Financial discipline is a special procedure for financial transactions. It is based on compliance with the requirements of the state for the creation, distribution and use of funds. Features of state financial discipline will be discussed further.
General information
The requirements of financial discipline are the rules, the implementation of which is mandatory for institutions, citizens, organizations, enterprises, state authorities, territorial administration, as well as their employees. They are aimed at observing the interests of the state, municipalities, specific citizens.
Financial discipline is a necessary condition for stability in the country. It assumes not only the responsibility of the subjects for the timely fulfillment of budget obligations, but also to the personnel involved in production or other economic activities. Compliance with financial discipline guarantees the efficiency of enterprises, institutions, authorities.
Features of responsibility
The legislation provides for various sanctions for violation of the financialdisciplines. These include fines, pen alties, and collection of arrears. In some cases, the entity may be declared bankrupt. This procedure entails the termination of activities and foreclosure on property.
The heads of enterprises, institutions, organizations, associations, government structures are responsible for violations of established regulations.
The current legislation also provides for criminal sanctions for non-compliance with regulations.
Financial Discipline Management
With the transition to a market economy, the rights of enterprises have expanded significantly. At the same time, the regulation of their activities was reduced. All this was accompanied by increased requirements for the financial discipline of organizations.
Its strengthening is ensured by improving the solvency of the enterprise by improving and optimizing production, enhancing the growth of economic efficiency of the activities carried out. Of particular importance is the balance of financial and production plans. It is also important to tighten the responsibility for violation of the order of settlement operations.
Objects of control
Disciplinary supervision is carried out by authorized bodies. One of them, in particular, is the Federal Tax Service.
The objects of control are:
- state power structures, their territorial divisions;
- municipal authorities;
- organizations, institutions of any form of ownership, the financing of whichcarried out by budgetary funds or through subsidies, transfers, subventions, subsidies;
- joint stock companies and other state-owned companies;
- off-budget state funds.
Types of control
Classification of supervisory activities is carried out depending on the subject composition. According to this criterion, control is distinguished:
- government;
- on-farm;
- public;
- independent.
In the latter case, we are talking about audit analysis.
Financial discipline can be controlled by the structures of state power and administration, regardless of the departmental affiliation of controlled entities. Such supervision is called nationwide. Departmental control is carried out by the control and audit departments of concerns, ministries, and territorial authorities. The object of supervision is the activities of specific institutions and enterprises.
Internal control is carried out by the financial services of the organization itself (enterprises or institutions). The object of supervision is the activities of the entire economic entity as a whole, and its divisions.
In Soviet times, public control was quite popular. Today, this oversight activity has taken on a new form. So, the control of banking structures over the financial condition of their clients is very common.
Audit (independent control) is carried out by specialized services or companies. This verification allows usersfinancial statements to obtain additional confirmation of the completeness and reliability of the information presented in the documentation. The key conditions for the audit are the independence of the contractor from the controlled entity, disinterest in the results of the audit.
Time
Monitoring of compliance with the requirements of financial discipline can be current, preliminary and subsequent.
The first one is also called operational. It is carried out during the implementation of settlement actions to prevent abuse in spending and receiving funds.
Preliminary control is carried out during the preparation, consideration, approval of the draft budget, estimates, financial plans.
Follow-up control provides for the analysis of financial and accounting reporting documentation. Based on the results of the assessment, plans are made for the next period.
Control methods
Financial discipline is supervised by:
- checks;
- analysis;
- revisions;
- examinations.
Checks are performed on the basis of reporting, expenditure, balance sheet documentation. During the process, individual issues related to financial activities are investigated, and measures are planned to eliminate the consequences of violations.
Surveys cover a fairly wide range of indicators. According to the results of their analysis, the solvency of the economic entity, the prospects for the development of the enterprise are determined.
Revisions are usually carried outat the end of the reporting period. The process evaluates the content, completeness and accuracy of the documentation.
Analysis involves a detailed study of annual or periodic reporting.
