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
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.
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.
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
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
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
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.