Financial Plan of Public Institution Z

Public Institution Z is classified as an indirect budget user as a subject of the public sector. The purpose of its establishment is to provide public services in the field of social welfare. The objective of the ** public institution's** activities is ** to satisfy public needs and not to generate profit**. In the practical part of the diploma thesis, the focus was on accounting budgeting and planning in Public Institution Z. The financial plan of Public Institution Z was presented to the institution's council, which adopted and confirmed it as appropriate. The competent ministry also issued consent to the financial plan.

Problem

Public Institution Z is classified as an indirect budget user as a subject of the public sector. The purpose of its establishment is to provide public services in the field of social welfare. The objective of the ** public institution's** activities is ** to satisfy public needs and not to generate profit**. The institution does not carry out market activities; its operation is financed exclusively by the competent ministry.

The funds obtained for the institution's operation are limited, which makes accounting budgeting and preparation of the financial plan all the more important for the institution. The author of the diploma thesis first presented the theory of accounting budgeting in public institutions. She presented some of the laws, regulations and ordinances that are key to accounting budgeting in public institutions.

The Public Institutions Act precisely determines the conditions for establishing and managing a public institution, defines the bodies of a public institution and their competences and tasks. It also precisely defines the activities of a public institution and its financing. Accounting and bookkeeping in a public institution are more precisely determined by the Accounting Act and the Rules on the Uniform Chart of Accounts for the Budget, Budget Users and Other Public Law Entities. The content of the diploma thesis is ** accounting budgeting and preparation of the financial plan** for a public institution.

The provisions for preparing the financial plan are defined in the Public Finance Act, which more precisely determines the preparation of financial plans of public institutions, deadlines for preparation, possible amendments to the financial plan and reporting obligations on achieved objectives. The purpose of the diploma thesis was to investigate whether the methods and manner of budgeting in Public Institution Z are appropriate and good and to formulate possible proposals for improving the studied area.

Solution and Method

In the practical part of the diploma thesis, the focus was on accounting budgeting and planning in Public Institution Z. Through analysis of the financial plan of Public Institution Z and monitoring the implementation of the financial plan of Public Institution Z, it was established that the methods and manner of budgeting used by the institution in preparing the financial plan are appropriate. All legal provisions were taken into account in preparing the financial plan. The financial plan is prepared within the framework of the starting points received by the institution from its financier.

Assuming that in the financial year for which the financial plan is prepared there will be no significant changes in legislation that would substantially affect the institution's expenditure, it is established that the institution includes in its financial plan all the anticipated necessary financial resources for smooth operation for the current financial year. The author of the diploma thesis wanted to verify the following statements: 'The process of preparing the financial plan is appropriate and encompasses all organisational levels in the institution.' The process of preparing the financial plan in a public institution is multi-layered and requires cooperation between the institution's management body, accounting, financial service, human resources service, and programme and project managers.

The work programme shows that the process of preparing the financial plan encompasses all the important activities that the institution will carry out in the current financial year. Thus it can be stated that the process of preparing the financial plan is appropriate and encompasses all organisational levels. 'The confirmed financial plan is realistic and reflects the actual situation.'

Results

The financial plan of Public Institution Z was presented to the institution's council, which adopted and confirmed it as appropriate. The competent ministry also issued consent to the financial plan. The financial plan is prepared for the scope of all planned activities of the institution, which are presented in the work programme, so it can be stated that the financial plan is realistic and reflects the actual situation. 'A process for monitoring the implementation of the financial plan has been established.' The management of Public Institution Z analyses the report on the implementation of the financial plan every 3 months.

In the event of significant deviations, the management, which directs operations, adopts appropriate necessary measures. The implementation of the financial plan is also monitored by the institution's council, which gives proposals and initiatives for more successful implementation of the financial plan. The institution's council confirmed the half-yearly report on the implementation of the financial plan, so it is considered that a process for monitoring the implementation of the financial plan has been established.

Given the set objectives, it is possible to conclude that they were achieved, as the theory of accounting budgeting in a public institution was presented and ** a practical example of accounting budgeting** was studied using the example of Public Institution Z. The stated assertion that the process of preparing the financial plan is appropriate and encompasses all organisational levels in the institution was confirmed. The stated assertion that the ** confirmed financial plan is realistic and reflects the actual situation** was also confirmed.

Likewise, the stated assertion that a process for monitoring the implementation of the financial plan has been established was confirmed.