Auditing IVSE-certified care facilities
Lots of stakeholders have a say when it comes to the accounting practices at disabled care facilities, as shown using the example of adult disabled care facilities below:
Depending on the legal form of the facility, Swiss Civil Code / Swiss Code of Obligations (independent foundation) or public law ( facility run by Canton) is applied.
The Association for Care Homes and Institutions (Curaviva):
Curaviva is the publisher of the chart of accounts and accounting regulations. Some legal regulations or ordinances refer to these publications.
Authorities like the Canton of Zurich Social Services:
Various cantons redact accounting requirements requiring auditing in combination with the chart of accounts and accounting regulations of Curaviva;
The foundation ZEWO (Swiss certification body for organisations which collect charitable donations):
If the facility carries the ZEWO seal of approval, it is obligated to carry out its accounting in line with Swiss GAAP FER (Swiss GAAP FER 21 to be precise). In addition, internal ZEWO regulations are to be adhered to or compliance with them confirmed.
The Foundation Oversight:
It formulates accounting recommendations in its annual publication (e.g. forming additional provisions for property renovations).
If a disabled care facility offers care for both adults and children (special school offering) or an apprenticeship programme, further canton-based accounting principles from other authorities also have to be taken into account: e.g. those from the Canton of Zurich Education Department or the Federal Office for Social Security .
The demands of this wide range of stakeholders can generally be reconciled in relation to the annual financial statements of a disabled care facility, but they also sometimes contradict each other. Whatever the case, it is not always easy to maintain a clear overview. Qualified fundamental knowledge is therefore required for an efficient and high-quality audit for the foundation board. We are happy to offer you our services, either as an auditor or in an advisory function when setting up your accounting system.
Good to know
If the principles above apply to your facility, it may be worth preparing two financial statements – modelled on the accounting of profit-driven groups: Financial statement 1 in line with Curaviva recommendations as well as taking into account a possible transition; financial statement 2 for the annual financial statements in line with Swiss GAAP FER (21). As a result, compliance is also assured for the regulations contained within the new accounting law (additional financial statements according to a recognised standard, in other words, dual financial statements).