Учёт. Анализ. Аудит (Sep 2019)

Problems and Peculiarities of Budgeting the Activities in Socially Oriented Non-profit Organizations

  • S. E. Egorova,
  • L. A. Yudanova,
  • V. A. Budasova

DOI
https://doi.org/10.26794/2408-9303-2019-6-4-32-41
Journal volume & issue
Vol. 6, no. 4
pp. 32 – 41

Abstract

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In the digital economy, the strengthening of the role of socially oriented non-profit organisations (NPOs) in addressing issues related to the harmonization of the social and economic aspects of society development, cannot be achieved without refocusing accounting on the solution of strategic tasks. An important tool of strategic planning and accounting in order to attract and monitor the use of earmarked funds — is budgeting, which had not been adequately reflected in the accounting activities of socially oriented NPOs. The organization of budgeting system in socially oriented non-profit organizations is based on the following characteristics: the problem of selection of calculation units; a high level of uncertainty of a profitable part of the budget, which is financed by revenues from basic and associate activities; the social orientation of the non-profit organizations, which defines the enhanced responsibility for performance and requires the clarification of the concept of operations results in itself. In the socially oriented NPO, the use of the result-oriented budgeting model, in which the expenditure of trust funds is administered in accordance with the principle of centralization on the one hand, and on the other hand, the objectives are achieved on the basis of the principles of decentralization, ensures planning, execution and monitoring of budget expenditures in direct connection with the specified, and achievable results. Under this model, the mobile annual budgets with a step equal to one month’s budgeting are used. Budget performance analysis aims to assess the quality of socially oriented non-profit organizations’ performance, which have a double-sided nature: on the one hand, the Organization’s efforts are evaluated, and on the other hand, the task force is evaluated. The effect of earmarked funds’ use becomes visible in subsequent reporting periods and is determined with regard to socially oriented NPOs within the society.

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