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Statement of accounts

Rendiconto

The results of the management of the State budget for the fiscal year ending on 31 st December are presented in the General Report on Accounts. This document shows how and the extent to which each Administration has implemented the budget.

The Report presents the closing accounts as regulated by the Act on public accounting and finance no 196 of 31 December 2009 which envisages that there be two distinct parts: the profit and loss account and the general balance sheet.

The Minister of the Economy and Finance is obliged by law to submit the General Report on Accounts to the Chambers by 30 th June each year so that Parliament can examine it and approve it through an Act in the subsequent weeks, in pursuance of Article 81 of the Constitution. Before being submitted to Parliament, the Report needs to be approved by the Audit Court to which it must be forwarded by the Minister of the Economy and Finance on behalf of the Accountant General of the State by the end of May. The Audit Court checks that the data of the Report are consistent with the entries in the books of the Court resulting from management audits.  

Starting from fiscal 2013, in compliance with the provisions of the Digital Administration Code (Legislative Decree no 82 of 7 March 2005 as amended), the General Accounting Report of the State is produced exclusively in digital format by using an ad hoc IT application (RenDe) developed by the General Accounting Office of the State in agreement with the Audit Court. The first paperless Report on fiscal 2012 was, by way of experiment, issued alongside the traditional printed version.

 

STRUCTURE OF THE GENERAL REPORT ON THE ACCOUNTS OF THE STATE

In pursuance of Article 36 of Act no 196 of 31 December 2009, the General Accounting Report of the State comprises two distinct parts:

  • The Profit and Loss account that illustrates the results of financial management versus the budget, highlighting the data related to management by accrual, and the new formation and settlement of remainders. The summary tables highlight the main results of the management (starting with the balances) and compare them with the corresponding values in the forecast budget. The Profit and Loss account is structured in the same way as the forecast budget since it is broken down into forecasts (one for revenues, and with regard to expenditure, one for each Ministry) and functional breakdown of expenditure items into missions and programmes. Within each programme there are further divisions into macro-aggregates, chapters and management plans.
  • The Balance Sheet describes the changes in the assets of the State and the final financial situation, reconciling them with the budget. It is accompanied by the debit and credit account of the treasury service.

Notes for each budget forecast, describing the results achieved, the extent to which the objectives of each programme are fulfilled and the resources used, as well as providing reasons for any deviation from the forecast, are attached to the Profit and Loss account.

Correspondingly, the economic results of each administration, reconciled with the financial management data, are attached to the Profit and Loss account.

 

DOCUMENTS

Profit and Loss Account

The Profit and Loss account illustrates the results of financial management with respect to the forecasts, providing indications of management by accrual and cash management, and the new formation and settlement of remainders. It consists of budget forecasts for the revenues and a budget forecast for the expenditures for each ministry. Like the budget, it is broken down into Missions and Programmes.

Balance Sheet

The Balance Sheet describes the changes in the assets of the State and the final financial situations, reconciling them with the management of the budget. It is accompanied by a debit and credit account of the treasury service.

Notes to the Final Accounts

Notes are provided for each budget forecast, as is done for the budget. The budget forecasts of expenditures are broken down by missions and programmes; they illustrate the results achieved and the relevant resources used compared to the budgeted resources and they explain the reasons for any variance between the results achieved and the goals set in the budget. 

Missions and Programmes of the Central Administrations of the State

The Missions represent “the main functions and the strategic objectives pursued through public expenditure” and they constitute a useful means for making the larger allocations more transparent.

They are broken down into Programmes, uniform groups of activities carried out within each Ministry, that pursue well-defined institutional goals in compliance with the mandate of the relevant Ministry.

Economic Report

Attached to the General Report is the Economic Report which illustrates the economic results of each Ministry. As is done in the budget, the costs incurred are quantified on the basis of the accrual principle in accordance with the three forms of representation: by Cost centre, by Nature of the cost and by Missions/Programmes. It includes the reconciliation schedule that links the economic results with the results of the financial management of the expenses contained in the Profit and Loss account.

Report on Environmental Expenditures

This is a section of the broader Report describing the bill of the general report of the State. It illustrates the results of the environmental expenditure by the central administrations of the State, namely the expenses made to protect the environment and to use and manage natural resources.

The Report in a Nutshell

This is a document published every year for dissemination purposes that provides, in summary, the main information and results of the end-of-year accounts of the State.