Republic of Latvia

Cabinet
Regulation No. 57
Adopted 21 January 2025

Procedures for Preparing a Quarterly Statement

Issued pursuant to Section 30, Paragraphs four and seven
of the Law on Budget and Financial Management

1. General Provisions

1. The Regulation prescribes:

1.1. the procedures by which budget institutions, derived public entities financed partly from the State budget, and institutions non-financed from the budget (hereinafter - the budget institutions) shall prepare and submit a quarterly statement to the Treasury, and also the Treasury shall submit a quarterly statement on the financial accounting of the State budget;

1.2. the procedures by which ministries and other central State institutions, derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments shall prepare and submit a quarterly statement or consolidated quarterly statement to the Treasury, and also the deadline for submission thereof;

1.3. the procedures by which ministries and other central State institutions, derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments shall compile, prepare, and submit to the Treasury the financial statements of their capital companies, and also the deadline for the submission of the respective statements;

1.4. the capital companies in respect of which the financial statements referred to in Sub-paragraph 1.3 of this Regulation shall be compiled.

2. The Regulation shall be applied by ministries and other central State institutions (hereinafter - the ministries), derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments with regard to the capital companies in which the State, a derived public entity financed partly from the State budget, an institution non-financed from the budget, or a local government, each individually or jointly, holds 20.001 to 100 per cent of the voting rights of shareholders or stockholders in the capital company, and with regard to a subsidiary of such a capital company which is classified within the general government sector in accordance with the laws and regulations regarding the classification of institutional sectors (hereinafter - the capital company).

3. This Regulation shall not apply to:

3.1. the State security institutions specified in the law On State Security Institutions;

3.2. the receivables and liabilities of the administration of the immovable property tax in respect of the immovable property tax;

3.3. the State Revenue Service in respect of the accounting of taxes and fees administered by the Service, and other payments administered by it that are attributable to the State budget.

2. Scope, Submission Procedures and Deadlines of a Quarterly Statement

4. A quarterly statement (hereinafter - the statement) shall consist of the following:

4.1. information on the financial assets and liabilities of a budget institution;

4.2. financial information of the capital company:

4.2.1. information on the assets and liabilities of the capital company;

4.2.2. a questionnaire on the application of the going concern assumption of the capital company.

5. The information referred to in Sub-paragraph 4.1 of this Regulation shall be prepared by budget institutions, ministries, derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments.

6. The information referred to in Sub-paragraph 4.2.1 of this Regulation shall be compiled and submitted by ministries, derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments.

7. The information referred to in Sub-paragraph 4.2.2 of this Regulation shall be compiled and submitted by ministries, derived public entities financed partly from the State budget, and institutions non-financed from the budget.

8. The e-service portal of the Treasury shall be used for the preparation, verification, signing, and submission of the statement in accordance with the laws and regulations regarding the procedures for ensuring the circulation of information, using the e-services of the Treasury.

9. The deadlines for the submission of the statement or consolidated statement of ministries, derived public entities financed partly from the State budget, institutions non-financed from the budget, and local governments shall be as follows:

9.1. for the first quarter - by 25 April of the reporting year;

9.2. for the second quarter - by 25 July of the reporting year;

9.3. for the third quarter - by 25 October of the reporting year;

9.4. for the fourth quarter - by 28 February of the next reporting year.

10. The information referred to in Sub-paragraph 4.2.2 of this Regulation shall be compiled and submitted within the deadline referred to in Sub-paragraph 9.4 of this Regulation.

11. The Ministry of Foreign Affairs shall include in the statement the data on Latvia's diplomatic and consular missions, taking into account that:

11.1. in the statement for the first quarter, the data at the end of the reporting period shall correspond to the data at the beginning of the reporting period;

11.2. the statement for the second quarter shall include data for the period from 1 January to 31 March;

11.3. the statement for the third quarter shall include data for the period from 1 April to 30 June;

11.4. the statement for the fourth quarter shall include data for the period from 1 July to 31 December.

3. Consolidated Statement

12. The consolidated statement of a ministry shall include the statements prepared by State budget institutions involved in the consolidation.

13. The consolidated statement of a derived public entity partly financed from the State budget shall include the statements prepared by such institutions established by the respective derived public entity partly financed from the State budget that are involved in the consolidation.

14. The consolidated statement of an institution non-financed from the budget shall include the statements prepared by institutions subordinate to the respective institution non-financed from the budget.

15. The consolidated statement of a local government shall include the statements prepared by the involved budget institutions and joint institutions (within the meaning of the Local Government Law) of the respective local government. The statement of a joint institution shall be included in the consolidated statement of a local government by the local government for which such obligation has been determined in the by-laws of the joint institution.

16. The statements of institutions involved in the consolidation shall be prepared as of the same reporting date, applying uniform principles of accounting and statement preparation.

17. The statements of the budget institutions involved in the consolidation shall be combined in accordance with the following procedures:

17.1. the amounts of cash, deposits, securities, loans, investments in shares and other equity, other financial assets, receivables, prepaid expenditures, and liabilities indicated in the relevant items of the statements of the institutions involved in the consolidation shall be combined, i.e. a summary that includes the aggregation of the same items shall be made;

17.2. the institution undertaking the consolidation shall adjust the data of the statements of the institutions which have been prepared by applying different accounting methods and different valuation and statement preparation principles. The value of the asset or liability items of accounting accounts in the consolidated statement shall be increased or decreased accordingly by the correction amount;

17.3. mutual transactions of the institutions involved in the consolidation and amounts of balances of the mutual settlement of accounts thereof shall be excluded completely, i.e. a consolidation statement showing the item and amount to be consolidated shall be prepared;

17.4. the consolidated statement that covers the aggregation of data on summary, consolidation, and adjusted items shall be produced.

18. The institution undertaking the consolidation shall ensure verification of the conformity of the statement of the institutions involved in the consolidation with the requirements of this Regulation.

4. Preparation of the Statement and the Consolidated Statement

4.1. General Principles for the Preparation of the Statement

19. The statement shall include the following general information:

19.1. information on whether the statement is for one individual institution or a summary of statements for several institutions;

19.2. the name of the institution and also other information and designations necessary for the identification of the institution;

19.3. if the statement is submitted by an institution involved in the consolidation, the name of a ministry, a derived public entity financed partly from the State budget, an institution non-financed from the budget, or a local government whose consolidated statement includes information on the respective institution;

19.4. the reporting period (quarter);

19.5. the degree of accuracy of the figure.

20. The measure of value to be used in the statement shall be euros.

21. The statement shall be prepared based on accounting data and on an accrual basis.

22. In order to provide users of the statement with a clear and fair view of the information included in the statement, the Ministry of Finance (the Treasury) has the right to request the following:

22.1. additional explanations regarding the information provided in the statement;

22.2. a forecast calculation of the impact of the capital company included in the general government sector on the general government budget balance and debt in accordance with the structure specified in the annex to the law on the State budget for the current year and the medium term budget framework. Each year the Ministry of Finance shall determine the entities that provide the abovementioned information and the scope of the information to be submitted.

4.2. Preparation of the Statement

23. Information on the financial assets and liabilities of a budget institution shall include the following:

23.1. the gross and net carrying amounts of financial assets (except for the financial investments referred to in Sub-paragraph 23.2 of this Regulation), impairment at the beginning and end of the reporting period, and changes in the gross carrying amount during the reporting period, separating transactions, other changes, and currency fluctuations, broken down by accounting accounts and the institutional sectors of counterparties;

23.2. the carrying amount of each financial investment at the beginning and end of the reporting period and changes (increase, decrease, transfer, revaluation, impairment, and currency fluctuations) during the reporting period, broken down by accounting accounts and types of transactions;

23.3. the gross and net carrying amounts of the principal amount of loans, impairment at the beginning and end of the reporting period, and changes in the gross carrying amount during the reporting period, separating transactions, other changes, and currency fluctuations, broken down by institutional sectors. Loans shall be classified as long-term or short-term loans according to their original maturity;

23.4. the gross and net carrying amounts of prepaid expenditures for insurance payments, impairment at the beginning and end of the reporting period, and changes in the gross carrying amount during the reporting period, broken down by non-life and life insurance contracts;

23.5. the carrying amount of liabilities at the beginning and end of the reporting period, changes in the carrying amount during the reporting period, separating transactions, other changes, and currency fluctuations, and delayed payments at the end of the reporting period, broken down by accounting accounts and the institutional sectors of counterparties;

23.6. the carrying amount of liabilities to international institutions at the beginning and end of the reporting period, and changes in the carrying amount during the reporting period, separating transactions, other changes, and currency fluctuations, broken down by accounting accounts and the institutional sectors of counterparties;

23.7. a condition that the data of the information referred to in Sub-paragraph 4.1 of this Regulation shall correspond, in the first quarter, to the data indicated at the end of the reporting period in the statement for the previous financial year.

24. Information on the assets and liabilities of the capital company shall include the following:

24.1. in accordance with the breakdown specified in the laws and regulations in the field of approval of official statistical sample forms:

24.1.1. the carrying amount of assets at the beginning of the reporting year and at the end of the reporting period;

24.1.2. the carrying amount of liabilities at the beginning of the reporting year and at the end of the reporting period, delayed liability payments at the end of the reporting period;

24.2. the future cash flow of the principal amount of borrowings for the next three years, indicating the planned balance of the principal amount at the beginning and end of the respective year, the increase and decrease in the principal amount of borrowings;

24.3. the principal amount of the outstanding borrowing at the beginning of the reporting year and at the end of the reporting period, the increase and decrease in the principal amount of the borrowing from the beginning of the year and during the reporting period, and the calculated interest during the reporting year up to the end of the reporting period.

25. The questionnaire on the application of the going concern assumption of the capital company shall include the following:

25.1. the opinion of the management on general risk indicators and measures taken to mitigate risk and assessment;

25.2. the evaluation of management plans regarding the evidence eliminating substantive doubts, third-party guarantees, and other financial restructuring contracts, future financial information, and overall assessment of the management plans;

25.3. calculations of detailed and general cash flow forecasts.

5. Procedures for Compiling Financial Information of Capital Companies

26. A ministry, a derived public entity financed partly from the State budget, an institution non-financed from the budget, and a local government shall ensure that the information referred to in Sub-paragraph 4.2 of this Regulation is compiled and submitted for each capital company, and a summary (aggregation of identical items) is prepared and submitted in the e-services portal of the Treasury.

27. If several local governments or the State, a derived public entity financed partly from the State budget, or an institution non-financed from the budget owns capital shares in the same capital company, then the submission of the information referred to in Sub-paragraph 4.2 of this Regulation shall be ensured by the holder of capital shares who holds the largest number of capital shares in the relevant capital company or who has been designated as responsible upon agreement between holders of capital shares, if the number of capital shares in the relevant capital company is equal for all holders of capital shares.

6. Closing Provision

28. This Regulation shall be applied for the first time when preparing the quarterly statement for the first quarter of 2025. The quarterly statement for the fourth quarter of 2024 shall be prepared in accordance with Cabinet Regulation No. 344 of 11 June 2024, Procedures for Preparing a Quarterly Statement.

Prime Minister E. Siliņa

On behalf of the Minister for Finance -
Minister for Justice I. Lībiņa-Egnere

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Translation © 2026 Valsts valodas centrs (State Language Centre)