ACCOUNTING OF THE SPECIAL FUND IN BUDGET INSTITUTIONS: CURRENT CONDITION AND DEVELOPMENT TRENDS

Abstract

Today's realities affect all participants in the budget process and cause new extraordinary challenges for budget institutions. Against the background of an objective deficit in budget appropriations and total dependence on Western donors, the importance of the special fund as a real source of financial autonomy of budget institutions is growing, which is considered in the article as a separate accounting object in accordance with the requirements of budget and accounting legislation. It has been established that in modern conditions, when determining the special fund of budget institutions, the substantive approach dominates, which has replaced the formal approach. It allows organizing the accounting of the special fund within the concept of program-targeted management of budget funds, based on assessing the effectiveness of the use of budget funds at all stages of the budget process. At the exit from the system, information support is generated for making decisions on financing individual areas of activity (services) of budget institutions depending on their scale and ability to generate expected volumes of revenues. Existing problems and contradictions in accounting for the special fund of public sector entities are analyzed. Firstly, the lack of clear identification of the components of the special fund of budgetary institutions. Secondly, the contradictions of the budget legislation and National public sector accounting standards of Ukraine (101 “Presentation of financial statements”, 124 «Revenue», 135 “Costs”) in terms of determining and recognizing revenues (transfers) and costs (expenses) to the special fund. Thirdly, different approaches to the classification of the components of the special fund. This significantly complicates accounting practice and calls into question the quality of accounting. The main trends in the development of accounting for the special fund by budgetary institutions in connection with existing problems that hinder the formation of high-quality information support for managing the own revenues of public sector entities are identified. In addition, an integration model of organizing accounting for a special fund has been built, which encompasses, within a single (holistic) system of budget planning, accounting, management accounting and internal control. It is intended to become the information basis for results-based management.