Targeted financing and its importance in budget organizations

Accounting for the expenses of a budgetary enterprise, as well as its income from basic and other activities, are today the most complex and controversial issues of accounting for such organizations. Targeted financing in this respect is used quite rarely, since there is currently no uniform methodology for working with such a bill. However, despite all the difficulties, it is this account that is the main one in matters of obtaining profit and coordinating the costs of fixed assets. Only in case of providing money for a single project within the framework of one program can we say that it is quite easy to work with such a bill. In all other cases, targeted financing and its analysis require from the head and chief accountant of the enterprise careful preparation and high qualification level.

No less questions arise in the system of correct reflection of operations when using the money resources of such financing. The fact is that such a flow of funds to the account of the enterprise provides for the use of finance solely for the purposes and tasks that the state has set for the enterprise. Otherwise, senior management of such budget organizations may be prosecuted for misuse of public funds. For this reason, targeted financing provides for constant monitoring of the current cash flow, as well as strict reporting on the work performed.

As part of this provision of funds for each non-profit organization, a number of accounts reflecting one or another type of operating activities are opened . Usually such operations provide:

1. Receiving and crediting to the account of funds allocated by the national budget for certain purposes.
2. Write-off of expenses for the maintenance of the non-commercial organization at the expense of the received means.
3. Transfer of funds for the execution of a certain project or program. At this stage, direct targeted financing is carried out.
4. Acquisition of fixed assets through the use of allocated finance, as well as the implementation of the task set before the company.
5. Reflection of the source of financing for the acquired fixed assets.
6. Return of funds of targeted financing and reporting on the implementation of the state program.

Accounting for earmarked funding provides for several ways to implement it, each of which has its own advantages and disadvantages. The system of modern Russian legislation does not provide a clear mechanism for its implementation, as well as there is no normatively substantiated and competently developed approach. Ideally, the balance on the credit account should be equal to the amount of the debit balances that are on the money accounts of the budget organization. However, in practice, there are often situations when funds from targeted financing have not yet arrived, and the organization already bears actual expenses for the implementation of the state program. Sometimes, even situations may arise in which the total costs of the enterprise will be greater than the allocated funds. In this case, the non-profit organization will have to write memos about the allocation of additional targeted funds for the implementation of the program in full.

Summarizing, it can be concluded that targeted financing is the planned allocation of funds from the state budget for a project or program with the aim of increasing the country's socio-economic development. Unfortunately, at present our country does not spoil its citizens with various programs, however, I want to believe that we will also reach the level of development of Western countries.