Annual accounts
Question
Does the association year always have to be the calendar year?
Answer
As a rule, no. The majority of all associations are, however, likely to align their activities with the calendar year, which is useful as the two years then run parallel to one another. On the other hand, associations that are active, for example, in the area of education or childcare tend to plan their activities according to the school year or on a semester basis. In such cases, it makes sense for the association year to deviate from the calendar year. Under certain circumstances, there may be a certain amount of additional work due to the fact the some administrative tasks (insurance, tax, etc.) also always have to be completed with the reference date of 31 December for legal reasons.
Question
Is it right that the audit report isn't to be voted on? Is it true that following the approval of the annual report a vote is to be held on the audit report and then the annual financial statements?
Answer
The audit report is prepared by an independent person or body. It recommends whether the financial statements should be accepted or rejected and may also contain further recommendations.
A vote is not held on the audit report; it serves as an opinion-forming aid for members with respect to the annual financial statements. If the members are not satisfied with the work of the auditor, they can vote the auditor out and propose somebody else.
Question
Our association was founded in July last year. Is it correct that we only have to prepare our annual accounts at the end of this year and thus also our tax statement?
Answer
The association's annual accounts can be completed as stipulated in the articles of association. For the tax year, however, it is the calendar year that applies. If your association generated a profit during the first six months of its existence and if this profit exceeded the exemption limit, you must complete a tax return. In the cantons of Bern and Lucerne, you are required to register your association with the tax authority.
Question
As is well known, an annual report must be drawn up for the general meeting. Are there any requirements with respect to the report's length and content?
Answer
The annual report serves to provide members and, where applicable, further sections of the public information on the financial year's important events. There are no requirements in terms of length. The content is, however, determined by the association's purpose: the members should be able to decide whether the committee is conducting the association's business in line with its purpose. It serves as a basis for discharging the committee and has to be written accordingly: it should therefore depict the focus areas of the association's activities as well as provide information on target achievement, important changes in personnel, cooperation with other organisations, etc. Last but not least, the annual report should also form the foundation for the re-election of the committee: Were its actions actively beneficial to the association or not? The annual report is therefore more than just an arduous obligation. Instead, it takes on the character of an accountability report and must be taken seriously. At the same time, it often also serves as the association's "business card".
