The subject of discussion is the budget system of the university. Under the budget system we mean a set of interrelated budgets of a certain format, for which the technology for their preparation, consolidation and implementation has been developed.
Let us define two more basic concepts.
There are many different variations of budget definition: a financial management tool or a two-sided spreadsheet that reflects income and expenses, etc. Each of them reflects one particular feature of the budget.
In our work, we adhere to the following basic definition of the budget.
The budget is a bilateral financial agreement between the administration and departments, which plans the amount of income from all sources and the amount of expenses in all areas.
We consider budgeting as budget management, i.e. its planning, control and analysis of execution, regulation.
The development of the budget system at NSTU was started eight years ago and is still ongoing. Initially, it was determined that the budget system is not created for itself, but, firstly, within the framework of general program university to form a decentralized management system and, secondly, as a system that provides the main activity of the university, i.e. the educational process.
Currently, the financial management of the university is carried out with the help of a system of budgets (see Fig. 1).
Rice. 1. Linear budget classifier
Operating budgets, which are compiled for individual projects, functions, financial responsibility centers (FRCs).
Financial budgets according to the generally accepted classification: income and expenditure budget (BDR), movement budget Money(BDDS), management balance sheet.
All these budgets are combined according to a certain scheme into the main integrated budget of NSTU.
In connection with such structure of budgets budgeting has the sections presented on fig. 2.
Rice. 2. Budgeting sections
The main functions of budgeting are presented in fig. 3. The purpose of budgeting is also defined there.
Rice. 3. University budget management
The managerial budgeting cycle at our university has a sequence of actions presented in Fig. 4.
Rice. 4. Management cycle of budgeting in NSTU
Preparation of the main integrated budget. This block has a complex structure and can be expanded into an independent final sequence of actions.
Block 4 begins the implementation of the budget. At the same time, spending limits are calculated and communicated to specific contractors.
The implementation of the budget is associated with the performance of the functions of accounting, control, analysis. These three blocks can be united by one common term: plan-fact analysis.
If necessary budget indicators are regulated and limits are adjusted. If the budget period is over, a report on budget execution and analysis of the results is generated.
Otherwise- The process of budget implementation continues.
We will not consider such academic concepts as the format of budgets, the technology for their preparation, etc.
Let's move on to discussing the features (distinguishing features) of the budget system and budgeting at NSTU.
First distinguishing feature. The university implemented not a formal, but a meaningful process of budget formation, since it (the budget) is seen primarily as a bilateral financial agreement between the administration and divisions, administration and staff.
Second distinguishing feature. The work with the budget at the university is carried out, figuratively speaking, in three-dimensional space. Firstly, all generally accepted budget formats are used: operating budget, income and expenditure budget (BDR), cash flow budget (BCDS), management balance sheet.
Secondly, these budget formats are formed for different levels of management: the level of administration of the university, the level of financial responsibility centers (FRC).
Thirdly, at the indicated levels in the budgets of all formats, the budget cycle is fully and partially implemented: planning, plan-fact analysis, regulation (see Fig. 5).
Rice. 5. Interrelation of budgets, functions and structural elements
Reduced the scheme shows the variety of options for technologies for budgeting and managing them.
Third distinguishing feature. The financial structure of the university is consistent with its organizational structure and administrative management system. The main object of budgeting is the Central Federal District. For each of them, the scope of financing of responsibility is defined. On fig. 6 shows the main groups of the CFD. On the left in the figure - the elements of the organizational structure, that is, the divisions of the university.
From the point of view of the existing economic relations each division is a financial responsibility center (CFR). hallmark CFD: financial autonomy within available resources; the right to make a decision; responsibility for the decisions made.
Depending on the assigned functions, you can specify several types CFD (see Fig. 6).
Rice. 6. The main groups of the Central Federal District in the organizational structure of the university management
The administration is the center of income, expenses and investments.
A self-supporting structural subdivision is the centers of income and expenses in the process of implementing the main activity and its provision. The administrative and economic divisions are the centers of income and expenses if they have their own income.
But, basically, these are cost centers in the process of implementing the university-wide functions that are assigned to them.
Fourth distinguishing feature. The formats of budgets of various levels of management and functional purpose are coordinated and unified, which ensures their consolidation.
On fig. 7 shows the scheme of formation of the main integral budget of the university.
Rice. 7. Scheme of formation of the main integral budget of the university
Each center (CFD) compiles a BDR on a mandatory basis. On an initiative basis, operating budgets can be drawn up for the functions and projects of departments.
The budget system of NSTU has 2 levels of consolidation.
At the 1st level BDRs of financial responsibility centers are united. Budgets are combined by type of activity. For example, for contract training of students, for additional educational services(DOE), for self-supporting units.
As a result, in each case we have a consolidated budget for a specific type of activity. It is very convenient for subsequent control, analysis, regulation.
Operating budgets are compiled for university-wide functions: for wages, construction, repair, etc. On their basis, centralized BDR.
At the 2nd level consolidation combines the centralized BDR and the BDR of divisions by type of activity.
As a result, we have an integral BDR of NSTU. On its basis, an integral BDDS is formed, and then the management balance of the university. No local budget provides such information. and control levers like consolidated budgets.
Fifth feature. The budget consolidation technology adopted at NSTU provides the possibility of a comprehensive plan-fact analysis in terms of income sources and expenditure areas.
Several years ago for budget organizations In Russia, a classification of expenses by codes was developed and recommended for use. We use this classification in accounting and standard financial statements.
Generally accepted and recommended for state enterprises classification of costs by codes does not reflect the whole variety of economic relations, occurring at the university. Therefore, in the format of the expenditure part of the university budgets, a combination of cost codes and funds is practiced. This is:
- wage fund;
- fund payments to off-budget state. funds;
- material and technical base development fund (MTB);
- social support fund;
- non-productive consumption fund;
- tax payment fund;
- reserve fund.
Sixth feature. Adjustable normative indicators are used in the practice of university budgeting. These are spending limits by classification codes and by funds, determined as a result of calculating the budget matrix of income and expenses. The structure of the budget matrix is shown in fig. eight.
Rice. 8. Budget matrix of income and expenses of the university
Line by line sources of income are indicated with maximum detail.
By columns directions of expenses are indicated with maximum detail. There are both classification codes and funds.
At intersection a specific line and a specific column is an indicator (in rubles), which characterizes the planned value of a specific expense at the expense of a specific source of funds. The budget matrix is calculated in two versions:
- based on a centralized BDR;
- based on the integrated BDR NSTU.
It structures income and expenses and shows them relationship.
Sum of values of all rows in a specific column of the matrix gives an indicator of the planned expenditure for the entire period for a specific code or fund.
Therefore, in the final row of the matrix, in fact, spending limits are presented. It is they who are brought to specific units and performers. According to these limits, daily (current) accounting of expenses and control over the execution of the budget are carried out.
Seventh feature. The income and expense matrix is an original tool for the operational management of university cash flows, developed at NSTU.
Eighth feature. Coordination of actions of all elements of the financial structure of the university in the budgeting process is carried out using target and standard indicators. Their composition is reasonably limited, agreed between all participants in the budget process and approved.
Target policy indicators that are not subject to change during the budget period:
- % of deductions to the income of the centralized budget of NSTU (now for all types of activities it is 30%, for contractual R&D - 10% -15% due to their specification);
- the limit value of the payroll with accruals from the total income (now it is 48% -55%, depending on the type of activity). This is a very important indicator that regulates the distribution of funds for wages and the development of MTB;
- the limit value of the centralized payroll at the expense of the federal budget (no more than 5% of the total federal funding for wages); and the same indicator at the expense of own income (no more than 5% of total amount centralized budget revenues). This indicator regulates the ratio of the payroll of divisions and the centralized payroll, it is very important for coordinating the interests of all structural divisions and the administration;
- the limit value of the non-productive consumption fund (no more than 3% of the total income of any CFD);
- spending on this fund subject to income tax, but inevitable in current activities; it is only important to limit them, it is impossible to prohibit;
- marginal ratio between the level of remuneration of the head of the university and the average salary one payroll employee (six to one); an important indicator that regulates the relationship between the administration and employees on remuneration.
Ninth feature. Operational management according to the plan-fact analysis scheme in the budget system of NSTU is carried out in terms of income in the BDDS format, in terms of expenses - in the BDR format. In addition, restructuring and analysis of own funds on the personal account of the university is carried out promptly and regularly.
Operational management of expenses in the BDR format is carried out according to the limits, which was discussed above.
Consider the BDDS format (see Fig. 9).
Rice. 9. Format of the NSTU cash flow budget
By lines - all sources of income and expenses in the mode of their monthly change.
For this budget, for a quick visual perception of information about the movement of cash flows, a schedule for the implementation of the university's budget for the year is built (see Fig. 10).
Rice. 10. Schedule for the implementation of the budget of the university for the year in terms of income and expenses
Top part- income; below are expenses. The visibility is provided, but a comparison of income and expenses in dynamics naturally arises. To do this, a cash flow graph is built (see Fig. 11).
Rice. 11. Cash flow chart
He is very handy tool operational cash flow management.
In the example shown in the graph, there is a deficit cash in July and August.
If the graph is for planning period, then this situation indicates improperly planned expenses. They do not correspond to the income schedule, but not in terms of the overall balance, but in terms of lines. When planning a budget, this situation is called an imbalance.
In this regard, we designate the following distinctive feature of budgeting:
Tenth feature. Unbalanced budgets at NSTU are not approved.
Therefore, the entire procedure for preparing the university budget goes through several iterations (see Fig. 12).
Rice. 12. Scheme of the iterative process of budgeting
Based on the information collected in accordance with the goal of several alternatives, a Budget-1. As a rule, it is unbalanced.
Basic techniques for achieving balance:
- change in the amount and composition of expenses;
- analysis of additional sources of income.
As a result, we have Budget-2. If at the same time there is no balance, and all the possibilities of the above methods have been exhausted, then the following is carried out:
- analysis of the possibility of domestic lending;
- change in the regulatory framework (increase in contributions to the Central Fund). These are extreme (exceptional) methods, but since they are possible, we do not exclude them.
The result is Budget-3.
If there is an imbalance in it, then it is necessary:
- change the target settings for budget planning;
- change original operating budgets
And repeat the process of drawing up a balanced balance sheet.
Let's go back to budgeting.
The situations that arise in the process of implementing the university budget are much richer and more diverse than one might imagine. No plan can foresee the emerging reality one hundred percent.
If, when planning, the situation of a shortage of funds is not allowed and excluded, then in reality it can develop. So:
Eleventh feature. The financial system of NSTU provides for the possibility of internal lending to the activities of the Central Federal District at the expense of centralized funds and the activities of the administration at the expense of subdivisions.
For any CFD, a shortage of funds (a negative balance of BDDS) means their temporary borrowing from outside (from another CFD or from centralized funds).
If objectively there were circumstances that led to an unplanned, but actually formed temporary shortage of centralized funds, then the source of short-term internal credit is the own funds of divisions.
And it is absolutely unacceptable to have a shortage of funds from the integral budget of the university. Therefore, BDDS and the cash flow schedule - essential tools operational management of the university finances.
It can be argued: if the university has operating budgets in all areas, projects, CFD; there is a BDR, but no BDDS, then there is no budgeting at the university. Since in this case, income and expenses are not linked in time and there are no guarantees that the university will be funded.
Only in the presence of BDDS, the manager keeps the financial situation under control in essence, and not formally.
Twelfth feature. A promising task of budgeting is the development of a management balance sheet according to the international methodology, based on the results of the BDR and BDDS, and not on the basis of standard financial statements.
Thirteenth feature. In the financial structure of NSTU, through the Central Federal District and the system of budgets, the general principle of decentralization of university management is implemented, according to which rights and resources are delegated by hierarchy levels and responsibility for decisions is headed.
In conclusion, we note one more distinctive feature.
Fourteenth feature. The legal basis of the budgetary system of NSTU is a set of intra-university normative documents.
A. M. Grin, 2003
Grin A. M. University budget management / A. M. Grin // University management: practice and analysis. - 2003. - N 4 (27). pp. 16-24
Management - it is a purposeful process of the influence of the subject on the object in order to achieve a certain result.
Management as a whole is a rather complex, multidimensional concept, it can be considered from the point of view of various approaches:
- instrumental approach- as a set of certain tools, methods, methods of influence;
- process approach- as a specific process;
- functional approach– as a set of functions;
- systems approach- as systems.
From a more complete point of view, systemic, approach - budget management - this is a complex process that represents the unity of managed and managing systems, where the set of financial and budgetary institutions (institutions) acts as the managing system (subjects of budget management), and the set of budgetary relations acts as the managed system (objects of budget management).
AT recent times all over the world, including in Russia, in the sphere of state and municipal government are increasingly using management tools that have been borrowed from the business sector ( strategic planning, focus on the final result, performance efficiency), in connection with this, a new concept appeared - b budget management
budget management is a process of managing the formation, distribution and use of state (municipal) resources and optimizing cash flows in the interests of the socio-economic development of individual territories and the country as a whole, as well as improving the quality of life of the population of these territories.
From the standpoint of a systematic approach, the content of the budget management system can be structured in following form(fig.4.2.)
I. Subjects of budget management: financial and budgetary institutions (budget management apparatus)
The budgeting apparatus consists of a large number bodies and services that can be classified according to two main features - according to the degree of specialization in management budgetary relations and level of control.
a) General management of budgets is carried out by:
Federal level(in regions and municipalities, budget management is built by analogy with the federal level)
President of the Russian Federation(he delivers the Budget Message, which reflects the main directions of the budget policy (for example, in 2010, the President delivered the Budget Message on June 29, where he outlined the increase in the efficiency of budget spending as the main priority, and on June 30 the Government approved the Program to improve the efficiency of budget spending), signs federal laws, including “On the federal budget” (has the right of “last” signature), issues decrees and orders on financial matters.
Main Control Directorate of the President of the Russian Federation(under the Administration of the President of the Russian Federation) - endowed with a number of control powers in the public sector, but cannot independently apply sanctions, can only send orders to eliminate financial violations in the public sector.
Federal Assembly of the Russian Federation(considers and approves draft federal laws in the financial and budgetary sphere; the draft federal budget, as well as a report on its implementation).
Government of the Russian Federation(regulates and controls the financial activities of ministries and departments, interbudgetary relations, informs State Duma on the execution of the federal budget, and also provides the Accounts Chamber with the information necessary for the exercise of its control powers).
Thus, the President of the Russian Federation determines the strategy for managing budgetary relations, has the right of final signature on financial laws, and has control powers. Executive authorities organize work on budget management, carry out planning, operational budget management and current control. Bodies of representative power exercise parliamentary oversight when considering and approving budgets and following the results of its execution. Such a division of functions in the sphere of budgetary authority management is projected onto the regional and municipal levels.
b) Specialized bodies for managing budgetary relations
Ministry of Finance of the Russian Federation -federal agency executive power, ensuring the conduct of a unified financial policy in the state, management of the organization of finance in the country.
The main powers of the Ministry of Finance in the public sector(Article 165 of the RF BC) :
Develops the main directions of the budget and tax policy of the Russian Federation;
Develops a forecast of the main parameters of the budget system of the Russian Federation, incl. consolidated budget forecast;
Draws up a draft federal budget and provides methodological guidance in the field of drawing up and executing budgets of the budget system of the Russian Federation;
Responsible for the execution of the federal budget;
Maintains a register of expenditure obligations of the Russian Federation;
Distributes interbudgetary transfers between regions;
Develops budget reporting forms for all budgets, etc.
Federal Treasury - ensures the implementation of the federal budget, cash service execution of budgets of the budget system of the Russian Federation, carries out preliminary and current control over the conduct of operations with federal budget funds (Article 166.1. RF BC).
From January 1, 2008 (in connection with the adoption new edition RF BC) Article 215 was excluded from the RF BC, which was called “Treasury Budget Execution” (as an alternative to “bank budget execution” before the adoption of the RF BC in 2000), instead of it a new article appeared - “Fundamentals of Budget Execution”, where for approved by the Federal Treasury "cash service budget execution", i.e. conducting and accounting for operations on cash receipts to the budget and cash payments from the budget (Article 6 of the RF BC), thus execution of budgets now provided executive authorities(Government of the Russian Federation, Administration of the Smolensk region or the city of Smolensk) and organized by the relevant financial authorities(Ministry of Finance of the Russian Federation, Departments of Finance of the Smolensk Region and the city of Smolensk), and the Treasury acts not as a manager, but as a cashier, treasurer (however, the Federal Treasury can also transfer the functions of a cashier to executive authorities, provided that cash execution will be ensured at the expense of the region's own revenues).
federal Service financial and budgetary oversight(since 2005) – performs the functions of control and supervision in the financial and budgetary sphere, as well as the functions of a currency control body (Article 166.2 of the RF BC). Her main specialization in the field of budgetary control is control over the use of federal budget funds, funds of the VBF, over compliance with the requirements of the budgetary legislation of the Russian Federation by recipients financial assistance from the federal budget, guarantees of the Government of the Russian Federation, budget loans.
Federal tax service - a federal executive body that exercises the functions of monitoring the correctness of the calculation, completeness and timeliness of making tax payments to the relevant budget (since it is taxes that play the predominant role in budget revenues, its role is very large).
Federal customs Service – control over the receipt of customs legislation and the receipt of customs payments to the budget.
Accounts Chamber of the Russian Federation(Article 167.1 of the RF BC) is a permanent independent financial control body reporting to the Federal Assembly of the Russian Federation.
The main specialization in the field of budget control is control over the execution of the federal budget and the use of federal property, as well as financial expertise of draft federal laws that provide for the implementation of budget expenditures or affect the formation and execution of the federal budget and extra-budgetary funds.
II. Budget management object: budget relations.
III. Management levels: federal, regional, municipal, which since January 1, 2006 has been divided into 2 sublevels (in accordance with Federal Law No. 131 of 2003):
- the level of municipal districts and urban districts;
The level of urban and rural settlements.
IV. Functional elements of budget management: budget planning and forecasting, operational budget management, budget control
Function- this is an external reflection of the internal essence of a phenomenon, i.e. it is the work that one category or another performs.
Forecasting in general - this is the intelligence of the future
1. Budget forecasting- a reasonable judgment about the prospects for the possible state of the budget in the future, alternatives for its development and timing of implementation.
The purpose of forecasting is substantiation of the prerequisites for making certain managerial decisions on the formation and execution of the budget in the medium or long term.
Budget forecasting methods:
2 groups of methods
1. Formalized Methods(mathematical)
Modeling;
Correlation-regression analysis.
2. Methods of expert assessments(more subjective, less formalized)
Problems in the field of budget forecasting. The criteria for the quality of forecasts are their accuracy and the presence of a systematic deviation. In foreign practice, 2 types of forecasting are common - conservative and optimistic. With conservative forecasting, revenues are purposefully underestimated, with optimistic forecasting, state taxes are unjustifiably increased. expenses, which leads to the regular excess of the legally established volumes of the budget deficit. Overestimation of expected income is fraught with a budget deficit and an increase in debt, or a reduction in spending. Underestimation of budget revenues (more often observed in our practice at all levels) leads to incomplete use of resources, which reduces the efficiency of spending.
The forecast of budget indicators should be considered in the general context of macroeconomic indicators (GDP, inflation rate, etc.). The link between macroeconomic indicators and the forecast of tax receipts is most obvious. An inflation forecast error distorts the real cost of statutory funding. In our country, this error is observed from year to year - for example, for 2010 inflation was forecasted at 6.5%, but in reality it was 8.8%. Inaccurate exchange rate prediction can change the cost of servicing external debt. However, first of all, competent forecasts of world prices for raw materials are important.
To assess the accuracy and quality of budget forecasting in the Russian Federation, the following figures can be given - in the conditions of the crisis of 2008-2009. on GDP growth, the Ministry of Economic Development made a mistake in estimates by 14.6%, although a deviation of 0.5% is considered acceptable, and on investments - by 30.8% at a rate of 1.5%. In 2009, against the backdrop of unbridled growth in oil prices, plans for income and expenses were raised. At first, the cost of a barrel was set at $52, and revenues at 7.4 trillion rubles. But oil prices jumped to $129 per barrel, the Ministry of Finance was "persuaded" to include in the budget the cost of a barrel above $90. Incomes were raised to 10.9 trillion rubles and increased liabilities were taken against them, including pension and social ones. Then both oil and revenues fell, but it was impossible to get out of the circle of obligations taken, saved by the Reserve Fund. Thus, due to the poor quality of forecasts, there are serious risks for fiscal policy and, ultimately, for overall macroeconomic stability.
2. Budget planning - activities for the development and drafting of the budget, which ensures the balance and proportionality of budget revenues and expenditures, coordination and coordination of the activities of the participants in the budget process in the course of budget execution.
Budget planning is one of the stages of the budget process.
The preparation of draft budgets is preceded by:
1. development of forecasts for the socio-economic development of the Russian Federation, subjects of the Russian Federation, municipalities and sectors of the economy;
2. preparation of consolidated financial balances.
Budget planning methods:
Extrapolations;
Normative;
Balance;
index;
Program target
Problems in the field of budget planning . Currently, in Russia, the drafting of budgets is based on the “from what has been achieved” method, when the budget items of the upcoming financial year are determined by indexing the budget indicators of the previous financial year. One of the indices is the CPI, which determines the rate of inflation. The situation in the field of budget planning should be changed by a programmatic approach to budgeting, based not on indexing the expenses of the previous period, but on achieving specific goals and objectives, for which a certain amount of funding is planned, laid down in the form of a program with a specific indication of activities, deadlines, performers.
3. Operational financial management in the public sector - a set of measures developed on the basis of an operational analysis of the current financial situation, pursuing the goal of obtaining the maximum effect at the minimum cost.
Operational management of budgets is carried out by executive authorities at all levels - the Ministry of Finance of the Russian Federation, the Department of Finance of the Smolensk Region, the financial department of the Administration of Smolensk and other bodies and services that manage budgetary relations on a daily basis.
4. Budget control- allows you to compare the actual results of the use of budgetary resources with planned indicators, identify reserves for their growth, outline ways for their more efficient use.
Classification of financial control on various grounds, the main of which include:
1.Types of control- administrative, parliamentary, departmental, on-farm, independent, public, etc.
2.Forms of control- revision, verification, supervision, etc.
3. By time- preliminary, current, subsequent
4. organs, exercising control, incl. and in the public sector
As part of the budget process, many of its participants are endowed with control functions. Thus, certain control powers are exercised by the President of the Russian Federation, executive and legislative authorities, specialized control bodies (Federal Treasury, Accounts Chamber of the Russian Federation, FSFBN, etc.), as well as managers of budgetary funds (ministries, departments).
It is important to take into account that there are close links between all the functional elements of the budget management system, and feedback including. In this case, a special role belongs to control, which should be carried out at all stages of budget management.
V. Methods of influence: taxation, budget financing, budget lending, etc.
VI. Influence tools: fines and penalties for violations of budget and tax legislation, tax incentives, subsidies, subventions, subsidies, budget loans, etc.
VII. Legal support: The Constitution of the Russian Federation, the Budget and Tax Codes, laws regulating budgetary legal relations.
VIII. Regulatory support: instructions, norms, norms, tariffs.
IX. Information Support: budgetary and financial statements, statistical data, Internet resources, etc.
X. Purpose and result of the impact: improving the quality of life of the population.
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If an enterprise draws up budgets (that is, some financial plans), can we say that a budgeting system has been introduced there? Most often, after a close acquaintance with how budgets are compiled and used, a negative answer follows. Understanding what exactly is budgetary management- so far quite a rare occurrence even among the heads of financial services of enterprises. Meanwhile, the very term "budgeting" is widely used and attracts attention as a fashionable management technology. In our opinion, it is time to carefully consider what principles are key to budgeting technology in order to distinguish "correct" budgeting from "false" one.
Budgets are plans for the activities of an enterprise and its various structural units, expressed in financial terms. The main purpose of budgets is to support the solution of three management tasks:
- financial condition forecast;
- comparative analysis of planned and actually obtained results;
- assessment and analysis of identified deviations.
So budgets are just tools corporate governance. Availability some budgets does not yet mean that they can be effectively used, or that they really "work" in the enterprise management loop.
We allocate seven basic principles, building a full-fledged budget management system. Let's consider each of them in more detail.
1. Budgeting is a tool to achieve company goals
Before developing a plan, you need to define goals. Planning without goals is pretty pointless. Goals are formed at the strategic level of corporate governance. Thus, budgeting is a tool for the implementation of the enterprise strategy. With the help of this technology, an inextricable link between strategic goals and plans aimed at achieving them, and ensuring the implementation of plans by operational processes, is ensured. It is budgeting that drives the strategy.
Formally, you can draw up budgets without worrying about some goals. They do so often. If any sense can be found in this activity, then it consists only in obtaining a financial forecast: what will happen if we continue to "go with the flow."
2. Budgeting is business management
The basis of budgeting is financial structure. It should reflect, first of all, the structure of the business and the types of activities in which the enterprise is engaged. If an enterprise runs several businesses that are relatively independent sources of profit, then each business should have its own budgets. This is necessary in order to correctly assess the results of activities in each area, to ensure effective management of each of them.
Again, it is possible to formally draw up a single company budget without having to deal with the difficult task of building the right financial structure. This is also a fairly common situation. The benefit of such a budget is negligible. According to it, it is impossible to determine where profit arises and where it is "eaten away", what targets are set for the heads of various structural units, and to what extent they are achieved. In other words, such the budget as a management tool is useless.
3. Budgeting is management based on balanced financial indicators
Before proceeding with the development of budgets, it is necessary to determine which financial indicators the management of the enterprise is guided by, which indicators are accepted as criteria for the success of the company's activities for the planning period. These indicators should be linked to the strategic goals and be very specific. For example, to say that we choose profit as one of the key indicators means to say nothing. Profit can be long-term or current, so it must be associated with a time period. In addition, profit can be marginal, gross or net. This choice determines the priorities for company leaders and managers at all levels.
In addition, financial performance must be balanced because an improvement in one indicator often leads to a deterioration in another. And finally, the indicators should represent a system that covers all elements of the financial structure.
A balanced system of financial targets and constraints is the "architecture" of the budgeting system, in accordance with which budgets are developed.
4. Budgeting is managing with budgets
The main tools of budget management technology are three main budgets:
- Cash flow budget intended for management liquidity;
- Income and expense budget to help manage operational efficiency;
- Forecast balance required for management asset value companies.
Master budgets are prepared not only for the company as a whole, but for each business unit (profit center), and represent only the "tip of the iceberg" of the budget system, which includes many interconnected operating and support budgets.
5. Budgeting covers the full control loop
Any management process is a closed loop, including the stages of planning, control, analysis and regulation. According to the results last stage decisions can be made on redistributing resources, adjusting plans, rewarding those who have distinguished themselves, punishing those responsible, etc.
However, in the budgeting process, only the planning function is often singled out. Obviously, if the plan does not "work" as a tool for monitoring and analyzing the results achieved, does not serve as the basis for building a system of motivation for managers and employees, its value is depreciated.
6. Budgeting covers all levels of management
One of the important features of an effective budgeting system is its "total" distribution to all levels. organizational structure. Involvement in the budgeting process of each employee responsible for a particular "line" of the budget allows us to solve several important tasks:
- Reducing the complexity of the budgeting process through its decentralization (an overly centralized budget is difficult to develop, adjust and monitor its execution).
- Increasing the responsibility of specific performers by delegating to them the authority and responsibility for the implementation of certain budget indicators.
- Building an effective system of motivation related to financial plans companies.
It is important to understand that budgeting is collective planning in which managers of all levels of management participate. Consistent coordination of plans at all levels of the organization is similar to the process of concluding an agreement between the "managers" of the company to achieve an agreed result. Therefore, the budget can be defined as treaty between participants financial management about coordinated actions aimed at achieving the goals of the company.
7. Budgeting is carried out on a regular basis
Often, the developed plan is put "on the shelf" until the end of the year, when it's time to take stock. It is clear that such a plan is useless, and the time spent developing it is wasted.
Budgeting, like any management process, should be carried out continuously. The approved plan is only the basis for continuing the planning work. It is quite fair to observe that any plan becomes obsolete the moment it is approved. The reason for this is the constant change in the conditions and parameters that served as the basis for the preparation of plans. Our understanding and assessment of the situation is also changing, and there is a constant need to make adjustments to the developed plans. The realization of this eternal dissatisfaction with the result of planning prompted General Eisenhower to exclaim: "Plans are nothing, planning is everything!" Indeed, the planning process is, in a sense, more important than the result it is aimed at. Since it is in the course of planning that leaders at all levels collectively develop coordinated approaches to solving problems, comprehend the challenges facing them, assess the limitations, opportunities and risks.
Summing up, we will give a definition of budgetary management, summarizing the provisions discussed above.
Budgeting is a business management technology at all levels of the company, ensuring the achievement of its strategic goals with the help of budgets, based on balanced financial indicators.
This article presents only the most general provisions budget management concept. In reality, there are no mandatory requirements for how budgets should be used to manage an enterprise. Unlike accounting, there are no approved recommendations and rules. The introduction of budget management technology is a creative process in which one should be guided by an understanding of the "mechanisms" of management, knowledge of one's own business and common sense.
Budget Management System- the system of the enterprise, in which the activities of the enterprise are implemented with the help of budgets, regulations for working with them.
On any commercial enterprise(and other enterprises are now difficult to find in the post-Soviet republics, even if they are state-owned, this does not change their essence) the main goal at present is to make a profit as financial result enterprises. The purpose of enterprise management, therefore, is to manage the process of making a profit, through profit planning and its consistent achievement.
The actual results of the enterprise are expressed through accounting documents: balance sheet, cash flow statement and income statement. These documents reflect only the actual results, the entire control loop is the implementation of the following functions:
- planning (determination of predictive values of expected results);
- accounting (registration actual values results obtained);
- control (comparison of the plan with the fact and identification of deviations);
- analysis (finding out the reasons for the deviation of the fact from the plan);
- regulation (taking measures to eliminate deviations).
In an enterprise, in order to implement a complete budgeting framework, it is considered necessary to draw up the following operating budgets and financial budgets:
- cash flow budget (BDDS);
- income and expenditure budget (BDR);
Operating budgets
Financial planning is just one aspect of budgeting in an enterprise. Another important aspect manifested in the preparation of operating budgets.
It is customary to allocate at least 8-12 operating budgets (planning documents):
- Sales budget.
- Cash flow budget.
- production budget.
- The budget of direct material costs.
- Supply budget.
- Budget for direct labor costs.
- Production overhead budget.
- Production cost budget.
- Business expenses budget.
- Administrative budget.
- The budget of settlements with creditors.
Operating budgets are the basis for the preparation of the resulting, financial budgets. It is in operating budgets that information for financial planning is contained. When compiling the entire set of budgets (operational and financial), it is necessary to:
- predict the volume of sales;
- determine the expected volume of production;
- calculate production costs and operating costs;
- define cash flow and other financial parameters;
- generate forecast financial documents.
The set of operating and financial budgets covers all the main aspects of the economic activity of the enterprise. Therefore, we can conclude that budgeting is, in fact, technology integrated economic planning.
Aspects of budgeting
The budget approach as a technology of integrated economic planning is distinguished by semantic focus on sales. As already shown, the first, initial budget of the enterprise is the sales budget. This is where the budgeting process begins.
The next important aspect of budgeting is the introduction of completed management technologies based on budgets. In this sense, budgeting is no longer understood as a planning technology, but as control technology economic activity of the enterprise, within the framework of which the functions of planning, accounting, control, analysis and regulation are performed.
The introduction of these technologies in the enterprise requires:
- determining the composition of budget forms, as well as a set of planned indicators and methods for their calculation for each form of the budget;
- building an accounting system in the context of the set of budgetary forms adopted at the enterprise;
- development of methods of control and analysis of budget execution;
- introduction of regulations for the consideration and adjustment of budgets by officials and governing bodies of the enterprise, including decision-making procedures for regulating emerging deviations identified by the results of the analysis of the actual execution of budgets.
The implementation of the first group of measures (determining the composition of budgets and methods for their preparation) essentially means the development of a technology for planning the economic activity of an enterprise. Depending on the specifics of the enterprise, as well as on the type of budget (sales, production, stocks, finance, etc.), various methods and approaches can be used for planning.
When setting up budgeting at an enterprise, it is required, first of all, to solve a very voluminous and non-trivial task - to choose a methodology for planning the economic activity of an enterprise in its various aspects. Questions of economic planning methodology at the enterprise level are interpreted ambiguously by various scientific schools and practitioners. And the methodology itself is in constant development. On the aspect of optimizing the planning and implementation of economic activities, we will dwell below.
In addition, when determining the composition of budgets, it is necessary to determine the structural links for which certain budgets will be drawn up. It is customary to call such structural links "economic responsibility centers" (sometimes they are called "financial responsibility centers").
The implementation of the second group of measures (construction of an accounting system) is connected with the solution of the issues of organizing the so-called management accounting. Here, two directions of action are possible: to take the accounting system as a basis, "tying" it to the technology of budget management (in this case, the frequency of compiling accounting documents and the composition of the indicators taken into account change, in some cases additional accounting forms are introduced); put at the enterprise management accounting itself, that is, an autonomous (from accounting) set of accounting registers and regulations.
The implementation of the third group of measures (development of control and analysis methods) involves the introduction of standards for permissible deviations of the “fact” from the “plan” at the enterprise, as well as the creation of a constantly updated “package” of typical causes of such deviations. To identify the circumstances of the appearance of "atypical" causes of deviations, methods for express analysis of such circumstances are being developed.
The implementation of the fourth group of measures (regulations for the review and adjustment of budgets) means the development and implementation of organizational schemes for budget management. At the same time, officials and governing bodies responsible for making managerial decisions, as well as their mode of operation, are identified.
Budgeting in this regard is revealed as control technology financial and economic activities of the enterprise. Within the framework of such technologies, planning, accounting, control, analysis and regulation of all types of activities implemented by the company are carried out.
Budget management system and optimization
Consider the optimization of the economic activity of the enterprise. By itself, the collection of information, its processing in the budget management system does not guarantee an increase in the company's profitability. The operational plans of the company and divisions: the cash flow budget, the budget of accounts payable and receivable, the budget of sales and purchases in terms of 1-3 months, for example, have as their main goal to ensure only solvency and financial stability companies.
The task of increasing profitability is solved by drawing up and executing an income-expense budget, production and sales budgets, for at least a year due to seasonality that affects the company's activities.
First of all, we are talking about building rigorous mathematical models and solving optimization problems. This question has not been significantly touched upon in the domestic literature for quite a long time, largely due to the emerging market in Russia. Now, this problem has arisen for many enterprises that have already introduced the basic elements of a budget management system and have established a single circuit for collecting and processing accounting, production, financial and management information.
It seems expedient to expand the apparatus of budgetary management and include in it methods of optimizing production and sales.
The formulation of the optimization problem to a high degree depends on the existence and uniqueness of the criterion for the effectiveness of management, the number and interconnectedness of persons managing the enterprise, the structure of the set of admissible controls, and other factors. After setting the budgeting system at the enterprise, the problem of increasing profitability can be considered well-structured, in which significant dependencies can be clarified and quantified, in contrast to unstructured ones, which contain only descriptions of the main features and interconnections, and their quantitative indicators are completely unknown, and from weakly structured, containing both quantitative and qualitative elements that have dominant trends.
Methods for solving structured problems are based on the application of mathematical programming. A mathematical programming problem can be written as general view as
where is the vector of variables corresponding to the components of the choice alternative; -scalar functions, which are a formalized reflection of the interaction of resource costs for the implementation of the choice alternative, which corresponds to the vector of variables x and present spending limits. are the constraints of the problem given by equalities and inequalities, respectively; - efficiency criterion, a quantitatively specified feature, according to which the quality of the chosen alternative is established. is an objective function that associates each alternative with the value of its performance indicator.
In mathematical programming, it is customary to distinguish the following sections: linear, nonlinear, quadratic, integer, stochastic, dynamic programming, each of which has its own field of application in the economy.
Budgeting and Mathematical Programming
Not all works on budgeting reveal the application of mathematical programming to the development of planning methodology in an enterprise. Optimization of production and sales is found only in works on economic and mathematical modeling, where optimization issues are studied, but their connection with budgeting is not deduced. The connection between models with mathematical programming is established in the "System for the optimal development of the enterprise".
Commercial budgeting
Commercial budgeting is related to the budgeting of trading activities. But any enterprise sells something, it is difficult to imagine an enterprise that does not sell anything. Therefore, the term "commercial budgeting" itself does not introduce anything new in comparison with the main term "budgeting". Its use is impractical neither in theory nor in practice.
