Budgeting in the activities of a commercial bank. Development of the budgeting system in commercial banks on the example of tolubay. provisions for impairment of investments

Moscow Banking Institute

COURSE WORK

by subject

"Banking"

"Financial planning and budgeting of the activities of a commercial bank"

Student group 5FC-2

Spirina A. A.

Head: Ph.D. Assoc. Galliamova A.Z.

Moscow 2013

2.1 Concept, purpose and tasks of operational planning

2.2 Bank budget planning methods

2.3 Bank budget planning principles Conclusion References

INTRODUCTION Planning is the process of putting strategy into practice. It consists in making specific decisions to ensure the effective functioning and development of the organization in the future, to reduce their uncertainty. Planned decisions can be associated with setting goals and objectives, developing a strategy, distributing and redistributing resources, and defining performance standards in the coming period. In making such decisions is the process of planning in the broadest sense. In the narrow sense, planning is the preparation of special documents - plans that define the specific steps of the organization to achieve its goals. Until the mid-twentieth century, firms operated in a stable excess of demand over supply, which allowed them to work on the basis of current plans based on incoming orders. Then the pace of changes began to increase, along with the current one, it was necessary to engage in medium-term and long-term planning, to draw up promising targeted programs. Later, the general pace of development accelerated, and long-term planning turned into a strategic one, which proceeded from future opportunities. In the seventies, changes began to proceed so rapidly that long-term strategic plans no longer corresponded to the needs of economic practice. In addition to them, strategic programs began to be drawn up, which made it possible to quickly take into account these changes in current decisions. Planning is designing the future, one of the most complex mental activities available to man. Planning covers all aspects of economic life; today no enterprise can do without it. The lack of planning puts the employees of the organization in a position where they: - do not understand the goals set, future tasks; - do not consider management as a continuous process; - lose orientation in the economic world, as they are guided mainly by short-term interests and do not understand the depth of ongoing events; - find themselves in a more vulnerable position compared to competitors. Planning plays a huge role in the activities of enterprises, namely: - improves the coordination of actions in the organization; - allows you to take into account rapid changes in the external environment; - makes it possible to realize favorable opportunities for the organization, - improves information exchange; - contributes to the optimal allocation of resources; - clearly outlines the duties and responsibilities of the staff; - encourages employees to better perform their work, and managers to more justification and implementation of their decisions; The main task that we set for ourselves is: analysis of financial planning as an integral part of a business plan; methods used in financial planning; types of financial planning.

Chapter 1. Theoretical aspects of financial planning in a credit institution 1.1 Financial plan as component business plan Financial planning is the planning of all income and directions of spending money to ensure the development of the enterprise. Financial planning is carried out by drawing up financial plans of different content and purpose, depending on the tasks and objects of planning. The purpose of financial planning is to increase the effective use of long-term and short-term financial resources. In the planning process, measures are developed to increase the return on capital, the stability of the company, minimize risks, and so on. The quality of decisions made in the field of finance depends entirely on financial planning. In order for planning to be of high quality and comprehensive, one should be guided by the following principles: 1. continuity of planning; 2. scientific; 3. the focus of plans on the rational use of all the resources of the enterprise, on achieving maximum profit; 4. mutual linking and coordination. The objectives of financial planning are: 1 ensuring a normal reproduction process with the necessary sources of financing 2 observing the interests of shareholders, investors 3 guaranteeing the fulfillment of obligations to the budget, extra-budgetary funds, banks and other creditors. 4 identification and mobilization of reserves in order to effectively use profits and other income 5 control over the financial condition, solvency and creditworthiness of the enterprise 1 Financial plan as an integral part of the business plan developed business plan in specific categories of efficiency. The financial plan, like no other section of the business plan, is important not only for potential investors, but also for internal use, therefore, its preparation should be treated with particular care, regularly and periodically monitoring changes in the activities of the credit institution and making adjustments to the calculations. The development of financial aspects requires special knowledge, primarily in the field of financial management, accounting and analysis. Therefore, if the enterprise is so small that it does not have a financial service, specialists from consulting firms specializing in accounting and auditing are invited to prepare this section. In foreign practice, rather strict formalized requirements for the preparation of a financial plan have developed, which include a certain set of financial planning and reporting documents and the calculation of the break-even activity of an enterprise. The Russian system of accounting and analysis differs from the systems adopted in most foreign countries, but the transition to international system accounting should facilitate mutual understanding in the field of entrepreneurship, including the preparation of business plans. Many Russian banks have already fully switched to the new system, while others are on the way to it. If a business plan is being developed to expand the activities of an already functioning enterprise, then it is recommended to start this section with an analysis of the real financial condition organizations. The purpose of such an analysis is to provide objective information about the level of balance of the structural elements of assets, capital and liabilities of the organization and the level of efficiency of their use. The information base for analyzing the financial condition of an organization is financial statements. There are a large number of methods for conducting analysis, which are discussed in detail in the specialized literature. So, when studying the balance sheet, it is advisable to use the methods of horizontal and vertical analysis. Horizontal - consists in the construction of one or more analytical tables, in which absolute indicators are additional relative growth rates (decreases). As a rule, basic growth rates are taken for a number of years (adjacent periods). This allows you to analyze not only the change in individual indicators, but also to predict their values, which is important for characterizing the financial condition of the organization. Horizontal analysis allows you to identify trends in individual items or their groups that are part of the financial statements. Thus, the dynamics of the value of the organization's property gives an additional value to the value financial results information about the power of the organization. However, it is important to note that the value of horizontal analysis is significantly reduced in terms of inflation. A variant of horizontal analysis is an analysis of development trends (trend analysis), in which each reporting position is compared with a number of previous periods and a trend is determined, that is, the main trend in the indicator dynamics, cleared of random influences and individual characteristics of periods. This analysis is forward looking. The vertical (structural) analysis of the assets and liabilities of the balance sheet is also of great importance for assessing the financial condition. Such an analysis gives a representation of the balance in the form of relative indicators. The purpose of vertical analysis is to calculate the share of individual items in the balance sheet and evaluate its changes. using vertical analysis, it is possible to conduct inter-farm comparisons of organizations. In addition, relative indicators smooth out the negative impact of inflationary processes. A widely used method for assessing the financial condition of an organization is the calculation and evaluation of special financial ratios. They represent a system of financial indicators that characterize the ratio between individual articles of financial statements, the ratio of the main results financial activities organizations. The use of financial ratios increases the usefulness of information and makes it possible to compare the results obtained with established standards, with data for the previous period, with the corresponding indicators of competing organizations, as well as with industry average data, avoiding the impact of inflation. The financial indicators of the enterprise include: - liquidity ratios (current, absolute, etc.); - sustainability ratios (equity ratio of working capital; the ratio of total and current debt to the balance sheet total and residual value of fixed assets); - odds business activity(indicators of the turnover rate of all assets of the enterprise and their individual parts - finished products, receivables, etc.); - profitability ratios (various modifications of the profitability of products and assets). Ratio analysis – effective approach to the analysis of the financial condition of the organization, however, it has the following disadvantages: coefficients reproduce pre-existing conditions, since they are based on actual data, and therefore reflect the characteristics of past events. The use of alternative accounting methods may affect the values ​​of the coefficients (different methods of inventory valuation, depreciation methods, and so on); • changes in accounting estimates and methods may affect the ratios in the year in which they occur; · types of activities can be different, and it is sometimes difficult to attribute it to a specific sector of the economy, which complicates the process of comparison with other organizations; · ratios are usually calculated on the basis of actual data, which does not reflect the impact of price fluctuations and current market conditions. Among the planning and reporting forms that it is advisable to develop and present in the business plan include: · operational plans (reports) for each period for each product and market; plans (reports) on income and expenses for the production of goods (services), which show whether the enterprise receives profit or suffers losses from the sale of each type of goods; traffic plan (report) Money, showing the receipt and expenditure of money in the process of production activities; A balance sheet that summarizes a firm's performance over a specified period of time. An important element of the financial plan is the profitability of each type of product. The main tools for evaluating products are the “break-even point” and “profitability threshold”. Break-even analysis is a simple and effective way to model a situation with certain assumptions. The disadvantages of 'conditional' cost sharing are many times overridden by the analytical advantages provided by break-even analysis. The break-even point is the amount of sales at which the company will be able to cover all its costs (fixed and variable) without making a profit. The sales volume at the break-even point (T min) in value terms is equal to: T min = C post + C variable, where C post - fixed costs; C change - variable costs at the breakeven point. In value terms, the breakeven sales level is useful for knowing how much we need to cover costs. In physical terms, the break-even sales level is useful for knowing how much product needs to be sold to cover costs. In value terms, the break-even level is determined by the formula: Tmin = C post / (1 - C variable / V), where V is the sales volume in value terms; C post - fixed costs; C variable - variable costs. In physical terms, the number of units of goods sold at the break-even point is: Q min = T min / unit price The break-even point allows you to determine at what level of sales is ensured by the profitability of sales. For analysis, we approximate the curve of behavior of the total costs. As a result, it will be a straight line. The break-even chart is compiled mainly for clarity. It clearly shows the position of the break-even point relative to the existing level of sales. Sales revenue Approximation of costs Real change in total costs Variable costs Semi-fixed costs Fixed costs The profitability threshold of products is such revenue from sales that covers not only variable and direct fixed costs, but also indirect fixed costs. then the difference between the critical sales volumes corresponding to the profitability threshold and the break-even point determines the value of the additional sales volume of products that allows compensating for the costs of managing the enterprise. By calculating how much of the output corresponds to the threshold of profitability, it is possible to determine the critical value of the physical volume of production. Profit before taxes is zero. Below the critical volume of production, it is unprofitable to produce. Thus, when the break-even point is reached, the profit is zero, i.e., the sales revenue is the variable or overhead costs plus the costs that were required to produce the product sold. Break-even analysis allows you to determine the minimum acceptable sales volume at a given set price level; the price level at which a firm can realize its planned output. In the process of forming a financial plan, it is imperative to provide for some mechanisms for monitoring. One of its processes is the regular comparison of the planned level of income and expenses with the actual results achieved. however, any inconsistencies resulting from the comparison of actual and planned values ​​should immediately act as an alarm system, stimulating the analysis of the causes of such discrepancies, as well as leading to the adoption of appropriate measures. Monitoring should be carried out at least once a month and as close as possible to the end of the previous month, so that if problems arise, it is possible to respond quickly to them.

1.2 Methods of financial planning In Russian practice, various planning methods are used. The balance method is the most used in the enterprise. Its essence lies in the preparation of various balance sheets and achieving their balance, for example, the balance of income and expenses, the balance sheet, cash balance, labor force balance and wages and others. The normative method lies in the fact that when planning, a whole system of norms and standards for the use of enterprise resources is used (rates for the consumption of raw materials and materials, norms for production and maintenance, labor intensity, norms for the use of machinery and equipment, the duration of the production cycle, norms for inventories). The use of this method is possible if the enterprise has an extensive and effective regulatory framework. The planning method based on production and economic factors is designed to take into account the influence of internal and external factors that change production and financial performance. The calculation is based on basic indicators: sales proceeds, production costs, and so on. In the planned year, these indicators may change depending on the decisions included in the planning: growth or reduction in sales volumes, reduction or increase in production and sales costs, development of new types of products or services, changes in prices and profitability of production. influence of inflation Accounting for these changes gives a fairly accurate predictive nature of planning. In new economic conditions planning is completely dependent on the administration of enterprises and organizations, so the modeling method is used. Most of the plans being developed are based on the methodological foundations of past years. Planning at many enterprises begins with the volume of production, but it is necessary to decide how many products can be sold.

1.3. Types of financial plans and their role in enterprise management. The plans reflect the forecasts for the development of the organization in the future; intermediate and final tasks and goals facing it and its individual divisions; mechanisms for coordinating current activities and allocating resources, strategies for emergency situations. Depending on the period for which the plan is drawn up, and the degree of detail of planned calculations, it is customary to distinguish between long-term, medium-term and short-term planning. Long-term or long-term planning covers a period of more than 5 years, for example, 10, 15, 20 years. These plans are designed to determine the long-term strategy of the enterprise, including social, economic, scientific and technological development. Forward planning is different from forecasting. In form they represent the same process, but in content they differ. Forecasting is a foresight process based on probability, a scientifically based judgment about the prospects of a planned process or object in the future, its possible state. Forecasting allows you to identify alternative options for the development of the planned process or object and justify the choice of the most appropriate option. In this sense, forecasting is one of the stages of long-term planning; without it, long-term planning would be fortune-telling, not scientific foresight. But in a number of socio-economic processes, forecasting can act as an independent management function. Forecasts of socio-economic development, compiled in the process of public administration, can serve as an example of this. national economy at the country and regional level. In addition, some processes and phenomena do not lend themselves to planning at all, but require their consideration in management, for example, demographic processes, spiritual life. At the macroeconomic level, the subject of the forecast can be: gross domestic and gross national products; labor resources; labor productivity; production funds; capital expenditures; current consumption of the population; financial flows and other. At the micro level, that is, in business entities, the following can be predicted when drawing up strategic and technical and economic plans: price level; labor cost; sales volume and market share; profit and profitability; main competitors; scientific and technical research and development; required capital investments; risk and more. Medium-term planning is carried out for a period of 1 to 5 years. At some enterprises, medium-term planning is combined with the current one. In this case, a so-called rolling five-year plan is drawn up, in which the first year is detailed to the level of the current plan and is essentially a short-term plan. All regular plans are continuation and development common system plans, and the fact that annual plans form medium-term plans, and medium-term plans allow the development of strategic plans. Short-term planning is the development of plans for 1-2 years. Short-term plans include specific ways in which the organization's resources will be used to achieve the goals defined in the longer-term plans. The content of short-term plans is detailed by quarters and months. Each short-term plan requires more detailed study than subsequent long-term ones. All three types of plans should be linked to each other. and do not contradict each other, they form a systemic unity of the company's regular plans necessary for organized and purposeful activities. Today, many companies focus on short-term results, as the high turbulence of the external environment does not favor long-term planning. To achieve short-term results, management and financial circles are pushing: stock analysts, fund managers, and so on. And immediate-impact executives readily give in to pressure. Unfortunately, many managers are only concerned with today's events. By content planned decisions allocate strategic, tactical, operational-calendar planning. Strategic planning is focused on the long term and determines the main directions for the development of an economic entity. Through strategic planning, decisions are made about how to expand business activities, create new areas of business, stimulate the process of satisfying customer needs, what efforts should be made to meet market demand, which markets are best to operate, what products to produce or what services to provide, with what partners to do business with and so on. The main goal of strategic planning is to create the potential for the survival of the enterprise in a dynamically changing external and internal environment that generates uncertainty in the future. As a result of strategic planning, the enterprise sets long-term goals and develops means to achieve them. In a planned economy, when the external environment in which the enterprise functioned was not dynamic, strategic planning was not properly developed either in management theory or in practice. And only now there is a mechanism of strategic planning. Tactical plans are designed to contribute to the implementation of strategic plans, and involve the passage of a certain stage of the company's strategy. As a rule, they have a shorter planning period, usually the next year. In organizations, tactical plans define the specific actions of units aimed at achieving strategic goals. The development of tactical actions in accordance with corporate strategy is usually the responsibility of middle managers. As a result of tactical planning, an economic and social development firm representing the program of production, economic and social activities firms for the relevant period. The development of a plan for the economic and social development of an enterprise is preceded by a deep and comprehensive analysis of its activities, the purpose of which is to assess the achieved organizational and technical level of production and to identify on-farm resources and untapped opportunities. Tactical planning allows you to realize reserves and untapped opportunities, which can be expressed in increasing production volumes, reducing costs, improving product quality, increasing labor productivity, reducing the need for capital expenditures, and so on. Operationally - calendar plans are developed at the lower levels of the organization, indicate the sequence of actions to achieve operational goals and ensure the implementation of tactical plans. On their basis, all the activities of department managers are built. Operational planning involves the development of schedules, both for department managers and for individual employees. Schedules are an important part of planning, as they define specific time frames for each operational task, without which neither tactical nor strategic goals will be achieved. Operational planning should be linked to the possibilities of the budget, since the implementation of each item in the plan requires the allocation of appropriate resources. Operational and scheduling links all elements of the enterprise into a single production organism, including the technical preparation of production, the logistics of production, the creation and maintenance of necessary stocks. material resources, sales of products and the like. In the process of functional activities, there may be a need to develop a plan for other activities. In such cases, it becomes necessary to involve third parties in the form of investors in the implementation of plans, to justify obtaining a bank loan, and more. Currently, various organizations have already learned how to develop special types of plans - business plans. Distinctive features what this kind of plans is is that they essentially become a plan, a commodity that can be sold to customers. The start and completion of work on the business plan may not be related to the timing of regular plans. That is, such types of plans have a certain independence in time. In addition, there are certain standards for the development of business plans in the form of mandatory sections, forms and content, as well as for any type of product. Such plans are developed along with and together with regular ones and can be coordinated with them in terms of all resource indicators (time, finances, people, and so on). As mentioned above, all financial plans are divided into strategic, current, operational. All of them are interconnected and carried out in a certain sequence. The financial strategy of an enterprise should be understood as the formation of a system of long-term goals of financial activity and the choice of the most effective ways to achieve them. The development of a financial strategy allows you to make effective management decisions related to the development of the enterprise. The current planning of financial activities consists in developing a system of financial plans for certain aspects financial activity of the enterprise. It allows you to determine the tactics of the enterprise for a shorter period, as a rule, for a year, broken down by quarters. Unlike strategic plans, which are always predictive, probabilistic in nature, financial plans are more specific and accurate. In the process of current financial planning, the enterprise develops various types of financial pans: income and expenses, receipts and expenditures of funds, balance sheet, formation and use of financial resources. The degree of detail of the indicators of each type of financial plan is determined by the enterprise independently, taking into account the specifics of its activities. The plan of income and expenses for the main activity has the purpose - to determine the amount of net profit. The indicators of this plan are the volume of production (goods, services), the amount and level of income from the sale of products, the amount of fixed costs, the amount and level of variable costs, rates and types of tax payments, the amount of balance sheet and net profit. The purpose of developing a plan for the receipt and expenditure of funds is to ensure constant solvency at all stages of the planning period. The plan consists at all stages of two parts: the receipt of funds and the expenditure of funds, when planning, it is necessary to take into account not only the receipt and expenditure, but also the presence of certain reserves. The balance plan reflects the calculation of the composition of assets and liabilities. The purpose of developing this plan is to determine the possibility of growth of individual assets and the formation of an optimal financial structure of the enterprise's capital, which ensures its financial activities. When planning liabilities, the ratio of own and borrowed funds is optimized, the composition of borrowed - short-term and long-term - liabilities. The development of a plan for the formation and use of financial resources consists of two parts: sources of formation of financial resources and directions for the use of financial resources. Operational planning of financial activity consists in the development of operational plans. Operational plans have a short-term period (up to a year) and serve as an addition to the current financial plans. These include a cash plan, a credit plan, a calendar of cash receipts. The cash plan reflects the receipt of cash and their use for the payment of wages to staff, for travel, stationery and other expenses. The credit plan consists of the amounts of planned bank loans for the coming year and interest for their use, as well as the volume and maturity of bank loans. The calendar of cash receipts includes the receipt of cash flows from all types of activities and their use for entrepreneurial activities. The payment calendar provides prompt tracking of all settlement and payment obligations. Operational plans are closely linked to the current planning and contribute to their concretization and refinement of the planned indicators. Currently, the financial plan form consists of two main sections. The financial plan (balance of income and expenses) can be viewed as a task for individual indicators, where they are linked in all areas. The planning process focuses on guaranteeing the fulfillment of obligations to the budget and banks, identifying reserves and using resources in order to effectively use profits and other income. When planning financial indicators, a financial manager is guided by reports containing information about the enterprise's funds, their sources and movement. The degree of reliability of the development plan, completeness and complexity depends on this. Financial planning reflects the totality of cash income that is used in financial economic activity and ensure the movement of economic, social and consumer effects, the development of a plan for income and expenses is the final stage of current financial planning. Financial planning allows you to completely and fully fulfill monetary obligations and payments, ensure the proper circulation of financial resource flows and ensure the strategic development of the enterprise in the planning period.

2. Budgeting the activities of a commercial bank

2.1. Concept, purpose and tasks of operational planning

operational planning- the stage of budgeting, which consists in the development, coordination and approval of plans that determine the future financial condition of the bank, as well as ways, methods and means to achieve it.

Operational planning of the bank's budget specifies the tasks of financial activity for a relatively short term (quarter by month) by transforming strategic indicators into planned values ​​of the bank's budget items. At the same time, updated forecast information about market and other restrictions operating in the operational planning interval is used.

Thus, when planning, a number of external and internal constraints are taken into account, which are imposed on the model being developed.

External restrictions- These are the CBR standards (capital adequacy, the allowable size of an open foreign exchange position, instant and current liquidity standards, etc.).

Internal restrictions- these are limits and requirements established by internal bank documents, in particular, limits on the volume of investments and on the level of risk, the required level of profitability and / or interest margin of the bank, the volume of highly liquid assets, the size of the gap, etc.

Target operational planning of the bank's budget - to ensure effective management of the bank's resources in the medium term.

Tasks for the planning period can be presented as follows:

quantitative indicators (by volume of operations, number of clients, etc.);

increase in the profitability of operations (for profit centers);

increase in income and/or decrease in expenses (for cost centers);

improvement organizational structure and improving the efficiency of personnel management;

balance of payments balance;

reduction of excess reserve funds, etc.

Stages of bank budget planning

The process of building a bank budget plan includes the following steps:

analysis of the efficiency of the structural divisions of the bank;

analysis of the causes of deviations of actual data from those planned for budget items for the previous reporting period;

development of proposals for the redistribution of financial and material resources of the bank;

formation of the optimal structure of the bank balance;

construction of planned forms of the budget of assets and liabilities and the budget of income and expenses, providing maximum protection against structural risks;

construction of a planned form of the cash flow budget;

formation of estimates of capital investments;

determination of budget parameters for structural subdivisions of the bank.

2.2. Bank budget planning methods

The planning of the bank's operating budget can be organized in several ways. Consider the advantages and disadvantages of using certain planning methods.

1. Bank budget planning method "top down" used for centralized budgeting.

Advantages of the method:

Management, as a rule, is much better than lower-level managers, aware of the tactical and strategic plans for the development of a credit institution. Thus, it has the ability to "lower" such planned values ​​for budget items to each structural unit, which will reflect the real plans of the bank. A top-down budget requires the bank's management to have a clear understanding of the organization's main features and the ability to formulate a realistic business development plan for implementation.

This approach ensures budget consistency individual divisions and allows you to set benchmarks to evaluate the performance of responsibility centers.

Budget planning of the bank "top-down" should be aimed at satisfying, first of all, the interests of the founders, owners and investors of the bank. If this principle is not respected, then all the advantages of the method are lost.

Disadvantages of the method:

The management of the bank may not take into account the specifics of the activities of individual divisions of the bank and set unrealistic planned budget values.

2. Bank budget planning method "upwards" used for decentralized budgeting.

Advantages of the method:

The managers of each responsibility center plan budgetary items related to the core activities of only their division, and provide bank managers with filtered and summarized budget information only for their division. Thus, managers of each responsibility center and business area as a whole can put into practice all their knowledge and experience, participate in the development of their business area.

Disadvantages of the method:

Quite often, planned budget indicators presented "from below" are changed by managers in the process of approving the budget, which, if the decision is unfounded or insufficiently argued, can cause a negative reaction from subordinates. In the future, this situation often leads to a decrease in confidence and attention to the budget process on the part of lower-level managers, which is expressed in carelessly prepared data or deliberately overstating the figures in the initial versions of the budget.

Often, managers of responsibility centers do not have an understanding of corporate goals, there is no link between development plans for the unit and resource capabilities. It happens that the preparation of the consolidated budget of the bank is reduced to a simple summation of the budgets of the bank's divisions without any understanding and adjustment. If the coordination of the budgets of individual structural units of the bank does take place, then, as a rule, it takes a lot of effort and time.

3."Combined" The bank's budget planning method allows you to use the advantages of the "top-down" and "bottom-up" methods and at the same time level out their shortcomings.

Top management and curators of business areas determine the bank-wide consolidated values ​​of budget items, which are transferred to divisions and branches using the "top-down" technology. In subdivisions and branches, within the given general bank values, the values ​​of budget items are set using the "bottom-up" technology.

4. Bank budget planning method "combined with limits" additionally supports for governing bodies the possibility of setting limits on the values ​​of all or some items of the budget of departments and branches.

The construction of the bank's operational planned budget is a complex multi-level process based on the interaction of the bank's divisions with the planning department and the bank's management. In practice, the operation of planning the budget of a unit can be repeated several times, as changes and corrections are made to the budget of this responsibility center until the optimal result is achieved.

Budgeting. Kozhin V.A., Shagalova T.V. and etc.

Novgorod: NNGASU, 201 6. - 2 45 p.

The training manual provides a summary of the discipline "Budgeting" in accordance with the Federal State Educational Standard 3+ VO, which focuses on a competency-based approach to the study of economic disciplines. The material is presented in an accessible, visual and concise form using diagrams, tables, graphs and formulas. The manual contains: lecture notes list of used literature, test questions, glossary and applications. The textbook is intended for undergraduates, university students studying economic disciplines. It can also be useful for teachers, graduate students and specialists in their practical activities. The textbook "Budgeting" "was reviewed and approved at a joint meeting of the departments of the Federal State Budgetary Educational Institution of Higher Professional Education of the Nizhny Novgorod University of Architecture and Civil Engineering dated "" 2016, protocol No. Recommended for publication as study guide for undergraduates studying in the directions: 38.04.01 "Economics", 38.04.02 "Management" and graduate students studying in the direction 38.06.01 "Economics".

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Content
Name of sections (modules)
Introduction 4
Section (module) 1. Theoretical basis budgeting 6
Topic 1.1. The State of Theoretical Research on Budgeting Based on Materials 6
literary sources
Topic 1.2. World practice and the place of budgeting in the management system 9
enterprise
Topic 1.3. The relationship and difference between budgeting and planning, a plan from 11
budget
Topic 1.4. Historical-dialectical approach to understanding the essence 12
budgeting in Russia
Topic 1.5. A socially oriented concept of economic development is the basis for 14
substantiation of the purpose of budgeting
Topic 1.6. Budgeting as a method of managing 16
Control questions for the section (module) 1 19
Section (module) 2. Organization of budgeting 20
Topic 2.1 Analysis of the elements of budgeting as a method of management 20
Topic 2.2 Scientific approaches and methods of influencing personnel used in 21
budgeting system
Topic 2.3 Budgeting principles 24
Topic 2.4. Budgeting functions 25
Topic 2.5 Organization as a function of budgeting 25
2.5.1. The function of goal-setting budgeting 26
2.5.2 Budget management structure 30
2.5.3. Delegation of powers 31
2.5.4 Establishing long-term partnerships based on 39
multi-orbit control structure
2.5.5 Regulation of budgeting workflow 41
Control questions for the section (module) 2 43
Section (module 3). Planning as an essential function 44
budgeting
Topic 3.1. Essence of planning 44
Topic 3.2. Planning principles 47
Topic 3.3. Planning methodology in the budgeting system 49
Topic 3.4 Budget process (cycle), budget period, planning stages 52
Topic 3.5. Steps in the planning process 53
Topic 3.6. The composition of the master plan (budget) 55
Topic 3.7. Organization of events of the preparatory period 57
planning
3.7.1. Conducting a retrospective express analysis "costs-volume-57
profit"
3.7.2. Plan development innovative development enterprises 60
3.7.3. Development and approval of prices for products and services 65
3.7.4. Development and approval of norms for the consumption of resources for products and 74
services and cost standards
Topic 3.8. Development of plans as a basis production activities enterprises 75
3.8.1. Development of the production program of the enterprise 75
3.8.2. Sales plan 85
3.8.3. Production and marketing plan for the main production activity, 86
ancillary and service industries of the enterprise
3.8.4. Calculation of the production capacity of the enterprise 88
3.8.5. Calculation of the need for basic and auxiliary materials and costs 92
for their purchase and creation of warehouse stocks
Topic 3.9 Labor plan and payroll budget 93
Topic 3.10. Plan development investment activity 100
3.10.1. Investment activity plan 100
3.10.2. Business plan 104
Topic 3.11. Software production cost plan
3.11.1. Calculation of the budget of overhead costs 116
3.11.2. Calculation of the budget of general expenses 118
3.11.3. Product costing 122
3.11.4. Cost budget for production and sales of products 123
Topic 3.12. Enterprise social development plan 127
Topic 3.13. Financial planning 130
3.13.1 Theoretical foundations of financial planning in the enterprise 130
3.13.2. Composition of the financial plan 134
3.13.3 The procedure for compiling budgets included in the consolidated financial 134
budget
Control questions for the section (module) 3 140
Section (module) 4. Control and analysis of the execution of plans (budgets) 141
Topic 4.1. Organization of the accounting system 141
Topic 4.2 Economic analysis enterprise activities 145
4.2.1. Analysis of the implementation of the plan in terms of production and sales 148
products
4.2.2 Analysis of product cost indicators 151
4.2.3 Analysis of factors affecting the profit of the organization 154
4.2.4. Analysis of the financial condition of the enterprise 156
4.2.5. Rating assessment of the financial condition of the enterprise 169
4.2.6. Rating assessment of the financial condition of financial centers 172
responsibility (CFD)
4.2.7. Models for diagnosing bankruptcy prediction 173
enterprises
Topic 4.3. Organization of personnel motivation in terms of budgeting 179
Topic 4.4. Organization of control and regulation of the budgeting process 189
4.4.1 Organization of internal control 189
4.4.2 Regulatory organization 192
Topic 4.5. Problems of budgeting automation 200
Control questions for the section (module) 4 208
Conclusion 209
List of references 211
Glossary 216
Applications 225

ANNOTATION

Much attention is paid to the consolidated budget of the enterprise. The order of its compilation, functions and goals of control, analysis of budget execution are given. Recommendations for improving the efficiency of budgeting in the enterprise are given. In particular, the role of material incentives for management in effective budgeting is determined.
It is intended for students and graduate students of economic specialties, specialists of commercial structures.

The tutorial is an electronic version of the book:
Naumova, N.V., Zharikova L.A. Budgeting in the activities of the enterprise: textbook / Tambov: Publishing house Tamb. state tech. un-ta, 2009. - 112 p. - 100 copies.

INTRODUCTION
1. THEORETICAL BASIS OF BUDGETING
1.1. Essence, goals and objectives of budgeting
1.2. Analytical, accounting, organizational and software and technical aspects
budgeting
1.3. Types of budgets and their classification
test questions
2. PROCEDURE FOR PREPARATION OF THE UNIFIED BUDGET, CONTROL AND ANALYSIS
ITS PERFORMANCE AT THE ENTERPRISE
2.1. Procedure for drawing up an operating budget
2.2. The procedure for drawing up the investment budget
2.3. The procedure for drawing up the financial budget
2.4. Budget execution control
2.5. Budget execution analysis
test questions
3. INCREASING THE EFFICIENCY OF BUDGETING
3.1. Financial incentives as an integral part of effective budgeting
3.2. Usage information technologies in budgeting
test questions
Control tasks
CONCLUSION
BIBLIOGRAPHY

Introduction
In market conditions of management, a prosperous enterprise is considered to receive a steady profit from its activities. This maximum goal can be realized on a sustainable basis through budgeting. As you know, the leading role in coordinating the activities of market entities belongs to prices, it is they who determine the favorable volumes and methods of production for participants in economic relations. Each enterprise is forced to subordinate its actions to the price mechanism, the law of supply and demand, since no one is in
able to undo them. However, in the internal structure of each enterprise, the price mechanism is supplanted by the conscious actions of the administration, managers and other specialists. Therefore, the activity of the enterprise is regulated through the adoption of planned decisions. From this position
planning and should be considered as a mechanism that replaces prices and the market in the internal activities of the enterprise and is carried out through budgeting.
The concept of "budget" is used not only for national economy, but also in relation to an individual enterprise. At the same time, the budget is understood as the plan of economic activity of the enterprise for the current budget period - usually a quarter or a year. Distinctive features of budgeting at the enterprise level are: formalization, centralization, consistency.
Currently, most enterprises are experiencing difficulties associated with the budgeting process. This tutorial describes how to write consolidated budget at the enterprise, a methodology for monitoring and analyzing its implementation, a set of measures has been defined that contribute to improving the efficiency of budgeting at the enterprise.

Electronic version of the book: [Download, PDF, 808.66 KB].

Adobe Acrobat Reader is required to view the book in PDF format. new version which can be downloaded for free from the Adobe website.

The budget cycle is a set of actions of budgeting entities to draw up the Bank's financial plan, operational analysis and control of its implementation, as well as to review and adjust individual budget items.

The budget cycle can be divided into two main stages. it stage of preparation for the budgeting process and directly budgeting stage.

Let's consider each of them in detail.

The budget cycle begins with a preparatory process. At this stage, the following main areas of activity are distinguished, namely:

1. Definition of strategic guidelines for the bank's activities as a whole;
2. Determination of planned values ​​of macroeconomic indicators (analysis external environment);
3. Definition of strategic guidelines for business areas;
4. Determination of internal standards, including those for non-operational activities.

Strategic planning includes the first three sub-stages of preparation for the budgeting process. Why is it necessary to pay such close attention to strategic planning?

Sometimes strategic planning in a bank is used as nothing more than an annual budget, and is not a goal, but a means to achieve it. This is mainly due to the fact that in the context of the emergence of more and more new legislative acts and changes to them, as well as in connection with drastic changes in the external environment, top management at the operational level is faced with the need to solve increasingly difficult and important immediate tasks. Therefore, many simply do not see the need for strategic planning with such a rapid change in external conditions, and often there is no time to develop this strategy.

So, for example, when a bank's market share is decreasing, there is such a trend as an aggressive promotion of its products and services. And when credit conditions deteriorate and loan defaults increase, banks simply stop lending.

The reasons for these actions can be easily understood, but such a strategy is unlikely to change the situation for the better. Energetic offer banking products and services does not bring success if these products and services do not meet the needs and capabilities of potential customers, and, possibly, the goals set by the founders for the bank. As a result of the reduction in lending volumes, the bank's sources of income are reduced. But this does not improve the quality of its loan portfolio. These measures do not bring the desired results primarily because their implementation is based on trial and error. On the contrary, the program of actions and strategy of the bank can be determined only after the development of appropriate models of behavior. This process implemented through a series of interrelated decisions taken over a certain period, such as a year.

Strategic planning is management process maintaining correspondence between the objectives of the bank and its available resources in a constantly changing market environment and government regulations.

Strategic guidelines represent the definition of a general vision for the development of the bank, priority areas for its development (priority in the field of active-passive operations, industry priority, regional strategy), positioning the bank in the market (concentration on certain business areas, client segments and market positions). As part of the development of strategic guidelines, forecast values ​​of movement (size) can also be determined equity bank, planned rate of return on equity (return on equity), return on assets, financial leverage(relation borrowed money to equity), as well as other indicators that management considers it possible to use as benchmarks for the bank's activities.

It should be noted that the bank is not obliged to use all of the above indicators as strategic goals. It is possible that only one indicator will be set, for example, return on equity.

The prerogative in setting strategic guidelines is assigned to the Board of Directors. It is he who determines how many and what indicators to use as strategic goals.

It is also possible that the Board of Directors fully or partially delegates its functions of setting long-term targets to the Chairman of the Bank's Management Board or the Budget Committee.

The average horizon of strategic benchmarks for which they are set should not exceed three years. Since otherwise the probability of achieving strategic targets is reduced.

At the same time, any strategic goals must meet the following criteria:

• be specific;
• be measurable;
• be achievable;
• correlates with a specific deadline.

Thus, the criteria are responsible for the objectivity of the established strategic guidelines.

The second sub-stage is to determine the forecast values ​​of the external environment in order to identify those external factors that contributed to the development and growth of the bank's efficiency in the past, as well as their impact on the activities of the credit institution in the future. Moreover, the forecasting of macroeconomic indicators can be carried out by developing a number of scenarios that determine their values. Scenarios can be divided into optimistic, pessimistic and most probable. Based on these options, management, represented by the Budget Committee, taking into account the opinion of the analytical unit of the bank, the liquidity department or the department marketing research the plan of macroeconomic indicators is approved.

Most of the indicators of the external environment are related to economic sphere activities, namely:

• inflation forecast;
• RTS index forecast (MICEX);
• forecast of interest rates in the interbank market;
• Bank of Russia discount rate forecast;
• forecast rates Mibor, MIACR, Libor, deposit rates of the Bank of Russia;
• US dollar exchange rate forecast;
• forecast of profitability of government securities, corporate bills, etc.

These metrics will allow the Budgeting Department to control the validity of the projections provided by the respective FRCs when preparing budgets.

Apart from economic factors should be highlighted:

• legislative factors (changes in the level of capital adequacy, the amount of reserve requirements, the level of FOR rates, the transition to international reporting standards, the likelihood of tax reform);
• competition factors (financial position of competitors, their development plans for the future, the level of banking tariffs of competing banks);
• political factors (carrying out election campaigns for authorities at various levels, the presence/absence of "personal" ties in the state apparatus);
• market factors (profile of the bank's client and its position in the market).

Non-economic factors cannot be neglected. Their impact in Russian reality on the activities of the bank is usually much higher than it might seem at first glance. Thus, the appearance of a large Moscow bank on the regional market may become a more serious problem for a local credit institution than an increase in inflation or interest rates in the interbank market. These are dumping prices for traditional banking services, and a wider range of banking operations offered, and support from the administration of the region, the territory in exchange for investments in the region, and much more. A similar negative impact is exerted by the absence of "their" people in the authorities, which can be expressed in frequent inspections, a more thorough and captious analysis of the bank's operations by the regulatory authorities, the inability to discuss financial flows budget organizations and regional budget.

Based on this plan of indicators of the external environment, taking into account the strategic guidelines developed by the Board of Directors, the Budget Committee, represented by the heads of the Central Federal District, develops more detailed quantitative and natural guidelines for each area of ​​the bank's activities for the next three years, broken down by years.

The need to develop strategic guidelines for business areas is dictated, firstly, by the fact that the strategic goals that were set for the bank by the Board of Directors should be detailed by areas in which the bank operates. Secondly, specific long-term goals in the relevant business areas, determining the development priority of one or another area, allows more objective and less conflicting resolution of issues related to adjusting the bank's financial plan. In the absence of such guidelines for business areas, decisions will be made based on the level of influence and position of a particular head in the bank, which explicitly gives rise to conflict situations because of the subjectivity of the decisions made.

These benchmarks by business area may include the following indicators:

• minimum/maximum volume of transactions (for example, loan portfolio, weighted average customer account balances or advertising budget, capital budget, entertainment expenses);
• weighted average interest rate of attraction/placement;
• weighted average term of attracted/placed resources;
• priority in this area by type of client (for example, large, medium or small, legal or natural persons);
• the size of the currency component in the total volume of attraction/placement;
• the share of this type of business line in the total volume of working assets or the structure of liabilities, etc.

After determining the strategic guidelines for business areas, the head of the Budgeting Department identifies inconsistencies in the data presented (for example, significant discrepancies between the volumes of attraction and placement) and submits proposals to the Budget Committee to correct them.

To check the reality of the planned balance structure, the Budgeting Department develops and uses internal standards, the composition and rates of which are approved by the Budget Committee. Internal standards are divided into general banking internal standards, the need to determine which is dictated by the control of liquidity, equity capital adequacy, the bank's open foreign exchange position, the efficiency of the Central Federal District, as well as other indicators of the bank's performance, and internal standards for non-operating activities, the calculation of which is carried out in order to:

• limiting (rationing) certain types non-operating expenses, including for the Central Federal District;
• accelerating the budgeting of non-operating expenses for the CFR and for the bank as a whole;
• modeling capabilities optimal size administrative and business expenses depending on the level of business activity of the bank and individual business areas.

The list of internal standards for each bank is individual and is formed depending on the needs of a particular bank, the development of the analytical unit and the budgeting system.

As possible general banking internal standards, you can use the standards developed by the Bank of Russia, as well as those developed by employees of a credit institution for the needs of the bank, for example:

• capital adequacy ratio;
• instant liquidity ratio;
• current liquidity ratio;
• the ratio of working assets to non-performing assets;
• the ratio of non-operating expenses to operating profit, etc.

The list of internal standards for non-operating expenses attributable to the CFD can be quite large. This is due to the fact that most of the administrative and economic costs have the possibility of rationing. In addition, the bank itself is interested in rationing the maximum a large number non-operating expenses.

The following list can be considered as normalized costs:

• cost of workplace equipment per 1 employee;
• the cost of office supplies per 1 employee;
• one-time office expenses per employee when hiring;
• social and household expenses per 1 employee;
• personnel insurance for 1 employee;
• renovation of the premises for 1 sq.m.;
• operating and utility costs per 1 employee;
• the cost of recruiting 1 employee;
• insurance of premises for 1 sq. m.;
• depreciation rates for property, including CS and office equipment;
• the rate of use of the car depending on the mileage and its brand;
• escort cost software, internal repair and operation of computer and office equipment;
• the cost of using the Internet and email for 1 employee;
• price Supplies to office equipment and banking equipment per 1 employee (ranking is possible depending on the department);
• the cost of cellular (paging) communications per 1 employee, depending on the position held;
• travel expenses (daily allowance, hotel, travel tickets) per 1 employee, depending on the position held, the place of business trip;
• rate of security services per 1 sq.m.;
• property tax in the amount of 2% of the average annual value of the CFD property;
• advertising tax in the amount of 5% of the volume of advertising services rendered, etc.

The calculation of standards for non-operating expenses attributable to the CFD can be performed by the Budget Department either as a monthly average of actual data for the previous six months, or as a policy maximum rate approved by the Budget Committee. Internal standards are reviewed no more than once a month.

A number of internal standards for non-operating expenses are not applied to all CFDs, which is due to the specifics of the activities of individual units. So, for the cash collection service and the transport department, the standard for office expenses per employee is calculated only for the heads of these departments, while it is not used for drivers and collectors.

Separately, it should be noted that as part of the calculation of internal standards, transfer prices are determined for attracted and placed resources. They must also be predetermined, because depending on their level, profit centers will plan the volume of active and passive operations. In contrast to the bank's strategic guidelines in general and by business areas, as well as internal standards (except for standards for non-operating expenses), the level of transfer prices can be reviewed on a monthly basis.

This is especially true for large banks, where large-scale projects, plans for the development of banking products require not only the attraction of significant financial resources, but also significant labor costs, which in turn can radically change the financial result of a particular banking operation. For example, a plan to increase the loan portfolio by increasing the number of loans to medium and small businesses entails additional recruitment in the loan department, accounting (or back office), internal control and other departments. This in turn leads to the need not only to create normal conditions their work (equipment of the workplace, office expenses, insurance, training, social and household expenses), but also an increase in banking space, which already requires investment costs or additional costs for renting space. Hence, operating and utility costs increase, etc. As can be seen from the example, the rationing of labor costs, along with internal standards and strategic guidelines, is an important element of the banking modeling system. Of course, there are opponents who will argue that far from any banking operation can be normalized in time, for example, the search for new customers or the development of new banking products. I agree that there is a spectrum creative work in a jar, which cannot be measured with stopwatches in hand, since each time completely different results will be obtained. However, the rise of standardized, automated banking operations greatly simplifies forecasting and rate calculation. This is what every bank strives for. high quality and the speed of operations is one of the main competitive advantages.

After building a bank development model, the second stage begins - the stage of direct budgeting.

Initially, the Budgeting Department brings the transfer rates approved by the Budget Committee and internal standards for non-operating expenses to all CFDs, if they have been revised.

The Financial Responsibility Centers then begin filling out non-operating expense requests and operating budget forms. If the above forms have changed, then the Budget Department sends the updated forms to all FRCs along with information on transfer prices and internal standards for non-operating expenses. It should be noted that the application for non-operating expenses basically includes natural indicators, such as the area occupied by the CFD, the number of employees, travel plans for the budgeted period, the number of telephones, faxes, printers, computers, etc. assigned to the CFD. This is primarily due to the fact that most of the non-operating expenses are normalized, and, secondly, not every boss knows how much of these or those non-operating expenses are related to his unit, and this is not his area of ​​​​responsibility. A complete list of in-kind indicators filled in by the CFD is presented in the "Application for planning non-operating expenses of the CFD" (Appendix No. 1).

Completed CFR forms are sent to the Budget Department, which calculates non-operating and capital expenditures in monetary terms based on physical indicators provided by the CFR, and analyzes the feasibility of planned non-operating and capital expenditures. The expediency of making expenses is checked from the standpoint of the planned financial result of the unit that forecasts these expenses, as well as strategic guidelines and a forecast of the state of the external environment. So, if the profit center (for example, the Department of Securities) has planned a major advertising campaign, while the preliminary financial result calculated by the Budgeting Department is almost zero or even negative, then the head of the Budgeting Department will advise certain options for reaching a given positive level of financial result, be it a transfer advertising campaign for a later period, or an increase in active operations by financial market. From the planned non-operating expenses of the Central Federal District, the budget for non-operating expenses of the bank as a whole is formed.

In parallel with the calculation of non-operating costs and capital investments, the Budgeting Department consolidates the data provided by profit centers on their planned active-passive operations, and, together with the employees of the Liquidity Department and the Risk Management Department, analyzes the operating budget by terms and types of currencies and prepares proposals for the Budget Committee on adjustment (optimization) of the operating budget. Already at this stage, compliance with internal standards is checked, as well as compliance with strategic guidelines.

The budgets of operating activities, non-operating expenses attributed to the CFD, and the bank's capital expenditure budget compiled by the Budgeting Department are submitted for consideration by the Budget Committee for their subsequent protection by the heads of the respective CFD.

The Budget Committee either approves the above budgets and brings the planned figures to the units, or sends the budgets for revision.

In order to reduce the time and number of meetings of the Budget Committee, I suggest that the Budgeting Department with the relevant CFD prepare several options for controversial budget items: an optimistic, pessimistic and most probable option, or the Budgeting Department and the CFD option. Then it will be easier and faster for the Budget Committee to approve the above budgets.

The second sub-step is to draw up a financial plan and profit and loss budgets for profit centers. The financial plan represents the bank's two main budgets: the aggregate balance sheet budget and the aggregate profit and loss budget.

Based on the budgets approved at the first sub-stage, the Tax Planning Department calculates tax payments (for property tax, road user tax, value added tax, foreign currency purchase tax, income tax, etc.) for the planned period and submits to the Department budgeting to form an aggregate profit and loss budget.

The budgeting department prepares the equity budget taking into account strategic guidance, as well as information received from the founders, the Chairman of the Management Board of the Bank, and data from the aggregate profit and loss budget.

Next, the balance sheet budget is formed. When compiling it, the final balancing of active-passive items is carried out, the fulfillment of all approved internal standards is checked. The draft balance sheet budget, in addition to the Budgeting Department, is also considered by other departments responsible for liquidity, risks and other performance indicators of the bank.

The last budget that is formed as part of the budget process is the profit and loss budget of profit centers. Its main feature is that it includes income (expenses) from transfer pricing and distributed allocation general banking expenses.

It should be noted here that in addition to the profit and loss budgets of profit centers, a similar budget is prepared for the domestic bank, through which all transfer operations are carried out. Only then the total financial result of all profit centers and domestic bank will be equal to the financial result of the aggregate profit and loss budget of the bank as a whole. This equality is an additional verification action that the Budgeting Department performs when preparing budgets.

Formed financial plan, the equity budget and profit and loss budgets of profit centers are submitted for approval by the Budget Committee.

This completes the budgeting phase. General scheme budgeting, their sequence and relationships are presented in Appendix No. 2. The period of this stage of budgeting depends on many factors: the size of the bank, the development of the branch network, the planning horizon, the level of automation of the budget process, etc. The only condition here we can highlight the fact that the compilation stage should not "climb" into the planning period and be significantly less than the planning horizon in terms of time. Otherwise, the stage of budgeting will take up most of the time of the staff of the Budgeting Department, and seriously distract the staff of the CFD from their main work. Such a procedure for organizing the budget process will not allow to fully implement other stages of budgeting, namely: control and analysis of the implementation of the financial plan of the bank, timely revision and adjustment of budgets.

Although if the budgets are approved at the beginning of the forecast month (on 2-3 working days), then this will not be a particular problem. On the contrary, the accuracy of planning will increase, since the final data on the accounts for the period preceding the planned one will be at the disposal of the Budgeting Department.

All this can lead to budget process will be done only for its own sake, and not for management to make more informed decisions. Top management of the bank will not consider budgeting as an element of managing the bank's activities.

Therefore, it is necessary to develop a work program that will include not only a description of the stages of budgeting, but also the timing of their implementation. This will allow to outline the time frame of the budget process, which will positively affect the quality of planning.

Example work program preparation of the monthly budget is presented in table No. 1.

Table number 1.

The third stage of the budgeting process is "Control and analysis of the execution of the financial plan of the bank and the budgets of individual CFDs."

The control function is carried out by the Budgeting Department. Control is divided into two types: continuous and periodic.

Constant control is carried out over the budget items of non-operating expenses of the Central Federal District. This means that any FRC that intends to incur any type of non-operating expenditure must obtain approval in the form of a "Budget Allows" visa from the Budgeting Department, whose staff checks against the planned indicators submitted source documents for expenses. In case of missing or exceeding the budget, the employee puts the stamp "Budget exceeded" or "Budget not provided", which will be a signal to management that there is a discrepancy with the approved non-operating budget. And then the Chairman of the Board or his deputy will already decide on the need for unplanned expenses after receiving clarifications from the relevant CFD.

Periodic control is carried out both within the planning period, for example, a ten-day reconciliation of actual indicators with planned ones, and at the end of the planning period.

Internal periodic control is required to quickly identify discrepancies with budget data and take effective measures to eliminate the identified shortcomings.

Control at the end of the budget period is an analysis of budget execution. It should be noted here that the lack of analysis, failure to identify the real reasons for deviations from the planned budget values ​​have an extremely negative effect on the decisions made by management, including improper encouragement of bank employees.

The methodology of analysis, its depth depends on the needs of top management. As an example, the following methods for analyzing budget execution can be cited: analysis of the largest incomes (expenses), analysis of the hierarchical structure of incomes (expenses), analysis of the dynamics of changes in income (expenses) items and analysis of trends in changes in income (expenses) items.

When analyzing the efficiency of the branch network, it is recommended to analyze overall structure income (expenses), analysis and comparison of the total income (expenses) of branches, analysis and comparison of the same type of income (expenses), as well as analysis according to the "20/80" method, which determines the most significant items of income (expenses) of the unit. The 20/80 methodology allows management to focus only on those areas that really occupy a large share among operations and can affect the financial result of the unit and the bank as a whole. Thanks to this technique, the bank is able to release working time their employees from the analysis of deviations of those articles, the share of which is insignificant.

Even such a simple, but detailed analysis allows not only to identify those who are lagging behind, but also to organize an effective motivation mechanism based on this analysis. For example, in one bank that is actively developing lending to medium and small businesses, the motivation of employees of the loan departments of branches and additional offices was organized based on the weighted average rate on the bank's loan portfolio as a whole. At the same time, there were always branches whose weighted average lending rate was higher than the rate for the bank - they were encouraged. And, of course, there were those who did not receive a bonus, as they worked on average worse than the bank as a whole. Therefore, each division constantly sought to improve the efficiency of its loan portfolio, since outsiders in the next reporting period could improve their performance and thereby push out the leading branches. Thus, this simple motivation of credit officers stimulates the growth of profitability of the bank's loan product as a whole.

If significant deviations from the planned indicators are identified, it may be necessary to adjust and revise the financial plan of the bank or individual budgets of the Central Federal District. These can be both internal and external reasons, for example, the VIP client manager quit and took some of the clients with him, or the state defaulted on its obligations. The revision is necessary to ensure that the budget is adequate and achievable, so that the budget remains an effective tool for managing the bank's activities at all times.

At this stage, the bank must determine the level of variance at which a revision of budget lines is required. It is recommended that instances of deviation be identified (e.g. negligent budgeting, poor execution of official duties) actual data from the planned ones, for which the employee will be responsible, including financial. It is also necessary to establish the possible frequency of revision, since otherwise there is a high probability that the CFD will constantly be asked to finalize the budget, since they forgot to take into account something, calculated incorrectly, etc. As a result, management will be provided with unreliable, constantly changing management information. Usually, with a monthly budgeting horizon, the adjustment should occur no more than once during the reporting period, for example, changes can be made on the 20th of each month during the budget execution control check. Quarterly budget - no more than once a month, etc.

Thus, by determining the maximum levels of deviations, the frequency of revisions and the reasons for deviations that entail responsibility for employees, the system for reviewing and adjusting the budget will work effectively, providing management with reliable planned indicators of the bank's activities.

As part of the revision of the financial plan, it is necessary to dwell separately on the budget sequestration. This is the result of the revision of budget lines. A feature of the sequestration is that not all expenditure items are subject to proportional reduction, but only unprotected ones. Protected expense items are those expenses that are necessary for the bank to carry out its activities and fulfill contractual obligations, i.e. those payments that are mandatory regardless of the level of activity of the bank. For example, protected expenses include rent, telephone bills, cellular communication, transfer of tax payments, payment for security services, etc.

At this stage of the budgeting process, the Budgeting Division, having identified the formation of a significant deficit, submits a proposal to the Budget Committee to adjust the budget. It does not have to be a sequester, as the committee may find additional sources to cover the deficit. The Budget Committee determines options for changing budget items. After that, the approved adjusted financial plan is brought to the relevant CFD.

At this stage, the budget cycle ends and ... begins anew.

Thus, summing up, it is worth saying that the management should involve as many specialists as possible in the budget process different levels, including performers. Since only with the joint efforts of the entire bank, and not just the Budget Department or management, this tool management can bring positive results.

Application No. 1

Application for planning non-operating expenses of the unit(subdivision)

Application №2
Scheme for compiling budget forms

The training manual provides a summary of the discipline "Budgeting" in accordance with the Federal State Educational Standard 3+ VO, which focuses on a competency-based approach to the study of economic disciplines. The material is presented in an accessible, visual and concise form using diagrams, tables, graphs and formulas. The manual contains: lecture notes, list of used literature, control questions, glossary and appendices.
The textbook is intended for undergraduates, university students studying economic disciplines. It can also be useful for teachers, graduate students and specialists in their practical activities.
The textbook "Budgeting" "was reviewed and approved at a joint meeting of the departments of the Federal State Budgetary Educational Institution of Higher Professional Education of the Nizhny Novgorod University of Architecture and Civil Engineering dated "" 2016, protocol No. Recommended for publication as a textbook for undergraduates studying in the directions: 38.04.01 "Economics", 38.04.02 "Management" and graduate students studying in the direction 38.06.01 "Economics".

World practice and the place of budgeting in the enterprise management system.
In world practice, budgeting is considered as an element of management focused on management. commercial organization(in monetary terms), is a methodology for planning, accounting and controlling cash and financial results. Thus, in relation to it, the treasury function is secondary. . The experience of a number of countries in continental Europe and the United States convincingly testifies to the convergence of national standards with international standards. This reflects the global trend in the development of all national market economies due to the globalization of macroeconomic processes. In the sources of many countries, budgeting is closely linked to models management accounting and reporting, including: .

The British-American-Dutch model used by the United Kingdom, the United States and the Netherlands. In this model, the accounting of economic activity is guided by the information requests of investors and creditors. Owners share capital often separated from the operational management of corporations.

The continental model is practiced in Japan and in European countries (France, Germany, Switzerland, Austria, Belgium, Italy, Denmark and French-speaking African countries (Algeria, Angola, Morocco, Senegal, etc.). Business in these countries is closely connected with banks, therefore, the government requires mandatory publication of reports.All accounting procedures are conservative and regulated by law.At the same time, taxation issues in accordance with economic policy these states are a priority here.

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