Targeted financing of the organization. Accounting

What is targeted funding?

Targeted financing (TF) is the receipt of funds from the state for certain purposes. The main feature of this event is that the money received must be used strictly for its stated purpose. Strict reporting is required. It is also necessary to prepare and approve an estimate. Funding is allocated to the following projects:

Maintenance of institutions for child and youth development.
Cultural and educational events.
Personnel training.
Research activities.
Capital investments.
Construction of residential buildings.
Elimination of losses.

Typically, the government allocates money to public projects. Funds are allocated for a specific purpose.

How to take into account funds for targeted financing when calculating income tax ?

Forms of government assistance

The components of targeted financing are specified in paragraph 1 of Article 251 of the Tax Code of the Russian Federation:

Subsidies and budgetary allocations.
Grants for the implementation of educational, cultural, scientific, environmental programs, events related to art.

Question: How is the sale of a fixed asset (fixed asset) that was acquired using targeted funding and used to conduct statutory activities reflected in the accounting of a non-profit organization (NPO)? The selling price of the fixed asset is 600,000 rubles, including VAT of 100,000 rubles. The initial cost of the fixed asset is 650,000 rubles. On the date of sale, depreciation in the amount of RUB 160,000 was accrued for the fixed asset. For profit tax purposes, the accrual method is used. View answer

Investments that are issued as a result of investment competitions.
Money issued from funds to support scientific and innovative work.
Donations.

IMPORTANT! Financing can be provided not only from cash, but also from property.

Accounting for government funding is established by PBU 13/200. This regulatory act distinguishes these types of state assistance:

Subventions are budget money issued free of charge. That is, the company does not have to return them. Funds are provided for the implementation of specific targeted expenses.
Subsidies are budget money issued on the basis of shared financing of expenses.
Budget loans, which are issued either in the form of money or in the form of property (land, natural resources). They do not include tax credits and deferments on debt payments.

the receipt and use of targeted financing reflected in the tax accounting of a non-profit organization ?

Accounting must reflect the following areas of spending covered by targeted financing:

Capital expenditures for the acquisition or construction of a company's fixed assets.
Covering current expenses (this may include the purchase of inventories, payment of salaries).
Compensation for expenses already incurred, including losses.
Immediate monetary support to the company in the form of emergency assistance.

IMPORTANT! The expenditure of public funds is strictly monitored by controlling structures. It is necessary to indicate funds in accounting only if the company will definitely receive them. Confirmation of receipt is a budget receipt and relevant notifications. The organization must also be sure that the money will be used for approved purposes. Documents confirming this: contracts, public decisions, design and estimate papers approved by the manager.

ATTENTION! Targeted financing does not include various benefits or participation of government agencies in the company's capital.

Annual reporting of NPOs: reflection of target funds in 1C: Accounting ed. 3.0

Published 03/09/2021 08:17 We continue to publish articles on the annual financial statements of non-profit organizations. In this publication we will talk about reflecting target funds in reporting in the 1C: Accounting program ed. 3.0.

According to Law No. 7-FZ (clause 1, article 3), non-profit organizations must have an estimate of income and expenses. The estimate is the main document on the basis of which a non-profit organization operates, so its preparation must be taken very seriously. You can download a sample estimate of income and expenses here.

The estimate is drawn up for a calendar year; in some non-profit organizations, the estimate can also be drawn up for the implementation of a specific program or project.

The estimate is essentially a plan reflecting the receipt and expenditure of targeted funds.

Please note: during the planned period, certain changes may be made to the estimate, but provided that this is stated in the constituent documents. Therefore, if possible, be sure to pay attention to this nuance, write down in the constituent documents the possibility of making changes to the estimate, because if there is a large discrepancy between the planned and actual indicators, the organization may be accused of misuse of money.

The estimate is approved by the highest management body.

An important point: approval of the estimate falls within the exclusive competence of the highest management body of a non-profit organization and cannot be transferred by it for decision to other bodies of a non-profit organization, except in cases where such a right is given to it by the organization’s charter (clause 3 of Article 29 of the Law of January 12, 1996 No. 7-FZ).

In practice, one of the most common mistakes is shifting the approval of the fundamental document to the permanent collegial elected body of the NPO. If this right is not specified in the Charter, then such an estimate will be considered invalid!

If changes are made to the estimate of income and expenses during the year, they are certified by the same management body that signed the original version of the document.

Before preparing your annual financial statements, check whether the expenses reflected in the accounting correspond to your estimate.

Advice: if you keep records in standard 1C Accounting 8.3, then it will be easier for you to check the estimate when the names of expenses in the program correspond to the expense items in the estimate. We discussed how to do this in an earlier publication.

As already written above, the estimate of income and expenses is a planning document.

In order to monitor the implementation of the estimate, non-profit organizations generate a report on the execution of the estimate .

It clearly shows how much money was planned and how much was actually spent. The report allows you to identify deviations in the estimate, which can be taken into account when planning the estimate for the next reporting period. When generating a report on the execution of the estimate, it makes sense to indicate (for example, in the Comments column) the reasons for the discrepancies.

A report on the implementation of income and expense estimates can be found here.

Funds remaining unspent in the current year are included as an opening balance in the estimate of income and expenses of the non-profit organization for the next year (Letter of the Ministry of Finance dated June 26, 2007 No. 03-03-06/4/75).

Regarding the estimate of income and expenses, we have considered the main points that are worth paying attention to when preparing annual financial statements.

Now let's talk about reflecting targeted funds in NPO reporting.

In the previous publication, we found out that the financial statements of a non-profit organization consist of a balance sheet, a report on the intended use of funds and appendices to them.

The report on the intended use of funds specifically discloses information in accordance with the Estimate of Income and Expenses - on the intended use of funds received by a non-profit organization for conducting statutory activities.

The main document designed to help the accountant in drawing up this report is the fifth section of the Information of the Ministry of Finance of the Russian Federation “On the peculiarities of the formation of accounting (financial) statements of non-profit organizations (PZ-1/2015)”.

Many accountants are faced with the question of using the cash or accrual method to reflect indicators in the report on the intended use of funds?

Let us turn to the Information of the Ministry of Finance, where, upon careful reading, clause 4.2 provides explanations on this issue, in particular, if a non-profit organization uses simplified methods of accounting, including simplified accounting (financial) reporting, then it independently decides to use the cash method of accounting income and expenses.

If a non-profit organization has decided to use the cash method of accounting, then the Report on the intended use of funds, as well as the Report on the implementation of the estimate, reflects only actual data.

Therefore, the data on account 86, the Report on the intended use of funds and the Report on the implementation of the estimate (provided that they are drawn up correctly) must coincide in terms of reflecting information on the actual receipt of income and expenses incurred for the reporting period.

Also, the balances of funds by items at the beginning and end of the reporting year of the Report on the targeted use of funds should be equal to the item “Targeted funds” of the corresponding columns of Section III “Targeted Financing” of the balance sheet.

Let's see how the Report on the targeted use of funds of a non-profit organization is filled out in practice.

All reporting in the program is located in the section Reports – 1C Reporting – Regulated reports:

Before we start filling out the report, we will create a balance sheet for account 86:

Note that financial statements in the 1C program: Accounting ed. 3.0 in general cases is filled out automatically, with the exception of the “Report on the use of targeted funds” form. It will have to be filled out manually: as we can see, the “Fill – Current Report” button is inactive.

This is due to the fact that the standard program 1C: Accounting ed. 3.0 is not provided for accounting in non-profit organizations (we have already talked about this several times).

Therefore, to quickly fill out this form, you need to keep account 86 correctly throughout the year.

So, let’s manually fill out the Report on the use of target funds, transferring data from the balance sheet to the report:

Important point! When filling out the report, do not forget that a deductible or negative indicator in the financial statements is shown with a minus sign (in parentheses).

If all the data in the report is filled out correctly, then, as already written above, the balance of funds at the end of the reporting year (line 6400) should coincide with the final balance of the account. 86, as well as with balance line 1350 “Target funds”.

But at the end of the year it may also turn out that the planned funds were not enough for the events planned within the framework of the statutory activities. Then the account balance 86 will be debit, and the line indicator 6400 will be negative and should be enclosed in parentheses. In this situation, it is necessary to explain in an explanatory note the reasons for the formation of such a result.

Author of the article: Anna Kulikova

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Comments

+1 Alena 02.22.2022 20:47 Anna, thank you for your help. I learned a lot from your articles. Please tell me, do you have an article on contributing authorized capital to an NPO? What kind of wiring is it reflected in?

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0 Olga 01/20/2022 01:05 THANK YOU FOR YOUR CARE ABOUT US ACCOUNTANTS!!!

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0 Anna Kulikova 09.10.2021 19:45 I quote Vialetta:

Anna, thanks for the article. You probably don’t have many accountants from non-profit organizations, but there is very little information on the Internet. And in this regard, the question is: how advisable is it to purchase 1c for an NPO or is it better to stay in 1c BP. We mainly conduct entrepreneurial activities; there are no targeted revenues. I will be grateful for your answer.

Vialetta, good afternoon.
If I had the financial opportunity, I would still prefer a specialized accountant. The product, since it takes into account the nuances of maintaining a statutory and business activity, allows you to automatically distribute common expenses between them, for example, when one person is engaged in one and another activity... Quote 0 Vialetta 09.10.2021 18:19 Anna , Thank you for the article. You probably don’t have many accountants from non-profit organizations, but there is very little information on the Internet. And in this regard, the question is: how advisable is it to purchase 1c for an NPO or is it better to stay in 1c BP. We mainly conduct entrepreneurial activities; there are no targeted revenues. I will be grateful for your answer.

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Accounting

TF funds are accounted for on the liability side of account 86 with the appropriate name. There is an accounting instruction according to which account 86 serves to summarize data on the movement of money that was received from the state. Money received for the implementation of projects is recorded in correspondence with account 76. When using money or property, correspondence with accounts 20 and 26 is used. The last account is used by non-profit organizations.

The credit flip of account 86 records unused funds. Credit turnover indicates targeted receipts, debit turnover indicates the use of funds. Let's consider the basic operations associated with targeted financing:

DT86 KT08. Directing money to purchase fixed assets and intangible assets.
DT86 KT10. Directing money to purchase tangible assets.
DT86 KT70. Directing money to pay salaries.
DT86 KT60. Directing funds to pay off debts to suppliers.
DT86 KT51.76. Refund of money that was not spent.
DT51 KT86. Receiving funds from the state.
DT76 KT86. Obtaining funds from budget financing.
DT60.76 KT51. Use of funds received free of charge to cover current expenses.
DT86 KT98-2. Reflection of funds received free of charge.

It is recommended that the accountant create 2 sub-accounts:

86.1. Receiving money from budget sources.
86.2. Receiving money from other sources.

It is also important to correctly maintain analytical accounting of financial assets. It is necessary to indicate the source of funds, the purposes for which they will be directed, and the conditions for receiving the money. It is required to register the amount of income for each type of financial fund, as well as the balances of funds received.

Examples

The production structure received funds from the state free of charge for the purchase of equipment. The following entries are reflected in the accounting:

DT60 KT51. Payment of fixed assets. The money is sent to the supplier.
DT08-4 KT60. Receipt of OS for production.
DT01 KT08-4. The OS has been put into operation.
DT86 KT98-2. Reflection of the target direction of money as part of the income of the following periods.
DT20, 23, 25-26, 29.44 KT02. Depreciation calculation.
DT98-2 KT91-1. Inclusion of income from the following periods in the amount of calculated depreciation into other income.

Let's look at another example with an NPO. The non-profit entity received funds to organize a charity event. The following wiring will be used:

DT20 KT60.76. A charity event was held using public funds.
DT20, 26 KT10. Consumption of materials.
DT20.26 KT70, 69. Calculation of salaries and insurance contributions.
DT60, 76 KT51. Payment for the services of the performer, contractor, supplier.
DT69 KT51. Direction of insurance premiums to funds.
DT70 KT50. Issuance of salary.
DT86 KT20, 26. Expenses are written off from the funds of the Central Fund.

The last entry is used only after current expenses have been paid. For each transaction, you need to reflect the exact amount of the transaction, as well as primary documents.

The concept of targeted budget financing

Definition 1
Targeted budget financing is the provision of funds from state budgets to various business entities for the implementation of certain activities.

As a rule, budgetary organizations receive targeted budget funding for the implementation of such activities as:

additional specialized education of enterprise employees;
providing enterprise employees with additional benefits (for example, construction of recreation or treatment facilities);
implementation of innovative projects;
etc.

Note 1

An important feature of targeted budget financing is the spending of funds received from the state budget exclusively for the purposes of such financing.

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Taxation

When taxing profits, TF funds will not be taken into account. This rule is specified in paragraph 1 of Article 251 of the Tax Code of the Russian Federation. This applies only to those revenues that are prescribed in Article 251 of the Tax Code of the Russian Federation. The issue of subsidies is not so clear-cut. The law states that everything will depend on the purpose of issuing subsidies. The nuances of taxation of funds are set out in more detail in the letter of the Ministry of Finance of the Russian Federation dated May 30. 2011 No. 03-07-11/151. In particular, subsidies are not included in income only if they are issued for the implementation of a government task.