The Landesgesetz zur Einführung der kommunalen Doppik (KomDoppikLG) - German federal state law for the introduction of double-entry commercial bookkeeping on the local level (introductory act for budget reform / law for local council finance reform) which entered into force on 16 March 2006 - has implications for special-purpose associations, especially for independently operated (municipal) enterprises or institutions (public utilities) that are managed pursuant to an Eigenbetriebsverordnung - a regulation for independently operated municipal enterprises or public utility companies. Pursuant to Section 93 paragraph 2 of the Municipal Code (GemO), special-purpose associations are required to keep their accounts for communities in accordance with the principles of double-entry bookkeeping, a process that complies with the generally accepted accounting principles as defined by commercial law and takes into account the special municipal budgeting provisions.
SKS Steuerberatung advises, supports and assists special-purpose associations and separate enterprises operated by a local authority with the challenges they encounter in dealing with local tax legislation. The consequences of the Landesgesetz zur Einführung der kommunalen Doppik (KomDoppikLG) on the Municipal Code (GemO) and the Zweckverbandsgesetz (ZwVG) - law on local utilities associations and special-purpose associations - vary from one special-purpose association and independent municipal authority to another. SKS Steuerberatung also counsels special-purpose associations operated as separate enterprises by local authorities that are not managed in accordance with the regulations of municipal budget law, but in accordance with the Eigenbetriebs- und Anstaltsverordnung - regulation on separate, decentralised businesses and public sector agencies - as to the extent to which the conversion with the special regulations of double-entry accounting is legally binding for communities.
The core administration of a regional or local public authority uses double-entry annual financial statements to document the financial situation of that administrative authority as well as the result of its administrative activities. As a central calculation instrument in double-entry accounting, the annual financial statement functions in particular as the statement of account for the double-entry budget. The double-entry annual financial statement serves the purpose of providing a picture of the actual situation with respect to the administrative body’s liabilities, financial position, results of operations and cash flows.
SKS Steuerberatung specialises in the conversion from single-entry to double-entry budgeting and accounting and in the compilation of double-entry accounting annual financial statements for regional and local public authority. We look after our SKS clients to the fullest extent when it comes to preparing statements of financial position, the calculation of assets, operating results, cash-flows and partial statements, as well as in the case of supplementary documentation such as management reports, assets overviews, receivables overviews and liabilities/accounts payable overviews.
You would like an audit performed pursuant to sections 104, 105 SächsGemO (Municipal Code of Saxony) or pursuant to Section 32 SächsEigBVO (Eigenbetriebsverordnung of Saxony)? SKS Steuerberatung takes on local audits upon request from their SKS clients. We remain by your side with advice in any situation whatsoever and find the appropriate solutions. With SKS Steuerberatung you have the right advisors on your side for the audit. Annual financial statement audits are performed in cooperation with Mr Andreas D. Trapp, Wirtschaftsprüfer (certified public auditor).