Financing of public institution X and seeking additional sources of funding for the compulsory and above-standard primary education programme

In the diploma thesis, we present Public institution x, its organisation and operation, legal regulation, activities and management, as well as all sources of funding for the compulsory and extended primary education programme. Public institution x performs public service activities in the field of pre-school education and primary education and belongs to non-profit organisations. Additional funds can be obtained through donations, sponsorships and parental contributions. However, as such collection of additional financial resources often involves a lack of transparency and inadequate supervision of collected and spent funds, the relevant ministry has, with the amendment to the Organisation and Financing of Education Act in the past year, regulated the operation of school funds for primary schools.

Problem

In the diploma thesis, we present Public institution x, its organisation and operation, legal regulation, activities and management, as well as all sources of funding for the compulsory and extended primary education programme. Public institution x performs public service activities in the field of pre-school education and primary education and belongs to non-profit organisations. The founder of the institution is the local community.

Public institution x does not have its own assets, but assumes the responsibility of a good manager for managing the assets owned by the founder. It does not generate profit from commercial activities, and any surplus of revenue over expenditure is, in accordance with the law and with the consent of the financier and founder, spent for the purposes of the core activity or returned to the budget. Public institution x is a designated user of the uniform chart of accounts and certain specificities in accounting apply to it.

In accounting, it is necessary to observe numerous laws, regulations, ordinances and decrees, as well as decisions. For correct accounting, it is necessary to consistently and continuously observe all changes to regulations, which change and are amended too frequently. The legislation is too extensive, often difficult to implement in practice and also mutually inconsistent.

Slovenia will be able to build a knowledge-based society only if it ensures that the education system is also development-oriented and successful in practice. Schools that are development-oriented and aware of the competitiveness of schools in the region must implement modern programmes and activities. However, this today requires increasing financial resources, whilst society tends towards reducing financial resources for public spending.

State budget resources are limited, therefore schools are directing themselves towards collecting additional funds for development and implementation of quality above-standard programmes.

Results

Additional funds can be obtained through donations, sponsorships and parental contributions. However, as such collection of additional financial resources often involves a lack of transparency and inadequate supervision of collected and spent funds, the relevant ministry has, with the amendment to the Organisation and Financing of Education Act in the past year, regulated the operation of school funds for primary schools. For Public institution x, it is important to have a very well-organised financial and accounting service.

Accounting is an integral part of the institution's information system, which deals with accounting monitoring and assessment of operations, providing useful accounting information to both internal and external users. Accounting in a public institution is based on knowledge of regulations in the field of accounting and public finance, in the field of tax legislation and also labour legislation. Due to the importance of the presented issue of financing Public institution x, the following objectives were set in the diploma thesis: a) to determine the legal basis for accounting in a public institution, b) how to obtain additional sources for financing the activities of a public institution, and c) what parents must additionally pay for the compulsory school programme of a child, even though public education is fully financed from public funds.

Educational institutions will have to adapt to modern and new market conditions in these demanding times. There is an increasing tendency in society to reduce public funds, therefore new market conditions require commercially competent management that will, alongside good pedagogical leadership, also master the marketing of services.