Financial discipline is a special procedure for conducting financial transactions. It is based on compliance with state regulations on the creation, distribution and use of funds. Features of state financial discipline will be discussed later.
General information
The requirements of financial discipline are rules, the implementation of which is mandatory for institutions, citizens, organizations, enterprises, state authorities, territorial administrations, as well as their employees. They are aimed at observing the interests of the state, municipalities, and specific citizens.
Financial discipline is a necessary condition for stability in the country. It involves not only the responsibility of entities for the timely fulfillment of budgetary obligations, but also to personnel involved in production or other economic activities. Compliance with financial discipline guarantees the efficiency of enterprises, institutions, authorities.
Responsibility Features
The legislation provides for various sanctions for violation of financial discipline. These are fines, penalties, and collection of arrears. In some cases, an entity may be declared bankrupt. This procedure entails the cessation of activity and foreclosure on property.
Violations of established requirements are the responsibility of heads of enterprises, institutions, organizations, associations, and government structures.
The current legislation also establishes criminal sanctions for failure to comply with the requirements.
Financial discipline management
With the transition to a market economy, the rights of enterprises have expanded significantly. At the same time, the regulation of their activities was reduced. All this was accompanied by increased requirements for the financial discipline of organizations.
Its strengthening is provided by improving the solvency of the enterprise by improving and optimizing production, by activating the growth of economic efficiency of the activities. Of particular importance is the balance of financial and production plans. It is also important to tighten liability for violation of the procedure for settlement operations.
Objects of control
Discipline supervision is carried out by authorized bodies. One of them, in particular, is the Federal Tax Service.
The objects of control are:
- state power structures, their territorial divisions;
- municipal authorities;
- organizations, institutions of any form of ownership, the financing of which is carried out by budgetary funds or through subsidies, transfers, subventions, subsidies;
- joint-stock companies and other companies with state participation;
- off-budget state funds.
Types of control
The classification of supervisory activities is carried out depending on the subject composition. By this criterion, control is distinguished:
- state;
- on-farm;
- public;
- independent.
In the latter case, we are talking about an audit analysis.
Financial discipline can be controlled by state authorities and management, regardless of the departmental affiliation of controlled entities. Such supervision is called nationwide. Departmental control is carried out by the control and audit departments of concerns, ministries, and territorial authorities. The object of supervision is the activities of specific institutions and enterprises.
On-farm control is carried out by the financial services of the organization itself (enterprise or institution). The object of supervision is the activity of the entire business entity as a whole, and its units.
In Soviet times, public control was quite popular. Today, this supervisory activity has taken on a new form. So, banking institutions control the financial condition of their customers is very common.
Audit (independent control) is carried out by specialized services or companies. Such verification allows users of financial statements to receive additional confirmation of the completeness and reliability of the information presented in the documentation. The key conditions for the audit are the independence of the contractor from the controlled entity, disinterest in the results of the audit.
Time spending
Monitoring compliance with the requirements of financial discipline can be current, preliminary and subsequent.
The first is also called operational. It is carried out in the implementation of settlement actions to prevent abuse in the expenditure and receipt of funds.
Preliminary control is carried out during the preparation, consideration, approval of the draft budget, estimates, financial plans.
Subsequent control involves the analysis of financial and accounting reporting documents. Based on the results of the assessment, plans are drawn up for the next period.
