Methodology

General methodology

All public sector organizations keep their accounts and generally operate according to their budget, which makes it very closely monitor their management of public funds. Accounting records all stocks and flows in an organization, regardless of whether they are associated with real money transaction. The budget has two main functions: a financial plan for a particular calendar year, as well as specific analytical breakdown of selected phrases in accounting. In the budget (budget management) are monitored cash revenues and expenditures and also how to use surplus or way to cover the deficit (ie the difference between revenues and expenditures).

Budget

A significant portion of public sector organizations mandatory prepares its budget for the current calendar year, broken down by decree about its structure that governs their operations, and which may also be linked other organizations, both public and private sector, since the budget follows the money (cash) - principle, revenues, expenditures and the financing are actually received or issued funds tracked on selected synthetic chart of accounts. Based on this information it is possible to compile the financial statements and derived financial indicators.

Accounting

Accounting, unlike budget, is managed by accrual principle - accounting cases are recorded in the period, which is related chronologically or materially, regardless of the actual flow of money. In addition to tracking income and expenses is also subject to accounting capturing state assets and other assets and payables and other liabilities.

One of the main output of accounting is the financial statements - statements Balance Sheet, Profit and Loss, Cash Flow, Changes in equity and Notes to Financial Statements. Based on these statements are prepared accounting indicators.

Within the portal Monitor are at individual government organizations and local authorities in their profiles showing selected financial and accounting indicators. Below is a detailed description of the used indicators.

Financial indicators

Revenues (consolidated)

Revenues are made ​​up of only such cash transactions, which are irrevocable character (incl. received repayments of loans). Given that the budget structure are known to all the movements of selected synthetic accounts by consolidating items leads to revenues purification of such movements of funds, the organization transfers funds between their bank accounts and so it is not a standard revenue. Not included in revenues from foreign operations or pooled funds, or revenues from business activities.

Expenditures (consolidated)

Expenditures are made ​​up of only such cash transactions, which are irrevocable character (with the exception of loans to other organizations). Given that the budget structure are known to all the movements of selected synthetic accounts by consolidating items occur adjustment of expenditures on such movements of funds, the organization transfers funds between their bank accounts and so it is not a standard expenditure. In expenditures are not included the operations of foreign or pooled funds, or expenditures from business activities.

Balance of revenues and expenditures (consolidated)

The difference between revenues and expenditures. A positive value means a surplus, a negative deficit. Value of the balance must always match the value of financing (with opposite sign). Class finance describes how the surplus was loaded, or how to cover the deficit.

Received borrowed funds

Total principal amount of the bonds and principal on other borrowed funds received within the calendar year. It does not include funds received under the management of liquidity.

Interest paid

Interest paid on borrowed funds. It does not include interest payments that enter the cost of fixed assets.

Paid installments of principal borrowed funds

Settled installments of principal of bonds issued and other borrowed funds received within the calendar year. It does not include the money spent on the management of liquidity.

Debt service total

Sum of paid interest on borrowed funds and principal repayments of principal of bonds issued and other borrowed funds received.

Accounting indicators

Assets total

All property that organizations in most cases used for its activities, which is in particular the provision of public goods and public services to taxpayers. The award is not given its current market value. Given the amount of money spent on the acquisition, adjusted, in particular about how long and how intensely the property was previously used by organizations. This is an important information about the quality and scope of public goods and public services in the future, the organization may provide taxpayers.

Tangible fixed assets

Tangible assets that organizations in most cases used for its activities for more than 12 months, especially land, buildings, machinery and equipment. This activity is especially the provision of public goods and public services to taxpayers. Valuation of these assets is not determined by its current market value. Given the amount of money spent on the acquisition, adjusted for how long and how intensely the property was previously used by organizations. This is an important information about the quality and scope of public goods and public services in the future, the organization may provide taxpayers.

Gross receivables

Nominal amount of receivables, including advances granted by the organization in a position of public (eg, assessment, fines, penalties or fees) and private status (eg rental income), regardless of when they have to be receivable organization paid or otherwise satisfied.

Short-term gross receivables

Nominal amount of receivables, including advances granted by the organization in a position of public (eg, assessment, fines, penalties or fees) and private status (eg rental income), regardless of when they have to be receivable organization paid or otherwise satisfied.

Short-term net receivables

The level of receivables organizations, including advances that emerged from its public status (eg assessment, fines, penalties or fees) and private status (eg rental income), in an amount that reflects the probability of non-payment or other non-borrowers. Receivables are therefore valued at approximately, which can be expected to actually be paid or other meeting of the borrower. The difference with the "Short-term receivables gross" thus indicates what about money or other consideration from the organization fails to get its debtors, for reasons of both subjective and objective.

Short-term financial assets

Total volume of assets of an organization, which is easily and quickly convertible into cash that can be used for example to pay its maturing obligations. In addition to cash, money in bank accounts and stamps also are securities in which the organization of its available funds for the purpose of preventing the appreciation or depreciation.

Total foreign sources

Total amount of all liabilities of the entity, including advances received, no matter to which the organization has paid or otherwise settled, including those obligations, the amount of which in the future may change (increase or decrease).

Long-term liabilities

Nominal amount of liabilities, including advances received that the organization has paid or otherwise settled no earlier than 12 months.

Short-term liabilities

Nominal amount of liabilities, including advances received that the organization has paid or otherwise settled within 12 months.

Costs

Cost in the case of public sector organizations is to reduce the usability of its assets for its work, which is in particular the provision of public goods and public services to taxpayers. This includes the physical and moral wear assets (buildings, cars), its consumption (office material), donation or other loss (dropping from its recovery or remission), but also arises (not payment) obligations as assets of an organization can not be used to enhance the quality and scope of provided public goods and public services, but its use will have an organization to raise funds needed to cover this liability. Cost is comprehensive and accurate information for monitoring the performance of the organization than the expenditure of funds, as well as cargo originated, the expenditure of funds may or may not occur, and do so at different times. The costs are directly related to the deterioration of the financial situation of the organization, regardless of the amount or change the amount of funds.

Incomes

Incomes in the case of public sector organizations is to increase the utilization of its assets for its work, which is in particular the provision of public goods and public services to taxpayers. This occurs by public sector organizations in particular the assessment of taxes, fees or fines, obtaining grants, subsidies or grants rather a lesser extent, entrepreneurial activity (rental property). These facts pose to public sector organizations acquired resources should be spent efficiently and effectively in order to improve the quality and range of public goods and public services they provide. Therefore, the benefits are directly related to improvement of the financial situation of these organizations.

Economic result

In the case of public sector organizations, particularly government organizations, it is common that the operating results for the year is a loss, because it is almost always about the organization, the purpose of existence is not making profit, but the provision of public goods and public services to taxpayers. If the result of management of the organization for the year in profit, it indicates a good ability of the organization to acquire and effectively use the resources needed to implement its activities. For a more accurate assessment, it is necessary to take into account the additional information and indicators.