583
ACT
on the date 23th September 2004
of Budgetary Rules of the Regional
Self-Administration
and of Change and Amendment of
Particular Acts
INTRODUCTORY
ESTABLISHMENTS
§ 1
Subject of the Regulation
(1) This act regulates
a) budgets of regional
self-administration which are municipalities[1] and
the budget of higher regional units,[2]
b) the budgetary procedure, rules of
budgetary management, drafting and approval of closing account of
municipalities and closing account of higher regional units,
c) financial relationships between the
state budget and the budget of the municipalities and between the state budget
and the budgets of higher regional units, financial relationships between the budgets
of municipalities and budgets of higher regional units mutually, as well as
financial relationships of the budgets of municipalities and budgets of higher
regional units with other legal entities and natural persons.
(2) Establishments of this act relate to
city parts which are legal entites, in the same extent as to municipalities; by
the definition of budget incomes and expenditures of the city parts according
to this act, are considered conditions determined by statute according to a
particular regulation.[3]
(3) To municipalities and higher regional
units and to the budgetary organizations and contributory organizations as the
part of the public service section managed by them is related a particular
regulation[4] with
departures stated in this act.
§ 2
For the purpose of this act are understood
a)
reimbursable sources of financing the means of the
municipality budget or the budget of the higher regional units from accepted
credits, loans, reimbursable financial aids and drafts and from public obligations issued by the
municipalities or the higher regional units,
b) as surplus of
the budget of the municipality or the budget of the higher regional unit the
positive difference between budget incomes of the municipality or higher
regional unit and budget expenditure of the municipality or higher regional
unit,
c) as deficit of
the budget of the municipality or the budget of the higher regional unit the
negative difference between the budget incomes of the municipality or the
higher regional unit and budget expenditures of the municipality or higher
regional unit.
§ 3
and to the
Budgets of the Higher Regional Units
(1)
Financial relationships of the state to the budgets of the
municipalities and to the budgets of the higher regional units are
a)
shares on taxes in state management,
b) dotations for
repayment of cost of transferred performance of the civil service,
c) further
dotations in accordance with the act of state budget for the corresponding
budget year.
(2)
Financial relationships according to the paragraph 1
letter a) are established by a particular regulation[5]
and are secured through the medium of tax offices.[6]
Financial relationships according to the paragraph 1 letter b) are secured
through the medium of the administrator of the state budget section, into whose
subject matter competence belong the performance of civil service, which was
transferred to the municipality or the higher regional unit. Financial
relationships according to the paragraph 1 letter c) are secured through the
medium of the Ministry of Finance of the Slovak Republic (hereinafter called
„Ministry of Finance”) or the administrator of the state budget section, into
whose subject matter competence belong the activity which it has to finance.
(3) Dotations
according to the paragraph 1 letter b) are rendered on the basis of particular
regulations.[7] For
repayment of cost, for which dotations are rendered according to the paragraph 1 letter b),
advance may be rendered.
(4) If the
performance of the civil service is transferred by law to the municipality or
higher regional unit, the costs of such transferred performance of the civil
service are repaid from the state budget to the municipality or the higher
regional unit in extent defined by the act of state budget for the
corresponding budget year.
(5) Proposal of
financial relationships between the state budget and the budget of
municipalities and between the state budget and the budget of the higher
regional units discussed by the Ministry of Finance with the republic councils of the municipalities and with the representatives of the higher
regional units before presenting the budget proposal initials of the civil
service and before presenting the budget proposal of civil service for
discussion to the government of the Slovak Republic according to a particular
regulation.4
(6) If municipalities administrate
a common municipal office or association of municipalities according to a
particular regulation,[8] the
competent ministry or a subject established by a particular regulation may also
render a dotation in the name of these municipalities to
a municipality, in which is the residence of the common municipal office
or the residence of the association of municipalities, after the preceding
consent of all the municipalities, which administrate a common municipal office
or association of municipalities.
BUDGETS OF REGIONAL
SELF-GOVERNMENT
§ 4
and the Budget
of the Higher Regional Unit
(1)
The budget of the municipality and the budget of
the higher regional unit is the basic instrument of the financial
management in the corresponding budget year, by which the financing of the
tasks and functions of municipalities and higher regional units are managed in
the corresponding budget year. The budget of the municipality and the budget of
the higher regional unit is a part of the public service section’s
budget.[9]
(2) The budget year is identical with the
calendar year.
(3) The budget of the municipality and
the budget of a higher regional unit expresses independence of the
management of the municipality and the higher regional unit. It contains
incomes and expenditures in which are expressed financial relationships to
legal entities and natural persons – enterpreneurs acting in the territory of
the muncipality or higher regional unit, as well as to the inhabitants living
in this territory resulting for them from laws and other generally obligational
legal regulations, from generally obligational ordinances of the higher
regional unit, as well as from contracts. The budget of the municipality and
the budget of the higher regional unit comprises also financial relationships
according to the § 3 par. 1.
(4) The budget of
the municipality and the budget of the higher regional unit contains financial
relationships to budgetary organizations and contributory organizations
established by the municipality or higher regional unit according to a
particular regulation4 and to other legal entities which were
founded by them. The management of the budgetary organizations and the
contributory organizations is related to a particular regulation.4
(5) The budget of the municipality may
contain financial relationships to budgets of other municipalities, as well as
financial relationships to the budgets of higher regional units, to whose
territory the municipality belongs, if they fulfill common tasks. The budget of
higher regional units may contain financial relationships to the budgets of
other higher regional units, as well as tinancial relationships to budgets of
the municipalities in its territory.
(6) In the budget of the municipality and
in the budget of the higher regional unit is applied a budgetary
classification in accordance with a particular regulation.[10]
§ 5
Incomes of the
budget of the municipality
(1)
The incomes of the municipality are:
a)
returns of local taxes and fees according to a
particular regulation,[11]
b) non-tax incomes
from possession and from possession transferring of the municipality’s property
and from activities of the municipality and its budgetary organizations
according to this or a particular act.
c) returns from
financial means of the municipality,
d) sanctions for
breach a financial discipline stated by the municipality,
e) gifts and
profits from voluntary collections on behalf of the municipality,
f)
shares on taxes in state administration according to a
particular regulation,5
g) dotations from the state budget for
repayment of costs of the transferred performance of civil service in
accordance with the act of state budget for the corresponding budget year and
dotations from state funds,
h) further dotations from the state
budget in accordance with the act of state budget for the corresponding budget
year,
i)
objective dotations from the budget of
a higher regional unit or from the budget of other municipality for the
realization of contracts according to a particular regulation,[12]
j)
means
of the European Union and other means from abroad rendered for
a particular purpose,
k)
other
incomes established by particular regulations.
(2) The municipality may use for the
fulfilment of its task also
a) means of extra-budgetary financial
funds (hereinafter called „financial funds”),
b) profit from enterpreneurial activity,
c) reimbursable sources of financing,
d) joint means.
(3) As own incomes of the budget of the
municipality are understood incomes of the budget of the municipality according
to the paragraph 1 letter a) to f).
As own incomes are also understood incomes according to the paragraph 1 letter k), if it is
established by a particular regulation. About the usage of own incomes of the
budget of the municipality decides the municipality independently. This is not
so in the case of gifts, if the giver determines the purpose, for which the
given means has to be used. Incomes of the budget of municipality according to
the paragraph 1 letter g) to j) may
the municipality use only in accordance with the purpose, for which the means
were rendered.
§ 6
(1)
Incomes of higher regional units are:
a)
returns of local taxes according to a particular
regulation,11
b) non-tax incomes
from possession and from possession transferring of the property of higher
regional unit and from activities of the higher regional unit and its budgetary
organizations according to this or a particular act.
c) incomes from
financial means of higher regional unit,
d) sanctions for
breach of financial discipline stated by the higher regional unit,
e) gifts and
incomes of voluntary collections on behalf of the higher regional unit,
f)
shares on other taxes in state administration according
to a particular regulation,5
g) dotations from
the state budget for repayment of costs of the transferred performance of civil service in
accordance with the act of state budget for the corresponding budget year and
dotations from state funds,
h) further dotations from the state
budget in accordance with the act of state budget for the corresponding budget
year,
i)
objective
dotations from the budget of the municipality or from the budget of the higher
regional unit for realization of contracts according to particular regulations,[13]
j)
means
of the European Union and other means from abroad rendered for
a particular purpose,
k)
other
incomes established by particular regulations.
(2) The higher regional unit may also use
for the fulfilment its tasks
a) means of financial funds,
b) income of enterpreneurial activity,
c) reimbursable sources of financing,
d) joint means.
(3) As own incomes of the budget of the
higher regional unit are understood incomes of the budget of the higher
regional unit according to the paragraph 1
letter a) to f). As own incomes are also understood incomes according to the paragraph 1 letter k), if a particular
regulation establishes so. About the usage of own incomes of the budget of the
higher regional unit decides the higher regional unit independently. This is
not so in case of gifts, if the giver determines the purpose for which the
gifted means has to be used. The incomes of the budget of the higher regional
unit according to the paragraph 1
letter g) to j) may the higher regional unit use only in accordance with the
purpose for which the means were given.
§ 7
(1)
From the budget of the municipality are repaid
a)
obligations of the municipality related to the
fulfilment of duties established by particular regulations,
b) expenditures
for the performance of self-governmental competence of the municipality
according to particular regulations and for activities of budgetary
organizations and contributory organizations established by the municipality,
c) expenditures
for repayment of costs of transferred performance of civil service according to
particular regulations,
d) expenditures connected to management,
maintenance and evaluation of the municipality’s property and the property of
other subjects, which the municipality uses for the fulfilment of tasks
according to particular regulations,
e) obligations arisen from cooperation
with other municipality or with higher regional unit, eventually with other persons for the securement
of the tasks related to the competence of the municipality including
obligations arisen from common activities,
f)
expenditures
related to the international cooperation of the municipality,
g) interests from accepted credits,
loans and reimbursable financial aids,
h) expenditures related to the emission
of bankable papers issued by the municipality and for expenditures for
repayment of their profits,
i)
other
expenditures estabished by particular regulations.
(2) From the budget of the municipality
may be repaid dotations to legal entities, whose founder is the municipality,
namely for particular tasks and actions in public interests or on behalf of the
development of the municipality’s territory.
(3) To the acceptance of means from the
state budget for repayment of costs of transferred performance of civil service
the municipality may use its own incomes for repayment of these costs. After
accepting means from the state budget for repayment of costs of transferred
performance of civil service, the means of the state budget will be accounted
by the municipality on behalf of its own budget.
(4) To legal entities not described in
the paragraph 2 and natural persons
– enterpreneurs, who have their residence or permanent place of abode in the
territory of the municipality, may the municipality render dotations under
conditions established by generally obligational ordinance of the municipality
only for support of generally beneficial services,[14]
generally beneficial or public beneficial purposes,[15] for
support of enterpreneurship and employment. City parts of Bratislava and Košice
may render dotations in the whole territory of the city.
(5) If the municipality cooperates on the
basis of a contract about establishment of an association of
municipalities8 or founds a legal entity according to a
particular regulation,[16] or
acquires property shares in enterpreneurship of a legal entity founded
according to a particular regulation,16 it may use budgetary means
for repayment of member fees, for founding of a legal entity according to
a particular regulation16 or acquisition of property shares in
enterpreneurship of such legal entity.
(6) In the budget of the municipality for
the corresponding budget year the means according to the paragraphs 2 to 4 are budgeted for
particular action, task or purpose of usage of the means. They are subject to
annual settling with the municipality’s budget and by their rendering the whole
debt of the municipality can not be raised.
§ 8
(1) From the budget of the higher
regional units are repaid:
a) obligations of the higher regional
unit realated to the fulfilment of duties established by particular
regulations,
b) expenditures for performance of
self-governmental competence of the higher regional units according to
particular regulations and for activities of budgetary organizations and
contributory organizations established by the higher regional unit,
c) expenditures for repayment of costs
of transferred performance of civil service according to particular
regulations,
d) expenditures connected with
management, maintenance and evaluation of property of the higher regional unit
and the property of other persons, which the higher regional unit uses for
fulfilment of tasks according to particular regulations,
e) obligations arisen from cooperations
with other higher regional unit or with a municipality, eventually with
other persons for the securement of tasks related to the competence of the
higher regional unit including obligations arisen from common activity,
f)
expenditures
related to international cooperation or to membership in an international
association,[17]
g) interests from accepted credits,
loans and reimbursable financial aids,
h) expenditures connected to the
emission of bankable papers issued by the higher regional unit and expenditures
for the repayment of their profits,
i)
other
expenditures established by particular regulations.
(2) From the budget of the higher
regional unit may be rendered dotations to legal entities, whose founder is the
higher regional unit, namely for particular tasks and actions of public
interest or on behalf of the development of the territory of the higher
regional unit.
(3) To the acceptance of means from the
state budget by the higher regional unit for repayment of costs of transferred
performance of civil service may the higher regional unit use its own incomes
for repayment of these costs. After accepting means from the state budget for
repayment of costs of transferred performance of civil service, the means of
the state budget will be accounted by the higher regional unit on behalf of its
own budget.
(4) The higher regional unit may render
dotations to municipalities in its own territory as a part of the
financing of common tasks on behalf of the development of the higher regional
unit’s territory.
(5) To legal entities not described in
the article 2 and natural persons – enterpreneurs, who have their residence or
permanent place of abode in the territory of the higher regional unit, may the
higher regional unit render dotations under conditions established by generally
obligational ordinance of the municipality only for support of generally
beneficial services,14 generally beneficial or public beneficial
purposes,15 for support of enterpreneurship and employment.
(6) If the higher regional unit founds
a legal entity according to a particular regulation16 or
acquires property shares in enterpreneurship of a legal entity according
to a particular regulation, 16 the higher regional unit may use for
this purpose budgetary means; budgetary means may be used also for repayment of
member fees.17
(7) In the budget of a higher
regional unit for the corresponding budget year the means according to the paragraphs 2 to 5 are budgeted for
particular actions, tasks or purpose of the use of means. They are subject to
annual settling with the budget of the higher regional unit and by their
rendering the whole debt of the higher regional unit can not be raised.
BUDGETARY PROCEDURE
§ 9
Multiannual
budget
(1)
Multiannual budget is a medium-term economical
instrument of the financial policy of the municipality or the higher regional
unit, in which in the framework of their competence are expressed the
intendments of the territory’s development and needs of inhabitants for at
least three budget years.
Multiannual
budget consists of
a) budget of the municipality or budget
of the higher regional unit for the corresponding budget year,
b) budget of the municipality or budget
of the higher regional unit for the year following the corresponding budget
year,
c) budget of the municipality or budget
of the higher regional unit for the year following the year, for which the
budget is drawn up according to the letter b).
(2)
Multiannual
budget is drawn up in the same classification as the budget of
a municipality or the budget of a higher regional units drawn up (§ 10 par. 3).
(3) Incomes and expenditures of the
budget described in the article 1 letter b) and c) are not obligational.
§ 10
and the Budget
of the Higher Regional Unit
(1)
Drawing up the budget of a municipality and the budget
of a higher regional unit results first of all from the multiannual
budget, from determined share of tax returns in the administration of the state
established by a particular regulation5 and from approved financial
relationships of the state budget to the budget of regional self-administrations.
(2) The
municipalities and the higher regional
units are obliged at drawing up the budget to secure the covering of all
obligations, which results for them from the fulfilment of obligations
established by particular regulations.
(3) The budget of
the municipality and the budget of the higher regional unit is internally
divided into:
a)
current incomes and current expenditures (hereinafter
called „current budget”),
b) capital incomes
and capital expenditures (hereinafter called „capital budget”),
c) financial
operations.
(4)
Current incomes of the budget of the municipality or the
budget of the higher regional unit are incomes according to the § 5 par. 1 or
according to the § 6 par. 1 divided according to the budgetary classification
with the exception of the incomes, which are capital incomes according to the
budgetary classification.
(5) The subject
matter definition of the current expenditures and capital expenditures of the
budget of the municipality or the budget of the higher regional unit and their
uniform classification is included in the budgetary classification.
(6) Financial
operations are also the part of the budget of the municipality and the higher
regional unit, by which the transfers from financial funds of the municipality
and form financial funds of the higher regional unit are performed and the
reimbursable sources of financing and their repayment is realized. As financial
operations are also understood rendered loans and reimbursable financial aids
from the budget of the municipality or the budget of the higher regional unit
and their instalments, drawn and accepted drafts, sale and purchase of property
shares. Financial operations are not part of incomes and expenditures of the
budget of the municipality and the budget of the higher regional unit. Detailed
classification of financial operations is included in the budgetary
classification. Munipalities or higher regional units may render reimbursable
financial aids from their budget to a legal entity, which was founded by
them, while for this purpose can not be used reimbursable sources of financing.
(7) The budget of
the municipality and the budget of the higher regional unit according to the
paragraph 3 is drawn up as balanced or having surplus. Municipalities or higher
regional units are obliged to draw up their current budget as balanced or
having surplus. Capital budget is drawn up as balanced or having surplus;
capital budget may be drawn up as having deficit, if this deficit may be
covered by the balance of the financial means of the municipality of the higher
regional unit from preceding years, by reimbursable sources of financing, or
this deficit is covered by the surplus of current budget in the corresponding
budget year. If the current budget or the capital budget is drawn up as having
surplus, the surplus of the current budget may be used for the repayment of
reimbursable sources of financing.
(8) If during the
budget year arises the need of repayment of current expenditures for removal of
average state of the municipality’s property or the property of the higher regional
unit, or for liquidation of damage caused by disasters of nature or by other
extraordinary circumstances, which are not budgeted and covered by incomes of
the current budget, the municipality or the higher regional unit may use the
means of the reserve fund on the basis of decision of their council.
(9) For balancing
time inaccordance between the incomes and expenditures of the current budget,
the incomes of the capital budget may be used, if they shall be returned to the
term of their use for the budgetary purpose, at the latest however to the end
of the budget year.
§ 11
Budgetary
provision
(1)
If the budget of the municipality or the budget of the
higher regional unit for the following budget year is not approved by the
municipal council or the council of the higher regional unit by December 31st
of the current year, the municipality or the higher regional unit manages
according to the budget of the municipality or the budget of the higher
regional unit of the preceding budget year, while the expenditures realized
during the budgetary provision can not exceed per month the 1/12 of the entire
expenditures of the budget of the municipality and the budget of the higher
regional unit of the preceding budget year. Exceptions are expenditures
realized during the budgetary provision, which are repaid in accordance with
the terms of repayment agreed in the preceding budget year and expenditures
realized during the budget provision for obligational repayment according
to particular regulations.
(2) Budget incomes
and expenditures realized during the budgetary provision are settled with the
budget of the municipality and the budget of the higher regional unit after its
being approved.
§ 12
Classification of the budget and budgetary management
(1)
Municipalities and higher regional units perform after
the approval of the budget its classification to budgetary organizations and
contributory organizations in their establishing competence.
(2) Municipalities
and higher regional units manage with the budgetary means according to the
approved budget and during the year they control the management with the
budgetary means according to a particular regulation.[18]
(3) Municipalities
and higher regional units keep under review during the budget year the
development of management according to the budget and if it is necessary, they
perform changes in their budgets with the aim of securing the balance of the
current budget to the end of the budget year, while the deficit of the current
budget of the municipality or the higher regional unit may arise only from the
reason of the reserve funds’ usage according to the § 10 par. 8.
(4) Municipalities
and higher regional units are obliged to render necessary data about their
management to the Ministry of Finance for the purpose of drawing up the
proposal of the public service’s budget, proposal of state budget, proposal of
closing account of the public service and proposal of the state closing account
according to a particular regulation.4
(5) If the municipality or the higher
regional unit does not fulfill obligations resulting from this act, the
Ministry of Finance may suspend the rendering of financial means from dotations
of the state budget until they will be fulfilled.
(6) Depreciation of corporeal and
incorporeal property of the municipality and corporeal and incorporeal property
of the higher regional unit is administrated by a particular regulation.[19]
§ 13
(1)
To the fulfilment of the budget of the municipality and
the budget of the higher regional unit are involved only those incomes,
expenditures and financial operations, which were realized in the corresponding
budget year. For classifying the income or the expenditure into the fulfilment
of the budget of the municipality or the budget of the higher regional unit in
the budget year is decisive the day of assignment or depreciation of the means
from the corresponding account of the municipality or the account of the higher
regional unit.
(2) Budgetary means
may be used only for the purposes for which they were approved in the budget of
the municipality or in the budget of the higher regional unit.
(3) Municipalities
or higher regional units may permit on the basis of a well-founded request
an exception from the time usage of the budgetary means rendered by
a municipality or a higher regional unit in the corresponding budget
year in form of dotation with the exception of the budgetary means from
dotation according to the § 3 par. 1, letter b) and c).
§ 14
(1) Changes of the
budget is approved by the authority of the municipality or the higher regional
unit competent according to particular regulations18 with the
exception of means rendered for
a determined purpose from the state budget.
(2) The competent
authority of the municipality or authority of the higher regional unit performs
changes of the budget in the course of the budget year by budgetary measures,
which are:
a)
transfer of budgetary means in the framework of the
approved budget, while the total incomes and total expenditures are not
changed,
b) permitted
exceed of expenditures at achievement of higher incomes,
c) tying of
budgetary expenditures, if their covering is threathed by non-fulfilment of
budgeted incomes or if violation of the balance of current budget is expected
from other reasons as the usage of reserve funds according to the § 10 par. 8.
(3)
Municipalities and higher regional units lead an
operational register about all budgetary measures performed in the course of
the budget year.
§ 15
Financial Funds
(1)
Municipalities and higher regional units may create
financial funds. The sources for financial funds may be mainly
a)
surplus of the budget for the passed budget year,
b) profit of
enterpreneurial activity after taxation,
c) entire balance
of these funds of preceding budget years.
(2)
Entire balance of financial funds do not forfeit at the
end of the year. About usage of financial funds decides the municipal council
or the council of the higher regional unit.
(3) Means of
financial funds are used by the municipality and the higher regional unit through
the medium of their budget except for the transfers of means between individual
financial funds mutually and except for the cases, when the means of financial
funds are used only for balancing the time inaccordance between the incomes and
expenditures of their budget in the course of the budget year.
(4) Municipalities
and higher regional units create a reserve fund in the amount determined by
their councils, at least however in 10 per cents of the surplus of the budget
according to the § 10 par. 3 letter a) and b).
§ 16
Closing Account
of the Municipality,
Closing Account
of the Higher Regional Unit
(1)
After the passing of the budget year municipalities and
higher regional units process the data of budgetary management compoundly into
the closing account of the municipality or the higher regional unit.
(2) Municipalities
and higher regional units settle their management financially including
financial relationships to established or founded legal entities and natural
persons – enterpreneurs and legal entites, for whom they rendered means from
their budget; furthermore they settle financial relationships to the state
budget, state funds, budgets of other municipalities and to the budgets of
higher regional units.
(3) Municipalities
and higher regional units are obliged to have attested their account balance
according to a particular regulation.19 At attesting the account
balance the auditor attests also the managment according to their budgets in
accordance with this act, management with other financial means, state and
development of debt and abiding the rules of usage of the reimbursable sources
of financing.
(4) If the auditor
at the attesting according to the paragraph 3 ascertains breach of obligations
resulting from this act, he is obliged to announce these facts in writing to
the Ministry of Finance; the Ministry of Finance or the administration of
financial control charged by them is entitled to verify these facts, while
processing adequately according to a particular regulation.[20]
(5) Closing account
of the municipality and closing account of the higher regional unit contains
mainly
a)
data about fulfilment of the budget in classification
according to the § 10 par. 3 in accordance with the budgetary classification,
b) balance of
assets and liabilities,
c) summary about
the state and development of debt,
d) data about the
management of contributory organizations in their competence,
e) summary about
rendered guarantees according to individual acceptors,
f)
data about the costs and profits of enterpreneurial
activity.
(6)
Surplus of the budget of the municipality and of the
budget of higher regional unit according to the § 10 par. 3 letter a) and b) do
not forfeit after the ending of the year and are source for creation of reserve
fund, eventually further financial funds. The eventual deficit of the budget
according to the § 10 par. 3 letter a) and b) is repaid by the municipality and
higher regional unit first of all from the reserve fund, from further financial
funds or from reimbursable sources of financing. About the usage of the budget
surplus according to the § 10 par. 3 letter a) and b) or about the way of
repayment of the budget deficit according to the § 10 par. 3 letter a) and b)
decides the municipal council or the council of the higher regional unit at
discussing the closing account.
(7) Before the
approval of the proposal of the closing account of the municipality and the
proposal of the closing account of the higher regional unit it is presented for
public discussion according to a particular regulation.18
(8) Discussion of the closing account of
the municipality and the closing account of the higher regional unit is
concluded by one of these sentences:
a) the year-round management is approved
without reserve,
b) the year-round management is approved
with reserves.
(9) If the closing account is approved
with reserves, the municipal council or the council of the higher regional unit
is obliged to take measures for the amendment of shortcomings.
(10) Proposal of the closing account of
the municipality or the higher regional unit is discussed at the latest in six
months after the passing of the budget year.
RULES OF BUDGETARY
MANAGEMENT
§ 17
Rules of Usage
of Reimbursable Sources of Financing
(1)
Municipalities and higher regional units are obliged to
keep the rules described in the paragraphs 2 to 7 at using of reimbursable
sources of financing.
(2) Municipalities
and higher regional units may use reimbursable sources of financing only for
the repayment of capital expenditures. For balancing the time inaccordance
between the incomes and the expenditures of the current budget in the course of
the budget year these sources of financing may be used exceptionally under
conditions that they will be repaid to the end of the budget year from the
incomes of the current budget.
(3) To emission of
public obligations a particular
regulation is related.[21]
(4) Municipalities
and higher regional units may enter only into such obligations resulting from
reimbursable sources of financing, whose repayment does not disturb in
long-term the balance of the current budget in the following years.
(5) Municipalities
and higher regional units may not accept guarantee for a credit, loan or
other debt of a natural person or of a legal entity with the exception of
the guarantee accepted by the municipality for rendering reimbursable financial
aid from the state budget.
(6) Municipalities
and higher regional units may accept for the fulfilment of their tasks
reimbursable sources of financing, only if
a)
the total sum of the debt of the municipality or higher
regional unit does not exceed 60 per cents of real current incomes of the
preceding budget year and
b) the sum of the
annual instalments of the reimbursable sources of financing including the
repayment of profit does not exceed 25 per cents of real current incomes of the
preceding budget year.
(7) As the total sum
of the debt of the municipality or of the higher regional unit for the purpose
of this act is understood the sum of the obligations resulting from repayment
of principal of reimbursable sources of financing to the end of the budget year
and sum of guarantor obligations of the municipality or of the higher regional
unit.
(8) Into the total
sum of the municipality’s debt according to the paragraph 7 are not counted the
obligations from credits rendered by former state funds[22]
and from credit rendered from the State Fund of Housing Development for the
building of municipal tenement houses[23]
in the amount of the credit instalments, whose repayment is included in the
price of the annual rent of the municipal tenement houses. Into the sum of the
annual instalments of the reimbursable sources of financing according to the
paragraph 6 letter b) the municipality and the higher regional unit do not
count the sum of their lump-sum interim payment.
(9) Keeping the conditions of acceptance
of reimbursable sources of financing according to the paragraph 6 is verified before their acceptance by the chief
auditor of the municipality or the chief auditor of the higher regional unit.
(10) The chief auditor of the municipality
or the chief auditor of the higher regional unit is obliged to announce the
breach of conditions for the acceptance of reimbursable sources of financing by
the municipality or by the higher regional unit according to the paragraph 6 without delay to the Ministry
of Finance.
§ 18
and Higher
Regional Units
(1)
Municipalities or higher regional units may determine
that their subjects, which do not have legal personality, will manage
individually only with entrusted advance. At the same time, they determine the
amount of the advance and the term, for which it is rendered. Municipalities or
higher regional units are obliged to settle incomes and expenditures of these
subjects at the latest by the end of the budget year.
(2) If the
municipality or the higher regional unit performs enterpreneurial activity,
incomes and expenditures of this activity are not budgeted and are monitored on
an individual extra-budgetary account. Expenditures of this activity has to be
covered by its incomes. Profit of the enterpreneurial activity after taxation
stays in full extent at the municipality of the higher regional unit as
suplementary source of financing.
(3) Municipalities
or higher regional units may congregate means
according to a particular regulation.[24]
Congregated means are led on an individual account.
(4) Municipalities
or higher regional units realize payments according to a concluded contract
about the congregation of sources, which they are entitled to use for an
activity described in the subject of this contract.
(5) Municipalities
or higher regional units arranges the property, which they gained by the
performance of activities financed by congregated means according to the
paragraph 3, according to a particular regulation.24
§ 19
(1)
Healing regime precedes the forced administration with
the exception according to the paragraph 9 letter a). The municipality is
obliged to introduce healing regime, if the total amount of its obligations
after the term of repayability overlaps 15 per cents of real current incomes of
the municipality of the preceding budget year and if it did not repay some
allowable obligation in 60 days from its repayability.
(2) If facts
according to par. 1 took place, the municipality is obliged to announce it in
three days from their discovery to the Ministry of Finance and the mayor of the
municipality (hereinafter called „mayor”) is obliged to work out
a proposal in 15 days for the introduction of the healing regime, which
creates a part of a healing budget and the proposal of measures for
the stabilization of budgetary management. The municipality is not obliged to
classify the healing budget to current budget and capital budget.
(3) The mayor is
obliged to present the proposal for introduction of the healing regime to the
municipal council in term of 15 days from the day, when the facts according to
paragraph 1 took place. The municipal council has to discuss the proposal for
the introduction of the healing regime at the latest in 15 days after its
presentation.
(4) During the healing
regime the municipality may use its financial means only in accordance with
approved healing budget, while every usage of the financial means of the
municipality has to be approved aforehead
in writing by the chief auditor of the municipality.
(5) The chief
auditor of the municipality is obliged to present a written report to the
proposal of healing regime to the municipal council, to the proposal of healing
budget and to every report about the fulfilment of healing regime including
fulfilment of healing budget.
(6) The mayor is
obliged to present a report of fulfilment of healing regime including
fulfilment of healing budget to the municipal council regulary in every month.
(7) After the
introduction of the healing regime the municipality is obliged to present the
order of introduction of healing regime to the Ministry of Finance in three
days after its approval by the municipal council.
(8) In term of
seven days after passing 90 days of introduction of the healing regime, the
municipality is obliged to announce the Ministry of Finance the results of its
fulfilment including the fulfilment of the healing budget and the state of
obligations together with the standpoint of the municipality’s chief auditor.
If the municipality proves that by the fulfilment of healing regime achieved
improvement of the result of management and reducement of total obligations
described in the par. 1, the Ministry of Finance may give consent to the
extension of management in healing regime with determination of its term on the
basis of the municipality’s request, which shall not exceed 90 days.
(9) The Ministry of
Finance is entitled to decide[25]
about the introduction of forced administration, if
a)
facts according to the paragraph 1 took place and the
municipality did not introduce healing regime,
b) after the end
of management in healing regime the facts according to the paragraph 1 last,
namely according to recognition of the Ministry of Finance are on the basis of
an announcement of
1.
the
mayor,
2.
the
chief auditor of the municipality,
3.
an
auditor,
4.
a creditor
of the municipality or
5.
a state
authority.
(10) The mayor or the chief auditor of the
municipality is obliged to discuss the announcement according to the paragraph 9 letter b) with the municipal
council and send it to the Ministry of Finance in 15 days after the ending of
the management in healing regime.
(11) Before the introduction of forced
administration the Ministry of Finance or the administration of financial
control appointed by it verifies the facts described in the announcement
according to the paragraph 9 letter
b) and the causes of non-repayment of the obligation according to the paragraph 1. The municipality is obliged
to render unavoidable necessary cooperation for the above mentioned purposes
including rendering accounting documents and other documents necessary for this
purpose.
(12) The forced administrator is appointed
and recalled by the Ministry of Finance. The Ministry of Finance concludes
a contract with the forced administrator about the performance of
activities of forced administrator, which determines in detail his rights and
duties. The amount of earnings of the forced administrator is determined by the
Ministry of Finance. Costs connected with the performance of forced
administration including the earnings of the forced administrator are repaid by
the municipality, in which the forced administration was introduced.
(13) Forced administrator may be
a natural person, who
a) has completed a university
degree and has specialized experiences in the field of finances at least five
years,
b) is not the mayor, member of other
authority of the municipality or an employee of the municipality,
c) is not a person familiar[26] to
the mayor, member of other authority of the municipality or to an employee of
the municipality, in which the forced administration is introduced.
(14) The decision about introduction of
forced administration also contains the first name and the surname of the
forced administrator, address of his permanent place of abode, number of his
identification card and birth number. Appeal from this decision does not have
suspensory effect. Decision about introduction of forced administration is also
delivered to the locally competent tax office.
(15) From the introduction of forced
administration earnings may not be paid out to the mayor, to members of the
municipal council, to the chief auditor, nor other employees of the
municipality.[27]
(16) The municipality is obliged to
establish a particular account of forced administration in a branch of
a foreign bank[28] in
seven days from the delivery of the decision about introduction of the forced
administration and to transfer to this account all balances of financial means
led on actual accounts except for the financial means which the municipality is
obliged to lead on individual acconts according to this or a particular
act.
(17) During the forced administration all
incomes of the municipality come into the particular account except for the
incomes, which the municipality is obliged to lead on individual accounts
according to this or a particular act. Financial means led on the particular
account of the forced administration are not subject to execution of decision
according to a particular regulations[29] by
write-off the bank account. Financial means on all accounts may be used by the
municipality during the forced administration only with written consent of the
forced administrator.
(18) After the introduction of forced
administration the forced administrator is obliged to ascertain the state of
municipality management, while the municipality is obliged to make him possible
to revise all the accountary and other documents necessary for the purpose of
ascertaining the state of the municipality management. On the basis of recognised
facts the forced administrator is entitled to claim from the municipality
authorities the adoption of a program for consolidation of the
municipality management including organisatory and personal measures.
(19) The forced administrator is entitled
to participate with advisory vote in the meetings of the municipal council and
its competent comitees, in which is negotiated about the municipality budget,
management and municipality property. Reports submitted in the meeting of the
municipal council, which relate to the budget of the municipality, management
and municipality property have to be enclosed by the standpoint of the forced
administration.
(20) In seven days from the delivery of
the decision about the introduction of forced adminstration, the municipality
is obliged to published this decision in a manner usual in the
municipality. In the same term the municipality is obliged to announce the
introduction of the forced administration to all banks, branches of foreign
banks, in which the municipality’s accounts are led, and to all its creditors.
(21) In 30 days from the delivery of the
decision about the introduction of forced administration, the municipality is
obliged to draw up and approve a crisis budget for the term to the end of
the budget year, in which the forced administration is introduced. In the
crisis budget are obligationally budgeted all expenditures according to the § 7 par. 1 letter a) to c). If the forced
administration does not ends in the corresponding budget year, the municipality
is obliged to draw up and approve by December 31st of the current
year a crisis budget also for the following budget year. The municipality
is not obliged to divide the crisis budget into current budget and capital
budget.
(22) If the
municipality does not approve the crisis budget in the terms according to the
par. 20, it manages according to the crisis budget drawn up by the forced administrator.
(23) Ministry of
Finance may decide about the abolition of the forced administration on the
basis of proposal of the forced administrator, of the municipality’s request,
or if it is stated, that the reasons of its duration are gone.
(24) Incomes and
expenditures realized during the forced administration the municipality settles
with approved municipality budget after the abolition of the forced
administration.
COMMON
AND TRANSITIONAL ESTABLISHMENTS
§ 21
Transitional
Establishments
(1)
The proposal of municipality budget and the budget of
a higher regional unit for the year 2005 is drawn up with consideration to
the valid establishment of this act about the drawing up of the municipality
budget and the budget of the higher regional unit.
(2) If the budgetary
classification is adjusted for the following budget year, the proposal of the
municipality budget and the budget of the higher regional unit for the
following budget year is drawn up in accordance with the budgetary
classification valid for the following budget year.
(3) Multiannual
budget of the municipality and of the higher regional unit is drawn up for the
first in the year 2006 for the following budget years, beginning with the year
2007.
(4) For the drawing
up of the municipality’s closing account and of the closing account of the
higher regional unit for the year 2004 is related the actual regulation.
(5) Healing regime
and forced administration introduced in the municipality according to the
actual regulations end with the day of force of this act.
Art. IV.
This act entries into force on the day of its promulgation with the
exception of art. I. § 1 to 20, § 21 par. 3 to 5, which entry into force on
January 1st 2005.
Pavol Hrušovský
Mikuláš
Dzurinda
[1] Act of the Slovak National Council nr. 369/1990 S. b. about municipal establishment amended by further regulations.
[2] Act nr. 302/2001 S. b. about the self-administration of higher regional units (act of self-administrative districts) amended by further regulations.
[3] § 2 art. 2 of the act of the Slovak National Council nr. 377/1990 S. b. about he capital of the Slovak Republic Bratislava amended by further regulations.
[4] Act nr. 523/2004 S. b. about the budgetary rules of the public service and about change and amendment of some acts.
[5] Act nr. 564/2004 S. b. about budgetary determination of the income from income tax of the regional self-administration and about change and amendment of some acts.
[6] Act nr. 150/2001 S. b. about tax authorities and by which is changed and amended the act nr. 440/2000 S. b. about the administration of finacial control amended by the act nr. 182/2002 S. b.
[7] For example act nr. 597/2003 S. b. about financing elementary schools, secondary schools and educational facilities.
[8] § 20 and 20a of the act of Slovak National Council nr. 369/1990 S. b. amended by the act nr. 453/2001 S. b.
[9] § 3 of the act nr. 523/2004 S. b.
[10] § 4 par. of the act nr. 523/2004 S. b.
[11] Act nr. 582/2004 S. b.
about local taxes and local fees for public garbage and small building garbage.
[12] For example act of the Slovak National Council nr. 369/1990 S. b. amended by further regulations.
[13] For example act nr. 302/2001 S. b. amended by further regulations.
[14] § 2 par. 2 of the act nr. 213/1997 S. b. about non-profit organizations rendering generally beneficial services amended by act nr. 35/2002 S. b.
[15] For example § 2 par. 3 of the act nr. 34/2002 S. b. about foundations and about the change of the Civil Code amended by further regulations.
[16] Commercial Code
[17] § 5 of the act nr. 302/2001 S. b.
[18] Act of the Slovak National Council nr. 369/1990 S. b. amended by further regulations.
Act nr. 302/2001 S. b. amended by further regulations.
[19] Act nr. 431/2002 S. b. about accountancy amended by further regulations.
[20] Act. nr. 502/2001 S. b. about financial control and internal audit and about change and amendment of some acts.
[21] Act nr. 530/1990 S. b. about bonds amended by further regulations.
[22] Act nr. 553/2001 S. b. about the abolishment of some state funds, about particular measures connected to its abolishment and about the change and amendment of some acts amended by further regulations.
[23] § 5 par. 1 letter f) of the act nr. 607/2003 S. b. about the State Fund of Housing Development amended by further regulations.
[24] § 829 to 841 of the Civil Code amended by further regulations.
[25] Act nr. 71/1967 S. b. about administrative procedure (administrative order) amended by further regulations.
[26] § 116 of the Civil Code.
[27] Act of the Slovak National Council nr. 253/1994 S. b. about legal position and payment terms of municipality and city mayors amended by further regulations.
[28] § 2 par. 1, 5 and 8 of the act nr. 483/2001 S. b. about banks and about change and amendment of some acts amended by the act nr. 603/2003 S. b.
[29] For example act of the National Council of the Slovak Republic nr. 233/1995 S. b. about judicial executors (Executory order) and about change and amendment of further acts amended by further regulations.