Important changes for residential homes, day centres and workshops for adults with an impairment in the canton of Bern from 2022 onwards

Important changes for residential homes, day centres and workshops for adults with an impairment in the canton of Bern from 2022 onwards
11/2021
Thomas Votruba
Christian Zwahlen
From 2022, there will be important changes in the canton of Bern for residential homes, day centres and workshops for adults with an impairment. Learn more about them in this article!

Important changes for residential homes, day centres and workshops for adults with an impairment in the canton of Bern from 2022 onwards

In the circular of September 2021, the Health, Social and Integration Directorate (GSI) of the Canton of Bern announced various changes to the annual service contract 2022. These include the obligation to set up an internal control system as well as explanations on how to deal with excess coverage (fluctuation fund).

As auditors of various institutions, we have the necessary knowledge and experience to support you in the implementation of these changes. With this newsletter, we would like to draw your attention to important points and give you some tips for implementation.

Establishment of an internal control system

October 2022 Update:

In the November 2021 Newsletter, we reported in detail on the obligation to establish an adequate internal control system. The establishment of an adequate internal control system is now only recommended by the circular of the GSI of the Canton of Bern of August 2022. Thus, the originally required audit of the internal control system by the statutory auditor is no longer required.

Fluctuation fund (accumulated surplus/shortfall)

The explanatory note to the annual performance contract 2022 defines a maximum ceiling (15% of the total expenditure of the residential/special school area and 25% of the total expenditure of the workshop area). Furthermore, surpluses up to a maximum of 3% of the total expenditure of the residential/special school area and 6% of the total expenditure of the workshop area may be allocated to the fluctuation fund. What is new is that the fluctuation fund can only be accumulated up to the maximum ceiling. Any surpluses in excess of this must be reimbursed and recognised as a liability. Legacies or donation funds that are not earmarked for a specific purpose are also taken into account when calculating the service charge. If an institution has donation funds and legacies that are not earmarked for a specific purpose, it must be checked whether they can be made subject to earmarking by means of donation regulations.

If the balance of the equalisation fund is negative, this is now to be shown in account group 28 "e.g. voluntary retained earnings or accumulated losses" as a separate item and no longer under account group 24.

The Circular does not deal with another innovation that should be addressed relatively soon: As of 1 January 2023, all GSI-financed institutions must (as of today) prepare their annual financial statements in accordance with Swiss GAAP FER 21 ("Accounting for Charitable Nonprofit Organisations"). Annual financial statements according to FER 21 are more comprehensive than the previous ones according to the Code of Obligations. This means that in future a cash flow statement and a statement of changes in capital must also be prepared. In addition, the appendix to the annual financial statement will be significantly more extensive and detailed (including a statement of changes in fixed assets, etc.). When applying ARR 21 for the first time, it should be noted that the previous year's balance sheet (as of 31.12.2022) must also already be prepared in accordance with ARR 21. The preparation of the previous year's income statement and the other components of the annual financial statement is not explicitly prescribed for the first-time application in accordance with ARR; however, it can be recommended.

We recommend that you start the project "conversion of accounting" early and plan sufficient time reserves. It is advantageous to prepare internal financial statements according to the new standard as early as 31.12.2022. We would be happy to support you in this project with our knowledge and experience.


We hope to be able to give you some helpful input with this newsletter.

Do not hesitate to contact us if you have any questions.

Important changes for residential homes, day centres and workshops for adults with an impairment in the canton of Bern from 2022 onwards
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