New BBV rules from financial year 2025: materiality at 2% of total expenditure

The amended decrees under the Budget and Accountability Decree for provinces and municipalities (BBV) were published on 16 April 2025. The amendments have direct consequences for the structure of the annual accounts and the execution of the statutory audit.

Materiality: 2% of total expenditure

From financial year 2025, the statutory auditor applies a legally embedded materiality threshold of 2% of total expenditure, excluding additions to reserves. This provides municipalities and their auditors with a uniform framework and increases the comparability of audit opinions. The threshold applies to both fair presentation and compliance.

Paragraph on Other Information

Pursuant to the amendment of BBV Article 24, paragraph 3, the annual accounts must include a paragraph on 'Other Information'. This paragraph is placed alongside — not as part of — the annual accounts and includes, among other things, the auditor's report. Municipalities are required to adapt their annual accounts structure accordingly.