Financial control in budgetary institutions

The budget institution as a special form of an economic entity is characterized by the following main features:

• submits to the state represented by the executive authorities or local self-government ,
• uses state-owned assets (i.e. has no property , but only controls state property),
• financed by the state at the expense of budget funds
• created to perform certain state functions (that is, those that no one except the state can perform),
• provides its services to the public for free,
• does not form the cost of services, and is funded on the basis of cost estimates .

At the same time, the budgetary institution remains an independent and full participant in economic relations :

• is a legal entity
• has a manager , chief accountant , seal ,
• makes economic decisions for which he is responsible ,
• accepts obligations on its own behalf, concludes contracts ,
• keeps records and makes a balance of assets and liabilities.

Due to the fact that, unlike a commercial organization, a budget institution is not meant to earn money , but to spend it, the performance indicators of a budget institution are not related to the concept of profit .

In addition to the main control procedures covered in the article documentary audit , when auditing a budgetary institution, the auditor should check:

1. Targeted budget spending:
   • spending funds from the budget in accordance with the adjusted limits of budgetary obligations ,
   • the correctness of the classification of expenditures of the budget institution in the relevant items of the classification of budget expenditures ,
   • the completeness and timeliness of registration in the treasury bodies of adopted budgetary obligations .
2. The efficiency of public procurement :
   • Observance of the procedure for placing orders for the supply of goods , the provision of services to the budget institution by holding tenders , auctions , quotation requests ,
   • observance of the ban on revising the contract price during its execution,
   • the implementation of other restrictions imposed by the authorities, for example, the maximum percentage of advance payments under contracts.
3. Pay for "state employees":
   • the implementation of the staffing approved by a higher authority,
   • compliance with staff discipline , that is, the use of workers strictly for the purpose specified staffing ,
   • accrual of remuneration of employees of the institution in accordance with established industry and departmental rules and regulations.
4. Business activities of budgetary institutions:
   • the implementation of only those types of business activities that are agreed with the parent body, in accordance with the general permit ,
   • observance of the ban on the use of labor of employees who are kept at the expense of the budget, in paid main time in the interests of entrepreneurial activity,
   • separate accounting of funds for primary and business activities,
   • observance of the order of use of profits from business activities.

Treasury bodies exercise mainly current control over the targeted nature of budget spending. To make a payment from a single budget account for its obligations, the budget institution submits a payment order to the territorial treasury body. At the same time, the treasury checks:

• the compliance of the operation with the nature of the statutory activities of the budget institution,
• Is the payment not a statutory advance payment or capital investment ,
• the validity of the payment - the presence of the account, if necessary - the contract , estimates ,
• the sufficiency of the balance of budget obligations under the corresponding expense item,
• correct execution of the payment order.

When a budget institution receives cash to the cash desk (for salary payments , economic and travel expenses, social payments), the treasury checks:

• the presence of the necessary balance of limits of budgetary obligations,
• whether cash is allowed under this item of expenditure.

• G.B.Polyak. The budget system of Russia. - Moscow: UNITY-DANA, 2007. - p. 663 - 674. - 703 p. - ISBN 5-238-01110-5 .
• Brovkina N.D. Control and revision: study guide. - Moscow: INFRA-M, 2007. - p. 312 - 329. - 346 p. - ISBN 978-5-16-003022-7 .
• Entrepreneurial activities of budgetary institutions / I.V. Sergeev. - Moscow: Nalog-Info, 2006. - p. 290 - 384. - 388 p. - ISBN 5-1727-0164-8 .
• Treasury system of budget execution in the Russian Federation / I.G.Akperov, I.A. Konoplyova, S.P.Golovach. - Moscow: Finance and Statistics, 2006. - p. 175 - 183. - 352 p. - ISBN 5-7260-0903-7 .