The Ministry of Industry and Trade won first place in the rating of quality of financial management of chief managers of budgetary funds

The Ministry of Industry and Trade of the Russian Federation (Minpromtorg of Russia) won first place in the rating of quality of financial management of the chief managers of budgetary funds (CMBF)

The corresponding research prepared and announced in the summer of 2015 the Ministry of Finance of the Russian Federation (Ministry of Finance of the Russian Federation). The victory of Minpromtorg of Russia is not casual. The previous year department took care of increase in level of financial management, having implemented an internal system of control. The software using which collecting of indicators of financial work of subordinated organizations is carried out by request of the ministry was developed by the Russian company "BARS GROUP".

How the rating was formed?

At assessment the Ministry of Finance of the Russian Federation considered qualitative and quantitative indices of 2014 81 GABS (security agencies did not participate in rating, for obvious reasons, and the materials having signature stamps "confidentially" and "top secret" were not considered).

During measure calculation the industry features affecting quality of financial management and at the same time not depending on any actions of chief managers of means of the federal budget, for example were taken into account: execution of the instructions and orders of the President, the Government of the Russian Federation accepted in reporting period, compensation payments to citizens on the last military conflicts, etc.

What was special attention paid to?

As you know, the quality of financial management in essential degree depends on the organization by the chief manager of means of the federal budget of procedures of budget planning, budget implementation, conducting budget accounting, drawing up and providing the budget reporting. In this connection in the analysis, among other, the quality of the legal acts regulating activity of budget and autonomous institutions was estimated. In particular, regulating drawing up, a statement, maintaining budget estimates, administration of federal revenues, conducting accounting policy, implementation managerial and analytical accounting, the organization of internal financial audit, conducting monitoring of effectiveness of budgeted expenses, qualities of the provided services.

As Alexander Boldyr heading the profile department of Department of budget methodology of the Ministry of Finance of the Russian Federation participating in drawing up rating among the most significant figures of merit of financial management – data of mid-term financial planning of budget implementation on expenses told. In the analysis these indicators were entered and specified taking into account all innovations of budget process accepted in recent years. In particular, in comparison with originally accepted techniques in a component of workmanship of the budget regarding expenses there were indicators describing the course of finishing limits of budget commitments, soprinyatiye of budget commitments on the contracted expenses and subsidies for the capital investments.

The timeliness and completeness of providing the register of payment commitments, justification of budgetary appropriations, their return and distribution belong to the most significant figures of merit of financial management; efficiency of budgetary commitments on purchase of works, goods and services; completeness of use of budgetary funds; timeliness of providing subsidies to federal and budget autonomous institutions; deviations from the forecast of cash payments for expenses of the federal budget; quality of management of means of the federal budget regarding interbudget transfers, subsidies and subventions; effective management of accounts payable. Besides, the changes made at the initiative of departments to summary budget painting and to the law on the federal budget are important.

Verdict of the Ministry of Finance of the Russian Federation: is what to work on

According to the results of monitoring of quality of financial management average final score among GABS made 67, 1 points on a 100-mark scale.

The best results, in addition to Minpromtorg of Russia (85.5 points), showed:

• Federal Migration Service – 83.4 points;
• The Federal Customs Service – 82.6 points;
• The Federal Tax Service – 79.8 points;
• Investigative Committee of the Russian Federation – 75.9 points.

As a result of monitoring a number of essential shortcomings is revealed. So, for many GABS insufficient distribution of a limit of budget commitments is peculiar (that leads to growth of unused budgetary funds).

Within a year, up to the 4th quarter, according to the Ministry of Finance of the Russian Federation low interest of contracting is noted. In some cases the conclusion of public contracts over the finished limits of budget commitments proceeds that attracts application of the administrative responsibility.

Concerning mid-term financial planning of the budget the problem of untimely providing the documents necessary for budget making, the register of payment commitments, justifications of budgetary appropriations and other is detected.

The problem of low-quality cash planning of expenses remains. So, at 61 main managers of budgetary funds of a deviation of cash execution on expenses made more than 15% of the planned values set by the cash plan. At these nine GABS accumulative deviations for 2014 have 150%.

From quality evaluation of financial management of GABS – to assessment of the head of department

The quality of financial management of GABS has enormous value in the light of the new law on strategic planning. As expected, in the short term departmental plans of activity will form, affirm and be controlled according to the general requirements set by the Government of the Russian Federation, and they are, as a rule, high. Therefore, the probability of inclusion of the index of quality of financial management and the actions directed to its increase in departmental plans is high.

The result of a research of the Ministry of Finance of the Russian Federation, undoubtedly, is for GABS a powerful incentive for self-improvement. Each head should be interested in quality improvement of financial management, also his assessment will depend on it very soon.