, and that any deficits from previous years is applied. By statement of annual result is not included the two regions ' liquidity position drag or profits (intercompany account) in relation to the region's entire business.







As regards the health sector to the year's net expenditures funded by block grants from the State and the earmarked contributions from municipalities and thus posits in balance. By deficit in a year, there is no requirement that this should be settled in the subsequent year.







In contrast to social-and special education area and the regional development area included cash and cash equivalents from the region's financial activities, URf.eks. consumption of liquid assets and borrowings, and loss of balance requirement.



The adopted budget shall be an expression of the best possible estimate of the coming year's expenditures/costs and revenues. There must not occur in the budget entries that lack a detailed explanation or justification, whether the cause is temporal problems, lack of capacity in budgeting, lack of consensus in the Council or similar regions.



During the budgetary procedure may be amendments that change the basis for the balance of the original budget proposal. In this Ordinance, section 3, paragraph 4, and executive order No. 389 of 2. May 2006, § 5, paragraph 4, stipulates that in this situation to be provided balance in the revised budget proposal within the scope of activity, the amendment relates. Balance requirement implies in relation to social and special education area and the regional development area, that an amendment that results in increased costs must be matched by gains or less cost in the same area, where the expected annual results, is budgeted at zero. In the health field can balance the requirement also honoured by consumption of liquid assets.



5.2.1.2 investment budget

For the regional development area, social and special education area (main account 2 and 3) to the Regional Council by the budget's final approval, at a minimum, establish an investment budget, which sets a cap on the investments that can be made within each of the main accounts and financed by the region's liquid assets. Where as a result of investments made in the area of investment budget to be held investment expenses in later financial years, there must be allocated an allowance of the investment budget, see. in more detail in section 6.2.2. Ligeldes Regional Council can establish a framework for joint investment and management area, if this is managed as an independent territory.



Investment expenditure on regional development area, social area and common-special education and administration area are funded as internal loans accrue interest with market rates and repaid – at a minimum equivalent to depreciation of the investment-in subsequent years. Investments in these areas increases it remits between region and activity areas. It remits, to be reduced by costs for depreciation requires an appropriation, but does not involve a cash flow drag. By new investments to ensure that remuneration and depreciation can be held within the appropriations made available in budgetoverslags the years. Debt relating to internal loans must therefore never exceed the value of the leveraged fixed assets.



Depreciation on assets that exist in connection with the creation of regions per 1. January 2007, should not affect it remits between the region and the regional development area and social-and special education area. It implies that each of the ranges at start up of the regions subject to an internal debt corresponding to the value of the area's assets. The debt is repaid and interest shall be equivalent to depreciation and return on assets. This is the same principle that applies to new investments, namely that an area's debt to the region increased for the value of the investment.



It is the Regional Council, which sets the investment budget for each of the main accounts, see. Chapter 6, section 2.2.



5.2.2 GROSS TRANSACTION


For each of the three activity areas in the regional budgets shall be construed as a starting point, that all costs be financed collectively by all revenue within the activity area. Regional Council must thus be freely in its spending priorities and not be influenced by what types of income are included in the funding of the individual areas of activity. However, there may not be a prioritization of expenditures and revenues across the three areas of activity in the regional budgets.



To the Regional Council can have the best possible basis for making an economic priority, must therefore be drawn up budget after gross transaction principle. It will say:







Costs and revenue must be shown and specified separately in the budget, whether that be given brutto‑ or net appropriations.







Gross transaction principle is not only important in relation to the Regional Council priority. It also has importance for the task information more generally. Only by virtue of the separation of income and expenses, it is possible to obtain information on the total cost or total revenue in a given regional institution or by the region's entire business.



5.2.3 MULTIPLE ANNUAL SURVEY

Together with the budget drawn up and adopted a multi annual survey, containing budget estimates for a period of three years. The Regional Council adopts budget estimate is a legal requirement. The aim is to ensure that there will be an assessment of the long-term effects, as decisions in the annual budget.



The Regional Council may URf.eks. adopt a reorganization of the activity, which means a saving in the latter half of the financial year. The full årseffekt of the saving will not be reflected in the annual budget, but on the other hand, of the preliminary draft budget for the first year following the budget year.



The following points need to be multi-årsoversigten meet the same requirements as the budget itself:







Multiple årsoversigten must include all revenue and costs, there must be a balance for each of the years and for each of the three regional areas of activity, and the list should be based on gross transaction principle. On the other hand, there are special rules regarding pris‑ and salary level in multi-årsoversigten of the basic regulation. below.









5.2.4 PRIS‑ and WAGE

The annual budget shall be drawn up in the pris‑ and salary level, which is expected to be valid during the budget year.



Budget estimates in multi-årsoversigten compiled for the master account 1 ‑ 4 (operation, reimbursement and facilities) in the budget of the year prices (constant prices), while the main account 5 and 6 shall be drawn up in each overslagsårs pris‑ and salary level (current prices).



For each overslagsår should be entered as a separate item the total expected pris‑ and salary increase for main account 1 ‑ 4 in relation to budget year. The amount shall be disclosed separately for revenues and costs.



By applying fixed prices on main account 1 ‑ 4 in budgetoverslags the years ensures that changes in amounts from one year to another is always an expression of real aktivitets‑ or quantity changes.









On the annual budget is set all entries in the pris‑ and salary level, which is expected to be valid during the budget year.





 





In multi-årsoversigten set the entries on the main account 1 ‑ 4 in the budget of the year award-and salary level (fixed prices), while records on main account 5 is specified in the pris‑ and salary level, which is expected to be in force in the individual overslagsår (current prices).





 





For each of the years budgetoverslags be drawn up immediately after the installation a special item that indicates the total expected pris‑ and salary increase for operation, refund and installations in relation to budget year.











5.2.5 ALLOCATION PRINCIPLES in the BUDGET and ACCOUNTS

To be in connection with the adoption of budget and reporting of financial statements conducted a number of distributions of costs and revenue relating to common purpose and central administration, recorded on the main account and interest, etc., are recorded on the main account 5, with a view to the calculation of operating profit in each of the three regional areas of activity.



The three main areas regional shares of the region's common purpose, administration costs, interest rates, etc. transferred in connection with budgeting and financial reporting from the main account 4 and 5 for each area on the main account 1-3.



To display a correct breakdown of main account 1-3 on the expenditure-based records (hovedart 1-9) and the cost-based records (hovedart 0), it is necessary that the distribution/transfer of the cost-based records from the master account must be made through hovedart 4 0, while the expenditure-based records is distributed by use of hovedart 9. The transfer happens at grouping 730 internal transfers.



In the distribution of income and expenditure for common purposes and central administration, there shall be charged on the main account 4, lays down the allocation key of the regions, taking into account the three activity areas load of common area. The allocation key should appear in the budget and accounting.



In the allocation of revenue and expenses for interest, etc., there shall be charged on the main account 5, used the following key: the main account 2-4 burdened with interest payments equal to the calculated internal rate of return of both existing and new investments in the three areas of activity. The balance, which will then appear on the main account 5, transferred to and financed definitively on main account 1. The allocation key must appear in both the budget and the accounts.



5.2.6 VAT

Costs on the main account 1 ‑ 4 must, as a general rule, be indicated excluding VAT in the budget as well as accounting.



The cost to purchase VAT gather at function 5.80.95. The detailed rules which accounts and which species are covered by purchase VAT scheme, discussed in section 2.6.



The requirement for a separate and comprehensive accounting of purchase VAT costs should be seen in connection with VAT refund scheme, which means that each region gets his VAT costs refunded by the State.



VAT refund scheme, the aim of which is to ensure a competitive equality between private enterprises in the production of regional services and the region's own production. As the region's own production is not subject to VAT, it would be tantamount to unequal conditions of competition detrimental to the private sector, if the region did not get a refund of sales tax on services purchased from private individuals.



Registered VAT, IE. VAT in connection with VAT registered business in the region, implemented in function 6.52.59. The detailed accounting rules are described in section 2.6.



5.2.7 OVERVIEWS to the BUDGET

Summary manageable summaries of budget proposal plays an important role in the political process ahead of the budget's adoption of priorities. Summaries drawn up on the basis of the adopted budget also serves as an information basis for the central authorities. On the one hand, for the purpose of estimating the total activity in the regional sector, and partly with statistic purposes.



The regions are largely free of the extent and shape of the material to be distributed to the Regional Council in the context of the budgetary procedure.



Requirements concerning the allocation alone provides rules for the Regional Council of the concession statement, income statement, cash flow statement and investeringsoverigt as well as observations (see section 5.2.8). Each region may choose the most appropriate formulation of the inventories.



Also included in budget‑ and accounting system a number of overviews for the budget to be drawn up in accordance with the prescribed formalities and submitted to the Ministry of social welfare and Statistics Denmark respectively.



The table below summarises the rules on distribution and submission of overviews to the budget.









Section





Overview





Must be distributed

without

form requirements





Must be submitted





 

 

 



With the form requirements





Without formal requirements







5.2.7. (a)

5.2.7. (b)

5.2.7. (c)

5.2.7. (d)

5.2.7. e

5.2.7. (f)

5.2.7. g

5.2.7. h

5.2.7. in

 

5.2.7. j





Licensing overview

Income statement

Cash flow statement

Main switchboard to budget

Summary of the budget

Specifications for the budget

Investment overview

Specific budget information

Resource list on social institutions

Multi-annual survey





X

X

X

 

 

X

 

 

X






X

X

X

X

X

 

X

X





X

 

 

 

X









a. Appropriations summary

It is both obligatory to draw up concession statement for the draft budget and authorization list to the adopted budget.



Of authorization to the sidebar it shall be evident which of the budget entries each appropriation is assigned to. There must therefore be no doubt:



Which records the authorization includes

Which amount the authorization reads on, including whether it is a gross or net appropriation

Whom the authorization is given to.



The agreement between the region and the Ministry of social welfare, on health are assessed according to a cost-based or expense based principle.



In relation to budget appropriations should history relating to the cost-based concession areas are assessed according to expenditure-based principles and the relationship between the two tables is explained. The correlation can be explained on the basis of the following overview:









Conversion table 1,000 kr.







Net profit from cost accounting (hovedart 0-9)



 





-Be included in acquisition costs (art 0.0)



 





+ Amortisation and write-downs (art 0.1)



 





+/-Inventory adjustments (art 0.2)



 





+ Reserves (civil service pensions) (art 0.3)

+ Return (art 0.4)



 





+ Other accrued expenses profit for the year after expenditure (hovedart 1-9)



 







Also on-call amounts relating to the construction works, which is calculated according to an expenditure-based principle, must be indicated in the authorization to the sidebar, so that it appears as a minimum, how large a total allowance that is attached to each master account (whether available funds and fixed allocations, see Chapter 6).



The demarcation of the budget in appropriations is a central prerequisite for the budget can serve as the basis for day-to-day administration, the ongoing process of economic management and the subsequent control.



There are no specific formal requirements laid down for the establishment of the concession statement. The only requirement is, as mentioned, to each appropriation is uniquely defined in relation to the chart of accounts, as well as by the political or administrative unit, the authorization is given to.









Summary of appropriations shall be drawn up in connection with the draft budget as well as the adopted budget. Authorization to the sidebar to display the entries defined in relation to the account plan ‑ which the Regional Council takes equitable position. The concession statement must also include the budget allowance is the minimum specified on main account level.





 





A proposal for concession list distributed to the members of the Regional Council in relation to the budget of the proposed treatment.





 





The final appropriations Summary submitted no later than the 5. January to the Ministry of social welfare.









Amounts in appropriations history quotes throughout 1,000 kr.



b. economic outturn account

The purpose of the income statement is to specify the expected annual results, as this year's revenues minus costs year (accrued resource consumption).



The profit and loss account shall be drawn up only for social and special education area (main account 2) and the regional development area (main account 3), while it is optional for the health sector (main account). Revenue and costs for common purpose, administration, interest, etc., there shall be charged on the main 4 and 5, shall be distributed at main account 1-3 in both the budget and the accounts. There should also be a distinction between income and expenses derived from the region's ordinary and extraordinary operation. The latter relates to activities that are not expected to be recurrent and as unrelated to the ordinary activity.









The budget shall, when it shall be reported by the Executive Committee of the Council, include an income statement for social and special education area (main account 2) and the regional development area (main account). Outcome statements must be drawn up in accordance with the schema that is reprinted as annex 1 in section 5.4.1.





 





Outcome statements are submitted at the end of October to the Ministry of social welfare.









The budgeted income statements for social and special education area and the regional development area shall not show a deficit, see. section 5.2.1.



c. cashflow table

The purpose of the cash flow statement is to show budget this year's cash flows distributed to the region's aggregate operating, investing and financing activities. There must be an overall cash flow statement for the entire region. In addition, there will be summed up a cash flow statement in accordance with the principles of social-and cost-based special education area and the regional development area. In the latter the cash flow statements cash flows from financing activities and to the short-term debt and short-term receivables are not included, since borrowing, mortgage loans and dislocations in the short-term entries is assumed to be at the heart of the region as an integrated it by the region's common cash in hand.



Cash flows from operating and investing activities must be attributed uniquely to one of the three areas of activity. Social and special education area and the regional development area to the cashflow hedge the liquidity position between being in relation to the region's overall economy. Intercompany relationship must accrue interest. Cash flow statements are drafted on the basis of results statements and investment history.



Related to the cash flow statement is displayed separate budget year expected shifts in likviderne as well as likviderne at the beginning of the period and ending. Related to the cash flow statement on social and special education area and the regional development area appears between the Bill in relation to the region's overall economy.









The annual budget must, when it shall be reported by the Executive Committee of the Council include a cash flow statement for the whole region calculated according to expenditure and cost-based principles and for social and special education area and the regional development area measured by cost-based principles. Cash flow statements prepared in accordance with the schema that is reprinted as annex 2 in section 5.4.2.





 





The cash flow statement are submitted at the end of October to the Ministry of social welfare.









Amount in the cash flow statement should be entered in 1,000 DKK



d. main switchboard to budget

The main purpose of the guide is to provide a summary overview of the budgeted activities and their funding is calculated according to expenditure-based principles. The main switchboard form, among other things. the basis for a first statement of account in the Ministry of social welfare of the regional sector budgets. This is why the main switchboard must be submitted immediately after the budget adoption and before the submission of the other budget material.









There must be a main switchboard to the adopted budget in accordance with the schema that is reprinted as annex 3 in section 5.4.3.







The main switchboard shall be submitted early October to the Ministry of social welfare.









Ministry of social welfare shall notify in advance of budget adoption, inter alia. the deadline for submission of the recapitulative statement.



e. Summary of the budget

Summary of the budget serves as the main calendar view informations‑ and statistics purposes. Paragraph Division is the same, but the precision of detail is greater, and the summary shall include both budgetary year as the three budgetoverslagsår.



It is due to the fact that the summary in addition to the above purposes also must meet a scheduling aim.



Specification degree is not the same everywhere in the summary. Depending on the individual expenditure areas in character and content of the information in the summary budget is determined by hovedfunktions‑ or functional level.









Prepare a summary of the adopted budget in accordance with the scheme, as the Ministry of social welfare broadcasts ahead of budget adoption.







Summary of budget submitted no later than the 15. November to the statistics authorities.










The summary of the budget shall be drawn up in accordance with the expenditure-based principles regardless of whether it has been agreed between the region and the Ministry of welfare, the budget for the health sector should be drawn up in accordance with the cost-based principles.



Ministry of social welfare broadcasts ahead of budget adoption the necessary schema material for the preparation and submission of summary of budget.



such Specifications for the budget

The list of specifications for the budget constitutes the detailed budget reporting to the central authorities.









Has to be made to specifications to the adopted budget, IE. an overview of budget lines where the specification degree is the same as in the authorised account plan. Specification degree is, as a general rule, the following:





 





Main account







The main function







Function







Dranst







Ownership







Grouping (operation)







Hovedart







Art (in the case of hovedart 4, 5, 7 and 8)





 





The specifications for the budget reported by 15. November to the statistics authorities.









Amount in specifications to the budget shall be entered in whole 1,000 kr.



g. Investment overview

Notification of general budget information to the central authorities include finally an investment statement for the budget year and budgetoverslags the years.



In the investment list sets out in schematic form of the of Regional Council votes fixed allocations and their correlation with the annual budget and in budgetoverslags the years listed on the available funds.



The applicable licensing rules, which is closer described in Chapter 6, provide a way for the Regional Council to some extent in a position to provide the framework for more extensive construction works appropriations. Similarly, the Regional Council the opportunity to apply the overall framework to the Executive Committee for the allowance on capital works in the budget.



Practice with regard to the application of the framework appropriations and specification level of available funds in the budget will therefore be able to vary from region to region.



As a result, it is not bound by certain investment summary form requirements, but must be adapted to the budgeting conditions in each region. However, different rules apply with regard to the content of the information in the investment portfolio.









In relation to the adopted budget shall be drawn up a list of works which are allocated allowances in the budget year and/or one or more of the three budgetoverslagsår.





 





Investment Summary submitted no later than the 5. January to the Ministry of social welfare.









Investment summary for the individual works or for the individual envelope shall contain information on:



Date of release and possibly updating the fixed allocation the amount as fixed allocation sounds on

Dates for the expected commencement and completion

Expenditure related to the construction work, which is expected to be held preceding the budgetary year

The allowance, which is allocated in the budget this year and each of the three budget-overslagsår

Expenditure related to the construction work, which is expected to be held after the expiry of the budgetoverslags period

The updated expenditure estimates.



Amount in investment history be entered in whole 1,000 kr.



h. Special budget information

The schema for the specific budget information contains information, inter alia, the relating to the inventory of regional expenditure in selected areas.







The schema for the specific budget information submitted to the Ministry of social welfare early October.







Ministry of social welfare broadcasts ahead of budget adoption the necessary schema for the preparation and submission of materials concerning the specific budget information.



in the resource list on social institutions.

In connection with the adoption of the budget shall be the subject of resource list for social institutions. Resource summary based on distributions of expenditure on feature 2.10.01-2.80.70 of social institutions.









Resource list should be drawn up for social institutions to the adopted budget in accordance with the schema that is reprinted as annex 4 in section 5.4.4.





 





Resource summary must be submitted at the end of October to the Ministry of social welfare.









j. multi-annual survey

Multiple årsoversigten are drawn up and adopted, together with the budget. Multiple årsoversigten can be integrated as part of the authorization to the sidebar. The Regional Council adopts budget estimate is a legal requirement. Further mention of multiple årsoversigten can be found under 5.2.3.



5.2.8 COMMENTS on BUDGET

The regional budget consists, in addition to the numerical ordering of the total budget and the associated list of the votes of the notes to the budget appropriations.



In the comments to budget the Commission clarifying the budget assumptions and content. Comments on the budget have also an allocation function. There can thus be established subject to the comments and conditions for the use of an appropriation. These comments shall be binding on the individual holder. In the same way as values in the allocation history is only provided for a few explicit provisions with regard to the design and contents of the commentary on the budget. However, it is a requirement that the comments made clear whether these have a bevillingsmæssigt aim, see. above, or whether they are of a more general informative nature.



In addition, it is a requirement that the comments on the budget contains an explanation of how the budget is influenced by the conclusion of leasing arrangements, including the sale-and-lease-back arrangements. The statement should include the impact on both the costs and revenues in the budget as of debt ratios and economic obligations in General.



Finally, it is a requirement that the observations to budget is apparent how the activity-dependent contribution in the field of health in all the municipalities in the region.



It may be appropriate to split the observations to the budget in a general and a special part.



In such a breakdown will the General comments most frequently in first row serve a fact-finding mission. The information can be aimed at both policy makers and the regional administration as citizens. These General, enlightening budget remarks can URf.eks. contain a statement of the general budget assumptions such as price-and lønskøn, estimates of the future population composition. In continuation of this may also explain the region's objectives for the development of regional economy.



There may also be attached General comments on each concession areas or main accounts. Who can URf.eks. explaining the background for the re-setting of priorities compared to last year's budget or provided descriptions of ongoing or planned construction works or conversion projects. In addition, the comments contain a mention of the region's overall objectives for the development of the individual service areas.



The special notes, on the other hand, will contain the more in-depth explanation of the budget assumptions and content with detailed comments on each of the major functions and features, etc.









To be compiled comments on the draft budget as well as the final budget.







Comments on the draft budget will be awarded to the region in connection with the reading of the draft budget.





 





Comments on the adopted budget submitted no later than the 5. January to the Ministry of social welfare.









It should also be noted that the regions kasse‑ and also the financial regulations or other internal regulations will be able to contain provisions that are in line with the annual budget lays down conditions for comments related to appropriations.



Section 5.3



5.3 Overview of deadlines in connection with budget adoption



Deadlines in connection with the preparation and adoption of the budget ‑ including for submission of budget material to the central authorities ‑ is summarized in the chart below.









Within 15. August





The Executive Committee shall prepare the draft budget to the Council.





 

 





At least 24. August





1. consideration of the draft budget.





 

 





Not later than 1 July. September






Proposal for municipal annual due contributions and development contributions are discussed in the contact Committee.





 

 





No later than 10. September





Municipal Councils in the region shall notify in writing the Regional Council their position on the proposal because the contribution and development contributions.





 

 





Not later than 1 July. October





The budget is adopted.





 

 





Early October





Main switchboard and special budget details are submitted to the Ministry of social welfare. The additional time period granted by the Ministry of social welfare in advance of the budget adoption.





 

 





At the end of October





Income statement, cash flow statement and resource list on social institutions are submitted to the Ministry of social welfare. The deadline follows from the broadcast schedule material.





 

 





Within 15. November





Summary and specifications are submitted to the statistics authorities.





 

 





No later than 5. January





Appropriations history, investment summary, and comments are submitted to the Ministry of social welfare.









The above dates falls on a Saturday or Sunday, the deadline be deferred to the following Monday. However, this does not apply to the time limits for the submission of the proposal budget and the budget's adoption.



Section 5.4



5.4 the Annex to Chapter 5



5.4.1. Annex 1-income statement



Health









(1,000 DKK)





Accounts for year x-2





Adjusted budget for year x-1





Budget for year x







Block grants by the State (1.90.90)



 

 

 





Municipal basic contribution (1.90.91)



 

 

 





Municipal activity depending on the contribution (1.90.92)



 

 

 





Activity-specific grants from the State (1.90.93)



 

 

 





Grants from bleed compensatory scheme (1.90.94)



 

 

 





Revenue



 

 

 





NET operating expenses



 

 

 





Share of common purpose and administration (1.70.50)



 

 

 





Earnings before financial items and extraordinary items



 

 

 





Proportion of financial resources (1.80.60)



 

 

 





Åndel of financial costs (1.80.60)



 

 

 





Profit or loss before extraordinary items



 

 

 





Extraordinary income



 

 

 





Extraordinary costs



 

 

 





Profit for the year



 

 

 







Social and special education









(1,000 DKK)





Accounts for year x-2





Adjusted budget for year x-1





Budget for year x







Tariff payments. the social sphere



 

 

 





Tariff payments. special education



 

 

 





Revenue



 

 

 





NET operating expenses



 

 

 





Share of common purpose and administration (2.70.60)



 

 

 





Earnings before financial items and extraordinary items



 

 

 





Proportion of financial resources (2.80.70)



 

 

 





Åndel of financial costs (2.80.70)



 

 

 





Profit or loss before extraordinary items



 

 

 





Extraordinary income



 

 

 





Extraordinary costs



 

 

 





Profit for the year



 

 

 







Regional development









(1,000 DKK)





Accounts for year x-2





Adjusted budget for year x-1





Budget for year x







Block grants by the State (3.90.90)



 

 

 





Development contributions from municipalities (3.90.91)



 

 

 





Revenue



 

 

 





NET operating expenses



 

 

 





Share of common purpose and administration (3.70.60-63)



 

 

 





Earnings before financial items and extraordinary items



 

 

 





Proportion of financial resources (3.80.70)



 

 

 





Åndel of financial costs (3.80.70)



 

 

 





Profit or loss before extraordinary items



 

 

 





Extraordinary income



 

 

 





Extraordinary costs



 

 

 





Profit for the year



 

 

 







5.4.2. Annex 2-cash flow statement



A total of









(1,000 DKK)





Health





Social and special education





Regional development





A total of







Profit for the year



 

 

 

 



 



X





X





X





X







Cash flow adjustments to net profit





X





X





X





X







+ depreciation



 

 

 

 





+ internal rate of return



 

 

 

 





+ inventories, primo



 

 


 

 





-inventories, end of year



 

 

 

 





-holiday pay, primo



 

 

 

 





+ holiday pay, end of year



 

 

 

 





-provision for pension, primo



 

 

 

 





+ provision for pension, ultimo



 

 

 

 





-other adjustments, primo



 

 

 

 





+ other adjustments, ultimo



 

 

 

 





A. cash flow effect of net profit



 

 

 

 



 



X





X





X





X







Cash flow adjustments on investments





X





X





X





X







-purchase of intangible fixed assets



 

 

 

 





+ sale of intangible fixed assets



 

 

 

 





-purchase of tangible fixed assets



 

 

 

 





+ sale of tangible fixed assets



 

 

 

 





+/-other conditions



 

 

 

 





B. cash flow effect of investments



 

 

 

 



 



X





X





X





X







C. the year's total liquidity effect (net profit + A + B)



 

 

 

 



 



X





X





X





X







Cash flow adjustments to public and financial records





X





X





X





X







+/-shifts in short-term receivables





X





X





X



 





+/-shifts in short-term debt obligations





X





X





X



 





+ inclusion of external loans





X





X





X



 





-capital repayments on external loans





X





X





X



 





-return of internal loans





X





X





X



 





+/-other financial items





X





X





X



 





+/-revaluation of liquid assets





X





X





X



 





D. Liquidity effect of public and financial records





X





X





X



 



 



X





X





X





X







E. the year's total liquidity effect (net profit + A + B + C + D)





X





X





X



 





F. cash and cash equivalents, beginning budget year





X





X





X



 





G. cash and cash equivalents, at the end of the budget year (E + F)





X





X





X



 







The derived cash flows of short-term receivables and liabilities, external borrowing, mortgage repayments on external loans, other long-term receivables and Payables attributable to group level in the region, as an integral part of the region's common cash in hand.



The cost to business of internal loans are included in net profit at sectoral areas and correcting for the liquidity effect thereof under paragraph (A). The revenue by the remuneration of internal loans flowing to the region as a group, and there shall be corrected for the effect of this liquidity with opposite fortegn under paragraph (D).



For each of the three areas of activity (health, social and special education area as well as the regional development area) to prepare a statement showing the cash flows in the financial year, the budget for this year's budget as well as corrected last financial year, of the basic regulation. below.









(1,000 DKK)





Accounts for year x-2





Adjusted budget for year x-1





Budget for year x







Profit for the year



 

 

 



 



X





X





X







Cash flow adjustments to net profit





X





X





X







+ depreciation



 

 

 





+ internal rate of return



 

 

 





+ inventories, primo



 

 

 





-inventories, end of year



 

 

 





-holiday pay, primo



 

 

 





+ holiday pay, end of year



 

 

 





-provision for pension, primo



 

 

 





+ provision for pension, ultimo



 

 

 





-other adjustments, primo



 

 

 





+ other adjustments, ultimo



 

 

 





A. cash flow effect of net profit



 

 

 



 



X






X





X







Cash flow adjustments on investments





X





X





X







-purchase of intangible fixed assets



 

 

 





+ sale of intangible fixed assets



 

 

 





-purchase of tangible fixed assets



 

 

 





+ sale of tangible fixed assets



 

 

 





+/-other conditions



 

 

 





B. cash flow effect of investments



 

 

 



 



X





X





X







C. the year's total liquidity effect (net profit + A + B)



 

 

 







Between being with the region









(1,000 DKK)





(B)





B01





B02





B03







Primo 1. January



 

 

 

 





This year's liquidity effect



 

 

 

 





Interest on balance



 

 

 

 





At the end of 31. december



 

 

 

 









5.4.3. Annex 3-main switchboard



5.4.3.1. Main Switchboard to budget – expenditure-based



A total of









(1,000 DKK)











Budget xxxx







Expenditure





Revenue













A. Operating Activities



 

 





B. Construction



 

 





C. common purpose and administration (hkt)



 

 





D. Interest (hkt)



 

 





E. Financial Dislocations





X





X







Increase in liquid assets (6.10.01-6.10.11)



 



X







Repayments on loans and lease obligations (6.55.63-6.55.79)



 



X







Other financial dislocations (6.15.13-6.52.62)



 

 





The financial dislocations in everything



 

 





TOTAL (A + B + C + D + E)



 

 





F. Financing





X





X







Consumption of liquid assets (6.10.01-6.10.11)





X



 





Borrowings and new leasing debts (6.55.63-6.55.79)





X



 





Block grants by the State (1.90.90 and 3.90.90)





X



 





Reason and development contributions from municipalities (1.90.91 and 3.90.91)





X



 





Activity-specific grants from the State (1.90.93)





X



 





Activity-dependent contribution from the municipalities (1.90.92)





X



 





Grants from bleed compensatory scheme (1.90.94)





X



 





Objective financial contribution (2.90.90)





X



 





Funding total





X



 





BALANCE



 

 







Health









(1,000 DKK)











Budget xxxx







Expenditure





Revenue













A. Operating activities (hkt. 1 + fkt. 2.85.80 and 2.90.91)



 

 





B. Construction



 

 





C. share of common purpose and administration (1.70.50)



 

 





D. proportion of interest (1.80.60)



 

 





E. share of financial dislocations





X





X







Increase in liquid assets (6.10.01-6.10.11)



 



X







Repayments on loans and lease obligations (6.55.63-6.55.79)



 

 





Other financial dislocations (6.15.13-6.52.62)



 

 





Share of the financial dislocations in everything



 

 





TOTAL (A + B + C + D + E)



 

 





F. Financing





X





X







Share of consumption of liquid assets (6.10.01-6.10.11)





X



 





Share of loan and new leasing debts (6.55.63-6.55.79)





X



 





Block grants by the State (1.90.90)





X



 





The basic contribution from the municipalities (1.90.91)





X



 





Activity-specific grants from the State (1.90.93)





X



 





Activity-dependent contribution from the municipalities (1.90.92)





X



 





Grants from bleed compensatory scheme (1.90.94)



 

 





Funding total



 

 





BALANCE



 

 







Social and special education









(1,000 DKK)











Budget xxxx







Expenditure





Revenue













A. Operating activities (hkt. 2 excluding fkt. 2.85.80 and 2.90.91)



 

 





B. Construction



 


 





C. share of common purpose and administration (2.70.60)



 

 





D. proportion of interest (2.80.70)



 

 





E. share of financial dislocations





X





X







Increase in liquid assets (6.10.01-6.10.11)



 



X







Repayments on loans and lease obligations (6.55.63-6.55.79)



 

 





Other financial dislocations (6.15.13-6.52.62)



 

 





Share of the financial dislocations in everything



 

 





TOTAL (A + B + C + D + E)



 

 





F. Financing





X





X







Share of consumption of liquid assets (6.10.01-6.10.11)





X



 





Proportion of borrowings (and new leasing debts (6.55.63-6.55.79)





X



 





Tariff payments from the municipalities (2.10.01)





X



 





Funding total





X



 





BALANCE



 

 







Regional development









(1,000 DKK)











Budget xxxx







Expenditure





Revenue













A. Operating Activities



 

 





B. Construction



 

 





C. share of common purpose and administration (hkt)



 

 





D. proportion of interest (hkt)



 

 





E. share of financial dislocations





X





X







Increase in liquid assets (6.10.01-6.10.11)



 



X







Repayments on loans and lease obligations (6.55.63-6.55.79)



 

 





Other financial dislocations (6.15.13-6.52.62)



 

 





Share of the financial dislocations in everything



 

 





TOTAL (A + B + C + D + E)



 

 





F. Financing





X





X







Share of consumption of liquid assets (6.10.01-6.10.11)





X



 





Proportion of borrowings (and new leasing debts (6.55.63-6.55.79))





X



 





Block grants by the State (3.90.90)





X



 





Development contributions from municipalities (3.90.91)





X



 





Funding total





X



 





BALANCE



 

 







In the allocation of the financial dislocations (paragraph E) on the three areas of activity used the allocation key to be used in the distribution of main account 4 on main account 1-3, see. section 5.2.5.



Conversion from cost-based funding for expenses may be made on the basis of the following overview:









Conversion table 1,000 kr.







Net profit from cost budget (hovedart 0-9)



 





-Enabled acquisition costs (art 0.0)



 





+ Amortisation and write-downs (art 0.1)



 





+/-Inventory adjustments (art 0.2)



 





+ Reserves (civil service pensions) (art 0.3)

+ Return (art 0.4)



 





+ Holiday pay (art 0.7)



 





+ Other accrued expenses profit for the year after spending the budget (hovedart 1-9)



 









5.4.4. Annex 4 – resource list on social institutions



Special budget reporting functionally divided gross operating costs, administration and capital expenditures for social institutions









(1,000 DKK)





Gross operating

expenditure





Common

expenditure

and central

admini-stration etc.





Investment-

expenditure





A total of







Day-care facilities for children and young people





X





X





X





X







Special day care and special clubs



 

 

 

 



 



X





X





X





X







Offer for children and young people with special needs





X





X





X





X







Foster families and places of residence, etc. for children and young people



 

 

 

 





Residential institutions for children and young people



 

 

 

 





Secured residential institutions for children and young people



 

 

 

 



 



X





X





X





X







Offer for elderly and disabled





X





X





X





X







Care and welfare, etc. of older people and people with disabilities prevention efforts for the elderly and disabled



 

 

 

 





Devices, consumer goods, interior design and transport (under 67 years)



 

 

 

 





Devices, consumer goods, interior design and forwarding (67 years of age and older)



 

 

 

 



 



X





X





X





X







Advice





X






X





X





X







Advice and counselling institutions



 

 

 

 



 



X





X





X





X







Offer for adults with special needs





X





X





X





X







Residential facilities for people with special social problems



 

 

 

 





Residential accommodation for long term stays



 

 

 

 





Residential accommodation for temporary stay



 

 

 

 





Alcohol treatment and treatment of alcohol damaged the treatment of drug addicts activity and of communion offer



 

 

 

 





Sheltered employment



 

 

 

 



 



X





X





X





X







Teaching





X





X





X





X







Special education for children in preschool through 10. class



 

 

 

 





Special educational assistance for children of pre-school age



 

 

 

 





Special educational assistance for adults Sum



 

 

 

 







The table is calculated according to expenditure-based principles and must be exhaustive of all expenditure on feature 2.10.01, IE. It should include both operating and capital expenditures. Also it must be exhaustive for expenditure for common purposes and charged to the central administration at 2.60.40-2.80.70.



The background for the use of expenditure-based principles in the schema is that expenditure must be comparable with the corresponding municipal expenditure, expenditure-based principles used alone, or in the budget.



Chapter 6



6 AUTHORIZATION RULES



Content Section



0 Introduction 6.0

1 Authorization types 6.1

2 the concession level 6.2

3 Gross appropriations and net appropriations 6.3

4 Frame control and transfer access for institutions etc. 6.4



Section 6.0



6.0 Introduction



By a grant means an authorisation granted by the Regional Council to pay for a specified purpose or obtain resources of a specified nature within the stipulated financial framework and in accordance with the General and special conditions under which the authorization was given.



In the regions section 21 (4) of the basic regulation. section 40 (2) 1. sentence stated that the authorising authority is with the Regional Council. Legal regulations means that it is not allowed for the Regional Council to delegate authorising authority.



The budgeting basis must be provided before a disposition shall be implemented. Measures that will result in revenues or expenses, which are not granted in connection with the adoption of the annual budget or by additional appropriation, must not, therefore, be initiated before the Regional Council has granted the necessary authorization, without prejudice. the regions section 21 (4) of the basic regulation. section 40 (2), 2. sentence, of the Municipal Government Act.



In other words, the main rules are:









It is the Regional Council, which alone can give an authorization







Concession cases must always be included on the agenda for a Regional Council







There must not be carried out cost-or income-related transactions in the region before the necessary authorization from the Regional Council is available (see, however, section 6.1)









From this general rule, there are two exceptions:



Firstly, measures ordered by law or by other binding legislative provision, if necessary, shall be undertaken without the prior authorization of the Council, but of the regions appropriation must be obtained as soon as possible, see. the regions section 21 (4) of the basic regulation. section 40 (2), (3). sentence, of the Municipal Government Act and see. below for additional appropriations.



Secondly, the Regional Council, see. regional law article 21, paragraph 4, of the basic regulation. section 40 (2), 4. sentence, of the Municipal Government Act, authorize the Bureau to grant additional appropriations in cases where the amount from an operating or capital appropriation sought was transferred to another operational or capital appropriation, see. below for additional appropriations.



The general rule prohibiting delegation of authorising authority does not mean, however, that any expense or income-related operations in the region to be submitted to the Regional Council. The extent of the concession cases that should be dealt with in the Regional Council, will depend on the decisions of the Council on the authorisation level of the regions and the use of envelopes.



The Regional Council may thus by its concession donations lay down broad envelopes, within the Executive Committee range leaves the competence and responsibility for further use and compliance with appropriations to the Executive Committee. The Executive Committee may then decide to entrust the competences and responsibilities on to outline the regional administration, institutional leaders, etc., the Regional Council can also choose narrower in its concession donation envelopes which can leave the competence and responsibility for detailed use of appropriations and compliance to the Executive part of the regional administration, URf.eks. directly to an institutional leader.



Is authorization outside of the Executive Committee range, there is no selection, the level of appropriations can be left to. The competence and responsibility for compliance with the authorization may also be entrusted to the Executive part of the regional administration.



The Regional Council will retain the ultimate responsibility for appropriations and compliance and have a duty to exercise the supervision and monitoring of such products.



The Regional Council's bevillingafgivelse happens first and foremost in the context of the adoption of the annual budget.



Årsbudgettets budgeting function is directly provided for in § 21 of the regions. It follows from this that the entries on the annual budget, for which the Regional Council has taken the position of appropriation, the binding rule for the next years of regional management.



The release of the budget appropriation comes specifically expressed in the budget summary as well as in budgetary appropriations related observations.









For each authorization must indicate:







Which device (the Executive Committee or administrative unit) the authorization is given to







Which area or which activities the authorization includes, bounded out from the chart of accounts







The amount allocation sounds on







What are the caveats and conditions that may apply to the authorization of exploitation









The Regional Council's authorization to the submission takes place as a general rule, budget adoption. The Regional Council may also, at any time during the budgetary year submit additional appropriations. The extent to which appropriations may relate to the Regional Council's operating company and the Council's investment and construction activities.



Administrative appropriations from the budget adoption.



Fixed allocations may be given by the Regional Council at any time in the budget year. It is, however, a prerequisite for engineering activities start there in the budget are allocated the necessary allowance to finance the cost of the work.



The authorization rules that are discussed in the following, related-where not otherwise specified-both to the appropriations provided in the budget adoption, as for the later additional appropriations.




The budget holds reverse more than the sum of appropriations. The budget includes a number of entries for which no required equitable stance from the Regional Council.



In the following sections are explained in more detail for the applicable licensing rules.



Section 6.1



6.1 Authorization types



A distinction is made in the regional allocation rules between three types of appropriations, i.e.



Administrative appropriations

FA Allocations

Additional appropriations



Administrative appropriations

Administrative appropriations given to operating costs and ‑indtægter and State reimbursements on the main accounts 1-4. That is to say for the records of the authorized account plan is assigned to» dranstværdierne «1 and 2. Administrative appropriations shall be delivered in accordance with the principles of cost-based, IE. they must contain URf.eks. depreciation, in so far as it is relevant.



The rules relating to the submission of the operational appropriations shall be valid also for:



Mortgage lending – the year credit movements relating to functions 6.32.20-6.32.27

Mortgage loan – the year debit movements relating to functions 6.55.63-6.55.77

Interest expenses and ‑indtægter on the main account 5 ‑ 5.10.05 ‑ 5.55.76 and 5.90.99 functions

Reimbursement of purchase VAT – function 5.80.95



Mortgage lending and repayments on borrowings should be included in the cash flow statement, see. Chapter 5, section 2.7. d. Authorization is issued as part of the approval of the cash flow statement.



The operating appropriations made in the budget adoption and must appear in the budget appropriations history attached to it. In the comments to budget can also be laid down conditions for the use of appropriations.



Administrative appropriations shall not be exceeded in an additional appropriation has been obtained, see. However, the section on additional appropriations. It follows, among other things. thereof, that additional appropriations to the operational appropriations cannot be made after the expiry of the fiscal year to which they relate.



Administrative appropriations lapse at the end of the financial year and can only be carried forward to subsequent years, if Regional Council decides to continue with unused operating appropriations, subject to article 20. section 6.4.



FA Allocations

Fixed allocations given to capital expenditures and ‑indtægter on the main accounts 1-4. That is to say the records, which in the authorized account plan is assigned to» dranstværdien «3.



The rules concerning placement of fixed allocations apply also for:



Lending – the year debit movements relating to the features 6.32.20 ‑ 6.32.27

Borrowing – the year credit movements relating to the features 6.55.63 ‑ 6.55.77



Lending and borrowing should be reflected in the cash flow statement, see. Chapter 5, section 2.7. d.



Fixed allocations can be made at any time in the fiscal year. The release can thus ‑ but need not take place in connection with budget ‑ adoption.



Fixed authorization includes the total cost associated with the implementation of a fixed work or an investment, regardless of whether the construction works or the investment is expected to stretch over one or more years. Fixed authorization is set in the time of concession applicable on pris‑ and wage rates, regardless of whether the work is expected to stretch over a multi-year period. There may be associated with conditions for a fixed appropriation.



Change in the approved construction expense shall be submitted to the Regional Council in connection with the consideration of the draft annual budget for next year, for example. for price-and lønreguleringer, or as separate tillægsbevillingssag.



It is also a condition for being able to utilize a fixed appropriation, that allocated available funds for this purpose in the cash flow statement. It is thus a condition for starting of a fixed work or an investment, to which both the existence of a fixed appropriation for total cost, and to set aside the necessary allowance in the cash flow statement.



Allowance on the works to be presented by the budget appropriations history attached to it. In the comments to budget can be laid down conditions for on-call depends on the use, including whether the opportunities for the use of any non-consumed allowance in the following financial year.



The distinction between drifts‑ and fixed allocations

The distinction between drifts‑ and fixed costs can in some cases provide deteriorated ning to doubt. There can in these situations occur not sure which licensing pro ce procedure to be implemented for the measure concerned.



Please refer to the General guidelines concerning the widening of certain fixed costs drifts‑, as mentioned in Chapter 2, section 2.2.



Additional appropriations

The Regional Council has the opportunity during the year to announce drifts‑ as well as tillægsbevil lin ger to fixed allocations as well as allowances.



It is clear from the regions section 21 (4) of the basic regulation. the municipal governing article 40, paragraph 3, that any additional appropriation at rø leaked operating appropriations or allowance must contain an indication of which headed the allocated expenditure will be funded. Additional appropriations regarding social and special education area and the regional development area should be financed by corresponding mindreomkostninger or gains within the respective areas of activity.



In addition, there should not be taken, as with the leading expenditure and/or revenue for the region, before the Regional Council has granted authorization. This provision implies at the same time, that exceedance of a drifts‑ or fixed appropriation in the budget or by the listed allowances require a prior supplementary appropriation from the Regional Council.



There may, however, in two respects, be talking about deviations from this general rule:



Firstly, legal measures, if necessary, be undertaken without prior authorization, but the appropriation must be obtained as soon as possible. This option is directly referred to in the law and intends to ensure that one of the Folketing adopted law or issuance of notice pursuant to law ‑ URf.eks. whether a rate change in the arrangements for a performance, as the region is responsible for delivering ‑ can be put into effect immediately and so does not need to wait for the Council's appropriation of the regions.



Secondly, it will not be regarded as contrary to the law, if there is an appropriation is exceeded in cases where the amount is or may be considered mathematical terms. It will say that it is not possible to specify expenditure or revenue size more accurately, because these will depend on the more or less uncertain future events.



There will typically be here talking about benefits, as the region has a duty to provide, in accordance with the law. As an example of a mathematical terms amount can thus include the cost of public medical insurance. The authorization for this purpose will mainly rest on assumptions regarding, among other things. fee per patient contact, while the number of patient contacts and thus the total cost can only be estimated. In such a case, the fees continue to be paid, although the number. of patients exceeds the expected, and the appropriation thereby exceeded.



It should be of the budgetary remarks to those records indicate that there is talk about a mathematical terms expense or revenue. It would also be in accordance with good administrative practice, the Council submitted an application, provided that supplementary appropriations in the budget included an amount in respect of a mathematical terms record will not be respected.



It is the Regional Council, as authorising authority, provides additional appropriations. However, there is one exception to this:



The Regional Council of the regions section 21 (4) of the basic regulation. the governing section 40 (2), the ability to authorize the Bureau to grant additional appropriations in cases where the amount from an operating or capital appropriation sought was transferred to another drifts‑ or fixed appropriation.



The authorisation will only be able to include omdisponeringer between drifts‑ and fixed allocations, announced it will say main account 1-4. The authorisation includes only omdisponeringer from an operating appropriation to another or from a fixed appropriation to another, but not from an operating grant for a fixed appropriation or vice versa.



In addition, the Council's powers to the Executive Committee of the regions clearly be specified what authorization include, including whether the authorisation is limited, URf.eks. to specific amounts or concession areas.



The Regional Council may also decide on opportunities to carry forward unused operating grants or allowances for the subsequent fiscal year for the purposes of implementing the activities of the late or amended application.



Budget lines without equitable function

The budget includes a number of entries for which there is attached an allocation function, and which therefore should not be an equitable stance from the Regional Council. It is a question of capital records-exchange losses and gains ‑ function 5.75.78. Amounts related to these capital account should therefore not be included in the concession statement to the budget.



Section 6.2



6.2 the concession level



The concept of authorization to the level associated with the level of detail of the management that the budget breakdown of appropriations is expressed.




Through his choice of authorization level determines the scope of the Regional Council outline freedom that is left of the authorization in the management of the region concerned, on behalf of the Council of regions. The level of appropriations will be of importance for the holder's opportunities during the budget year to make reassignments of budget amounts. Who can URf.eks. be travelling between cost centers, groups or species.



The holder of the disposition of freedom will be further determined by the conditions and reservations that may be specified in the budget remarks or in Regional Council cash and financial regulations.



According to section 19 of the regions lays down the detailed rules concerning the Minister for welfare and the specification of the records on the annual budget, for which the Regional Council by årsbudgettets final adoption should take equitable position.



The established rules are described below.



6.2.1 APPROPRIATIONS FOR ADMINISTRATIVE APPROPRIATIONS

For operating the funds concerned are provided for the following minimum requirements to the level of appropriations:







The Regional Council shall, at a minimum, give final approval årsbudgettets separate administrative appropriations for each of the main accounts 1-3 and 4-5 for the main account as a whole.







The Regional Council may, in accordance with this provision shall be free to choose to make a larger or smaller number of appropriations. However, this should be done taking into account that the balance requirement must be met for each of the three regional areas of activity, IE. that at least should be given separate driftsbevilllinger for each of the areas referred to in article 6. section 5.2. This implies that the Regional Council ultimately may choose to give three administrative appropriations covering each of the activity areas (main account 1-3). In addition, it may be a single appropriation for operational records on main account 4-5.



There is no option for authorisation the relinquishment to piece together parts of several main accounts, main functions, etc. on the main account 1-3 in one appropriation ‑ so across the authorized account plan. This can only be done within each master account.



There is a possibility to give a single appropriation for main account 4 common purpose and administration, which presupposes that the appropriations on main account 1-3 be made excluding. shares of expenditure on common purpose and administration.



The rules on the level of appropriations represent only a minimum requirement, in other words, a limit to how high the level of appropriations may be added. It is thus the individual regional councils freely to decide a more detailed allocation binding. This is also that of the regions, the Council can choose a detailed concession binding in some areas, while other areas (URf.eks. functions within the same main account) can be merged into one single authorization.



Finally, the Regional Council as previously mentioned in connection with the authorization to release specify particular reservations and conditions of utilization of appropriations in the budget remarks.



6.2.2 ALLOCATION LEVEL FOR FIXED ALLOCATIONS and ALLOWANCES



FA Allocations







Fixed allocations shall be delivered either as a single fixed appropriation for concrete works and investments or which framework credits for the captive works and investments, that is. entries with dranst 3.







Construction appropriations as a starting point, include investments, which are included in the balance sheet. In addition, subject to fixed allocations also tangible assets whose value for the region is primarily of a cultural or historical character as well as fixed grants to self-governing institutions and other public authorities, see. Chapter 2, section 2.2.







Fixed allocations for concrete investment activities and the fixed framework given by the Regional Council.







Fixed allocations for concrete works and investments include the total cost of the investment activity regardless of investment activity's duration. Fixed authorization shall be accompanied by available funds set aside in the regions the Council budget and cashflow for the financing of that investment activity.







Framework credits for investment activities – investment framework – can be set aside for small investments of a specified kind, for example. less construction work or acquisitions. Investment framework, marketed in association with operating appropriations may not be placed across the main accounts 1-4.







The scope of the individual investment framework described in more detail in the comments or in the supplementary appropriations budget application, if an investment framework is given by the additional appropriation.



Investment activities covered by the investment framework can be implemented without referral to the Regional Council, provided investment expenditure may be incurred within the marketed investment framework, and to set aside the necessary allowance in the budget.









The Regional Council shall make provision concerning the delineation between fixed funding for specific projects and fixed allocations for investment frameworks and about thresholds for investment projects to be granted by the Regional Council. Implementation of concrete investments exceeding 10 million. DKK in total expenditure, however, granted by the Regional Council.





 





Fixed allocations must be given as internal loans, as a minimum, shall accrue interest and be repaid in equal to depreciation and interest on the fixed assets acquired.











Allowance

It is referred to in section 6.1 a condition for a fixed work starting, that both the existence of a fixed appropriation, and to set aside an allowance in the cash flow statement and in the budget.



For allowance relating to construction works apply similar rules on the authorisation level for administrative appropriations, i.e.:







The Regional Council shall, at a minimum, give separate årsbudgettets final adoption allowance for each of the main accounts 1-3 and 4-5 for the main account as a whole.







Regional Council have therefore the possibility, budget adoption beating allowance together for civil engineering/procurement, which fall under the same master account. Using this option, the Regional Council Executive Committee will get a larger outline freedom, since the Committee can compensate overrun of one allowance with savings of another without in advance to obtain an additional grant from the Regional Council.



It is not possible to turn allowance along with operational appropriations.



6.2.3 AUTHORIZATION LEVEL FOR the FINANCIAL ACCOUNTS on MAIN ACCOUNT 6



Authorization rules on the financial accounts of the main account 6 is as follows:









For the financial accounts under the main account 6 to Regional Council by årsbudgettets final adoption as minimum requirements take equitable position to:





 





Lending under one-year debit movements on the functions 6.32.20-6.32.27,







Borrowing-year credit movements on the features 6.55.63 ‑ 6.55.77, mortgage lending during the one-year credit movements on the features 6.32.20 ‑ 6.32.27,







Repayments on borrowings under one-year debit movements on the features 6.55.63 ‑ 6.55.77.





 





This year's movements in these financial records are to be like for the rest of the movements in the financial records appear in the cash flow statement, which must be approved by the Regional Council, see. section 5.2.7. c.











Section 6.3



6.3 Gross appropriations and net appropriations



A gross appropriation means that for regional measures, which involves both costs and revenues, as well an expense appropriation as a revenue appropriation. Arise in the course of the year possibilities for achieving revenue in addition to the budgeted, such revenue is not without an additional appropriation from the Regional Council be used to increase spending.



A net appropriation means that Regional Council alone takes equitable position to the size of net expenditure, i.e. expenses deducted from income. The authorization will therefore be able to use any revenue beyond the budgeted, to an increase in expenditure within the same concession area without having to obtain an additional grant from the Regional Council.



The following rules apply with respect to the issuance of brutto‑ net appropriations respectively:









As far as the operating company (dranst 1 and 2) respectively, the fixed plant (dranst 3) under the main account 0 ‑ 4 take the Regional Council itself decide whether appropriations must be placed as gross or net appropriations appropriations.





 





Appropriations relating to the financial records of the main account 5 and 6 are emitted as the gross appropriations.










The concession statement to the budget (as well as of the corresponding bookkeeping for accounts, see section 7.2.2) indicate whether appropriations are made as brutto‑ or net appropriations.



Access to cast net appropriations include both individual, defined areas of activity, for example, a social institution ‑ ‑ as areas of activity that bevillingsmæssigt should be considered together.



There may be good reason for the Regional Council to carefully considering the various aspects of the application of the net appropriations in relation to each of the regional areas of activity, including areas with 100% 's refund, special allowances, etc.



In many cases, it will thus be a benefit for the Regional Council to carry out a more detailed delineation of what areas it considers it appropriate to apply the net appropriations on, as well as the content of these. For example, the Regional Council consider whether all types of additional revenue generated should give the holder the right to additional costs of equivalent size.



Any restrictions in connection with the use of additional revenue generated should be recorded in the budget remarks. You can URf.eks. Imagine restrictions cutting out on that revenue from the sale of larger effects above a certain threshold must not be re-used without special supplementary appropriation from the Regional Council, or that the gains may not be used for the expansion of the permanent staff.



As can be seen from the above is the question of the use of the net appropriations not a enten‑eller ‑ in the case of a sliding scale. The Regional Council may limit the net principle to include some individual, relatively specified allocations, it can give the net appropriations in certain specific conditions laid down in the budgetary remarks, or it can choose a general and unrestricted right to use additional revenue generated on all appropriations under the main account 0 ‑ 4.



Whether used net appropriations by allocation release, applies the principle of gross transactions in budget unchanged. In other words, there must always be carried out separate accounting of revenue and expenditure in the budget and accounting.



Section 6.4



6.4 Framework management and transmission access for institutions, etc.



Appropriations be made always by the Regional Council and at the political level can only be assigned to the Executive Committee within the Executive Committee area. The Executive Committee cannot be assigned appropriations outside the territory, i.e. the Executive Committee. where the Regional Council itself has the immediate management. At administrative level, appropriations allocated to institutions or other administrative units. Appropriations may relate to specific transactions, but will, as a general rule, stake out outline a framework for the performance of the region's tasks in the budget period.



Purely technical authorization can such a framework management of institutions, etc. be done in several ways:



On the one hand, the Regional Council can choose to transfer the immediate management of all Regional Council's tasks to the Executive Committee and subsequently establish a system that is managed by the Executive Committee. In this situation, the Regional Council a ' wide ' appropriation for each area of activity on the main account 1-4. The Committee then assigns the economic framework for the individual institutions, etc. within each area of activity and determines the terms and conditions for the exploitation.



On the one hand, the Regional Council can choose to transfer the immediate management of all Regional Council tasks – apart from økonomiudvalgs functions — to the Regional Council and then deliver an envelope to the individual institution, taking in the comments to lay down detailed guidelines as to what responsibility and what scope the institution concerned must have.



The two examples describe extremes on a sliding scale, and there is know opportunities to take local and individual circumstances into account when a region will organize an economic rammestyrings system.



Among the issues the Regional Council would have to consider include: Should the institution be assigned a NET Framework or a gross framework? There must be access to transfer funds from other operating accounts to checking accounts and vice versa?



Framework management of institutions also brings to the fore the question of access to transfer unused appropriations to the following year and equivalent on access to ' borrow ' from next year's budget.



It is often argued that the predisposing units may feel encouraged to use the authorization right up, because any residual amounts will lapse at the end of the year. Similarly, an under-utilisation give the Regional Council the impression that unit generally can perform its tasks within a narrower economic framework than hitherto provided.



These views have on several occasions led to consideration of the possibilities for the transfer of appropriations between budget years. A detailed explanation of these considerations can be found in report No. 1369 about "The future budgetary and accounting system for municipalities and counties", January 1999.



In this context it should be clarified that the use of unused appropriations in subsequent fiscal year (operating appropriations and allowance) assumes that the unused appropriations genbevilges through additional appropriations, given before the end of its year.



This follows from the provisions of the Act on regions årsbudgettets authorization feature and the prohibition on delegating the Regional Council's licensing jurisdiction.



There may be within the existing rules identified two basic ' models ' for the organisation of such arrangements for the transfer and the allocation of unused appropriations.



One model is that the Regional Council in the budget remarks concerning a given appropriation signify that we will be prepared to genbevilge any unused amount in the following year via a supplementary appropriation, which enhances the annual appropriation. Who can possibly be added restrictions on such an indication about the allocation, URf.eks. can transfer access is limited to a certain percentage of the authorization and/or may be subject to the accrued amount applied to a particular major acquisition.



Similarly, implemented an access to dispose of next year's appropriation. Regional Council expresses as in budget notes that requests for additional appropriations ‑ possibly up to a certain amount framework ‑ likely met against a corresponding reduction of the appropriation for the following year.



Used this model for transmission access must therefore be submitted, a tillægsbevillingssag of the total regional councils in the case where a holder wishes to exploit the download access. The declarations in the budgetary comments is thus an expression of the Council's prior setting of the regions to a later submitted application for the transfer of the supplementary appropriations specific appropriations in the area concerned.



It will often be possible to assemble these cases to the total treatment in the Regional Council. If the Regional Council wants to transfer this treating to a later time of year ‑ possibly the last Regional Council in year ‑ will the treatment however alone could include cases involving the transfer of appropriations for the coming budget year. Cases relating to ' loan ' of the coming fiscal appropriation must be dealt with in the Regional Council, can be disposed of before taking the amount referred to.



If the Regional Council wants to avoid this single-issue treatment, it may use a different model for transmission access, which is based on the fact that the schemes are administered by the Executive Committee:



A prerequisite for this model is that the Regional Council uses the broad framework appropriations ‑ URf.eks. one single authorization for each of the regional areas of activity on the main account 1-4 or an authorization that includes a larger number of institutions. The Executive Committee respectively Regional Council distributes then outline a framework for the institutions, and it is the Committee that decides on requests from institutions on either the transfer of budget, loans or consumption of previously transferred amount. When the Committee is dealing with these requests, it must be done taking into account that savings and overuse should offset each other, so that the authorization for each area of activity for the year in question are complied with.



No matter what kinds of arrangements, such as the Regional Council may choose to adopt, it is important that there is a detailed description of the ' rules of the game ' in the arrangements.



Chapter 7



7 accounting, ACCOUNTING and AUDITING



Content Section



4.3 Posting 7.0

7.1 Procedure requirements in connection with the financial reporting 7.1

7.1.1 Opening 7.1

7.1.2 the procedure by financial reporting 7.1

7.1.3 Opening balance of a fixed amount per 1. January 2007 7.1

7.2 the Form requirements for financial statements 7.2

7.2.1 General requirements for the form and content of 7.2 reliability

7.2.2 financial statements 7.2

7.2.2.1 the contents of financial statements 7.2

a. Presentation of the region 7.2

b. General remarks 7.2

c. accounting policies 7.2

d. income statement 7.2

e. Balance 7.2

such cashflow 7.2

g. Notes to the income statement and balance sheet 7.2

h. conversion table 7.2

i. Accounting history and special remarks 7.2

j. Overview of transferred unused appropriations 7.2

k. construction and investment accounts 7.2


l. Eventualrettigheder and liabilities, including guarantees 7.2

the establishment plan of 7.2 m.

7.3 reporting of accounting information 7.3

7.3.1 Specifications to account 7.3

7.3.2 Specifications for the financial statement, function 1.10.01 hospitals

and 2.10.01 Social offers and special education 7.3

7.3.3 Special accounting information 7.3

7.4 cash flow overview and expected results 7.4

7.4.1 Liquidity list compiled after cash discount rule 7.4

7.4.2 Expected annual results, 7.4

7.5 Review 7.5

7.6 Summary of deadlines in connection with financial reporting, etc. 7.6

7.7 Annex to Chapter 7 7.7

Annex 1 – income statement 7.7 7.7.1

7.7.2 Annex 2 – Balance 7.7

7.7.3 Annex 3 – cashflow 7.7

7.7.4 Annex 4 – Note to tangible assets-land and buildings 7.7

7.7.5 Annex 5 – Note to tangible assets – technical installations,

more specialized equipment, transportation and similar 7.7

7.7.6 Annex 6 – Note to tangible assets – furniture, including IT equipment 7.7

7.7.7 Annex 7 – Note to tangible assets – tangible asset under

execution 7.7



Section 7.0



4.3 Posting



Introduction

According to section 29 of the Act, as referred to in the regions. the municipal governing law § 43, posting giving an overview of how the region's resources are managed, and its management is in accordance with the annual budget and the Council's other decisions. In addition, obliges the regions after the regions section 24, paragraph 1, to a special regulation to lay down detailed rules for the organisation of the region's kasse‑ and accounting, etc.



Furthermore, in section 4, paragraph 1, of the present Ordinance provides that the accounting the continuation period runs from the end of the financial year to the end of February of the following financial year. The Regional Council may, however, in the Regional Council kasse‑ and regulations lay down a shorter period supplements. But this must not be set to expire before the 15. January. Finally, section 4, paragraph 2, of this Ordinance that the accounting forsupplementsperiode includes december month in the year before the financial year. The Regional Council may, in the region's cash-and the financial regulations provide for a shorter forsupplementsperiode.



About posting in General

Registration for the regional accounting system includes first of all the regions ' external transactions, i.e. transactions that occur between the region and the outside world. This registration relates thus objectively ascertainable sizes.



As can be seen from Chapter 2 contains the accounting system also allows for the registration of internal settlements between different cost places and functions. This can either be done by using the internal species at hovedart 9 or by plus/minus transactions on the external species. 1) Also for the internal payments is the starting point, to registration, as far as possible, should be based on verifiable facts.



1) Plus/minus the posting on an external nature means that there are debited and credited with the same external nature.



Distributions based on more discretionary assessments and similar as far as possible, should not be used as a basis for records in the accounting system, unless the posting rules prescribe a calculative distribution. Tasks of this kind should rather be addressed in special inventories, etc. outside the accounting system. On hovedart 0 Calculated expenses and the related species will however be necessary Discretionality, inter alia. in connection with the fixing of the lifetimes for the region's tangible assets.



Budget‑ and accounting system provides generally know the practical organisation of a framework for the registration and the bookkeeping process generally in each region.



However, it is a general rule that the rules and procedures, as each region shall determine, must be characterised by a continuity over time. In other words, should not be carried out frequent changes in the accounting rules and procedures ‑ including length-in supplements which can help to hinder an assessment of regional accounts.



This continuity principle is, however, not preclude the individual region can make changes, which is justified in the interests of a better organisation of working times and similar conditions.



Posting in financial year

Process in connection with the purchase of a product or service will generally be able to be illustrated as in the following list:









Bogholderimæssig process





Material process







The placing of the order

(availability)





The item is received from

supplier

(transaction)







Bill (invoice) arrives



 





The Bill has to be verified and certified



 





The Bill will be allocated for disbursement





The item is consumed







The Bill is posted in the accounting system



 





The amount shall be forwarded to the supplier (purchase)



 







The overview shows a normally occurring process. There will, of course, in practice, could experience other process flow.



There can be registration at different times in the outlined process. Depending on the Organization of economy management in each region, it may also be appropriate to carry out a registration at several different times.



From the overview can be defined 3 times in the bookkeeping process:



Coverage at the time, which expresses the time of a binding order. That is, the time when a responsible on behalf of the region enters into a binding agreement on a shipment, typically ordering of goods and equipment or services.



The transaction, which is the time in which the supply takes place, or the work provided.



The time of payment, which is the date on which payment is made. It can be defined as the time when there is increased (inserted) on the liquid accounts.



Out of concern for the economic management of procurement will a registration at the time of the coverage could be desirable. Considerations of financial reporting and authorization control shall require an exact amount in registration, which often require a registration later in the process, when the Bill is received. Finally, pointed to a registration at the time of payment for the purpose of liquidity management.



The bookkeeping entry in the financial year is generally organized in accordance with the rules and procedures laid down in the region's kasse‑ and accounting regulations and in accordance with the registration requirements, as follows by the décor of the region's economic management.



Budget‑ and accounting system does not contain a more detailed set of rules for the organisation of this registration. However, it is a requirement that there must always be subject to registration of the payment at the time of payment.



Good posting practices

The region's posting must be carried out in accordance with good accounting practice.



The good posting behaviour can be described as what at any time is deemed good practice among savvy and responsible professionals in the posting area.



It is a prerequisite for good posting practices, to the rules of "budgetary and accounting system for the regions" and other relevant regulations are followed.



Accounting data

The material, which assembled documenting the bogføringens execution and verifies its accuracy is referred to as: accounting data. Accounting data includes the actual registrations, including the transaction trail, descriptions of posting, including agreements on electronic data interchange, descriptions of systems to store and forward find stored accounting material, documents and other evidence, moreover, that information necessary for the audit trail, accounts and audit protocols.

A. Foreseeable organisation

The posting shall be organised and conducted in an orderly way and provide an overview of the region's operations.



B. transaction and control track

The region must ensure a transaction and control tracks in the organisation of the posting.



Transaction track shall ensure consistency between the individual transaction and the company's main entries. In other words, it must be possible to verify that all transactions are included in the financial statements, and transactions the company's records are composed of.



Audit trail documenting the actual transactions. The requirement of control track assumes, therefore, that there can be identified an annex on the basis of a given transaction, and that the correlation between posting and annex is unique. Audit trail is an important part of the overall evidence that the expense is held correctly.



C. Records


All transactions are recorded accurately and as soon as possible after that the circumstances which form the basis of registrations, available, but not later than at the time of payment.



D. attestation and votes

Individual registrations can be attributed to an annex and temporal location in posting. Records of each transaction must be done after following the prescribed and consistent methodology.



There must be regular reconciliations between registrations and cash and liquidity, as well as on other inventory holding accounts.



The vote ensures that records are current and that there are no transactions, which are not registered or recorded incorrectly.



E. Forretningsgangs descriptions, including the use of IT.

The region draws up descriptions of the company's (IT) systems, including the manual business processes/work routines, as well as the internal control procedures.



The descriptions must contain information about, on the one hand, how systems ensure completeness and accuracy of the material, which form the basis of registrations, including any agreements on the transfer of data that is recorded in the company, including descriptions of the IT application.



Such errors and abuse

The posting must be organised and performed in such a way that the accounting data is not destroyed, disposed of or distorted, just as it must be secured against abuse.



Accounting data is ensured, inter alia against errors and abuses through a comforting function separation between cash and bookkeeping function. Functional separation can be supported by the security procedure in relation to the region's IT systems via restricted and passwords.



Access restrictions to electronic systems must also ensure that strangers are not allowed to post without permission. User controls must be adapted to the system employed by the region.



G. Storage

Accounting data must not be destroyed or disappear, and accounting data for the entire period must be stored safely. Of this follows that there must be immediate access to the material, and stakeholders, including auditing, should immediately be able to access the material. Conversely, as a minimum, a result that ordinary citizens cannot gain access to the material.



Storage requirement also includes protection against destruction as a result of fire, theft, tampering, accidental destruction or disposal, as well as other involuntary or unintentional actions.



H. Storage Length.

Accounting material from regions shall be maintained for 5 years from the end of the fiscal year for which accounting data is for.



I. printout of accounting data

The region determines which accounting data should be stored on the media.



Selected electronic storage forms is in accordance with good accounting practice that accounting data at any time can be printed in plain font, as well as for security purposes is taken the necessary precautions concerning backup, as well as to readability is checked at regular intervals



Posting in the continuation period

In connection with the accounting year-end may present some special problems with regard to the question of which annual accounts a given expense or revenue must be allocated to. Here, as a general rule, the following applies:







Accounting in the continuation period must be made in the accounts for the year in which the transaction takes place.







This general rule is referred to as transaction principle.



The main rule is independent of the bookkeeping process. It changes so it is not that the actual registration is possibly happening in another calendar year.



As commonly occurring situations can here pointed out:



Bill for a product or service delivered in fiscal year once forward to registration after the end of the financial year.



The rule implies here that continuation period must be a measure of the cost of the fiscal year. This happens in practice when applying the function 06.28.17 Between bills with previous and next financial year, in accordance with article 3. posting rules (Chapter 4, section 4.6).



After the continuation period can be issued for the fiscal year by using the intercompany account. This must hold a closer look at the specific time for this account receipt and registration and the practical organisation of the clearance in the region (see however below on closing transactions).



Advance payment in the fiscal year of a benefit that is provided in the following financial year. For example, the payout in december of januarløn to officials.



The expenditure must be allocated to the new fiscal year. Used the above mentioned intercompany account between the fiscal year and the new fiscal year, see. posting rules (Chapter 4, section 4.6).



The general rule on the application of the principle of the continuation of the transaction period is valid not only for expenditure and revenue as a result of the purchase and sale of goods and services, including payment of wages. It also applies to expenditure and income in connection with income transfers, taxes and charges, refunds, etc.



Closing transactions

After the continuation period there may be a need to make certain the closing transactions in the form of transfers, so no money transactions in the financial year.



It is, as a general rule, the region itself, who shall decide on such closing transactions in accordance with the rules and procedures laid down in the region's kasse‑ and accounting regulations etc.



Section 7.1



7.1 Procedure requirements in connection with the financial reporting



7.1.1 Opening

Regional sections 23 and 25 of the Act contains provisions on the procedure in connection with the reporting and auditing of the financial statements. On the basis of § § 23 (1), 24 (1) and (2) and 25 (1) and (2), Ministry of social welfare has also laid down in this Ordinance a number of procedural requirements, including those relating to time limits for the submission of financial statement audit, etc. Finally lays down certain additional provisions for the submission of accounting material, etc.



In this section is given a brief description of the procedural rules in connection with the financial reporting. The formal requirements for the submission of financial material to the central authorities and the preparation of the financial statements is discussed in section 7.2. Furthermore, the specific rules about reporting of accounting information referred to in section 7.3, while compiling the quarterly cash flow statements and estimates of expected results is discussed in section 7.4. The audit of the financial statements referred to in section 7.5. In section 7.6 is shown an overall schematic overview of deadlines by the financial reporting. Finally, in section 7.7 in schematic form shown the substantive requirements for parts of the company, URf.eks. income statement, balance sheet and cash flow statement.



7.1.2 the procedure by financial reporting

The financial statements must be completed posteringsmæssigt the 1. April in the following year. After this time may not be further transfers.



Section 23 of the Act sets out the regions then, that financial statements with accompanying notes, etc. shall be reported by the Executive Committee to the Regional Council.



There are no set a specific time limit for this financial reporting.



However, by section 8 of this Ordinance, to presenting needs to happen so that the financial statements may be given by the Regional Council to review before 1 January 2002. June in the year following the accounting year.



The audit report on the review of the financial statements to the Council before 15. August.



The audit report must then be submitted to the Executive Committee and audit observations, not for ‑ immediately for the management, under the purview of the Executive Council ‑ for the concerned regional authority.



The audit report and the related comments by the Executive Committee and other regional authorities shall be dealt with by the Regional Council at a meeting. At the meeting the Regional Council shall take decision on audit comments and your company's approval.



Regional Council of treatment must take place, then the region's accounts together with the auditor's report and the decisions taken by the Regional Council in connection therewith, shall be sent to the supervisory authority (as well as to audit) by the end of september.



Finally, it is apparent from section 23 of the regions, that it finally approved accounts must be made public after the Regional Council quantification. The Regional Council may URf.eks. make the decision that it is definitively approved accounts will be published on the region's website.



7.1.3 Opening balance of a fixed amount per 1. January 2007

In connection with the establishment of regions per 1. January 2007 must draw up an opening balance sheet based on the rules of budgetary and accounting system for the regions.




The opening balance sheet on 1 January 1999. January 2007 presented by the Executive Committee of the Council, so that the opening balance can be made to the revision before the end of november 2007. At this point, the accounting principles, which form the basis of the opening balance sheet on 1 January 1999. January 2007, be politically approved by the Regional Council. At the same time, or at the latest 1. December 2007, the opening balance sheet are submitted to the statistics authorities.



After the revision of the opening balance sheet is completed, this audit shall bear an endorsement to the effect that the audit is carried out in conformity with the regulations of the Ministry of Welfare. The revision shall deliver by the end of January 2008 report on the audit of the opening balance sheet on 1 January 1999. January 2007 to the Regional Council.



The region's opening balance sheet on 1 January 1999. January 2007 must, within 15. March 2008 will be sent to the supervisory authority together with the decisions taken by the Regional Council has taken on audit observations. At the same time, the decisions will be sent to the review.



Preparation of opening balance sheet happens, moreover, having regard to the rules on the treatment of the region's financial statements, see. section 23 of the Act.





Section 7.2



7.2 the Form requirements for the financial statements



7.2.1 General requirements for the form and content of financial statement

It is in the regions section 23 provides that the region's financial statements must be accompanied by a list of the region's kautions‑ and warranty obligations. In addition, the accounts to the extent necessary, be accompanied by comments, relating in particular to significant discrepancies between the bevillings‑ and the financial amounts.



Section 24 empowers the regions in addition to welfare Minister to lay down the detailed rules on the form of the region's accounts.



These rules are reflected in part in the authorized account plan, which defines the company's content Division, on the other hand, the following rules on the compilation of summaries and notes to the financial statements.



7.2.2 financial statements



7.2.2.1 the contents of financial statements

The annual accounts contain a number of overviews and explanations. The accounting statements and statements serve as a basis for, inter alia:



assessment of the financial statements in relation to the budget

statement of the financial year, the resource usage (in the profit and loss account)

inventory of supplies (balance sheet)

assessment of the region's economic situation



The region's annual accounts must be disposed in the sections listed below. The outline is binding for the sake of comparability in financial reporting regions.












Section










Overview/explanation







 

 





7.2.2.1. (a)





Presentation of the region







7.2.2.1. (b)





General comments







7.2.2.1. (c)





Accounting policies







7.2.2.1. (d)





Income statement







7.2.2.1. e





Balance







7.2.2.1.f





Cash flow statement







7.2.2.1. g





Notes to the income statement and balance sheet







7.2.2.1. h





Conversion table







7.2.2.1. in





Accounting history and special notes







7.2.2.1. j





Overview of unused appropriations transferred 7.2.2.1. k





Fixed accounts







7.2.2.1. l





Eventualrettigheder and liabilities including guarantees







7.2.2.1. m





Staff overview









The regional accounts must be sat after cost-based principles.



The profit and loss account, balance sheet, cash flow statement and notes shall be drawn up in accordance with the specific form requirements. For the other summaries and statements, there is no set form requirements. The regions are free to include additional material accounting in the financial statements.



a. Presentation of the region

The financial statements must contain a section with the mention of the region including the region's tasks and organisation as well as key figures and key figures from the region's financial statements. There is no binding form requirements for the content of financial statement mention of the region.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include a presentation of the region.







b. General remarks

The law sets out the regions as set out in section 7.2.1, to the annual accounts, as necessary, should be accompanied by comments, in particular as regards significant variances between appropriations and the financial amounts. In the General remarks given at a parent level for the variances between budget and accounts, in particular for large differences between appropriation and accounting. Other significant discrepancies are discussed in relation to the accounting list and the specific observations, see. paragraph 7.2.2.1. in.



The General comments should also support the reliability of other content. The General comments can be divided into sections corresponding to the region's fields of activity and thus contain comments and information targeted to each area of activity. The result of the region's areas of activity can be referred to in the General observations.



There are no formal requirements for financial statement General Accounting comments.







The annual accounts must, when it shall be reported by the Executive Committee to the Regional Council, contain general remarks.







c. accounting policies

Description of accounting policies in relation to the cost-based accounting system shall map and accurately describe the principles taken into account for drawing up accounting relating to the valuation of assets and liabilities. The description should focus on the principles for recognition and measurement of assets and liabilities as well as description of all other used principles. It should also indicate how the degrees of freedom that are in the process of preparation of the cost-based accounting, see. section 8.4.3, exploited, URf.eks. used depreciation periods, principles for the use of ups and downs, the use of groups or "chunks" by recognition of assets.



The description should also include changes in accounting policies and the effect thereof on the accounts as compared to the previous year.



There are no formal requirements for the content of financial statement section on accounting policies.







The annual accounts must, when it shall be reported by the Executive Committee to the Regional Council, contain a description of the accounting policies. In addition, it must contain, if desired. changes in accounting policies and the effect thereof on the accounts as compared to the previous year.







d. income statement

The annual accounts shall include a balance sheet as shown in Annex i paragraph 7.7.1. The income statement must contain comparative figures for the last fiscal year. For the region's first fiscal year insert the figures from the region's annual budget incl. corrections from additional appropriations for the annual budget announced in the course of the year ("corrected budget").



Statement of significant variances between appropriation and accounts shall be carried out in the reliability section "financial overview and specific observations". The region's income statement is thus reserved for the region's external reporting on this year's resource usage compared with previous years.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include an income statement. The profit and loss account shall be drawn up in accordance with the schema that is reprinted as annex 1 in section 7.7.1.







Amount shall be entered in the profit and loss account in 1,000 DKK



e. Balance

The purpose of the balance sheet is to show the region's assets and liabilities measured respectively at the end of the fiscal year and the year before, with liabilities shall mean the sum of equity and obligations.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, shall include a financial statement drawn up according to specific form requirements. The balance sheet shall be drawn up in accordance with the schema that is reprinted as annex 2 in paragraph 7.7.2.








The balance sheet should contain comparative information for the year before. For the first fiscal year 2007 figures from the region's opening balance sheet is inserted 1. January 2007.



Amounts in the balance sheet are entered under 1,000 us.



f. cash flow statement

The purpose of the cash flow statement is to show fiscal year cash flows divided into operating, investing and financing activities.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include a cash flow statement drawn up according to specific form requirements. The statement shall be drawn up in accordance with the schema that is reprinted as annex 3 in section 7.7.3.







For the first fiscal year 2007 is inserted the figures from the region's annual budget for 2007, possibly measured in approximate amount.



Amount in the cash flow statement should be entered in 1,000 DKK



g. Notes to the income statement and balance sheet

The financial statements must contain a section with notes to the income statement and balance sheet. In the section to include all essential conditions, including as a minimum the notes referred to in section 7.7. Annual accounts may, in addition, be provided with additional notes, and detailed specifications or explanations to the accounting entries.



The notes, which, in accordance with the formal requirements for financial statements to be included, can be summarized into the following items in the profit and loss account and the balance sheet:



Common purpose and administration, see. paragraph 7.7.1.6

Interest, see. paragraph 7.7.1.7

Operating costs, see. paragraph 7.7.1.8

Operating result, see. section 7.7.1.10

Land and buildings, see. section 7.7.4

Technical installations and machines, see. section 7.7.5

Equipment including computer equipment, see. section 7.7.6

Tangible fixed asset under construction, see. section 7.7.7

Equity, see. paragraph 7.7.2.1

Operating result transferred to next year, see. paragraph 7.7.2.1, see. also paragraph 4.



h. conversion table

Conversion table to be prepared for the health sector and the regional development area, aims to explain the difference between the income statement and net expenditure of the year. The following list can be used:









Conversion table 1,000 kr.







Net profit from cost accounting (hovedart 0-9)



 





+ Included acquisition costs (art 0.0)



 





-Depreciation, amortisation and write-downs (art 0.1)



 





+/-Inventory adjustments (art 0.2)



 





-Pension provision relating to civil servants (art 0.3)



 





+ Pension payments relating to civil servants (article 5.1)



 





+/-Other accrued costs this year's net expenditures (hovedart 1-9)



 







The purpose of the conversion is, among other things. also to be able to compare the cost-based accounting with the expenditure-based accounts as appropriations in the field of health is issued after the expenditure-based principle.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include a table that shows the correlation between the health sector and this year's net profit for the year expenses.







i. Accounting history and special notes

Accounting is the accounting history parallel to budget appropriations history, IE. It must show the accounts on authorization level. Accounting history should make it possible to compare the årsbudgettets concession items and additional appropriations of the year with the final figures.









The annual accounts must, when it shall be reported by the Executive Committee of the Council, shall include a financial statement. The amounts shown in the financial statement must as a minimum be specified on those entries ‑ delimited in relation to account plan ‑ which was authorized by the budget adoption and subsequent additional appropriations. The financial statement must contain 3 columns respectively:





 





The final figures







The appropriations made in the budget adoption







Additional appropriations made in the course of the year.





 





The records in the accounting statement shall be divided in the activity fields of health, social and special education and regional development, as well as headings common purpose and administration as well as interest rates.





 





It must of accounting history indicate that budget in all areas is based on cost-based principles, apart from health which are based on expenditure-based principles.









In addition to the foregoing, there is no specific form requirements for the individual regions on the establishment of accounting history. Accounting overview and summary of appropriations for the budget must, however, follow the same presentation.



Related to the financial statement must be in the special notes explaining the significant variances between appropriations and accounting amounts for each authorization.



It is hardly possible in General to determine what is a ' necessary ', or when abnormalities must be deemed ' essential '. This must be based on a specific assessment in individual cases and, in fact, be clarified through interaction between the Regional Council and the regional audit around reading and review of financial statements.



Major and significant discrepancies should be also mentioned in the General observations.



The provision also implies that there must be prepared notes to financial statements in cases where there is enough consistency between regnskabs‑ and appropriations, but where the activities or purposes, which was provided by concession the relinquishment is not realized.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, shall include a financial overview and specific observations.







Notes on the accounts must also account for the swap agreements, as the region has concluded. Including for the swap agreements concluded in previous years, but still runs. A swap is an agreement between two or more parties to swap payment flows on agreed terms over an agreed period of time. Statement for underwritten swap agreements must include information about the swap counterparty, the amount of the balance outstanding, the expiration time as well as information about the currency and interest rates.



There is not otherwise laid down specific provisions for the design and content of the special notes to financial statements



j. Overview of transferred unused appropriations

As part of the annual accounts to be drawn up an overview of the operational appropriations, which is reinstated in the following year.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include a list of transferred the unused administrative appropriations.







According to the concession rules, as laid down in the Act, are administrative appropriations one year and lapses at the end of the financial year.



There exists, however, arrangements to transfer between the years of unused appropriations. The Regional Council may, therefore, in the budget remarks about a given appropriation indicate that we will be prepared to genbevilge any unused amount in the following year in the form of an increase of the annual appropriation. This expression has no independent equitable character, but is only an expression of the Council's prior setting to a later submitted application for the transfer of the supplementary appropriations concrete concession amount.



It discussed the extent to which the year's result for the region's areas of activity genbevilges for the following year.



The background for this overview is that we are talking about information that can be essential for the region's economy. The list of transferred the unused appropriations thus informs about the increased liquidity needs in relation to the adopted budget.



There are no specific formal requirements for the inventory of unused appropriations transferred.



k. construction and investment accounts

At major construction and investment works, there must be a separate fixed asset and investment accounts. The term "works" is applied to the expenditure-based health area, while "working" may be used on fixed investment tasks on the other regional areas, where both budget and accounts presented by cost-based principles.



The following rules apply regardless of whether fixed or investment work is one-or multi-year.








Gross cost of a fixed amount or investment work their way to 10 million. USD or more, should there be a separate fixed asset or investment accounts. This must be done at the latest when presenting the annual accounts for the year in which the fixed asset or investment concerned work is completed.







For fixed-or investment working under this threshold can Regional Council choose to follow the same procedure, but it need not do so. If there be no separate accounts, revenue and expenditure shall be included in the fixed asset or investment work in financial statements, contracts and investment work is mentioned in the comments, see. paragraph 7.2.2.1. k.



l. Eventualrettigheder and liabilities including guarantees

It is provided in law that the regions:







The annual accounts must, when it shall be reported by the Executive Committee to the Regional Council, contain an inventory of the region's surety and guarantee obligations.







In budget‑ and the accounting system is the statement referred to as the register of eventualrettigheder and obligations, including safeguards.



The list of guarantees shall, as a minimum, indicate the size of the guarantee at the end of the financial year, who is the lender, as well as for who made the guarantee.



By eventualrettigheder for the purposes of services, which, in fact, must be considered as drift or fixed subsidies, but where the region has a security in the form of mortgages or similar, and/or where the region has the right to get the subsidy repayment if the purpose for which the grant is made to be abandoned within a given time.



The list should also include other obligations and rights, which may be current, URf.eks. in connection with withdrawals or relapse of real estate.



This also applies to the contingent liabilities that differ from the provisions know that they cannot be measured with sufficient reliability, and that it is not likely that the settlement will cause a drag on the region's economic resources.



Finally, substantial financial commitments in respect of leases or operating leases appear in the TOC.



Amount in the list of eventualrettigheder and liabilities including guarantees, shall be entered in whole 1,000 kr.



In addition to the listed rules for the content of the register is not set out special procedures for this.



m. Staff list

There must be an establishment plan, which would include mention of job consumption and Declaration of labour costs, at a minimum, for each area of activity in the region.



Staff history must therefore, as a minimum, show human resources converted to full-time employees by activity areas:

Health

Social and special education

Regional development

Common purpose and administration



The statement shall also show consumption at the individual areas in accordance with:

The budget for the financial year

Realized consumption in fiscal year

Realized consumption in the fiscal year before



Lønoversigten in the list of posts should show the total staff costs posted under grouping 010 staff, including salary costs (hovedart 1) and pension provisions relating to civil servants (art 0.3). Staff costs shall be specified in the same way as job consumption cf. above, d.v.s. on areas of activity as well as budget and fiscal year.



Staff list can be expanded in relation to the formal requirements, there are minimum requirements.







The annual accounts must, when it shall be reported by the Executive Committee of the Council, include an establishment plan.









Section 7.3



7.3 reporting of accounting information



The annual accounts must be submitted to the Ministry of social welfare no later than the 1. June, see. section 7.6. In addition to the annual accounts must be separate in association with form requirements are submitted certain listings and information to the central authorities for the use of the statements of the total regional activity and statistics purposes in General.



7.3.1. Specifications to account

The specifications for the accounts corresponds to the transmission of specifications to the budget. However, there is at individual points in the case of a larger specification degree for the company's part, since parts of the chart of accounts is authorized in the accounts, but not in the budget. This applies to the arts, where the budget alone is authorized specification on the species 4.0, 4.5, 4.6, 4.7, 4.8, 4.9, art 5.1, 5.2, 7.1, 7.2, art 5.9, 7.6, 7.7, 7.8, 7.9, 8.5 and 8.6, while accounts are authorized on all species, including hovedart 0.









Specifications shall be drawn up on the accounts, IE. an overview of the final accounting records where the specification degree corresponds to the authorized account plan. Specification degree are the following:





 





 main account







 Main function







 Function







 Dranst







 Ownership





 





Cost center (where this is authorized in the accounts)







 grouping (both operating and installation)







 Art





 





The specifications for the accounts to be reported no later than the 1. April to the statistics authorities.









Amount in specifications to be entered in the accounts all over the US.



7.3.2 Specifications for the financial statement, function 1.10.01 hospitals and 2.10.01 Social offers and special education

The specifications for the accounts to feature 1.10.01 hospitals must be on the same level of detail as the special budget reporting concerning hospitals, see. section 5.4.4.1.









The costs indicated in 1,000 DKK





Staff (grp. 010-030)





Medications, etc. (grp. 120-140)





Other costs (grp. 110, 150-620)





A total of







1. Medical Specialties





 





 





 





 







2. Kirurgiske specialer 





 





 





 





 







3. Øvrige specialer





 





 





 





 







4. Psychiatry





 





 





 





 







5. other





 





 





 





 







Sum (1-5)





 





 





 





 





 

 

 

 

 





Schema, which is calculated according to expenditure-based principles, are submitted in mid-april to the Ministry of social welfare.









The specifications for the accounts is also used by the health protection agency in the basis for calculation of DRG-tariffs in the field of health.









In connection with the final accounts must function 1.10.01 hospitals reported specifications on the accounts, in accordance with the electronic forms available on the National Board of Health's website:





 





 Function







 Dranst







 Ownership







 cost center







 grouping (both operating and installation)







 Art





 





The specifications for the financial statement must be submitted no later than the 1. April to the National Board of health.










The specifications for the accounts to feature 2.10.01 Social deals, special education and counseling must be at the same level of detail as the special budget reporting on social promotions, see. section 5.4.4.2.









The costs indicated in 1,000 DKK





Gross operating

expenditure





Common

expenditure and central

admini-stration etc.





Investments





A total of







DAY-CARE FACILITIES FOR CHILDREN AND YOUNG PEOPLE



 

 

 

 





Special day care and special clubs





 



 

 



 







OFFER FOR CHILDREN AND YOUNG PEOPLE WITH SPECIAL NEEDS



 

 

 

 





Residential institutions for children and young people





 



 

 



 







Secured residential institutions for children and young people





 



 

 



 







OFFER FOR ELDERLY AND DISABLED



 

 

 

 





Care and welfare, etc. of older people and people with disabilities prevention efforts for the elderly and disabled



 

 

 

 





Devices, consumer goods, interior design and transport (under 67 years)



 

 

 

 





Devices, consumer goods, interior design and forwarding (67 years of age and older)



 

 

 

 





ADVICE



 

 

 

 





Advice and counselling institutions



 

 

 

 





OFFER for ADULTS with SPECIAL NEEDS



 

 

 

 





Residential facilities for people with special social problems



 

 

 

 





Residential accommodation for long term stays



 

 

 

 





Residential accommodation for temporary stay



 

 

 

 





Alcohol treatment and treatment of alcohol damaged the treatment of drug addicts activity and of communion offer



 

 

 

 





Sheltered employment



 

 

 

 





TEACHING



 

 

 

 





Special education for children in preschool through 10. class



 

 

 

 





Special educational assistance for children of pre-school age



 

 

 

 





Special educational assistance for adults Sum





 



 

 



 





 

 

 

 

 





Schema, which is calculated according to expenditure-based principles, are submitted in mid-april to the Ministry of social welfare.









The table is calculated according to expenditure-based principles and must be exhaustive of all expenditure on feature 2.10.01, IE. It should include both operating and capital expenditures. Also it must be exhaustive for expenditure for common purposes and charged to the central administration at 2.60.40-2.80.70.



7.3.3. Special accounting information







Ministry of social welfare broadcasts prior to the clearance of posteringsmæssige per 1. April the necessary schema material for the preparation and submission of the specific financial information. The schema is to be submitted in mid-april to the Welfare Ministry.







The schema for the specific accounting information contains financial information of varying grades according to needs, URf.eks. special personnel information and information on the deposited amount.



Section 7.4



7.4 cash flow overview and expected results



7.4.1. Cash flow overview compiled after cash discount rule



To be compiled on a quarterly basis – at the end of March, respectively at end-June, at the end of september and at the end of december — a cash flow summary drawn up after cash discount rule.



Cash flow after cash discount rule is calculated as the average over the past 12 months by the daily balances on features 6.10.01-6.10.11 (liquid assets) deducted from the average over the last 12 months of daily balances function on 6.50.50, excl. bridging loans that later will be converted to long-term loans. In 2007 cash flow after cash discount rule is calculated as the average of the last part of the year by the daily balances on features 6.10.01-6.10.11 deducted from the average of the daily balances during the same period on the function 6.50.50, excl. bridging loans, excluding. bridging loans that later will be converted to long-term loans.



Cash flow statement shall at least contain information on the cash flow in the past year by cash discount rule at the end of each month. In 2007, however, the list will only contain information relating to the preceding months in 2007. It is the regions are free to draw up a more detailed breakdown of the evolution of the cash flow calculated after credit card rule-for example, on the basis of daily balances.



The statement shall be accompanied by explanatory notes. In observations explain, among other things. for the background for the last 12 months of development in cash flow as well as expectations for future developments. In 2007, however, only accounted for the development in the preceding months in 2007.



The quarterly cash flow overview must be continuously presented to the regions drew up the members of the Council and members of the municipal councils in the region. The list will be submitted to the members not later than one month after the statement-1 respectively. February, 1. may, 1. August and 1. November. It should be noted that it is not required that the list will be dealt with on a Regional Council or a municipal meeting with less, there is a separate request.



Cash flow cash discount calculated according to the rule are reported quarterly to the Ministry of social welfare. Reported information about liquidity at the end of March, at the end of June, at the end of september and at the end of december.









To be compiled on a quarterly basis – respectively the end of March, June, september and december – a cash flow summary drawn up after cash discount rule. The list will be submitted to the members of the Regional Council and the municipal councils in the region no later than the 1. in the month after the statement, IE. 1. February, 1. may, 1. August and 1. November.





 





Cash flow statement shall at least contain information on the cash flow in the past year by cash discount rule at the end of each month. The statement shall be accompanied by explanatory notes.





 





Cash flow cash discount calculated according to the rule are reported quarterly to the Ministry of social welfare. Reported information about liquidity at the end of March, at the end of June, at the end of september and at the end of december. Notification shall be made within 1. month after the statement, IE. 1. February, 1. may, 1. August and 1. November.











7.4.2 Expected annual results,


To be compiled on a quarterly basis – at the end of March, at end-June, respectively at end-september and end-december – an overview, which gives an overall presentation of the expected results for each of the three regional areas of activity, as the economy is divided into regions, compared with the budgeted. In the field of health compiled presentation after expenditure-based principles, while the area of special education in public health and social and regional development area is calculated by cost-based principles.



The statement must be accompanied by an analysis and assessment of the expected annual results, as well as an explanation of the reasons for deviations from the budget, as well as what initiatives, if desired. budget deviation gives rise to. The analysis of the overall budget variances will be able to proceed on the basis of the records, which was authorized by the budget adoption and subsequent additional appropriations.



The overview will also be able to include more specific information on the three areas of activity.



The statement shall be submitted each quarter for the Regional Council members and members of the Municipal Council in the region. The list will be submitted to the members not later than one month after the statement-1 respectively. February, 1. may, 1. August and 1. November. It should be noted that it is not required that the list will be dealt with on a Regional Council or a municipal meeting with less, there is a separate request.



The list are submitted quarterly to the Ministry of social welfare. Reported information about expected accounts at the end of March, at the end of June, at the end of september and at the end of december.









To be compiled on a quarterly basis – respectively the end of March, June, september and december – an overview, which gives an overall presentation of the expected results for each of the three regional areas of activity. The list will be submitted to the members of the Regional Council and the municipal councils in the region no later than the 1. in the month after the statement, IE. 1. February, 1. may, 1. August and 1. November.





 





The statement must be accompanied by an analysis and assessment of the expected result, as well as an explanation of the reasons for deviations from the budget, as well as what initiatives, if desired. budget deviation gives rise to.





 





The list are submitted quarterly to the Ministry of social welfare. Submitted information on the expected results at the end of March, at the end of June, at the end of september and at the end of december. Notification shall be made within 1. month after the statement, IE. 1. February, 1. may, 1. August and 1. November.





 





The list drawn up in accordance with the expenditure-based principles in the field of health and after cost-based principles for social and special education area and the regional development area.











Section 7.5



7.5 Review



The regional law provides in § § 23, 28 and 29 of the regulations on the regional review. The provisions are elaborated and clarified in the present Ordinance.



It follows from the provisions that the Regional Council should assume an expert review. The review should have access to undertake the studies, etc., it deems necessary. The detailed rules on the review determined in an audit regulation.



The accounts given by the Regional Council to review before 1 January 2002. June in the following year, see. section 7.1 above.



In the review, it must be ascertained whether the accounts are true, and whether the transactions are subject to the reporting, are in accordance with the announced funding, Regional Council's other decisions, laws and other regulations as well as with the agreements concluded and usual practice.



Furthermore, it should ensure that the management of the funds and the operation of the companies whose accounts are subject to revision, is taken guilty economic considerations.

Thus, the requirement for a provision of ongoing management review of the region's accounts. Management review in the regions differs from the requirements for the municipal management revision, arising from section 42, paragraph 2, of the law on local government administration by the management audit is directed both against the Administration's implementation of the decisions of the Council and of the regions against the decisions of the Council of regions.



Finally, the Auditor General, of its own motion or at the request of the State Auditors carry out investigations pursuant to the law on the revision of the State's accounts, and more of the region's accounts as well as selected areas of accounting including. The Auditor General has to use for such studies access to the region's accounting material, etc., in accordance with sections 12 and 13 of the Act on the audit of State accounts, etc.



The revision gives its report on the audit of the financial statements, which carry an endorsement to the effect that the audit is carried out in accordance with audit with provisions.



The annual report shall be submitted to the Council before 15. August.



The annual report must then be submitted to the Executive Committee and other regional authorities and dealt with at a meeting of the Regional Council, see. the description of this procedure in section 7.1.



In addition to the audit of the annual accounts shall review regularly carry out a critical review of the region's accounting, etc. and give delberetning to that effect.



Treatment of Audit submit takes place according to the same procedure as for the annual report.



Section 7.6



7.6 Summary of deadlines in connection with financial reporting, etc.



The deadlines in connection with the posting, financial reporting and auditing, as discussed in the previous section, are summarized in the table below. All dates refer to the year following the year the accounts relate.







15 January-end of February

 

Before 1. April

 

Not later than 1 July. April

 

In mid-april

 

 

Before 1. June

 

Within 15. August

 

No more than 30. September

 





Continuation period expires.

 

Posteringsmæssig clearance

 

Specifications (including balance sheet) are submitted to the statistics authorities.

 

Specifications for the financial statement, function 1.10.01 hospitals and 2.10.01 Social offers and special education and special accounting information are submitted to the Ministry of social welfare.

 

The accounts given by the Regional Council to re we sion and submitted to the Ministry of social welfare.

 

The revision gives its report on the review of the year's rain ska bet for Regional Council.

 

Accounting, audit report and the decisions taken by the Regional Council in connection therewith, shall be sent to the Visual authority.









Section 7.7



7.7 Annex to Chapter 7



7.7.1 Annex 1 – income statement







The contents of the main income statement entries are described in the following:



7.7.1.1 accounting entries tariff payments and other operating income.



Accounting entries to contain revenue posted on hovedart 7. The accounting entries in the profit and loss account can be supplemented with a note that shows the revenues specified on the species 7.1-7.9. Indication of the notes to the accounting entries are not formal requirements.



7.1.1.2 accounting entry personnel costs



Accounting entry must contain the region's personnel costs are defined as the groupings 010-030. Accounting entry can be supplemented with a note showing the personnel cost specified on the species, including species 0.3 Pension provisions in respect of civil servants Salaries, vacation pay, 1.0 0.7 4.9 Other services (temporary workers, courses, etc.).



7.1.1.3 accounting entry material and activity costs



Accounting entry must contain the region's material and activity costs, defined as grouping 110.



7.7.1.4 accounting entry of depreciation, amortisation and write-downs



Accounting entry must contain the depreciation on the respective activity areas in fixed assets, so if they emerge from the region's fixed asset book and notes to fixed assets in the financial statements. Depreciation must be in accordance with the monetary depreciation shown in the notes to the balance sheet relating to land and buildings, plant and machinery and equipment – including the IT equipment.



The accounting entries in the profit and loss account can be supplemented with notes showing write-offs distributed on the mentioned categories of fixed assets. Indication of the notes to the accounting entry is not formal requirements.



7.7.1.5 accounting entry other operating costs



Accounting entry must contain the costs not covered by paragraph 7.1.1.2-4



7.7.1.6 accounting entry common purpose and administration




Accounting entry should be supplemented with a note setting out the allocation key used for the distribution of common purposes and the administration on the region's areas of activity. The note may, in addition, contain the specification of the costs for common purpose and administration, for example, specified on the main functional level in the chart of accounts. This specification is optional.



7.7.1.7 accounting entry interest



Accounting entry should be supplemented with a note setting out the allocation key that is used in the allocation of interest on the region's areas of activity. The note may, in addition, contain specification of interest costs, for example, specified on the main functional level in the chart of accounts. This specification is optional.



7.7.1.8 operating costs



Accounting entry should be incurred operating costs (incl. common purpose, administration and interest) for the region's three areas of activity.



Gross costs must be shown separately in the notes to the income statement of the respective areas of activity. At a minimum, specify the gross costs of the main functional level in the chart of accounts.



7.7.1.9 accounting entries under financial income



The accounting entries includes activity areas financial income:

Block grants from State

Sales-and development contributions from municipalities

Activity-specific grants from the State

Activity dependent on contributions from municipalities

Objective financial contribution



The accounting entries are in the profit and loss account listed under the areas of activity, the income must be allocated to. There is no listing requirements to the accounting entries under financial income. Accounting records shall include the balance of the accounts in the authorized account level indicated on Annex 1 to which reference is made.



7.7.1.10 Accounting record operating result



Accounting entry should be supplemented with a note that shows the accumulated results of the region's three areas of activity. Social and special education area and the regional development area is self-financed, see. section 3, paragraph 3, of this Decree. This means that the two activity areas ' budget for the next financial year after fiscal year operating results must show that they meet the previous year's operating result according to the old accounts.



The note to the operating result is same note which is added to balance the record operating results transferred to next year, see. the mention in paragraph 7.7.2.1.



7.7.2 Annex 2 – Balance







The balance for each area of activity show the carrying amount of



fixed assets,

inventories,

physical plant for sale.



In addition to that of social and special education area as well as the regional development area displays the accumulated operating result.



Assets and liabilities that are not assigned to the activity fields of health, social and special education and regional development, is part of the region's total balance.



With the prescribed form requirements for balance is displayed so that the region's balance sheet only partially divided on areas of activity. In practice, the Division only informative meaning by, among other things. to show how the activity areas included in the region's overall economy balance separately.



7.7.2.1 Note requirements, etc. to the balance sheet



The accounting entries in the balance sheet must be in accordance with the corresponding accounts in the authorized account plan. The accounting entries in the balance sheet can be supplemented with notes where necessary. The following notes to the balance sheet has been approved and should thus be reflected in the financial statements in the prescribed form:



Tangible fixed assets accounting entry should be specified in the notes, prepared in accordance with the formal requirements set out in annex 4 – 7, see. paragraph 7.7.4.

Movements in equity accounting entry for the region in everything must be explained in a note.

Accounting record operating results transferred to next year must be specified in a note that shows social and special education area and the regional development of the area between the Bills with previous financial year incl. approach and departure.



The balance sheet can be supplied with additional notes and specifications for each of the regions wish.



7.7.3 Annex 3 – cashflow







The cash flow statement shows cash flow impact of the region's accounts.



Cash flow statement between total liquidity effect from operating result and investment must be measured for each of the 3 areas of activity.



Other liquidity dislocations attributable solely to the region's overall balance.



The individual items in the cash flow statement should be documented and reconciled with the respective items in the profit and loss account and the balance sheet.



7.7.4 Annex 4 – Note to tangible assets-land and buildings



Land and buildings









 

1,000 kr.





 

Health





Social and specialun-dervis-ning





Regional development





Common purpose and admini-stration





 

A total of





 

 

 

 

 

 





Cost per 1. January 200y





0





0





0





0





0







Approach



 

 

 

 

 





Departure



 

 

 

 

 





Transferred



 

 

 

 

 



 

 

 

 

 

 





Cost price per 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Amortisation and impairment 1. January 200y



 

 

 

 

 





Amortisation for the year





0





0





0





0





0







Write-downs



 

 

 

 

 





Depreciation, amortisation and write-downs divested assets



 

 

 

 

 



 

 

 

 

 

 





Depreciation, amortisation and write-downs 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Net book value 31. December 200y



 

 

 

 

 



 

 

 

 

 

 





Public property value of land and buildings belonging to the region constitutes per 1. January 200y



 

 

 

 

 



 

 

 

 

 

 









7.7.5 Annex 5 – Note to tangible assets – technical installations, more specialized equipment, transportation and the like



Technical plant and machinery









 

1,000 kr.





 

Health





Social and specialun-dervis-ning





Regional development





Common purpose and admini-stration





 

A total of





 

 

 

 

 

 





Cost per 1. January 200y





0






0





0





0





0







Approach



 

 

 

 

 





Departure



 

 

 

 

 





Transferred



 

 

 

 

 



 

 

 

 

 

 





Cost price per 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Amortisation and impairment 1. January 200y



 

 

 

 

 





Amortisation for the year





0





0





0





0





0







Write-downs



 

 

 

 

 





Depreciation, amortisation and write-downs divested assets



 

 

 

 

 



 

 

 

 

 

 





Depreciation, amortisation and write-downs 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Net book value 31. December 200y



 

 

 

 

 



 

 

 

 

 

 







7.7.6 Annex 6 – Note to tangible assets – furniture, including IT equipment



Fixtures including IT equipment









 

1,000 kr.





 

Health





Social and specialun-dervis-ning





Regional development





Common purpose and admini-stration





 

A total of





 

 

 

 

 

 





Cost per 1. January 200y





0





0





0





0





0







Approach



 

 

 

 

 





Departure



 

 

 

 

 





Transferred



 

 

 

 

 



 

 

 

 

 

 





Cost price per 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Amortisation and impairment 1. January 200y



 

 

 

 

 





Amortisation for the year





0





0





0





0





0







Write-downs



 

 

 

 

 





Depreciation, amortisation and write-downs divested assets



 

 

 

 

 



 

 

 

 

 

 





Depreciation, amortisation and write-downs 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Net book value 31. December 200y



 

 

 

 

 



 

 

 

 

 

 







7.7.7 Annex 7 – Note to tangible assets – tangible fixed asset under construction



Tangible fixed asset under construction









 

1,000 kr.





 

Health





Social and specialun-dervis-ning





Regional development





Common purpose and admini-stration





 

A total of





 

 

 

 

 

 





Cost per 1. January 200y





0





0





0





0





0







Approach



 

 

 

 

 





Departure



 

 

 

 

 





Transferred



 

 

 

 

 



 

 

 

 

 

 





Cost price per 31. December 200y





0





0





0





0





0





 

 

 

 

 

 





Amortisation and impairment 1. January 200y



 

 

 

 

 





Amortisation for the year





0





0





0





0





0







Write-downs



 

 

 

 

 





Depreciation, amortisation and write-downs divested assets



 

 

 

 

 



 

 

 

 

 

 





Depreciation, amortisation and write-downs 31. December 200y





0





0





0





0






0





 

 

 

 

 

 





Net book value 31. December 200y



 

 

 

 

 



 

 

 

 

 

 



 

 

 

 

 

 









Chapter 8



8 RECOGNITION and MEASUREMENT of MATERIAL and POSSIBLE INTANGIBLE ASSETS



Content Section



1 General rules for registration of assets 8.1

8.1.1 Definitions and concepts 8.1

8.1.2 General rules for the recognition and measurement of

tangible assets 8.1



2 fixed asset book 8.2

8.2.1 Fixed book basic structure 8.2

8.2.2 Fixed book digit string 8.2

8.2.3 Information for the asset book 8.2



3 Rules for the various categories of assets 8.3

8.3.1 tangible fixed assets 8.3

8.3.2 intangible fixed assets 8.3

8.3.3 current assets 8.3



4 Important definitions 8.4



Section 8.1



8.1. General rules for registration of assets



In the agreements for municipalities and county municipalities ' economy in 2003 entered into between the Government and the Association of county councils and it is at, respectively, agreed that in relation to the existing system in 2003 and with effect from 2004 established an overall status of the balance, which includes both financial assets and fixed assets and real estate accounted for ma and land for resale. Opening balance sheet on 1 January 1999 shall be established. January 2004. The information for the opening balance is transferred from the asset book to the status of the balance sheet on the basis of categorization of assets as described in section 2.1 below.



It implies that the registration of tangible fixed assets in the fixed asset book with effect from 1. January 2004 is mandatory for the whole of the municipal and departmental chart of accounts.



In the agreements for municipalities and county municipalities ' economy contracted between the Government and the municipal parties for 2004 is clear from, inter alia, that infrastructural assets and non-operational assets (URf.eks. land acquired for recreational, nature protection or recovery purposes) are not to be included in the balance sheet.



In the agreements for the municipal and County municipal economy for 2005, it is between the Government and the municipal parties agreed that intangible assets erhvevet for consideration and intent earned intangible assets is essential and central to the task of carrying out, must be recorded in the balance sheet where the value of the assets can be measured reliably.



In relation to agreements on the municipal and regional economy for 2007, it is agreed that the inventories to be factored into the balance from accounting 2007. From accounts 2008 it is also mandatory to include vacation pay owed and all provisions.



This chapter contains rules for the recognition and measurement of tangible and intangible assets as well as land/buildings for resale and inventories.



8.1.1 Definitions and concepts

In this chapter is used a number of concepts that are derived from the financial statements Act (Law No. 448 of 7 June 2001 on trader enterprises presentation of financial statements, etc.). Concepts can largely be transferred to the regional sector, and it is therefore appropriate, as far as possible to use the same terminology as used in the private sector as well as in international accounting standards. It should be emphasized that financial statements Act in its entirety does not apply to the registration of assets in the regions, but in certain cases it is selected, to a certain extent, to proceed on the basis of the Danish financial statements Act's principles. This applies, among other things. the definition of assets.



Below defines a number of different concepts.



An asset is defined in accounting literature very broadly as an acquisition, there



first of all, it is associated with future economic benefits or service potential, and

Secondly, is the result of an already occurring event or transaction and

Thirdly, where the future benefits or future service potential be checked by that authority (region here).



The asset is associated future economic benefits or service potential will URf.eks. be the case where the asset forms part of a production or provision of a service. This applies, among other things. buildings used for practical purposes such as hospitals, social institutions, and special equipment as well as means of transport. There may also be future benefits in the form of cash flows, as URf.eks. will assert themselves for land or buildings held resale in mind. In addition, there could be benefits in terms of the possibility to reduce or limit future payouts. This could URf.eks. be future maintenance costs.



That asset is a result of an already occurring event means in practice that this is an asset, as the region has acquired (bought) or even produced. Events, which are expected to take place in the future – URf.eks. the intention to buy a given property or similar – produces, therefore, is not in itself an asset.



The region controls the future benefits, means that the asset in the future constitutes a value for the region.



Typical assets in the regions will be buildings for different purposes, miscellaneous technical installations, larger machines, means of transport and equipment. Assets can be either used alone or in combination with other assets.



A distinction – as illustrated below – overall between the two types of assets:



Fixed assets and current assets.

A fixed asset is an asset that is intended for continuous use or possession, and that were acquired for use in the production of goods and services, rental or for administrative purposes. Other assets be classified as current assets. Thus, it is not the nature of the asset, which is of importance for the existence of a fixed asset or a current asset, but on the other hand, the region's aim to possess or use the asset. A building can URf.eks. be both an asset and a current asset – though not at the same time. Used building URf.eks. to the hospital and is expected to serve this purpose in the future, the asset should be categorized as a fixed asset. On the other hand, the building held for sale, it should be categorized as a current asset.



The fixed assets are divided traditionally in the tangible, intangible and financial assets,.



Tangible fixed assets are defined as a fixed asset with physical substance to persistent ownership or use. Examples are real estate, machinery, transport equipment and fixtures. Intangible fixed assets are defined as identifiable non-financial assets without physical substance to persistent ownership or use. In the private sector, it can URf.eks. be patents and trademarks, in the regional sector will typically be talking about cost to development projects URf.eks. investment in systems development or certain software costs. Financial fixed assets include long-term investments of a financial nature. The financial assets not referred to further in this context, referring to the financial status of the main account 6.



In relation to current assets, it is for regions relevant to distinguish between land and buildings held for resale, on the one hand, and inventories of various kinds on the other side. Other types of current assets are URf.eks. Securities and cash and cash equivalents, but these current assets are referred to not further here, as they will continue to be covered by the financial status on main account 6.



The breakdown of the different categories of assets can be illustrated as shown below:









Assets







Fixed assets:





Current assets:







Material (mandatory)





Grounds/buildings for resale (obl)







Intangible (mandatory)





Inventories (optional)







Financial *





Securities and cash and cash equivalents *









* These types of assets are referred to not further, as they appear in your main account 6



Recognition is a comprehensive concept, which is used for activation or registration on the status balance as well as on revenue or expense in the income statement (profit and loss statement). Unrecognized assets is an expression of the accounting records that are included in the balance sheet. In section 3 describes the criteria for the recognition of different types of assets in the asset book.



Measurement is used instead of the old concept of valuation and is thus the name for the value that the asset in the asset book and admitted to in the balance status. The starting point is still the historical cost price and in section 3 describes the rules for measurement of various types of assets.




Moreover, reference is made to section 5, which contains a number of useful definitions.



8.1.2 General rules for the recognition and measurement of tangible assets

The criteria for recognition and measurement is of great significance for the balance of status and thus for the company's result, and therefore, it is important that all regions follow the same principles. Sections 3.1, 3.2 and 3.3 deals with rules for the recognition and measurement of respectively. tangible and intangible fixed assets, as well as for current assets, since there may be minor differences in the rules for the various categories of assets. This section describes the General rules for the recognition and measurement of assets.



Recognition – what types of assets should be included in status?

The general rule is that tangible assets must be recorded in the asset book when they meet the following conditions:



The asset is expected to be used in more than one financial year (i.e. that the asset has a useful life/life of more than 1 year)



Value of the asset can be measured reliably



Asset has a value that is equal to or higher than the monetary de minimis limit



The first condition for an asset to be included in the asset book and in the status balance is that the asset is expected to be used for more than one fiscal year. This is due to the inclusion of tangible fixed assets is based on an accrual of these acquisitions spread over the expected useful life or living. The cost of the acquisition thus not only puts a strain on the accounts in the year of acquisition, but distributed over time equivalent to the consumption of the acquisition. Buy a car to 200,000 USD region as expected, that could be used in 5 years allocated the purchase price with 40,000 USD over the 5 years.



It is furthermore a condition that the value of the asset can be measured reliably. This provision can be found in the corresponding financial statements Act and helps to ensure that that does not include assets, which rests on a flimsy and uncertain basis. It will typically be internally generated intangible fixed assets such as staffing knowledge resources, which are sorted from because of this provision (see section 3.2).



The last condition for derecognition of assets is that the asset has a value that is equivalent to or exceeds the monetary de minimis limit. Assets at a value of over 100,000 DKK must be recorded in the asset book and in the status balance, while assets under 100,000 USD should not be included in the asset book and balance status. In some cases, there may be a case of assets are recorded in the asset book, although the assets each have a value below the de minimis threshold. This will URf.eks. be the case if purchased a larger number of single parts such as furniture, tables, etc. for a single purpose – for example, the fitting-out of accounts in connection with new construction, extension or modernisation (see, incidentally, the description of the category 3 fixtures in section 2.1, which inter alia deals with the registration of total acquisition costs of the assets individually has a cost price below de minimis).



Non-operational assets should not be included in the asset book.



Tangible assets, whose value for regione is primarily cultural or historical nature, and which therefore can be categorized as cultural heritage, must be recorded in the asset book if assets meet the above three criteria. Who can URf.eks. be talking about various works of art or buildings and monuments of historical importance. In certain cases it may be difficult to establish a reliable value for the assets of this nature, and they will, therefore, should not be included, since they do not meet the 2. without prejudice to article criterion. above.



Measurement – How valued the assets?



The general rule is that tangible assets to be measured at cost price. It comes as a starting point, whether we are talking about fixed assets (assets for continued use or own) or current assets (inventories and land/buildings for resale). The unit cost is defined traditionally as the amount is granted as remuneration for the asset, regardless of this is acquired from an external party or internally produced. That is, the cost consists of the purchase price including tariff or other possible charges in connection with the purchase – however exclusive VAT. 1) in addition to costs directly associated with the take-up of the asset is included in the cost. It can URf.eks. be costs associated with the installation or the installation of the asset delivery costs as well as fees for specialized consultants needed to consult before the asset can be used. Any quantity discounts or similar shall be deducted from the cost price. The cost of an asset, as the region itself manufactures, fixed on the basis of the same guidelines, so that all the costs associated with producing and put into service the asset is taken into account.



1) the general rule is that the purchase price must be calculated Excl. VAT, however, on individual areas of special rules. Inter alia, relating to older homes, where the statement must happen incl. VAT. Refer also to Chapter 2 section 6 regarding VAT.



There are several advantages to measure assets at cost price. Firstly, we are talking about an objective value, which supports the principle of objectivity in the regional budget and accounting system. Secondly, there is talk about a value, as the region most often know or can readily identify, and thirdly, the historical cost remains the starting point in the Danish financial statements Act. In the ' annual report – comments to financial statements Act ' described the cost as follows:



"In General, there will not be problems finding the purchase price. Amount from the supplier's invoice – purchase price – is a starting point for valuation. There may also be talking about the title deed, delivery contract etc. ... With the purchase of URf.eks. larger machines and plants, it is usual to ensure continuous operation at the same time the purchase of spare parts, which are included in the acquisition price and written off together with the main asset. Costs for improvements of a fixed asset is added to the asset's acquisition cost .... Acquisition cost of a fixed asset comprises the purchase price and costs directly associated with the acquisition as well as the costs of provisioning of the asset. The purchase price is calculated after deduction of any reduction in prices and discount ". (The annual report – comments to financial statements page 353-354.)



Section 8.2



8.2 the asset book



The detailed record of the region's tangible assets is effected in a separate fixed asset book. Asset book contains different information about each asset – among other things. on the type of asset, which area (function) used for the asset, the asset, accumulated depreciation, etc.



General information relating to asset value, amortisation, etc. transferred from the asset book to an overall balance, which contains both the status information about the financial value of assets such as information about the tangible assets value from the asset book. Information is transferred from the fixed tub two tea ket to the status of the balance sheet on the basis of categorization of assets be written in section 2.1 below. The status balance will thus hold up light information on the value of the region's land and buildings, technical installations, machines and more specialized equipment, equipment, means of transport, etc. Also transferred from main account 6 information on the region's financial assets and liabilities to the total balance status.



The asset book is as a starting point, an internal working tool in each region, and made only to the form of an overall categorization of assets in the asset book (see the below categorization). In addition, a number of substantive requirements in the form of approved rules for the recognition and measurement of tangible assets, as well as requirements for what information is at a minimum, could be generated on the basis of the asset book (see section 2.3 and section 3).



8.2.1 Fixed book basic structure

The categorization of the region's tangible assets in the asset book must, as a minimum, the following categorization. It is voluntarily to make a further breakdown into different types of assets, URf.eks. 01 can be divided into administration buildings, buildings to service purposes, infrastructure and public facilities.



TANGIBLE FIXED ASSETS: (mandatory)



01 land and buildings



02 Technical installations, machines, more specialist equipment and means of transport



03 Fixtures – including computers and other IT equipment



04 tangible fixed assets under construction and advance payments for tangible fixed assets



INTANGIBLE FIXED ASSETS (mandatory from company 2005)



05 expenditure on development projects and other acquired intangible assets an extra



OMSÆTNINGSAKITVER



06 inventories/stocks (mandatory from accounts 2007)

07 land and buildings destined for resale (mandatory)



The definition of each category are described below. That can occur in some cases, doubt the specific categorization of an asset. In these cases, the main purpose of the asset must be used as a basis for categorization. It can URf.eks. be the case with a pump station or a transformer station. Here the technical installations/facilities most often be the central element, given that the building can be regarded as an ' outer ', which at the same time constitute a significantly smaller amount compared to the technical installations. The entire plant must therefore be registered as 02 Technical installations, machines, more specialist equipment and means of transport.




01 land and buildings (mandatory)



To this category belong various buildings. The category includes both buildings, which are used for:



various services (hospitals, social institutions, etc.)

administrative purposes (administrative buildings, etc.)

miscellaneous purposes (underground car parks, etc.).



Land and buildings intended for resale are excluded from this category, but admitted under the category 07 land and buildings for resale. Similarly for a previously fixed asset (URf.eks. a social institution) that is for sale.



For a building allocated expenses and installations, which are necessary for the building's function. It applies to specific installations, as well as land improvements URf.eks. drainage as well as garden and car park.



It should be noted that the leased buildings also are tracked in this category.



For the category include reasons, which are not held for general sale. This applies both to the unimproved as undeveloped land.



The category also includes the land and buildings of the region-owned public facilities.



Buildings generally considered to have a limited lifetime, and these fixed assets must therefore be depreciated systematically over time. All else being equal, be deemed to be land and buildings used for production or to a concrete service purposes URf.eks. institutions, etc. in order to have shorter lifespan than administration buildings. Reasons on the other hand, is assumed to have a limited useful life, and who must therefore normally not carried out on this amortization. The value can not be maintained URf.eks. as a result of pollution, and is assumed to be a permanent impairment, are written down the value, however, (see section 3.1 on write-downs, incidentally).



In relation to agreements on the regional economy for 2007 is agreed to authorize the following lifetimes within category land and buildings:









The building's application Examples





Lifetime







Administrative purposes, Administrative buildings, etc.





45-50 years







Various services Hospitals and social institutions





25-30 years







Miscellaneous purposes underground car parks, etc.





15 years









It should be noted that the use of special lifetimes for assets within the above categories, as acquired before 1. January 2007, in the context of the opening balance sheet for 2007 referred to in article 6. section 8.4



Moreover, there is established the following valuation principles as well as the lifetimes of order. design in rented premises.







 



The valuation principle





Lifetime







Leasehold improvements





Cost price





10 years or over rent contact duration









Leasehold improvements include local facilities, where the unit itself has made special arrangement of the rented premises and incurred expense therefor. Local device held by the lessor will not be calculated on the balance. Leasehold improvements includes costs relating to fixed layout which cater for tenant's specific needs. The acquisition has the character of furniture or the like, which are not fixed, the expense is recognised as the "Fixtures". Deposits paid to the lessor in connection with the conclusion of rental contracts, etc. be classified as a current asset.



02 Technical installations, machines, more specialist equipment and means of transport (obligatory)



To this category belong acquisitions, which have the characteristics of technical installations as well as larger machines and special equipment. The category includes, among other things. larger lawn mowers, cranes, Hi view an put, special machines or special equipment for large kitchen, central laundries and similar.



Furthermore, the category includes various types of hospital equipment URf.eks. scanners, x-ray facilities, accelerators, laboratory equipment, ray guns, etc.

The category also includes various forms of transport, inter alia. passenger cars, buses and minibuses,.



For this category, there may be problems for both buildings as the bounding box for the specific installations that often included as part of the building (see 01 land and buildings above). Instructions for the demarcation between 01 and 02 Technical land and buildings plant, machinery and more specialized equipment may be, what will be included in the public property valuation. Included a special installation as part of the public property valuation, will it be correct to include the installation of category 01 land and buildings.



In relation to agreements on the regional economy for 2007, it is agreed that the following lifetimes must be used. technical installations, machinery, equipment and special transport more mites:









Category





Examples





Lifetime







Technical installations





Toilet facilities etc.





30 years







Machines











Snow ploughs and sweepers







Asfalts-, concrete-and mortar machines







Power-equipment for waste management (pumps, air cleaners/fans, etc.)







Electric motors/engines







Machines for large kitchens, laundries, sheltered workshops and the like 10 – 15 years







Special equipment





Laboratory equipment





5-10 years







Means of transport





Larger trucks and buses

Trailers, among other things. passenger cars and handicap cars





5-8 years









It should be noted that the use of special lifetimes for technical installations and means of transport which were acquired before 1. January 2007, in the context of the opening balance sheet for 2007 referred to in article 6. section 8.4



03 Fixtures – including computers and other IT equipment (mandatory)



To this category belong various kinds of furniture, among other things. Office furniture, bookcases, hospital beds and furniture and fixtures in institutions. Fixtures also include fax machines, scanners, copiers, computers and other IT equipment, telephone and communications production facility. ka For the category include lighting, curtains, blinds, carpets, service, pictures, etc.



In addition, this category includes various works of art, for example, paintings, sculptures, books, etc.



It should be noted that many acquisitions within this category itself falls under the monetary de minimis limit. The furnishings are considered instead as total acquisition costs based on function and longevity – URf.eks. Office furniture or telephone installations – it is appropriate to recognise the furnishings as a single asset. That can often cause doubt when acquisition costs under this category must be included in the asset book and included in the balance sheet the balance sheet. Practice is that inventarkøb are recognised when there is talk of a new building, extension or on a major modernisation. There is just talk about replacement of individual parts, for example, individual Office furniture, these acquisitions must not be included in the asset book or on the status of the balance, but only expensed as an operating expense in the year of acquisition.



In relation to agreements on the regional economy for 2007, it is agreed that the following lifetimes regarding. furniture – including computers and other IT equipment:









Category





Examples





Lifetime







IT





It and other communications equipment as well as larger servers 3 years







Fixtures





Office furniture and fixtures on institutions





3-5 years







Operating equipment





Electricity and plumbing-equipment

Playground equipment

Tool

Measuring apparatus and instruments






10 years









04 tangible fixed assets under construction and advance payments for tangible fixed assets (mandatory)



This category is used for temporary location of expenditure related to prepayments for tangible fixed assets and costs of tangible fixed assets in course of construction. The amounts listed under this category must appear from the status balance, but depreciation commences only when assets are put into service, and amounts under this item be transferred to a different category under tangible fixed assets (01-03). Is there URf.eks. talk about the current payments for the construction of a social institution, the program transfers the value from this category to the 01 land and buildings, when the institution is built.



INTANGIBLE FIXED ASSETS



05 expenditure on development projects and other acquired intangible assets (mandatory from company 2005)

To this category belong various intangible assets acquired for valuable consideration. It can, among other things. be about acquired patents, rights or licenses to the software. It should be noted that internally generated intangible assets are not to be included in the fixed asset book and balance sheet, unless the asset is central and essential for task performance and can be measured reliably.



MATERIAL OMSÆTNINGSAKITVER



06 inventories/stocks (mandatory from accounts 2007)

To this category belong various types of inventories URf.eks. for use in the production of services. A requirement to include inventories and warehouses in the asset book is that in the case of major or significant item be team nin ger, where the goods are consumed in a different fiscal year than the acquired in, and it is therefore in the interests of an informed assessment of the financial statements, are important to an accrual of expenditure in line with consumption of inventory.



Significant inventories under this category can URf.eks. include greater store on hospital area, while it should be noted that smaller stocks of spare parts are not to be recognised.



There is not amortised on this category (see section 3.3)



07 land and buildings destined for resale (mandatory)

To this category belong various land and buildings, as the region possesses with resale in mind. It can URf.eks. focus on land development areas. By decision to sell an asset, which so far has been categorized as a fixed asset – for example, a building that has been used for the institution – must be a omkategorisering of the asset.



There is not amortised on this category (see section 3.3).



8.2.2 Fixed book digit string

Asset book constitutes a self-contained recording system and is thus not directly integrated in the authorized account plan. The assets recorded in the asset book by use of a digit string/an account number, which contains an assignment to the functional level in the authorized account plan. The digit string contains different information about each asset and consists of a total of 14 digits.



The first two digits refer to the category of the asset. Third and fourth digit is reserved for a voluntary subdivision of the asset type. As mentioned above, it is voluntary to make a further breakdown in the types of assets than the established categorization. URF.eks. may 01 land and buildings can be divided into land, buildings to service purposes, administration buildings and public facilities. Similarly, 06 inventories/stocks divided in warehouses by area URf.eks. Hospital area, etc. or by product type. Fifth digit refers to the main account-level and the sixth and seventh to main functional level. Eighth and ninth digit relates to functional level and tenth digit indicates ownership. Eleven digits up to and including fourteen refers to the cost center.



Categorization of the asset (see above) 2 digits

Additional voluntary Division 2 digits

Main account (1 digit)

The main function of 2 digits

Function 2 digits

Ejerforhold1) 1 digit

Omkostningssted2) 4 digits



1) Authorized by other ownership than Own.

2) cost center is authorized in the areas of hospitals and social institutions.







Applies only to the areas where the cost center are authorized. In addition, it will be willing to place assets to the cost center. In areas where the region do not operate with cost center, entered ninth through twelfth digits with 0 's.



When the individual asset in the asset book is recorded, it must, as a minimum, be assigned to the function to which the asset belongs. Where cost center is authorized, must also be issued therefor.



For assets to be used for several different purposes, please indicate the function number that the asset primarily used for.



The region can choose to have the assets of self-governing institutions that have entered into an operating agreement with the region, appear in the asset book. Specify ownership 2. The assets must be stated in the region's balance.



Above 14 digits represents the authorized account number for the asset book. The region may, however, choose a different order for the listed dimensions in the digit string. In addition, it would be appropriate to refer to the individual asset.



8.2.3 Information for the asset book

In the asset book must be given different information about each asset. It concerns the following 8 values: 1)

cost price

amortisation for the year

accumulated depreciation

write-downs

accumulated write-downs

year-end write-ups

accumulated revaluations

Book value2)



In addition, may be mentioned:

any scrap value

afskrivningsgrundlaget3)



1) A definition of the individual concepts can be found at the end of this chapter

2) the book value is calculated on the basis of the above values.

3) Depreciation because let is also a constructed value.



For current assets must be provided similar information. Scrap value, depreciable basis and depreciation is however not relevant to current assets



The first values are for the 7 8 authorized categories of assets are recorded in the above order, IE. cost, accumulated depreciation, amortisation, write-downs, accumulated write-downs, write-ups, of the year accumulated revaluations and the book value. If a value is not relevant for a given asset, shall be indicated instead 0s. It is voluntary to report scrapværdier and depreciable basis ... If they are reported to be scrap value is reported as the value no. 9 and the depreciation basis as value no. 10.



If the region wants to meet other purposes, and therefore, in addition to the acquisition value registers URf.eks. replacement or realizable value in asset book, these values are placed in extension. The registration of these additional values than the historical acquisition price shall be organised by the municipality itself. For example, it is likely that the region only on selected areas want to follow the future investment needs and therefore on these demarcated areas also shall indicate the replacement value in the asset book. It is important, however, to URf.eks. replacement value and the realizable value first, following the registration of the other values.



In order to ensure a consistent reporting of the above information must follow the sign for the different regions information. The cost price, the book value, depreciable basis and any write-ups set all as a positive value (no sign) depreciation and any impairment losses is set on the other hand, with a negative sign. Residual value will always assume a positive value, IE. that the municipality expects to be able to sell the asset for a limited time ejerperiode.



In those cases where it is anticipated that there will be costs associated with disposing of the asset in the asset book a note to this effect shall be included. An asset do not assume a negative scrap value.



Information from the asset book can be posted in the region's economy systems and provide the basis for cost accounting. Asset book contains information necessary for cost calculations (see Chapter 9) and is an important tool if the region wants to evaluate and compare the costs of various solutions of a given task.



Section 8.3



8.3 Rules for the various categories of assets

This section describes the rules for recognition and measurement for different categories of assets, IE. respectively, tangible fixed assets, intangible assets and current assets.



8.3.1 tangible fixed assets

Tangible fixed assets can be defined as property, plant and equipment acquired for persistent ownership or use of the region for production, rental or administrative purposes, and which is expected to be used in more than one accounting period 1) Typical tangible fixed assets are buildings, larger machines and fixtures.



1) to the category of tangible fixed assets are counted, however, also non-operational assets, IE. assets which are not used directly in the production URf.eks. infrastructure, parks, etc.



Recognition of tangible fixed assets


Criteria for tangible fixed asset must be included in the fixed asset book and in the status is that the cost can be measured reliably, and it is likely that for the region's future economic benefits associated with the use of the asset (see the definition of an asset in section 1.1). The cost can be measured reliably satisfied most often immediately at the price paid for the asset, or by a statement of the costs associated with producing asset.



Additional requirements which must be fulfilled in order to recognise an item of fixed assets are as follows:



The asset is expected to be used for more than one fiscal year (i.e. have an expected useful life of more than one year)

Asset has a value exceeding 100,000 Danish kroner.



It can in some cases be difficult to determine what constitutes a separate asset, as more assets can appear together. This is true URf.eks. a building located on a plot. In such cases, the assets are recorded as a separate asset if the various ' parts ' have different lifetimes. In the example of the regional building located on a regional because the two assets must be recorded separately, because the building has a limited life (presumably between 30 and 50 years old), as it must be depreciated over, whereas the reason – as a rule – is likely to have an unlimited life, and the value thereof, therefore, should not be written off. This is true even though the building and why acquired at the same time and earn an overall purpose URf.eks. as a social institution and related areas.



Likewise, a building and its installations are treated as two separate assets. This is due to differences in the expected lifetimes, where building is usually to be expected to have a longer life than the various installations in the building. In cases where an exception to the general rule about factoring assets with different lifetimes separately, a note to this effect shall be recorded in the notes to the asset book.



In other cases, individual assets are recognised in the asset book as a single asset. It applies in connection with the purchase of several smaller assets into a unified purpose and by inventarkøb in connection with new construction or substantial modernisation/renovation of an existing building. For example, pointed to the purchase of a larger number of PCs, where pc-the investment shall be regarded as a single asset, and the total cost are amortised over the expected life of the URf.eks PC. 3 years. A total replacement in connection with the renewal of an existing system, must be recognized as a single asset. Subsequent purchases of single parts for replacement of defective units must be considered maintenance and thus recorded as an operating expense. There is talk of an extension of the system, should this be regarded as an approach to the existing asset and thus be included in the asset book if materiality contemplation and other criteria are met. Another example is inventarkøb in connection with the construction of an institution or a substantial modernisation of an existing institution.



In summary, to greater purchases of assets, each of which falls under the de minimis, are recognised as a global asset, if they form part of an overall system, have the same use and/or purchased in connection with new construction or major nyrenovering.



Tangible fixed assets under construction – URf.eks. an institution that is being built – is also an asset for the region. Assets under construction should be included in the asset book under "04 tangible fixed assets under construction and advance payments for tangible fixed assets" and are measured at accumulated payments until the asset is completed and can be migrated to the category to which the asset relates to URf.eks. "01 land and buildings". Depreciation on tangible fixed assets under construction and advance payments for fixed assets must not commence before the asset is put into service and transferred to the category to which the asset relates.



Measurement of tangible fixed assets

Tangible fixed assets should be measured at cost price.



Cost comprises purchase price incl. customs duties or any other charges in connection with the purchase – however, excl. VAT. In addition, costs that are directly associated with the take-up of the asset is included in the purchase price.



It can URf.eks. be costs associated with the installation or the installation of the asset delivery costs as well as fees for specialized consultants needed to consult before the asset can be used. Any quantity discounts or similar can be subtracted from the purchase price. The cost of an asset, as the region itself manufactures, shall be based on the same guidelines. In those cases where, in order to ensure a continuous operation is required with the purchase of spare parts in connection with the acquisition of the asset, should these be included in the cost price and depreciated along with the asset.



As an exception to the rule on the use of the cost price applies to buildings acquired before 1. January 1999 to be measured to the public property valuation per 1. January 2004 adjusted for amortisation and write-downs and revaluations carried out in 2004 and subsequent years. This also applies in cases where the cost of building acquired before 1. January 1999 is the region known. It should be noted that the land must be separated from the public property value to obtain the actual value of the property and thus also the basis for the calculation of by-down as well as write-ups of older properties.

Subsequent expenditure relating to a given asset, may only be attributed to asset value, if they lead to an actual improvement of the asset, i.e., that the future economic resources, as asset adds the region increases beyond the originally assumed. This can URf.eks. be the case if the subsequent expenditure causes the asset's useful life, capacity or the quality of output is increased beyond the originally assumed. Subsequent costs, which do not result in an increase in the economic resources, the asset must be recorded as the region adds an expense in the accounting period to which they relate to (written off immediately). As a starting point will the costs of repair or renovation of an asset, therefore, should be recorded as an expense in the fiscal year in which the repair or renovation occurs. There is talk of a radical renovation, resulting in an improved asset, URf.eks. because the lifespan is increased beyond the originally accepted, or that the asset's capacity is increased, the renovation should be entered as an approach on the asset.



There are doubts as to whether the subsequent expenditure should be written off immediately in the year of acquisition or attributed to asset value (registered as an approach), the following must be considered:



exceeds the amount available for the subsequent costs de minimis on 100,000 DKK,

increase asset's useful life, capacity or quality in addition to the originally accepted



Only if both conditions are met must cost attributed to asset value.



Depreciation of tangible fixed assets

The depreciable basis of tangible fixed assets is determined at the time of recognition as the cost.



In some cases there may exist a scrap value, which must be deducted from the acquisition cost and thus be part of the depreciable basis. Residual value is the value that the region expects to get for the asset at the expiry of its utility value net of any nedtagelses, sales, or restoration costs. 1) residual value must be deducted from the acquisition cost only in those cases where it is estimated that it will constitute a major proportion of the total acquisition price, or where there is a contract with an agreement with a third party about the acquisition of the asset after a set period of time. Typically it will only be relevant to talk about scrapværdier for the assets, which we know in advance ejerperioden. It can URf.eks. be medical equipment. For these assets are typically talking about a permanent replacement, since the region's ejerperiode is limited and there is experience with a possibly. sales value.



1) in establishing scrap value can not be factored expected price increases below inflation gains.



More often than not will scrap value of tangible fixed assets, however, constitute a very small share of the cost price and will therefore not have a significant impact on the determination of the depreciable basis.



Finally, it should be noted that in some cases may be costs associated with disposing of an asset, for example, in cases where there is a large restoration costs. In these cases, a note to that effect shall be entered in the asset book.



Tangible fixed assets to be amortized on a straight-line basis over the expected useful life. The purpose of making depreciation is to allocate the purchase price of an asset over the asset's useful life systematically. In this way be made visible the cost associated with the use of the region's assets. This page in the asset book record continuously causes the costs related to the subsequent use of asset visibility.



There may be specific circumstances of importance for longevity, which makes it necessary to derogate from the depreciation times, URf.eks.



the risk of technological obsolescence

any legal restrictions on the use of the asset

whether or not the asset expected useful life depends on the life of other assets

the expected wear of the asset, which depends on the function of the asset shall serve




In association with the segmentation of the asset book is that in section 8.2 specified lifetimes for different groups of assets that are required for regions to follow.



Depreciation shall begin in the year in which the asset is put into service. A possible change of usage time causes changes of the future depreciation, so that the asset is depreciated over the new remaining useful life. Change in usage time on the other hand, does not involve the correction of depreciation already made.



Subsequent value in fixed asset book

After the asset is recorded in the asset book, asset book and must be reflected in the cost minus the accumulated depreciation to the status and any impairment losses. The value of the region's assets be taken continuously up to the assessment.



If it is established that the value of an item of fixed asset unforeseen deterioration significantly compared to the value it is recorded in the asset book value declined, and not considered to be temporary, the asset is written down to this lower value. It is important that the depreciation shall be carried out with caution.



The value of the tangible fixed assets must therefore be decreased only in cases where the asset deteriorate significantly on the basis of an actual event, so the write-down occurs based on an objective basis. It can URf.eks. be as a result of a fire, other material damage, a finding of contamination on the site, where the plant is built, or new legislation that makes the current outdated facility in relation to the purposes they are used for. Tangible fixed assets shall not be depreciated on the basis of subjective assessments or because a general price developments. If the value of an item of fixed assets are written down URf.eks. as a result of a damage, the depreciation basis is reduced accordingly.



New legislation, as stated also justify a write-down. By a fundamental change in the law in an area can be introduced more stringent requirements for interior design and facilities, which means that the current plant cannot be assessed to have the same value in future operation. An impairment of the asset value of the said event makes visible the need for an investment (URf.eks. a renovation), which again brings up the asset on a contemporary level.



The write-down should have a scope, which means that the future depreciation amount is adjusted to the value at which the asset is expected to have in the future of service production. The asset must never be measured to a negative value, but if there is a significant cost associated with the rehabilitation work, must be disclosed in a supplementary note.



If the value of a group of assets, conversely increases significantly in relation to cost, and value the increase be considered permanent, can the region choose to revalue those assets value for this higher value. You have to be very careful with the write-ups. Transient recovery shall not constitute grounds for value appreciation. Positive adjustments must also be made solely on the basis of an actual incident that results in a lasting increase in the value of the asset, and only if it can be made on an objective basis. Revaluation of tangible fixed assets will therefore only rarely occur. In those cases where appreciation, appreciation transactions are to be attributed to the depreciation basis.



A principle of neutrality requires that you record an expense when it is threatening, but first detects an income when realized. You should therefore exercise greater caution in relation to revaluation surpluses than in relation to write-downs. Thus, it is important to stress that the positive adjustments on the basis of this principle must not affect the operating result, as there is no talk about a realized gain. Impairment losses must be treated as an impact of the operation, following the example of amortisation for the year.



A tangible fixed asset are posted to the asset book as a departure, when it is no longer used in the region, and it cannot be expected that it will bring the region economic resources or service potential.



Information in the asset book

The following information must be recorded in the asset book.:



cost price

amortisation for the year

accumulated depreciation

write-downs

accumulated write-downs

year-end write-ups

accumulated revaluations

the book value



In addition, may be mentioned:



any scrap value

depreciable basis



In addition, the expected useful lives of the assets as well as details of any write-downs appear in the notes to the asset book.



Particularly on leased assets

By a financial asset shall mean any asset, such as leased the region leases, and where all significant risks and ownership rights are transferred to the region, although not formally transferred ownership to the region.



Associated with a number of accounting issues for inclusion and measurement (valuation) of financial leasing contracts.



Corresponding financial statements financial leasing assets are recognised as an asset in the asset book and are recognised in the balance sheet. This is because they are considered to be under the control of the region, although the legal ownership of the asset does not belong to the region but the lessor. Financial leased assets are recorded in the asset book as corresponding acquired assets, see. section 1.2 of this chapter.



A leasing arrangement is financially, if the region primarily have concluded this by financial reasons. But in addition, the definition of financial leasing is not unique. The following are examples of situations that separate or combined will lead to a lease being classified as a finance lease:



Ownership to leasing the asset is transferred to the region on the expiration date of the lease agreement.

The lease term covers the main part of the asset's useful economic life.

The present value of minimum lease payments to the lessor is very similar to the asset's fair value.

Leasing asset is so specialized that only region can apply it.

The region has an attractive purchase option at the end of the period.

Upon termination of the lease agreement lessor's losses shall be borne by the region.

The region is holding costs by cancellation of the lease.

Gain/loss shall accrue to the region by the changes in the fair value of leasing asset.

The region has the option to lease the asset for a further period after the leasing contract expired for a rent that is substantially lower than market rent.



All of the above indicators do not necessarily have to be fulfilled in order that there is talk about a financial leased asset. It must be assessed individually in the concrete situation. It is important to underline that it is the contents of the lease agreement, including in particular the concluded by financial reasons, which is decisive for the classification of the lease as a finance lease.



If the criteria for financial leasing are not met, shall not be included in the fixed asset book and balance, since in that case the case of operating lease.



Operating lease is similar to a traditional rental agreement. In the operational leasing agreements is often considerably shorter lease than the asset's useful life. The asset's acquisition cost is thus not fully recovered over the rental period, but genudlejes several times or sold by the leasing company after the expiry of the lease agreement. When an operating lease is the responsibility of the maintenance obligation and the insurance risk typically leasing company, just like the leasing company must bear the risk and responsibility for the asset as at ordinary rental agreements.



Finally, it should be noted that financial leasing is to equate with loan financing is available, why contracts for financial leasing is governed by Decree No. 1345 by 11. December 2006 on the regions ' borrowing and communication of ga rantier, etc. The loan announcement does not contain rules on leasing financial sie ring of operating procurement, so as a starting point is the opportunity to do so. Executive order assimilates lease financing of loan facilities with loans, why these lease agreements shall be assimilated to regionmens lending facility.



Calculation of the cost price of the leased asset

The leased asset has to be factored into fixed asset book and recorded as an asset on the balance sheet. The financial leased asset has to be factored into the asset book under the category where a corresponding acquired asset placed URf.eks. ' Technical installations, machines, more specialist equipment and means of transport '.



The region shall recognise financial leased assets similar to other fixed assets at cost, which is measured as the lowest of either the fair value of the leased asset or the present value of the minimum lease payments plus costs.



Fair value is the amount at which an asset is expected to result in a deal between independent parties.



Minimum lease payments are the benefits which the lessee is obliged to pay in the lease, as well as any amount guaranteed by or on behalf of the lessee, which in practice typically correspond to the future lease payments.



If the region gets an advantageous option to purchase the asset, so that at the conclusion of the lease is reasonably certain that the option will be exercised, shall be assessed minimum benefits both to cover the benefits to be paid over the lease term, and the performance that is needed to take advantage of the purchase option.




In calculating the present value of future lease payments used the internal rate in the lease as discount factor, if this is available. If this is not the case co., instead used the lessee's alternative loan rate.



The internal credit interest in a lease is the discounting factor, as if by leasing the contract gets the present value of future lease payments plus any residual value to be equal to the fair value of the respective asset.



Lessee's alternative loan interest rate is the interest that the region will have to pay on a similar lease or similar loan financing by the same amount, duration and safety.



Lease assets must be depreciated in accordance with the same rules as the region's own acquired tangible fixed assets. If there is no reasonable assurance that the region will obtain ownership of the leased asset at the end of the lease term, the asset is depreciated over the shortest period of full lease term or its useful life.



The accounting treatment of lease obligation is discussed in the posting rules of order. function 6.55.79 Debt obligations regarding. financial leasing, see. Chapter 4.9.



Example

The region choose to lease a vehicle. The fair value of the vehicle is 343,075 us $ (excl. VAT), leasing service is $ 65,778 annually. and the internal rate of return is 3%. Leasing and depreciation period is 3 years.



The region is responsible for service and maintenance of the vehicle and that this has a salvage/scrap value of 171,574 USD at the end of the lease term. In practice this is done by that region even sells the vehicle and pay 171,574 kroner to the lessor upon expiry of the contract.



The provision in the lease agreement that the gain/loss shall be the responsibility of the region by changes in the vehicle's value in relation to the agreed value of the contract as well as the fact that the responsibility for the maintenance of the vehicle is imposed regione, doing that in the case of financial leasing. The other indicators of financial leasing is not met in this instance.



The vehicle shall be included in the asset book for the present value of the minimum lease payments (cost price) Inc. scrap value. The present value is calculated as follows:



(((1 + r) n-1)/(r * (1 + r) n) * y) + (1 + r) n * s, where



r = internal rate of return

n = leasing period

y = constant minimum annual lease performance, IE. the present value is the following

s = scrap value



(((1,033-1)/(0.03 * 1,033)) * 65.778) + (1.03-3 * 171.574) DKK = 343,075 DKK



It should be noted that the present value of minimum lease payments including. scrap value is equal to the fair value in the example.



Depreciation is carried out with (343.075-171.574)/3 = 57.167 DKK per year for 3 years. There is not amortised on fair value, since the asset is expected to have a scrap value at lease end and when ownership passes to the region by the leasing period.



By way of comparison, it can be stated that if the region itself buying and financing a vehicle and retain it for scrap value is 0, the annual depreciation by a depreciation period of URf.eks. 6 years be summed up by the (343.075/6) DKK = 57,179 DKK



8.3.2 intangible fixed assets

This section provides a description of the rules that regions must follow, by recognition of intangible fixed assets in the fixed asset book and balance status.



Intangible fixed assets are defined as identifiable non-financial fixed assets without physical substance, which is acquired for use in manufacturing, renewable owning or leasing or similar. Typically there will be talk about development costs. It can be the costs of various development activities URf.eks. investment in systems development or certain software costs.



Recognition of intangible fixed assets

A criterion that an intangible asset is recognised in the balance sheet, is that it is identifiable. To an intangible fixed asset is identifiable, it means that the asset constitutes a separate asset or the region in other ways can quantify the future benefits or future service potential of the asset.



In order to be able to recognise an intangible asset in the fixed asset book and balance sheet, must also apply, that it is likely that the region will be future economic resources associated with it (see the definition of an asset in section 1.1), and the value of the asset can be measured reliably.



For internally generated intangible assets, it will often be difficult to quantify the value of the asset reliably. This type of intangible fixed assets should only be included where the asset is central and essential to task performance.



For intangible assets acquired against payment can be measured reliably, the asset value and these should therefore be included in the asset book.



Additional requirements which must be fulfilled in order to recognise an intangible asset are:



The asset is expected to be used for more than one fiscal year (i.e. have an expected useful life of more than one year)

Intangible fixed assets with a value of more than de minimis on 100,000 DKK are recognised, if the asset meets the other criteria for recognition.



Measurement of intangible fixed assets

Intangible fixed assets should be measured at cost price.

The cost of intangible assets include the purchase price, if any taxes except for sales taxes to customs or the like in connection with the acquisition. With unit cost should also be counted for other costs that relate directly to the take-up of the asset as URf.eks. fees for consultation of specialized consultants. Any discounts in connection with the acquisition of the asset is deducted from the purchase price.



Subsequent expenditures related to an intangible fixed asset, may only be attributed to asset value, if they entail that the future economic resources, as asset adds the region increases beyond the originally assumed. This can URf.eks. be the case if the subsequent expenditure causes the asset's useful life, capacity or the quality of output is increased beyond the originally expected. Subsequent costs, which do not result in an increase in the economic resources, the asset must be recorded as the region adds an expense in the accounting period to which they relate to.

Most often it will be very difficult for intangible assets to assess whether subsequent expenditure on the asset will result in an improvement of the asset so that the amount of future benefits from the asset will be increased. Therefore, expenditure on intangible assets, after the asset is included in status, as a general rule, always be regarded as an expense that is written off immediately, and thus do not affect the measurement of the asset.



Amortisation of intangible fixed assets

The depreciation base of intangible fixed assets is determined at the time of recognition as the cost. In a few cases, there will exist a scrap value for the asset, which must be deducted from the purchase price or production cost. Scrap value for intangible assets, however, will most often be zero, at which the depreciation base can be fixed as the historical cost. However, this is not the case, if a third party has committed to buy the region's intangible asset after the expiry of the expected useful lives of the assets.



Intangible fixed assets to be amortized on a straight-line basis over the expected useful life. For intangible assets, however, must be applied a depreciation period of a maximum of 10 years. This is because the intangible assets have a high risk of technical or technological obsolescence, and that uncertainty in determining longevity is greater, the longer the life span is assumed to be. The depreciation period must not exceed 10 years.



By an assessment of an intangible asset lifetime, the following conditions are taken into account:



the expected useful life of the asset

the typical lifetime of similar assets

the risk of technological obsolescence

any legal restrictions on the use of the asset

whether or not the asset expected useful life depends on the life of other assets

the expected wear of the asset, which depends on the function of the asset shall serve



Subsequent value in fixed asset book

After an intangible fixed asset is recorded in the asset book shall specify to the historical cost less any accumulated depreciation and any impairment losses.



Regions should periodically take the value of the intangible assets up to the assessment. In individual cases it may be appropriate to write down an intangible fixed asset.



Impairment of asset value should only take place where salvage value as a result of an actual incident deteriorates significantly, and it is estimated that this change in the asset's value will be permanent.



It is not allowed to make any appreciation of intangible fixed assets, as there is a great deal of uncertainty associated with this type of assets.



An intangible fixed asset are posted to the asset book as a departure, when it is no longer used in the municipality, and thus cannot be expected to give the region economic resources or service potential.



Information in the asset book

The following information must be recorded in the asset book.



cost price

amortisation for the year

accumulated depreciation

write-downs

accumulated write-downs


This year's positive adjustments [not applicable: this is 0, since it is not allowed to make positive adjustments on intangible fixed assets]

accumulated revaluations [not applicable: this is 0, since it is not allowed to make positive adjustments on intangible fixed assets]

the book value



In addition, can be indicated



any scrap value

depreciable basis



In addition, the expected useful lives of the assets as well as details of any write-downs appear in the notes to the asset book.



8.3.3 current assets

Current assets are defined as assets that are not fixed assets. Current assets is defined traditionally as goods and services, which are held for resale as part of a normal business cycle.



In the regional context, current assets mainly include various types of goods – primarily land and soil – which is intended for resale, as well as supplies of goods for personal use or which relate to the performance of a given service task. There can be no question of raw materials, auxiliary materials and by-products, as well as items for the region's own consumption. Examples of regional inventories can be found URf.eks. in the health sector. It may be a case of stocks of medicine, hjælemidler or similar.



It should be noted that, in relation to current assets alone are mandatory to incorporate land and buildings for resale in fixed asset book. Recognition of current assets as URf.eks. inventories are voluntary, but it is recommended that these be recognized, provided that significant shifts in the store's size from year to year, and therefore gives a more fair view accruing of the consumed resources.



Recognition of land and buildings for resale

Land and buildings for resale must always be included in the fixed asset book and balance status unless they are against expectation should fall under the de minimis limit of 100,000 DKK A prerequisite for an asset can be recorded as a current asset is, taking a position on a future resale. Land and buildings, which are not owned for the purpose of sale but for an unspecified purpose, be regarded as tangible fixed assets. Determine when a building or a plot of land is a fixed asset or a current asset, is the purpose of owning the asset. If the site or building owned for persistent ownership and use, should the asset regarded as an asset, while it should be considered as a current asset if the asset is held for the purpose of sale. Asset status changes from the moment a decision has been taken about a sale, and the asset is no longer used directly in service production. It is thus not the asset's character but the purpose of owning it, that determines whether the asset is recorded as an asset or as a current asset.



For example, if an institution moving out of a building that is put up for sale, this building will change the status to a current asset. Will be using the building, residents and the institution will need to be able to quantify the resource consumption by service production in kindergarten pledge that the asset will retain as fixed asset is depreciated. In this case, however, by a point in the asset book indicate that the building is put up for sale.



The measurement of land and buildings for resale

Land and buildings for resale shall be measured at cost price attributed to any processing costs.



Subsequent value in fixed asset book

The value of current assets amortized not as current assets are not intended for further use but for sale or consumption during the current operation.



After the asset is recorded in the asset book, asset book and must be reflected in the status at the cost price reduced by any impairment losses.



If it is established that the value of land or buildings for resale unforeseen has deteriorated significantly in comparison to the value, it is recorded in the asset book value declined, and not considered to be temporary, the asset is written down to this lower value. It is important that the depreciation shall be carried out with caution.



If the value of land and buildings for resale, reverse increases significantly in relation to cost, and value the increase be considered permanent, can the region choose to revalue those assets value for this higher value. You have to be very careful with the write-ups. Transient recovery shall not constitute grounds for value appreciation. Positive adjustments must also be made solely on the basis of an actual incident that results in a lasting increase in the value of the asset, and only if it can be made on an objective basis.



Positive adjustments should not affect the operating result, as there is no talk about a realized gain. Impairment losses must be treated as an impact of the operation, following the example of amortisation for the year.



Information in fixed asset book

The following information must be recorded in the asset book.



cost price

amortisation [not applicable – specify 0 for current assets]

accumulated depreciation [not applicable – specify 0 for current assets]

write-downs

accumulated write-downs

year-end write-ups

accumulated revaluations

the book value



Recognition and measurement of other current assets

Inventories should be recognized, if the value exceeds 1 million. DKK inventories under the de minimis limit of 100,000 DKK is not recorded.



Inventories between de minimis and 1 million. DKK must be registered, if there are shifts in inventory, which is considered to be essential. Materiality criteria must be documented.



In recognition of current assets should be larger or significant inventories, where it has importance for the assessment of accounts, to an accrual of the application. Recognition of inventories is thus particularly important in cases where there are significant year-on-year shifts in the pattern of consumption and purchasing pattern. URF.eks. in the health area have an objective of always having a certain inventory of medications for acute situations. If this store always remains constant, it is not interesting in itself, even if the value of the inventory exceeds 100,000 DKK what makes the store interesting, is that the actual consumption is unpredictable and falls ' crooked ' across fiscal years.



The measurement of an inventory should include cost as well as any processing costs and other costs that can be attributed directly to the product concerned. Cost price includes any taxes and other expenses directly related to the acquisition. Any quantity discount, bonus or similar must be deducted from the purchase price. In the case of an inventory for later consumption, which is not carried out must be recorded on the inventory status to the acquisition cost.



By consumption from inventory expensed value of the consumed-for example, based on a weighted average price of inventory.



For other inventories such as assistive devices, it is possible to identify the individual asset URf.eks. a wheelchair, and can instead be carried out the actual acquisition cost of operation by the extradition of the wheelchair. Alternatively it can be adopted, the inventory value is controlled according to the FIFO principle (first in first out). It will say that it is always the oldest registration expensed first in order to ensure that the repository consists of reasonably up-to-date acquisition values.



In the reflection around, what principle to be applied, should be taken as a point of departure, where specifically each asset can be identified (here can actually acquisition or FIFO) is used, or whether it is a quantity of a homogeneous mass (weighted average). Most standard storage modules for accounting systems can handle these principles.



When inventory is used, the entry is deleted from the asset book.



Information in fixed asset book

The following information relating to other current assets must be recorded in the asset book.



cost price

amortisation [not applicable – specify 0 for current assets]

accumulated depreciation [not applicable – specify 0 for current assets]

write-downs

accumulated write-downs

year-end write-ups

accumulated revaluations

the book value



Section 8.4



8.4 Establishment of the opening balance sheet for 2007



In connection with the establishment of the opening balance sheet, there are a number of special circumstances applicable.



It should initially emphasises that both recognition as the measurement of assets in connection with the preparation of an opening balance sheet is very significant for the assessment of the region's accounts. It is therefore important that all the assets that make up a significant value in the region's production of services, fixed asset book and are recognised in the balance sheet.



It must be made clear that all tangible fixed assets shall be shown at book value in the opening balance sheet. Adjustments can be made, then the valuation takes place after the region's accounting practices.



8.4.1 lifetimes for selected fixed assets




For assets that were acquired or built before 1. January 2007, there are below specified mak-including maximum residual lifetimes, which is mandatory to follow. The maximum residual lifetimes means, for example, that buildings used for administrative purposes (e.g., hospitals and social institutions) highest can be amortized over 30 years. It should be noted that for assets acquired on or after 1. January 2007 or later must survive the ages that exist in relation to the asset book in section 8.2, is used.



It should be noted that the standardized lifetimes in relation to both the asset book as for the opening balance sheet for 2007 may be waived, if the contractual or legal circumstances dictate a different life period.



TANGIBLE FIXED ASSETS:



01 land and buildings









The building's application Examples





Maximum residual lifetime







Administrative purposes, Administrative buildings, etc.





50 years







Various services Hospitals and social institutions





30 years







Miscellaneous purposes underground car parks, etc.





15 years









02 Technical installations, machines, more specialist equipment and means of transport



To this category belong acquisitions, which have the characteristics of technical installations as well as larger machines and special equipment. On the basis of section 8.2 in budgetary and accounting system for the regions lays out the following maximum residual lifetimes:









Category





Examples





Maximum residual lifetime







Technical installations





Toilet installations w.. v.





30 years







Machines











Snow ploughs and sweepers







Asfalts-, concrete-and mortar machines







Power-equipment for waste management (pumps, air cleaners/fans, etc.)







Electric motors/engines







Machines for large kitchens, laundries, sheltered workshops and similar











15 years







Special equipment





Laboratory equipment





5-10 years







Means of transport





Larger trucks and buses

Trailers, among other things. passenger cars and handicap cars





5-8 years









03 Fixtures – including computers and other IT equipment



There are no established specific rules regarding. lifetimes of this groups of assets in connection with the opening balance sheet for 2007. Therefore, the stated delivery times linked to the asset book for this group of assets is used as the maximum residual lifetime, see. section 8.2.



8.4.2 accounting policies by drawing up of opening balance sheet



The region to be in connection with the preparation of opening balance sheet account for the accounting practices including depreciation periods for different types of assets and an explanation of the used accrual principles.



Section 8.5



8.5 Key definitions

Depreciation: A systematic allocation of the asset's depreciable basis over the useful lives of the assets.



The depreciation base: Consists of purchase price or production cost. In a few cases, where there is a scrap value, this shall be deducted from the acquisition cost. For assets that are depreciated deducted the depreciation, and for assets that have appreciated, attributed the upward revision. In the starting point – IE. by in take-up – fixed depreciation basis as the purchase price or cost price minus any scrap value.



Depreciation: depreciation period is identical to the time which the municipality expects to use the asset, IE. usage time.



Asset: an asset is defined in the accounting literature as an acquisition there a) is associated with future economic benefits or service potential, b) is a result of an already occurring event or transaction and (c)) where the future benefits or future service potential be verified by relevant authority



Purchase price/cost: Purchase value composed of purchase price incl. customs duties or any other charges in connection with the purchase – however, excl. VAT. In addition, costs that are directly associated with the take-up of the asset is included in the purchase price. Any quantity discounts are deducted from the purchase price.



Fixed asset: an asset that is intended for continuous use or possession and that were acquired for use in the production, trade in goods and services, rental or administrative purposes.



Book value: is defined as the purchase price or production cost attributed any write-ups and minus depreciation and any impairment losses.



Useful life: The period the asset is expected to be used for the purposes specified.



Replacement value: The value or the amount to be paid upon reacquisition or reproduction of identical assets or assets that have the same production skapacitet.



Intangible fixed asset. Is defined as a non-financial asset without physical substance.



Tangible fixed asset. A fixed asset with physical substance.



Write-down. A reduction in the value of the asset as a result of an objective verifiable event that has led to the future utility of the asset is lower than the book value, and this impairment is expected to be permanent.



Net realisable value: the net realisable value is the estimated selling price less any completion costs and costs to effectuate the sale.



Current asset: Assets that are not intended for continuous use or possession.



Appreciation: an increase in the asset's value as a result of URf.eks. an improvement of asset, which has led to the usefulness of the asset is higher than the book value, and this value increase can be expected to be permanent.



Scrap value. Is defined as the estimated selling price less any nedtagelses, sales and restoration costs at the end of the asset's useful life.



Economic life: the period during which the asset can be used economically rational for its purpose.