Enterprises and individual entrepreneurs, in order to maintain and develop their business, attract borrowed funds from the bank. Bank loans in the vast majority of cases are targeted, that is, they are issued for specific purposes, the implementation of which is monitored by a bank employee by collecting supporting documents for the transaction (invoice, agreement, invoice, invoice, certificate of completion of work, acceptance certificate, etc.) . Among other things, a bank employee monitors the intended use of the loan by regularly analyzing the movement of funds in the account for returns on failed transactions. The purpose of lending is reflected in the loan documentation; the deadlines within which it is necessary to report on the target can also be clearly specified in the loan agreement. Otherwise, documents are provided upon receipt by the borrower from counterparties. The list of documents confirming the transaction and the payment made, which must be submitted to the bank, can be clarified directly from the bank’s credit officer.
What are the reasons for this close attention bank to the intended use of the loan? The fact is that when calculating the loan amount and the possibility of lending, a forecast is made further development activities of the borrower enterprise and its ability to fulfill its obligations in a timely manner and in full. For example, if loan funds taken to replenish working capital, will be diverted to the acquisition of fixed assets, that is, for long-term goals, this may entail the inability of the enterprise to repay the loan on time. One of the possible reasons lies in the fact that the return on fixed assets will not be so quick, and the company will still not have enough turnover, there will be a need for additional lending to finance working capital, and hence the risk of over-lending. That is, the enterprise risks driving itself into a corner.
Thus, the purpose (direction) of lending must correspond to the terms of the loan and the type (mode) of lending. Based on the terms and objectives, loans are divided into short-term and long-term.
The most common purpose for obtaining a loan is replenishment of working capital. Replenishment of working capital refers to the costs of purchasing raw materials for the production of products, goods for subsequent resale, payment wages, payment of current expenses, including repayment of current debt to the budget, payment of utility bills, transfer of current payments for rent of premises. Credit funds are not provided to pay overdue payments. These loans are short-term; the range of lending modes in this case is widest, from a loan to a line of credit (revolving or non-renewable).
The loan can be provided non-cash - by crediting to a current account for further transfer by the borrower to the accounts of counterparties. Also, in some cases, a loan can be provided in cash for the purpose of paying wages or to individual entrepreneurs for purchasing necessary goods and materials at retail outlets. Confirmation of the intended use of the loan in the case of issuing cash for wages to employees are pay slips, and if goods were paid for at a retail outlet, then sales receipts and, if possible, cash receipts are required, or these can be purchasing acts, acceptance certificates. The amount of the tranche (part of the loan) provided in cash for settlements at retail outlets and the reporting period for it are limited by the bank. The deadline should be clarified in advance and kept under control to avoid penalties from the bank. The next tranche in cash can be received after a timely report on the intended use of the previous one.
For the purpose of paying for current (overhaul) repairs of fixed assets of an enterprise or property of an entrepreneur used in business, the purchase of building materials and construction (repair) work, a short-term bank loan can be provided or financing can be considered investment project. IN in some cases, it is permissible to purchase fixed assets (equipment, transport, machinery, real estate) through a short-term loan. This mainly applies to small businesses.
The terms are usually longer. The package of documents and calculations are different. The purposes of an investment loan may be the acquisition of fixed assets and the accompanying replenishment of working capital, for example, to put purchased equipment into production. Banks are engaged in financing construction projects. These types of lending involve calculating the participation of the borrower himself with his own funds in the financed project; the bank undertakes to cover only part of the costs through the provided investment loan, a component of the order of fifty (construction project) to eighty, in some cases, eighty-five percent of the total amount of the project.
Requirements for documents confirming the intended use of the loan the following are presented:
Agreements confirming the intended use of loan funds must comply with the requirements of current legislation and contain significant or the necessary conditions for contracts of this type - art. 432 of the Civil Code of the Russian Federation. Supply contracts may not specify the amount of the contract; in this case, it usually contains references to specifications and other similar documents that indicate the price of a certain batch of goods, i.e. delivery of goods is provided in separate batches within long period. If the contract contains no mention of its cost at all, such a contract is considered not concluded, since the parties have not reached an agreement on one of its essential conditions - cost.
Should all agreements on the intended use of the loan be provided immediately at the stage of considering the issue of granting a loan? In the case of lending to replenish working capital in the credit line mode, it is possible to provide additional agreements during the lending process. The borrower's counterparties, as a rule, are checked by the bank's security service for claims. In the absence of so-called “stop factors”, the bank’s loan officer confirms the payment at the expense of the loan provided to the borrower.
What to do, if the deal didn't go through, and the counterparty returned the payment made using credit funds? In this case it is necessary further actions agree with the bank's loan officer.
Alternatively, this could be repayment of the corresponding part of the loan; if you use a revolving credit line, then in the future, due to the resulting free (unloaded) limit on the line, you will be able to transfer this amount to another transaction.
If you use a loan or a non-renewable line of credit, it is possible to transfer the returned amount of loan funds to the current account without repaying the loan under another transaction agreed upon with the loan officer, or simply repay the corresponding part of the loan, since in this case the limit is not restored.
Returns will sooner or later be tracked by the creditor bank, and if you did not bother about the further intended use of credit funds returned for failed transactions, then this will indicate your negligence at best, or an attempt to divert credit funds from the enterprise, depending on further use of these funds. That is, an appropriate assessment of your reliability as a borrower will be given. Such precedents of inappropriate use of credit can create problems in the future when considering a new loan. If misuse of loan funds is detected, the bank has the right (if this is indicated in the loan documentation) to demand early repayment of the loan.
More than two years have passed since the new version of Art. 15.14 Code of Administrative Offenses of the Russian Federation " " (). Since August 4, 2013, the subjects of the offense provided for in this article include not only recipients of budget funds, but also budgetary and autonomous institutions that are not such, as well as their officials.
How do state and municipal financial control authorities interpret the provisions? Do the courts always agree with them? How can institutions minimize risks and assert their rights? Now, after two years have passed since the amendments were introduced, the time has come to sum up the first results and summarize the practice of imposing responsibility for this offense.
General provisions
The first question that immediately arose among many specialists from budgetary and autonomous institutions when reading the new edition was “When spending what funds can administrative liability be applied?”
Now, analyzing the practice, we can clearly formulate the answer to it: such funds include any funds received directly from the budget:
- subsidies for the implementation of state (municipal) tasks ();
- subsidies for other purposes ();
- grants in the form of subsidies ();
- subsidies for capital investments ().
What about the means of obligatory health insurance(compulsory medical insurance)? Regulatory authorities and courts believe possible use provisions in relation to such funds (, decision of the Palekhsky District Court of the Ivanovo Region dated October 28, 2014 in case No. 12-22/2014, decision of the Ivanovo District Court of the Ivanovo Region dated February 19, 2015 No. 12-201/2014).
Let us add that the concept of “misuse” of budget funds should not be applied to the funds of budgetary and autonomous institutions received in connection with their implementation of income-generating activities. Even if the conditions for the intended use of a grant from extrabudgetary sources or a donation are violated, only those sanctions that are provided for in bilateral agreements on the provision of these funds can be applied to the organization.
IT IS IMPORTANT TO KNOW
Administrative liability for misuse of budget funds in accordance with this law applies only if such an action does not contain a criminal offense. The Criminal Code of the Russian Federation provides for two offenses in the area of spending budget funds, and these offenses differ by subject.
Subjects of the offense provided for in Art. 285.1 of the Criminal Code of the Russian Federation "", are only officials of recipients of budget funds. Let us remind you that budgetary and autonomous institutions are not considered recipients of budget funds ().
Subsidies from the budget are provided to budgetary and autonomous institutions on the basis of agreements (,). These agreements are a bilateral document signed by authorized officials of the institution and the body that exercises the functions and powers of the founder in relation to this institution.
The agreements may include any additional conditions for the targeted expenditure of subsidy funds, which must be taken into account when qualifying the actions of an institution or its official according to. Of course, these additional conditions cannot contradict the norms of current legislation. For example, as a condition for the targeted use of budget subsidy funds, it is impossible to establish a requirement for the purchase of goods from a specific supplier using the funds of this subsidy, if the purchase must be carried out through competitive procedures in accordance with Federal Law No. 44-FZ of April 5, 2013 "".
It is important to know that not all conditions for providing a budget subsidy determine the requirements for the targeted nature of spending funds. For violation by the recipient of a subsidy of other conditions for its provision, the liability provided for ("Violation of the conditions for the provision of subsidies") is applied: a fine for citizens and officials in the amount of 10-30 thousand rubles, and for legal entities– from 2% to 12% of the amount of the subsidy received.
For example, the procedure for providing a subsidy for the implementation of a state (municipal) task, established by the authorized body in accordance with, may determine the fulfillment of the task as a condition for providing a subsidy. According to experts from the Ministry of Finance of Russia, in this case, if the task is not fulfilled, budgetary and autonomous institutions may be subject to liability provided for by the Code of Administrative Offenses of the Russian Federation for violating the conditions for providing subsidies for financial support of their fulfillment of the state (municipal) task (,). However, the fact of failure to complete the task in full for certain types of services cannot serve as a basis for applying ().
Funds may also be spent in violation of the requirements of current regulatory legal acts (local acts of the institution), however, in this case there will be no grounds for qualifying expenses as non-targeted. For example, overpayment of wages (payment of salaries, allowances in excess of established norms) due to a subsidy for the completion of an assignment to employees engaged in the provision of services within the framework of the assignment is a financial violation. However, it is not entirely correct to consider this violation as a misuse of budget funds - in this case, the funds were directed strictly to the completion of the task.
ATTENTION!
According to the provisions of budget legislation, after budget subsidies are written off in the prescribed manner from a single budget account and credited to the accounts of institutions, subsidies lose the status of budget funds (,). Accordingly, these funds are not subject to the requirements of budget legislation, including provisions on the use of budgetary coercive measures ().
Even if the fact of misuse of budget funds is established, the need to hold officials and organizations accountable will be linked by the courts to the circumstances of a particular case. So, for example, if the administrative offense committed is of minor significance, the judge, body, official authorized to resolve the case of an administrative offense may release the person who committed the administrative offense from administrative liability and limit himself to an oral remark. The Supreme Arbitration Court of the Russian Federation once explained that when qualifying an offense as minor, courts must proceed from an assessment of the specific circumstances of its commission. The insignificance of the offense occurs in the absence of a significant threat to the protected public relations ().
Protocols on administrative offenses provided for are drawn up by authorized officials:
- bodies of external state financial control - the Accounts Chamber of the Russian Federation and control and accounting bodies of the constituent entities of the Russian Federation ();
- bodies of internal state financial control within the budgetary powers of these bodies - Rosfinnadzor and executive authorities of the constituent entities of the Russian Federation, exercising functions of control and supervision in the financial and budgetary sphere (, );
- police ().
When exercising municipal financial control, protocols on administrative offenses provided for are entitled to be drawn up by officials of the bodies local government in accordance with established by law subject of the Russian Federation with a list ().
Subsidy for the implementation of state (municipal) tasks. Criteria for assessing the targeted nature of expenses
To determine the targeted nature of the expenditure of this subsidy, as a rule, two main criteria are applied:
1
Direction of expenses for the implementation of the state (municipal) task (decision of the court of the Khanty-Mansiysk Autonomous Okrug - Ugra dated May 7, 2015 No. 12-562/2015).
2
Compliance with other conditions for the targeted expenditure of subsidy funds provided for by the procedure for providing subsidies established in public law education in accordance with, as well as the agreement on the provision of subsidies (decision of the Volgograd Regional Court No. 07-450/2015 of April 17, 2015).
Spending of funds to pay wages to employees whose labor function is not related to the implementation of a state (municipal) task, as well as for other purposes not related to the fulfillment of the task (decision of the Sredneakhtubinsky District Court of the Volgograd Region dated June 18, 2015) may be recognized as inappropriate use of subsidy funds. in case No. 12-34/2015, decision of the Moskovsky District Court of Cheboksary Chuvash Republic dated October 14, 2015 in case No. 12-1140/2015, decision of the Oktyabrsky District Court of Ivanovo dated October 8, 2015 in case No. 12-229/2015, decision of the Oktyabrsky District Court of Ivanovo dated October 8, 2015. in case No. 12-230/2015).
There is usually no problem with confirming the task-oriented nature of expenses that are supported by a task grant and that were explicitly taken into account when determining the amount of that grant. This rule also applies to property maintenance costs.
EXAMPLE
Since 2016, standard costs for the maintenance of property not used to fulfill government assignments federal level are used when calculating the volume of financial support for 2016, 2017 and 2018 (). We are talking about real estate and especially valuable movable property assigned to the institution or acquired using funds provided by the founder. Accordingly, if the institution sends subsidies to complete the task of maintaining such property in the coming years, the regulatory authorities will have no complaints.
On the other hand, to confirm the fact of the intended use of the subsidy, it is enough to submit documents according to which it was planned to carry out repairs (reconstruction, redevelopment) to bring the property into a condition suitable for the task (resolution of the Thirteenth Arbitration Court of Appeal dated January 20, 2014 No. 13AP-25263 /13). At the same time, the judges point out: the absence of personnel in the premises does not in itself mean that such premises are not used by the institution in the provision of state (municipal) services.
If, when determining the size of the subsidy, some expenses were not explicitly taken into account, the situation is more complicated. And such expenses arise from time to time in every institution. And this could be anything: from the cost of holding an unscheduled on-site event to remote sensing of a land plot not assigned to an institution.
In such situations, it is advisable to have documents confirming the direction of expenditure on the task and the existence of ongoing grant savings. This recommendation is due to the following circumstances.
Subsidy funds for completing a task do not necessarily have to be spent in strict accordance with those areas (types of expenses) and expenditure rates that were taken into account when calculating the total annual amount of such a subsidy (). Financial department specialists indicate that unplanned expenses can be incurred by saving subsidy funds based on the results of a certain period of task completion with appropriate changes to the Financial Plan. economic activity(FHD) ( , ). The implementation of such expenses in itself cannot be considered as misuse of budget funds (, decision of the Pervomaisky District Court of Omsk dated June 1, 2015 in case No. 12-126/2015, decision of the Pervomaisky District Court of Omsk dated March 5, 2015 in case No. 12-436/2014).
The lack of documentary evidence of savings in subsidies for completing a task at the time of expenses may become one of the arguments of inspectors when classifying an institution’s expenses as misuse of budget funds (decision of the Arbitration Court of the Ivanovo Region dated August 28, 2015 in case No. A17-2519/2015 ). Underfulfillment of targets for some types of services and overfulfillment for others, while simultaneously redistributing savings from the allocated subsidy between services (), cannot be considered as misuse of budget funds.
The question of how the savings planned and achieved by the institution during the year can be “fixed” currently remains open - the problem must be resolved at the level of local acts of the organization.
The direction of costs for completing a task is usually determined at the time of its implementation. So, for example, property can be acquired through a subsidy, but for objective reasons, after the acquisition there will be no need to use it to complete the task and the property will begin to be used to provide paid services. In this case, with a high degree of probability, the institution will be able to justify the legitimacy of the expenses.
ATTENTION!
At the end of the financial year, an additional argument appears to justify the targeted nature of expenses that are not explicitly taken into account when determining the amount of the subsidy for the task. Confirmation of the institution’s compliance with the goals of providing this subsidy is the achievement of the indicators established by the assignment, characterizing the quality and (or) volume (content) public services(works) (). Such confirmation is carried out on the basis of a report on the completion of the task provided to the body exercising the functions and powers of the founder.
We can confidently state that even temporary diversion of subsidy funds for expenses related to income-generating activities will be attempted by regulatory authorities to be classified as inappropriate expenses. It is not a fact that even a reference to a letter in which financial department specialists admit the possibility of such a diversion with the subsequent restoration of expenses using funds from income-generating activities will help the institution ().
But if we're talking about about expenses of previous years, the following arguments are possible:
- at the time of inspection or consideration of the case in court, it is established that the task was completed in full and with proper quality;
- legislation allows the institution to spend the remainder of the subsidy, including within the framework of income-generating activities (Part 17, Article 30 Federal Law dated May 8, 2010 No. 83-FZ "", part 3.15 art. 2 of the Federal Law of November 3, 2006 No. 174-FZ ""; hereinafter referred to as the Law on Autonomous Institutions).
There is even an example of a decision in which these arguments were taken into account by the judges ().
In practice, such a situation is possible. Assignment rendering specific service or the performance of certain work is not expressly provided for (perhaps due to an “oversight” of individual officials). The institution provides (performs) it free of charge. In such cases, it should be remembered that we are still talking about income-generating activities and, therefore, all expenses associated with this service (work) cannot be made at the expense of a subsidy for the completion of the task (clause 4 of Section “Results of the control activity” of the Report on results of the control event "Checking the target and effective use funds from the federal budget, extra-budgetary sources and federal property in 2012-2013 and the expired period of 2014 (together with the FSB of Russia)" (the control event was carried out in accordance with clause 2.8.11.1 of the Work Plan of the Accounts Chamber Russian Federation for 2014).
Important has the organization of separate accounting of cash and actual expenses by type of activity in the context of each service provided (work performed). In some situations, in the absence of separate accounting, regulatory authorities may try to classify the entire amount of expenses as non-targeted expenses, even if part of them relates to activities to complete the task.
Property objects can be partially used in income-generating activities. It is advisable to distribute the costs of their maintenance between the subsidy for completing the task and income-generating activities based on economically feasible indicators. If this issue is not resolved by the founder, we recommend that it be resolved in the local legal act of the institution. Thus, the main purpose of the subsidy funds will be fulfilled - financial support for the fulfillment of the task formed for a certain period. Today it can be stated that state (municipal) control authorities have not yet paid due attention to this problem. However, it is not a fact that this state of affairs will continue in the future.
The subsidy provided to institutions in accordance with the provisions has a strict purpose - it is intended to provide financial support for the completion of the task. And if interpreted literally, then only to complete the task of the corresponding (current) year.
Thus, payment from the current year’s subsidy for accounts payable from previous years, even if generated as part of the activities to complete the task, is interpreted by individual control bodies and courts as an inappropriate expense (decision of the Volgograd Regional Court dated March 18, 2015 in case No. 07-333 /2015, decision of the Kirovsky District Court of Volgograd dated April 13, 2015 in case No. 12-82/2015). Therefore, it is better to pay off such debt using the remainder of subsidies from previous years or using funds from income-generating activities. Finally, the founder can provide a targeted subsidy for this.
Taking into account the above, it is advisable, unless absolutely necessary, not to transfer an advance from the current year’s subsidy to counterparties for services (goods, work) necessary to complete the next year’s task.
From November 4 last year, federal laws, laws of constituent entities of the Russian Federation and municipal legal acts may provide for the return to the budget of the balance of the subsidy for the implementation of state (municipal) tasks. At the same time, budgetary and autonomous institutions should not return the entire balance of funds, but only the amount corresponding to the unachieved target indicators (Federal Law of November 3, 2015 No. 301-FZ "", Part 17 of Article 30 of the Federal Law of May 8 2010 No. 83-FZ " ", ).
ATTENTION!
According to the provisions of budget legislation, after budget subsidies are written off in the prescribed manner from a single budget account and credited to the accounts of institutions, subsidies lose the status of budget funds (,). Accordingly, the specified funds are not subject to the requirements of budget legislation, including the provisions of ().
Another situation is possible: the institution has not completed the task, but the requirement to return the balance of the subsidy to the budget in a public legal education is not provided. Previously, and in this situation, the remainder of the subsidy for the completion of the task could be spent on any purpose for which the institution was created, including within the framework of income-generating activities. Now, when spending this balance, you will have to strictly comply with the requirements for the intended use that were established when the subsidy was provided.
Some accountants have a question: can an excess of expenses in certain areas over the corresponding indicators of the FCD Plan be considered as misuse of budget funds?
Taking into account the latest explanations from financial department specialists, with a high degree of confidence we can give a negative answer to this question. This conclusion follows, for example, from the content. Let us add that indications of the possibility of qualifying misuse of budget funds in such situations are extremely rare. For example, in quite a long time ago.
At the same time, there is no doubt that the discrepancy cash transactions indicators of the approved FHD Plan is a financial violation. In this regard, the Russian Ministry of Finance is discussing the possibility of including a special norm in the Code of Administrative Offenses of the Russian Federation providing for an administrative fine for such violations.
The procedure for applying KOSGU codes and other budget classification codes is not used to determine the targeted nature of spending subsidy funds on the implementation of a (state) municipal task. Of course, unless otherwise agreed by the parties when signing the agreement on the provision of this subsidy.
In some cases, regulatory authorities still try to use the BCC to qualify expenses from a subsidy for the completion of a task as non-targeted, but the courts, as a rule, do not support them (decision of the Magadan Regional Court of October 23, 2015 in case No. 12-337 /2015).
Targeted subsidies. Criteria for assessing the targeted nature of expenses
To determine the targeted nature of expenditures of subsidy funds for other purposes, as a rule, the following criteria are applied:
1
Compliance with the conditions for the targeted expenditure of subsidy funds provided for:
- the procedure for determining the volume and conditions for providing a subsidy, established in public law education in accordance with;
- subsidy agreement.
2
Compliance with the conditions for targeted spending stipulated by the Information on transactions with targeted subsidies provided to a state (municipal) institution for a year (form code according to OKUD 0501016) (hereinafter referred to as the Information). The form is drawn up in the manner prescribed by the Requirements for the FCD plan of a state (municipal) institution, and is approved by the bodies exercising the functions and powers of the founders in relation to the institutions.
Unlike task grants, budget classification codes are used to target expenditures from grants for other purposes.
Starting from 2016, expenses from subsidies for other purposes are carried out after checking the documents confirming the occurrence of monetary obligations and compliance of the content of expenditure transactions with the codes of types of expenses and the purposes of providing subsidies in the manner established by the relevant financial authority ( ; ; , approved). Until January 1, 2016, authorization of expenditures of budgetary and autonomous institutions through targeted subsidies and subsidies for capital investments was carried out only after verification of documents and compliance of the content of expenditure transactions with KOSGU codes.
The budget classification codes specified in the Information must correspond to the purposes of the subsidy specified in the agreement. If this condition is violated, it is advisable for the institution simply not to sign the agreement and not to spend funds until the violations are eliminated.
ATTENTION!
If a targeted subsidy is provided to a budgetary or autonomous institution as part of the implementation of a targeted program, then when determining the targeted nature of expenses it is necessary to be guided not only by the content of the agreement on the provision of the subsidy, but also by the provisions of this program (decision of the Arbitration Court Kursk region dated February 10, 2015 in case No. A35-8409/2014).
Targeted subsidy funds can be transferred to the bank accounts of autonomous institutions as part of reimbursement of expenses previously incurred by such institutions at their own expense (,). An operation to generate income in the form of accrued interest on the minimum balance of funds of targeted subsidies on the current account of an autonomous institution in commercial bank is profitable and, accordingly, cannot be considered as an operation to make expenses using subsidies. Therefore, such an operation cannot be qualified as a violation in the context.
Compulsory medical insurance funds. Criteria for assessing the targeted nature of expenses
As a rule, the following expenditures at the expense of these funds are classified as misuse of compulsory medical insurance funds:
- not related to the types of medical care provided within the framework of the territorial compulsory medical insurance program;
- not included in the structure of tariffs for payment of medical care within the framework of the territorial compulsory medical insurance program.
ATTENTION!
If the accepted tariffs for payment of medical care within the territorial program include other areas of spending funds, verification of the use of compulsory health insurance funds for these purposes is carried out taking into account the relevant documents regulating the procedure for such expenses, the amount of funds provided for these expenses as part of the adopted tariffs for payment medical care and approved cost estimates, as well as the terms of concluded contracts (
This material, which continues the series of publications devoted to the new chart of accounts, analyzes account 86 “Targeted financing” of the new chart of accounts. This commentary was prepared by Y.V. Sokolov, Doctor of Economics, Deputy. Chairman of the Interdepartmental Commission on Reforming Accounting and Reporting, member of the Methodological Council on Accounting under the Ministry of Finance of Russia, first President of the Institute of Professional Accountants of Russia, V.V. Patrov, professor of St. Petersburg state university and N.N. Karzaeva, Ph.D., deputy. Director of the audit service of Balt-Audit-Expert LLC.
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Targeted financing is the gratuitous receipt of funds that can be used in accordance with the purpose pursued by the one who allocated these funds. Here's a good everyday analogy: a mother gives her daughter money to buy shoes. AND good daughter she will definitely buy shoes, and even those that the mother, and not her daughter, likes. But she will never spend this money, contrary to her mother’s will, on anything else: on a blouse, a restaurant, a disco, etc., etc. In the same way, account 86 “Targeted financing” takes into account the provision of funds to the enterprise, the spending of which is limited by certain conditions. If these conditions are met, the funds received become the company’s own; if not met, they require a return and are classified as accounts payable. Such funds include: state assistance and funds provided in a similar manner by other persons in the form of subventions, subsidies *, non-repayable loans, provision of various resources to the enterprise, financing of various activities.
*Note: Subventions mean cash payments for strictly defined purposes. If these goals are not met, the money received will be returned. Subsidies are both cash and in-kind payments and in case of inappropriate use they are usually not returned.
State assistance is direct economic actions aimed at increasing economic benefits for the organization, in the form of subventions and subsidies, non-repayable loans, and financing of individual events. Subventions and subsidies are expressed in the transfer of assets to an organization, or the repayment of its accounts payable in exchange for the fulfillment of certain conditions. Non-repayable loans are loans from which an organization is exempt from repayment if a number of conditions are met. Financing of individual activities represents the covering by government or other bodies of expenses of the organization that it would not have incurred if it had not received this assistance.
Targeted funding can be used for the following purposes:
- Financing expenses or covering losses,
- Maintenance financial situation enterprise, replenishing its funds,
- For the acquisition of assets
The following does not apply to targeted financing and is not reflected in this account:
- receiving assistance provided in the form of benefits, including taxes, tax credits, holidays and exemptions;
- obtaining loans and other repayable funds;
- reflection of operations related to management state property, state participation in the capital of the enterprise.
Targeted financing is reflected in accounting if the following conditions are met:
- there is reasonable confidence that the conditions for the provision of assistance will be met;
- there is reasonable confidence in receiving help.
Confidence in fulfilling the conditions depends on the intentions and ability of the organization’s management to use assistance and is determined by it by analyzing relevant contracts, public decisions, feasibility studies, and design and estimate documentation.
Confidence in receiving assistance arises from receiving reliable information about the receipt of funds, the transfer of assets or the repayment of accounts payable, as well as approved budget schedules, notifications of appropriations, etc.
The accounting procedure for state aid is regulated by PBU 13/2000 of the same name, which can be followed by analogy when accounting for non-budget financing. Receipt of assets or repayment of accounts payable is carried out in the credit of account 86 “Targeted financing” and in the debit of the corresponding funds and settlements accounts. At the same time, the Chart of Accounts and PBU provide that the granting of the right of an enterprise duly registered to receive assistance is carried out on the credit of account 86 “Targeted financing” as a receivable from the person or budget that has undertaken to provide such financing. In this case, the receipt of funds will be reflected in correspondence with the credit of account 76 “Settlements with various debtors and creditors” for the fulfillment of obligations to transfer financing previously recorded on account 86 “Targeted financing” account. It should be remembered, however, that recording funding at the time of provision rather than receipt of assistance can only be done if there is a clear and formal obligation to provide such assistance, which can be claimed in court.
The reporting of the use of funding depends on the purposes for which it is provided.
Assistance consisting in financing the acquisition of assets relates to deferred income arising from the gratuitous receipt of funds. Such assistance is written off to the debit of account 86 “Targeted financing” from the credit of account 98 “Deferred income” subaccount “Gratuitous receipts”. As the funds received are spent, the funding accruing to them is included in the organization’s income. If assistance is provided to finance capital investments, then future income is written off to profit simultaneously with the depreciation of non-current assets and in amounts equal to it. If the acquisition of current assets is financed (inventory, for example), then when they are capitalized, the used financing is written off to account 98 “Deferred Income” and as the funds received in this way are spent, deferred income is written off to the debit of account 98 “Deferred Income” from the credit of account 91 “Other income”. Financing used to cover the costs of the enterprise or pay for special events is immediately charged to the income of the reporting period as the funds are spent. Funds received to reimburse expenses of previous years are not included in target financing and are recorded as income of the current period. Assistance provided in a single package, both to cover expenses and to finance assets, should be distributed between account 86 “Targeted financing” and account 91 “Other income” in proportion to the corresponding costs.
Targeted funding is reflected not when funds are received, but when the legally formalized will of the body that undertakes to allocate these funds is expressed:
And only after the money is received, the accountant will make a posting:
Debit 51 "Current accounts"
Credit 76 "Settlements with various debtors and creditors"
Thus, the debit of account 51 “Current accounts” concentrates the money received, and the credit of account 86 “Targeted financing” indicates that this money can only be spent in accordance with a given purpose.
The question arises: when does an organization that has received funds in the form of targeted financing begin to receive benefits from it, when the funds are received, or when these funds received begin to generate income. Let's consider both options.
1. If the first interpretation is accepted, then income arises immediately as soon as either the right to receive it arises or as soon as money is received (the choice of option depends on the accounting policy), i.e.
- or after recording:
Credit 86 "Targeted financing"
- or after posting the funds received:
Credit 76 "Settlements with various debtors and creditors"
For example, fixed assets purchased using targeted financing are capitalized:
Loan 08.4 "Purchase of fixed assets"
Paid for purchased fixed assets*:
Credit 51 "Current accounts"
*Note: For methodological purposes, the accounting system for the acquisition of fixed assets is simplified (without the use of accounts 60 “Settlements with suppliers and contractors”, 19 “VAT on acquired assets”, etc.)
The use of targeted funding is reflected:
Credit 83 "Additional capital"
Advantages of this method. Targeted financing is not a result of economic activity, but as an event external to the enterprise. He has income, but this income is not interpreted as profit and is not linked to it. The fact of targeted financing contributes to economic activity, but does not determine it. The entries are simple and logical: if the target funding money is spent, then the amount of this funding is exhausted. The place of an asset in money is occupied by an asset in fixed assets, and in liabilities, the fulfillment of the will of the “donor” is reflected by an increase in the sources of funds of the enterprise.
Flaws. According to the assumption of continuity of activity of the enterprise (PBU 1/98 “Accounting Policy”), its expenses must be compared in time with the income from which they were received. Consequently, an enterprise’s income arises not when its owners are “given” funds for a designated purpose, but when these funds begin to “work.” And targeted financing becomes the property of the enterprise not when its administration has spent the money, but as these costs begin to pay off.
2. If the second interpretation is accepted and it is believed that targeted financing is used not when allocated funds arrive, but when they bring benefits, then the following entries are made:
a) funds for targeted financing (money) have been received:
Debit 51 "Current accounts"
Credit 86 "Targeted financing"
*Note: For simplicity, we skipped the intermediate account 76 “Settlements with various debtors and creditors”.
b) paid for purchased fixed assets:
Debit 08.4 "Purchase of fixed assets"
Credit 51 "Current accounts"
c) fixed assets are capitalized:
Debit 01 "Fixed assets"
Loan 08.4 “Purchase of fixed assets”;
Please note that all acquisitions of fixed assets through targeted financing do not in any way reduce the volume of this financing. As you use it, depreciation of the equipment purchased with this financing begins to accrue:
Debit 26 "General business expenses"
Credit 02 "Depreciation of fixed assets"
And only after this entry the development of targeted funding begins:
Debit 86 "Targeted financing"
Credit 91.1 "Other income"
Thus, financing, in this case, decreases not as money is spent, but only during the entire service life of the fixed asset.
Since targeted financing can be carried out not only in money, but also in material form, if, for example, materials were allocated free of charge, then the records will take the following form:
Debit 10 "Materials"
Credit 86 "Targeted financing"
And only after these materials are written off for production will the following entry be made:
Debit 20 "Main production"
Credit 10 "Materials"
And then the accountant will reflect the development of targeted funding:
Debit 86 "Targeted financing"
Credit 91.1 "Other income"
Advantages This method is associated with strict adherence to the assumption of continuity of activity of the enterprise and (PBU 1/98 “Accounting Policies”), accordingly, coordination of the timing of income received and expenses incurred, because targeted funding is allocated not so that the funds are spent, but in order so that they provide benefits in the form of income. And while this benefit (income) does not arise, the will of the “donor” - the body that allocated funds in the form of targeted funding, remains unfulfilled.
Flaws. The will of the “donor” can be controlled not by accounting records, which may include veiling and falsification, but by its actual implementation. It is important to look not at how the accountant calculates depreciation, but at how the machine works, the allocated funds, and whether it exists at all; It is important to see that materials are written off to production, and not to duplicate these records, reflecting supposedly received income. From an accounting point of view, the formal implementation of the assumption of continuity of the enterprise leads to great methodological difficulties, since all materials owned by the organization are accounted for on account 10 “Materials” and the same materials are accounted for separately (purchased and received according to the target financing) is very difficult. The same, to an even greater extent, applies to goods received through targeted financing in trade enterprises. This especially applies to enterprises retail, in which cost (total) accounting of goods is carried out.
The significance of what has been said is aggravated if we take into account that in the second case it is necessary to keep analytical records not only of allocated target revenues, but also to constantly reflect the use of each amount of allocated target funding.
Account 86 “Targeted financing” is used by both commercial and non-profit organizations. More often, it is used by the latter to account for targeted funds received as entrance, membership and voluntary contributions and other sources to finance costs associated with the statutory activities of non-profit organizations.
Funds received for targeted financing are reflected in the credit of account 86 “Targeted financing”. The use of these funds is recorded as a debit to this account in correspondence with the accounts:
a) 20 “Main production” or 26 “General business expenses” - writing off the costs of maintaining a non-profit organization;
b) 83 “Additional capital” - for the use of targeted financing received in the form of investment funds, etc.
In the latter case, costs associated with the acquisition, construction or creation of non-current assets are collected on the debit of account 08 “Investments in non-current assets”, the credit of which is subsequently written off to the debit of accounts 01 “Fixed assets” and/or 04 “Intangible assets”. On total amount The funds spent in this case are used to make the final entry.
Sometimes commercial organizations receive government assistance from the budget. The procedure for recording its receipt and use is regulated by PBU 13/2000 “Accounting for State Aid”, approved by Order of the Ministry of Finance of Russia dated October 16, 2000 No. 92n. Below we will show in general terms this procedure for transactions reflected in accounting using account 86 “Targeted financing”.
Targeted funding from the budget can be provided:
a) for implementation capital expenditure related to the purchase, construction and creation of non-current assets;
b) to finance the organization’s current expenses.
It can be obtained in cash or other assets.
Acceptance of target financing can be carried out in two ways:
1) simultaneous reflection accounts receivable organization - the source of funds and the emergence of targeted financing.
Debit 76 "Settlements with various debtors and creditors"
Credit 86 "Targeted financing"
Subsequently, upon actual receipt of funds, account 76 “Settlements with various debtors and creditors” is credited in correspondence with accounts for accounting for cash, capital investments, etc.
2) as funds actually arrive.
In this case, the accounts for accounting for cash, capital investments, inventories, etc. are debited. in correspondence with account 86 “Targeted financing”.
The statement contained in the explanations to account 86 “Targeted financing”, that this account is credited only in correspondence with account 76 “Settlements with various debtors and creditors”, has been corrected in the given standard entries, which provide for the crediting of account 86 “Targeted financing” in correspondence and with other accounts.
In both cases, the value of the property received is determined based on the price at which, in comparable circumstances, the organization determines the value of similar assets.
The first method of accounting for target financing is used if the organization is sure:
a) that it will be able to fulfill the conditions under which the financing is provided;
b) that it will receive targeted funding.
The procedure for writing off targeted funding depends on the purposes for which these funds were provided:
a) to finance capital expenditures;
b) to finance current expenses.
In the first case, costs associated with the purchase, construction and creation of non-current assets are collected in the usual manner on the debit of account 08 “Investments in non-current assets”, from which they are written off to the debit of accounts 01 “Fixed assets” and/or 04 “Intangible assets”. At the same time, an entry is made for the total amount of expenses incurred:
Debit 86 "Targeted financing"
Subsequently, the amount of accrued depreciation on fixed assets and/or intangible assets Cost accounting accounts are debited and accounts 02 “Depreciation of fixed assets” and/or 05 “Depreciation of intangible assets” are credited.
At the same time, an entry is made for the amount of accrued depreciation:
Debit 98 "Deferred income"
Credit 91.1 "Other income"
If non-current assets are not subject to depreciation (for example, external improvement objects, library funds, etc.), then during the period in which expenses associated with fulfilling the conditions for providing targeted financing are recognized, their value is written off from account 98 "Future income periods" for non-operating income, i.e. to the credit of account 91.1 “Other income”.
If budget funds are received to finance current expenses (for example, accounting for inventories), an entry is made for their amount:
Debit 86 "Targeted financing"
Credit 98 "Deferred income"
Subsequently, when inventories are released into production, the following entry is made:
Debit 98 "Deferred income"
Credit 91.1 "Other income"
The amount of targeted financing taken into account is estimated at the value of actually received assets (in accordance with the rules for assessing the latter, established by the relevant PBUs) or the nominal value of repaid accounts payable.
Targeted funding whose terms of use are not met may be terminated or withdrawn. Therefore, any significant deviation from the procedure for its use must be disclosed in the reporting. Withdrawal or termination of assistance must be immediately recognized as a payable in the amount to be repaid. The amount of previously recognized assistance income should be expensed. The total amount of funding to be repaid is credited to the corresponding settlement accounts (with the budget or with other creditors) in correspondence with the debit of account 86 “Targeted financing”, and the excess of the repaid assistance over the balance of the unused amount is recognized as an expense and is debited to the account financial results.
Analytical accounting of target financing should provide information about who provided the financing, its purposes and conditions, the amount of recognized income for each type of financing and the balance of assistance received for the acquisition of unamortized or unamortized assets.
Targeted financing is reflected in the balance sheet in the amount of the balance in account 86 “Targeted financing” in the article “Deferred income” or under a special article in the section “Short-term liabilities”. The latter option is preferable for enterprises that have a significant amount of special financing under capital construction, since in the first option, under the item “Deferred income”, both used and unused funding will be shown. The required disclosures are provided in explanatory note. It may also disclose the assistance that the organization intends to receive in the next period, the conditions for its provision and the procedure for using it. All this. In the words of A.S. Pushkin, it gives reporting a “transparent twilight.”
Examples of reflecting received financing in accounting.
1.Reimbursement of expenses
1.1. In connection with the celebration of the city day, on May 20, 2001, funds were transferred from the local budget to the enterprise for the construction of a festive platform in front of the factory gates. The grandstand was built on May 27, 2001.
The assistance received on May 20 is accounted for in the debit of account 51 “Current account” and the credit of account 86 “Targeted financing”. Expenses are written off as they are incurred to the debit of account 91.2 “Other expenses”. On May 27, the used financing is written off to the debit of account 86 “Targeted financing” from the credit of account 91.2 “Other expenses”.
1.2. The local budget compensates the motor transport enterprise for losses associated with passenger transportation incurred by the enterprise in 2001. Compensation is carried out in the form of a transfer of funds to the company's current account on June 1, 2002.
The received compensation for losses of the previous year is accounted for on June 1, 2002 in the debit of account 51 “Current account” and the credit of account 91.1 “Other income” and is reflected in the financial results for 2002. The loss is shown in the income statement for 2001 in an uncompensated amount. In the explanatory note for 2001, the enterprise will indicate the procedure for provision, the basis for provision and the amount of expected compensation.
2. Financial support
2.1. Enterprise A transferred funds on May 20, 2002 to the current account of an affiliated organization in order to replenish the latter’s working capital. The assistance received is accounted for in the debit of account 51 “Current account” and the credit of account 91.1 “Other income”.
3. Financing the acquisition of assets
3.1. The company is constructing treatment facilities, partially financed from budget funds. On June 15, 2002, a collector for collecting used water was put into operation and work began on the construction of a filtration plant. The inventory value of the collector is determined in the amount of 10 million rubles. The construction in progress for the filtration plant is 20 million as of December 31, 2002.
01.11.2002 the company's bank account received budget financing in the amount of 10 million rubles, including 2 million for the construction of a collector and 8 million for financing the construction of a filtration plant. The funds received on November 1 are credited to the debit of account 51 “Current account” and the credit of account 86 “Targeted financing” in the amount of 8 million rubles. and a credit to account 98 “Deferred income” in the amount of 2 million rubles. During 2002, the cost of the collector put into operation is depreciated at the established rate (2%). At the same time, the financing received for the construction of the collector is written off to the enterprise’s income by debiting account 98 “Deferred income” from the credit of account 91.1 “Other income”. The write-off amount will be 20 thousand rubles. (0.02/12*6*2.000.000).
4. Simultaneous financing of costs for the acquisition of assets
4.1. In accordance with state program To ensure “northern delivery”, the enterprise received a non-repayable loan in the amount of 100 million rubles on June 15, 2002, the condition of which was to ensure the supply of 100 thousand tons of fuel oil. On September 1, 2002, the enterprise entered into a supply agreement and loaded 99 thousand tons of fuel oil into the storage facility. 1 thousand tons were losses during unloading, which the company decided to write off as expenses. The cost of the supplied fuel oil at the supplier's ex-warehouse price was 110 million rubles, the cost of transportation was 10 million rubles. 10/01/2002 50 thousand tons of fuel oil were sold to the thermal power plant for 50 million rubles. On June 15, 2002, the received non-repayable loan in the amount of 100 million rubles must be capitalized. 09/01/2002 it is necessary to capitalize the received fuel oil and losses during transportation, as well as debt to suppliers and carriers. At the same time, you should distribute the assistance received and write off part of the loan received as income. On 10/01/2002 it is necessary to write off the sold fuel oil and include the share of the non-repayable loan in the income attributable to the sold fuel oil. Thus, the following entries will be made in accounting:
I received a non-repayable loan:
Debit 51 "Current accounts"
Loan 86 "Targeted financing" -100,000 rub.
Cost price.
Income from non-repayment of the loan attributable to sold fuel oil is reflected:
Debit 86 "Targeted financing"
Credit 91.1 "Other income"
5. Return of state aid
5.1. If, under the conditions of example 3.1, it turns out that the constructed treatment facilities do not meet the characteristics provided for by the assistance program, then from the moment the enterprise is deprived of the right to subsidize, the following entries must be made in accounting:
The right to subsidy is canceled
- The debt is reflected in the amount of funds received
- Previously recognized income is written off
Fuel oil received
- Received at warehouse (99%)
- Losses (1%)
- VAT on incoming fuel oil
- VAT on losses
Freight invoice received
- Cost of transportation of the resulting fuel oil
- Cost of transportation of lost fuel oil
- VAT on the transportation of incoming fuel oil
- VAT on transportation of lost fuel oil
- Income from non-repayment of the loan attributable to lost fuel oil is reflected (1% of the loan)
The sold fuel oil was written off
- Selling price
When organizing accounting for target financing, it is advisable to take into account the requirements of tax legislation. According to subparagraph 15 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation, when determining the tax base, property received by enterprises as part of targeted financing is not taken into account. At the same time, the legislator gave a specific definition of targeted financing. The list of targeted funding is closed and includes:
- funds from budgets of all levels, state extra-budgetary funds allocated to budgetary institutions according to the estimate of income and expenses of the budgetary institution;
- grants received;
- investments received during investment competitions (bidding) in the manner established by the legislation of the Russian Federation;
- investments received from foreign investors to finance capital investments for industrial purposes, subject to their use within one calendar year from the date of receipt;
- funds of shareholders accumulated in the accounts of the organization - developer;
- funds received by the mutual insurance company from organizations - members of the mutual insurance company;
- funds received from the Russian Fund basic research, Russian Humanitarian Scientific Foundation, Foundation for Assistance to the Development of Small Enterprises in the Scientific and Technical Sphere, Federal Fund for Manufacturing Innovation;
- funds received by nuclear plants from the reserves of operating organizations intended to ensure the safety of nuclear plants at all stages of the life cycle and their development in accordance with the legislation of the Russian Federation on the use of atomic energy. The specified income is subject to inclusion in non-operating income in the case where the recipient actually used such funds for reasons other than intended purpose or did not use it for its intended purpose within one year after the end of the tax period in which they were received.
A necessary condition for recognizing funds as earmarked is that the organization determines ( an individual) - a source of targeted financing for the intended use of the received property.
Organizations that have received targeted financing are required to keep separate records of income and expenses received (made) within the framework of targeted financing to confirm the fact that the targeted financing is used for a specific purpose. If the organization that has received targeted financing does not have such records, these funds are considered as subject to taxation from the date of their receipt.
The organization further “Association” is registered with the Ministry of Justice of the Russian Federation as: Association of All-Russian public organizations, conducts its activities (OKVED Code 92.6 - Activities in the field of sports) on donations from investors (582 Art. Tax Code). Until December 31, 2014, on the simplified tax system - 6% income. Before the Olympics in Sochi, the “Olympic facility” was built and partially (1st stage of construction - January 24, 2014) put into operation using funds from the “Association” (owner – “ Association”) Upon passing the second stage, the Association switched to general mode taxation (from 01/01/15). For construction, both our own funds were raised (donation for statutory activities, targeted donations for the construction of the “Olympic facility”), and a loan was taken from a bank (secured by the facility and land plots under the object ( land leased from the state for 49 years). Due to failure to fulfill its obligations under the loan, the Bank began the process of alienating the “Olympic Venue” from the owner. Question: When re-registering the ownership of the “Olympic Venue” to the Bank, can the Federal Tax Service Inspectorate qualify the expenditure of “donations” » for the construction of the “Olympic Venue” as not the intended use of funds, and if so, what tax consequences await the organization.
In this case, donations were used for their intended purpose. The fact that the object will be alienated due to failure to fulfill obligations cannot affect the recognition of the use of funds as inappropriate.
Rationale
From the book by Elvira Mityukova
Non-profit organizations: legal regulation, accounting and taxation
3.1. When income is not subject to income tax
Tax legislation names two groups of tax-free funds: targeted financing and targeted revenues. Both of them should be:
- received free of charge;
- used for the intended purpose and on time;
- spent on maintaining a non-profit organization or conducting its statutory activities;
- accounted for separately.
If at least one of these conditions is not met, then you will have to pay income tax on the proceeds. This is directly stated in the letter of the Ministry of Finance of Russia dated October 31, 2005 No. 03-03-04/4/74. Let us consider the main of these conditions in more detail.
Special purpose
What does it mean: proceeds were used for their intended purpose? What if funds are used simultaneously in both targeted and non-targeted ways? In this case, tax is charged only on that part of the money that was used inappropriately.
It is more difficult if the targeted funds are spent on the purchase of property that will be used in both types of activities of the NPO. Then, according to tax inspectors, such funds are fully subject to income tax.
Otherwise, you will have to provide documents on the intended use of funds. If the documents are provided, then the taxpayer’s position is justified. Therefore, even if an organization uses target property aimed at non-commercial activities, also in entrepreneurship to achieve statutory goals, it is unlawful to impose income tax on it.
But this position is still very controversial, and tax authorities may not agree with such arguments. Therefore, it is possible that the organization will have to defend its rights in court.
Also, a dispute may arise if the NPO puts target money for deposit. The Ministry of Finance reported the following on this issue. Placing targeted funds on a deposit will not be a misuse of money and, therefore, will not lead to their taxation with income tax only if the following conditions are met:
- NPOs do not have the costs of placing temporarily free balances of target funds in deposit accounts in bank institutions and in securities recognized as a reduction in taxable profit. The presence of expenses aimed at generating income is the main criterion for classifying an activity as entrepreneurial;
- The NPO has a documented justification for the expediency of the decision to place temporarily free balances of target funds in income-generating financial assets from the point of view of minimizing the risk of loss (depreciation) of the corresponding funds;
- The NPO has a documented justification for the advisability of incomplete use of targeted funds in the period in which they were received;
- funds from the deposit will be spent on the maintenance of the non-profit organization or on conducting its statutory activities for the intended purpose and on time.
In this case, the target money will not be taxed. Only interest received from placing funds on deposit will be subject to taxation (see letters from the Ministry of Finance of Russia dated 01.08.2013 No. 03-03-06/4/30833, dated 07.29.2013 No. 03-03-06/4/30025, dated 13.01. 2014 No. 03-11-06/2/262 (regarding the application of the simplified tax system), etc.).
Term of use
It is also necessary that the targeted funds be spent on time. However, if the person who is the source of targeted financing or targeted revenues has not established specific terms and conditions for their use, the criterion for compliance with the intended purpose of these funds is their final use for the maintenance of the NPO and the conduct of its statutory activities (see letter from the Ministry of Finance of Russia dated April 11, 2008 No. 03-03-06/4/26).
But what if the target program covers several years? Or were the target funds left at the end of the year?
Unspent proceeds will not be subject to income tax if they are reflected in the next year's budget as an incoming balance. The main thing is that the period for their use does not expire (see letter of the Ministry of Finance of Russia dated June 26, 2007 No. 03-03-06/4/75).
Separate accounting
Please note: target revenues are recognized as such for tax accounting purposes only on the condition that the non-profit organization that receives them keeps separate records of both the target revenues themselves for the programs and the income and expenses for entrepreneurial activity(if such activity is carried out). We wrote more about how to do this on accounting accounts in section 2.2 “Features of accounting for non-commercial organizations.”
What happens if you don’t keep separate records?
In this case, the tax authorities will consider all funds received by the non-profit organization as non-operating income and will require them to be included in the tax base. If the targeted funds are spent by the organization for other purposes or not on time, then they also increase taxable profit.
The fact is that for non-profit organizations receiving targeted funding and targeted revenues, in accordance with sub-clause. 14 paragraph 1 and art. 251 of the Tax Code of the Russian Federation establishes the obligation to maintain separate records of income (expenses) received (produced) within the framework of targeted financing and within the framework of targeted revenues.
Can expenses be taken into account for tax purposes?
Targeted financing represents funds intended to finance certain targeted activities, namely: the maintenance of children's and cultural and educational institutions, personnel training, research work, capital investments, construction of residential buildings, to cover losses.
Targeted financing means include property used for its intended purpose, determined by the organization(individual) – source of targeted financing:
● in the form of funds from budgets of all levels, state extra-budgetary funds allocated by budgetary institutions according to the estimate of income and expenses of the budgetary institution;
● in the form of grants.
Accounting for targeted financing funds is regulated by PBU 13/2000 “Accounting for state aid” PBU 13/2000, approved by Order of the Ministry of Finance of Russia dated October 16, 2000 No. 92n.
Taxpayers who received targeted financing are required to keep separate records of income (expenses) received (produced) within the framework of targeted financing. If the taxpayer who has received targeted financing does not have such records, these funds are considered as subject to taxation from the date of their receipt. The norms of the budget legislation of the Russian Federation are applied to funds of all levels, state extra-budgetary funds, allocated to budgetary institutions according to the estimate of income and expenses of the budgetary institution, but not used for their intended purpose (clause 14, clause 1, article 251 of the Tax Code of the Russian Federation.
For tax purposes, income tax does not take into account the taxpayer's expenses in the form of:
● the value of property transferred as part of targeted financing in accordance with paragraphs. 14 clause 1 art. 251 of the Tax Code of the Russian Federation (clause 17 of Article 270 of the Tax Code of the Russian Federation);
● the amounts of targeted contributions made by the taxpayer for the purposes specified in clause 2 of Art. 251 of the Tax Code of the Russian Federation (clause 34 of Article 270 of the Tax Code of the Russian Federation).
Targeted revenues for the maintenance of non-profit organizations and the conduct of their statutory activities, not taken into account for profit tax purposes, include:
√ entrance fees, membership fees, targeted contributions and deductions to public law organizations made in accordance with the legislation of the Russian Federation on non-profit organizations professional associations built on the principle of compulsory membership, share deposits, as well as donations recognized as such in accordance with the Civil Code of the Russian Federation;
√ property passed by non-profit organizations under a will in the order of inheritance;
√ amounts of funding from the federal budget, budgets of constituent entities of the Russian Federation, local budgets, extra-budgetary funds allocated for the implementation of the statutory activities of non-profit organizations;
√ funds and other property received for charitable activities;
√ total contribution of the founders of non-state pension funds;
√ pension contributions to non-state pension funds, if they are directed in full to the formation of non-state pension reserves pension fund;
√ use of proceeds from owners by institutions created by them for their intended purpose
For example, the developer MUP "Avia" received targeted financing in the amount of RUB 1,980,000 from a commercial organization in February 2006. for the construction of a building - a luggage compartment, which is equal to the estimated cost of construction. MUP "Avia" carries out construction in an economic way at the expense of targeted financing. Construction was completed in March 2006. The constructed luggage compartment belongs to the Avia Municipal Unitary Enterprise with the right of economic management. In March 2006, MUP "Avia" submitted documents for state registration economic management rights. The actual cost of construction was 1,880,000 rubles. (without VAT). The useful life of the luggage compartment in accounting and tax accounting is set at 480 months.
1. The accounting department of MUP “Avia” reflects the receipt of funds from a commercial organization intended for the construction of a luggage compartment
2. Received funds are reflected by the accounting department as targeted funding
3. For profit tax purposes, on the basis of clause 14, clause 1, art. 251 of the Tax Code of the Russian Federation, when determining the tax base, income in the form of property received by the taxpayer as part of targeted financing is not taken into account. A deferred tax asset arises
4. The amount of costs for the construction of the luggage compartment carried out by MUP "Avia" is reflected
5. VAT is charged on the cost of construction work carried out independently *
6. VAT accrued on the cost of construction work carried out independently was paid to the budget.
7. The amount of VAT accrued and paid to the budget when performing construction and installation work has been accepted for deduction.
9. The use of targeted funding for the construction of the luggage compartment is reflected
10. The amount of financing received in excess of actual costs incurred and not subject to return is included in non-operating income
11. Part of the deferred tax asset has been repaid
12. Based on clause 1.1.art. 259 of the Tax Code of the Russian Federation, MUP Avia has the right to include in the expenses of the reporting (tax) period the costs of capital investments in the amount of no more than 10% of the original cost of fixed assets, 118,000 rubles. (RUB 1,880,000*10%). In April 2006, the accounting department of MUP Avia reflected a deferred tax liability from the difference between the amounts of expenses associated with paying off the cost of the luggage compartment, recognized in tax and accounting.
13. Every month from April 2006 until the cost of the baggage compartment building is fully repaid, the accounting department of MUP "Avia" will reflect the following entries in the accounting records:
on depreciation in accounting
14. In tax accounting, depreciation will be charged in the amount of 3,671 rubles. (RUB 1,880,000 – RUB 118,000)/480 months)
15. on writing off the amount of depreciation according to accounting from deferred income to non-operating income
16. on repayment of part of the deferred tax asset
17. Part of the deferred tax liability was written off
______________________________________________________________________
* From January 1, 2006, the moment of determining the tax base when performing construction and installation work for one’s own consumption is the last day of the month of each tax period (clause 10 of article 167 of the Tax Code of the Russian Federation, clause 16 of article 1 of the Federal Law of July 22, 2005 No. 119-FZ).
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