Accounting for the expenses of a budgetary enterprise, as well as its income from core and other activities, are today the most difficult and controversial issues of accounting for such organizations. Targeted financing in this regard is rarely used, since today there is no single methodology for working with such an account. However, despite all the difficulties, just such an account is the main one in matters of making a profit and coordinating the costs of fixed assets. Only in the case of the provision of funds for a single project within the framework of one program can we say that working with such an account is quite simple. In all other cases, targeted financing and its analysis requires careful preparation and a high qualification level from the head and chief accountant of the enterprise.
No less questions arise in the system of the correct reflection of operations when using the funds of such financing. The fact is that such a flow of funds to the company’s account provides for the use of finance exclusively for those goals and tasks that the state has set for the company. Otherwise, the top managers of such budgetary organizations may be prosecuted for misuse of public funds. For this reason, targeted financing provides for constant monitoring of current cash flow, as well as strict reporting on work performed.
As part of this provision of funds for each non-profit organization, a number of accounts are opened that reflect a particular type of operating activity. Typically, such operations include:
- Receiving and crediting to the account of funds allocated by the state budget for one or another purpose.
- Write-off of the costs of maintaining a non-profit organization at the expense of the funds received.
- Transfer of funds for a specific project or program. At this stage, direct targeted financing is carried out.
- The acquisition of fixed assets through the use of allocated finances, as well as the implementation of the tasks assigned to the enterprise.
- Reflection of the source of financing for acquired fixed assets.
- The return of targeted funding and reporting on the implementation of the state program.
Accounting for targeted financing provides several methods for its implementation, each of which has its own advantages and disadvantages. The system of modern Russian legislation does not provide for a clear mechanism for its implementation, and there is no normatively justified and well-developed approach. Ideally, the credit account balance should be equal to the amount of debit balances that are in the cash accounts of the budget organization. However, in practice, situations often arise when funds from targeted financing have not yet been received, and the organization already incurs actual expenses for the implementation of the state program. Sometimes even situations may arise in which the total amount of expenses of the enterprise will be more than the allocated funds. In this case, the nonprofit organization will have to write memos on the allocation of additional target funds for the full implementation of the program.
Summing up, we can conclude that targeted financing is the planned allocation of funds from the state budget for any project or program in order to increase the socio-economic development of the country. Unfortunately, at present, our country does not really pamper its citizens with various programs, however, I want to believe that we will someday reach the level of development of Western countries.