Notice On The Local Government Budget And Accounting, Auditing, Etc.

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

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Overview (table of contents)



Chapter 1



Budget and accounting system for municipalities





Chapter 2



The annual budget and multiannual budget estimate





Chapter 3



Accounting continuation period





Chapter 4



Financial statements and audits, etc.





Chapter 5



Half-yearly financial statements





Chapter 6



The municipality of Copenhagen





Chapter 7



Date of entry into force of





Annex 1



Budget and accounting system for municipalities



The full text of the notice on the local government budget and accounting, auditing, etc.

Under section 37, paragraph 2, article 38, paragraph 2, article 45, paragraph 1, article 45 (a) (1), § 46 and section 57 (1) and (2) of the law on local government administration, see. lovbekendtgørelse nr. 885 of 29. August 2012, fixed: Chapter 1 the budgetary and accounting system for municipalities, § 1. Economy-and the Home Secretary sets out in annex 1 of this notice on ' budgetary and accounting system for municipalities ' rules relating to the form of municipalities ' annual budget, multiannual budget estimates, financial statements and half-yearly accounts, rules concerning the specification of the records on the annual budget, for which the Municipal Council at its final adoption should take equitable production, as well as rules on the preparation and dissemination of information to the Municipal Council of the municipality's economic conditions.

Chapter 2 section 2 of the annual budget and multiannual budget estimate. Proposal for municipalities ' annual budget and multiannual budget estimate shall be prepared by the Committee on Economic Affairs to the local authority by 15 March. September preceding the financial year in question.

(2). Municipal Board of Directors 2. treatment of the draft annual budget and multiannual budget estimate shall be made not later than the 15. October.

§ 3. There must be a balance between revenue and expenditure on the annual budget and the multiannual budget estimate.

(2). Amendments to the draft annual budget must indicate the appropriation the proposal is directed against, and with what amount the appropriation sought was changed. The balance of the annual budget is provided by the increase or reduction of the municipal income tax, unless the local authority decides to provide balance in some other way.

(3). 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 must specify with what amount, record desired changed. The balance of the multiannual budgetary forecasts provided by the increase or reduction of the municipal income tax, unless the local authority decides to provide balance in some other way.

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 Municipal Council may, in the municipality's cash and accounting 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 Municipal Council may, in the municipality's cash-and the financial regulations provide for a shorter forsupplementsperiode.

Chapter 4 financial statements and audits, etc.

§ 5. Every municipality must have its financial statements audited by a chartered or certified accountant. The municipality's audit must be expert and independent. The Municipal Council assume the municipality's audit, which must be approved by the appropriate state management referred to in article 2. section 42, paragraph 1, of the law on local government administration.

(2). The Municipal Council must give 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 Municipal 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 42, paragraph 4, of the law on local administration.

(2). Municipal Chairman of the Board of Directors shall ensure that the audit and submit annual report distributed to the municipal board members not later than 7 days after receipt of the basic regulation. paragraph 42 (b) of the law on local 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 other decisions of the Board of Directors, municipal allocations announced, laws and other regulations as well as with the agreements concluded and usual practice, see. section 42 (2), 2. paragraph, of the law on local government administration. The revision should also make note if it considers that execution of the Municipal Board of Directors and the committees ' decisions and the rest of the management of Municipal Affairs is not taken care of in an economically sensible manner, see. section 42 (2), (3). paragraph, of the law on local government administration. Audit observations after 2. paragraph 3 respectively. item must appear separately from the report.

(2). The report shall be submitted to the Finance Committee and with regard to the comments that do not immediately regard the management, under the purview of the Committee on Economic Affairs also concerned municipal authority to reply before the Municipal Council in a meeting decides on audit observations and on any other matters relating to the relevant accounts.

(3). The report and the Municipal Board's decision thereon are 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 Finance Committee or the magistrate to the Municipal 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 Municipal Council.

(4). With the procedure laid down in article 7, paragraphs 1 and 2 shall also apply to the audit and Municipal Board's treatment of the financial statements. The financial statements shall also be approved by the Municipal Council.

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

Chapter 5 half-yearly financial statements section 9. Half-yearly financial statements presented by the Finance Committee or town councillor, before the Committee on Economic Affairs to draft next year's budget to the Municipal Council, see. § 2. (1).

(2). The Municipal Council shall no later than at its 1. meeting in the month of september and by 1. the treatment of draft next year's budget decision with regard to the half-yearly financial statements approval.

Chapter 6 section 10 of Copenhagen. The financial statements are presented in Copenhagen by the Economic Committee for Citizen representation so that financial statements can be made to the review before 1. June the following year.

(2). The revision shall deliver before 15. September report on the review of the financial statements for Citizen representation.

(3). Copenhagen municipality's financial statements be sent before 31 December. December to the supervisory authority together with the Auditors report and the decisions of the Committee on Economic Affairs, the representation as a citizen has taken in connection therewith. At the same time, the decisions will be sent to the review.

§ 11. sections 1-7 and section 8, paragraphs 2 and 4, and article 9. shall apply mutatis mutandis to the municipality of Copenhagen.

Chapter 7 entry into force of § 12. The notice shall enter into force on the 11. January 2013.

(2). At the same time repealed Executive Order No. 797 by 3. July 2012 on the municipal budget and accounting, auditing, etc.

Economy and the Ministry of the Interior, the 21. December 2012 P.M.V. E.B. Niels Jørgen Mau P/Søren h. T



Annex 1 budgetary and accounting system for municipalities

1 Introduction

Content Page

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

1.1 budgetary and accounting system's building 1.1 – 1

1 Introduction

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

The municipal budget and accounting system's replacement with effect from 1. January 2007 the existing budgetary and accounting system for municipalities and county municipalities.

The municipal budget and accounting system is based largely on the principles of the existing budgetary and accounting system, which was introduced with effect from the fiscal year 1977. The municipal budget and accounting system includes a set of rules relating to the form of municipalities ' annual budget, multi-annual budgetary estimates and accounts, etc., the rules laid down by the Ministry of Interior on the basis of the municipal governing law § § 46 and 57.


In Economic Affairs and Ministry of the Interior Decree on local government budget and accounting, auditing, etc., laid down a number of procedural provisions on local government-in particular the budgetary and accounting, auditing, etc. In annex 1 to the order is clear from the provisions relating to budgetary and accounting of municipalities ' Budget and accounting system for municipalities ', c.f.. section 1 of the Executive order.

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

Changes or additions to the budgetary and accounting system is demonstrated by the Gazette and notified to the designated electronic to the municipalities.

Budget and accounting system is available in the electronic Gazette, www.retsinfo.dk or via the internet at Economy and Ministry of the Interior's website at www.oim.dk.

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 procedure requirements for budgeting, financial reporting, etc., donation authorization

Part I includes an overview of the structure of the chart of accounts and the general posting rules (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 on municipalities.

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 bookkeeping, 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) legislation, guidance, etc. (Chapter 9).

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 framing 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 put himself into the municipal budget and budgetary and accounting system, a reading of part II before part I, however, be more natural.

Each chapter begins with a table of contents.

2 STRUCTURE of the CHART of ACCOUNTS and GENERAL RULES FOR POSTING

Content Page

2.0 overview of the chart of accounts 2.0-1

2.1 main accounts, main functions and features 2.1-1

2.2 Dranst 2.2-1

2.3 Ownership and cost center 2.3-1

2.4 grouping 2.4-1

2.5 Arts Division 2.5-1

Hovedart 0 estimated cost 2.5-3

Hovedart 1 Salaries 2.5-5

Hovedart 2 item purchases 2.5-6

Hovedart 4 services, etc. 2.5-8

Hovedart 5 Grants and transfers 2.5-10

Hovedart 6 Financial expenses 2.5-11

Hovedart 7 revenue 2.5-14

Hovedart 8 Financial revenues 2.5-15

Hovedart 9 Internal expenditure and revenue 2.5-15

2.6 Vat 2.6-1

2.6.1 Registered VAT 2.6-1

2.6.2 purchase VAT 2.6-3

2 STRUCTURE of the CHART of ACCOUNTS and GENERAL RULES FOR POSTING

2.0 overview of the chart of accounts

The main structure of the municipal 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 and two headers (lyrics). These headlines are so constituents of the authorised account plan.

1. the digit-main account

Account number first digit divides the municipal business in 10 main accounts. Of which relate to the main account 0-6 the actual operating and construction, while the main account 7-9 relates to the financial account. The main accounts are always authorized.

2. and 3 digit-headline-the main function

Main features consist of a specified range of functions relating to municipal activities falling under the same overall purpose, URf.eks. » CHILDCARE and DAY CARE; DAY CARE CENTRES AND CLUBS FOR CHILDREN AND YOUNG PEOPLE '. The main features are always authorized.

4. and 5. digit-function

Features includes a specification of the various municipal activities within the same purpose. Through functional division specifies the municipal activities relating, for example, ' DAY CARE; DAY CARE CENTRES and CLUBS FOR CHILDREN and young people ' on day care, crèches, kindergartens, etc. functions are always authorized.

6. digit-dranst

The term ' dranst ' is an artificially created expression consisting of the first two letters of 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 contains a total of 9 dranst-values and Declaration of dranst-value is always authorized.



7. digit-ownership

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

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

Own

Independent/private

Other public authorities

Private providers of non-coated VAT services

Registration of ownership is authorized on the features in the chart of accounts, which performs other ownership than Own. Ownership in these cases must be indicated in the order shown above.

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 3.22.01 elementary schools, after-school 3.22.05 3.22.08 Municipal special schools, 5.25.12, crèches, kindergartens, 5.25.13 5.25.14 Integrated institutions and 5.25.15 recreation centers.

12, 13 and 14. digit grouping

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

Grouping the digits are authorized in cases where the man from the central authorities want to be able to retrieve specific information from the municipal budgets and/or accounts. This is always the case for State reimbursement and for installations (in accounts) as well as a certain degree of operating accounts.

Grouping structure is with effect from 1. January 2007 extended from 2 to 3 digits.

15 and 16. digit-hovedart and art

By using the account number 15. digit specifies the municipal resource consumption on the main species, IE. wages, purchases, services, etc., the main species 1-9 is always authorized. Application of hovedart 0 estimated cost is voluntary.

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 purchases. 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 and 8.6.

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 when reporting of budgets and accounts to the Minister for the economy and the Ministry of the Interior or Statistics may not be used other texts for existing features than those used here. There should also not be created new main accounts, main functions, or functions.

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

0 urban development, housing and environmental measures

1 supply companies, etc.

2 transport and infrastructure

3 education and culture

4 health

5 Social tasks and jobs, etc.

6 Common expenses and administration, etc.

7 interest rates, subsidies, compensation and taxes

8 Balance shifts

9 Balance

There are thus a total of ten main accounts. Main account 0-6 divides the municipal operational and construction on a total of seven main areas. Main account 7 and 8 include the financial records as well as the offsets on the balance sheet, and the main account 9 is the balance.

Authorized digits to main functions.

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

On the main account 7, 8 and 9 are used as far as possible a parallel main functional and functional decomposition. Features:

7.22.05 Deposits at financial institutions, etc.

8.22.05 Deposits at financial institutions, etc.

9.22 05 Deposits at financial institutions, etc.

shall be applied so as to record the interest on deposits at financial institutions respectively, etc. (7.22.05), shifts in deposits in financial institutions, etc. (8.22.05) and the stock of deposits at financial institutions, etc. (9.22.05).

Assigned tracking

Through the chart tracking of main accounts, main features and functions happens a gradual breakdown of the municipal costs and revenues according to their purpose.

The main account establishes the overall purpose, URf.eks. main account 3: education and culture.

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

22. The PRIMARY SCHOOL

30. VOCATIONAL TRAINING

32. PUBLIC LIBRARIES

35. cultural ACTIVITIES

38. public awareness and RECREATIONAL ACTIVITIES, etc.

Finally happens at features a further breakdown on earmarked activities. The main feature PRIMARY SCHOOL is URf.eks. broken down by the following features:

3.22.01 Public schools

3.22.02 common costs for the municipality's total school system

3.22.03 sickness and homeschooling

3.22.04 Educational psychological counselling, etc.


3.22.05 after-school

3.22.06 conveyance of pupils in primary school

3.22.07 Special education in regional deals

3.22.08 Municipal special schools, see. primary school section 20, paragraphs 2 and 5

3.22.10 contribution to governmental and private schools

3.22.12 After schools and youth kostskoler

3.22.14 Youth Guide

3.22.16 Special educational assistance for children of pre-school age

3.22.17 Special educational assistance for adults

3.22.18 Sports facilities for children and young people

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 more detail in Chapter 7, section 4.3).

Expenses and revenues not specifically can be allocated to the individual main functions or functions must, to the extent that the system is set up authorized main functions for > > COMMON FEATURES > common purpose