As a reminder, from 2024 onwards, and by 2027 at the latest, public-sector entities in the canton of Vaud must present their accounts in accordance with the HAM2 manual. The aim of this migration is to harmonize the charts of accounts of Swiss public-sector bodies, thereby enabling greater comparability between them.

Fidinter SA, as the auditors of several public sector bodies, has developed a pragmatic approach to auditing the migration to HAM2, with a control strategy based on risk assessment, control of procedures and control of compliance with the new HAM2 standards.

If your municipality has scheduled its transition for 2025, it must convert the previous year’s balance sheet from the PCV (Plan Comptable Vaudois) to the MCH2 chart of accounts, while the conversion of income and investment accounts remains optional. Three major changes also need to be taken into account and documented during the transition to HAM2:

Administrative (PA) and financial (PF) assets
A detailed analysis must be made of each property owned by the public authority, and it must be allocated to administrative or financial assets according to its actual use. Depending on its use, land can be subdivided into administrative and financial assets in proportion to its value.

Special financing and reserve funds
Reserve funds are treated differently at accounting level, with a distinction made between the following funds:

  • Special financing: for self-financed areas
  • Funds: these are reserves funded by taxes and/or fixed allocations and governed by regulations approved by the local council;
  • Bequests and foundations without legal personality: these are reserves linked to a bequest or donation with a purpose determined by the legatee/donor;
  • Pre-financing: these are reserves for a specific, short-term capital expenditure;
  • Fiscal policy reserve: these are other funds not specified above.

We therefore recommend that you carry out an analysis of your various funds to determine their future treatment under HAM2.

Financial statements
Although some documents already existed before the transition to HAM2, more information will be required in the financial statements, and will have to be audited when the annual accounts are revised.

New features include

  • A two-tier income statement, distinguishing between operating income and income from extraordinary income and expenses;
  • An investment account and cash flow statement for all communes;
  • Significantly enriched notes to the annual financial statements, including a summary of the principles governing the annual financial statements and exceptions, a table of equity capital, a table of municipal associations, a table of securities and shareholdings, a table of loans and guarantees (including contingent liabilities) and a table of fixed assets.

COMMENTS BY THE 2025 AUDITORS

Fidinter SA distinguishes between two periods (autumn 2025 and the first half of 2026) for its involvement in the migration to HAM2, as well as for the revision work relating to the first year.

AUTUMN 2025
During the summer of 2025, Fidinter SA’s mandate managers will contact the stockbroker or the municipal finance officer to schedule the interim audit, which will take place in the autumn of 2025.

The interim audit will cover the monitoring of the migration to HAM2 as well as preparatory work for the annual audit. This work will include :

  • Checking the opening balance sheet using the conversion table and the final balance sheet 2024 ;
  • Verification of the existence and conformity of the investment schedule in accordance with HAM2 guidelines;
  • As well as checking the existence of draft financial statements and notes to be completed at the time of the annual closing of accounts.

Fund documentation will also be requested in order to control the funds. Finally, a list of documents to be prepared for final review will be forwarded.

FIRST HALF OF 2026

In the first half of 2026, the audit will focus on compliance with HAM2 accounting standards, in particular accounting and year-end closing, as well as reviewing the financial statements and preparing the new mandatory notes.

A follow-up will also be carried out to address the outstanding points identified during the preparatory work in autumn 2025. Fidinter SA will be happy to answer any further questions you may have.

-> Link to the website of the canton of Vaud – MCH 2 <-

Sophie Blank
Certified finance and accounting specialist, commercial agent

This publication contains general information and is not a substitute for detailed research or expert advice. No liability can be accepted for its content. For specific questions, please contact the author.