The functions of financial bodies are the range of activities and powers that are performed by the specified entity as part of the state administration system. In Russia, this work is carried out by bodies whose activities are regulated by the relevant regulatory legal acts.
Modern functions and tasks of the Ministry of Finance
In Russia, financial authorities are entities whose activities are built in accordance with Decree No. 314, issued by the President of the country in March 2004. This document discloses the system and structure of federal executive bodies.
The goal of creating the subjects is to implement the principle of differentiating law enforcement, law-making and oversight functions. Activities in the law-making sphere are carried out by ministries and services, in law enforcement - by agencies and services of the federal level and financial bodies of local self-government subordinate to them.
Some subdivisions of the Finance Ministry (the Treasury Department at the federal level, the Department of Financial State Control, the Department of Supervision in the Field of Insurance, the Financial Monitoring Committee) are currently being transformed into other forms: state-type services subordinate to the Russian Finance Ministry. These include the following bodies: the Treasury, the federal budget and financial supervision service, the federal tax authority.
The Ministry of Finance was left with the functions of developing state tax policy, making proposals to amend legislation in the financial sector, and carrying out work to clarify tax issues.
The state tax service subordinate to the Ministry exercises the powers of the supervisor in terms of compliance with the provisions of the regulatory legal acts regulating the collection of taxes.
The main tasks of the Ministry of Finance of Russia
The main tasks of the main financial authority are:
- development of a unified approach to the development of policies in the monetary, credit, tax, budget, foreign exchange, insurance, and public debt areas;
- improvement of the audit sphere of activity;
- development of reporting and accounting in accounting documents;
- improvement of the processes of production, mining, processing of precious stones and metals;
- calculation and collection of customs payments;
- fixing the value of vehicles and goods transported across the border of the Federation.
The indicated functions of the Ministry of Finance are enshrined in Decree No. 329, issued by the Russian Government in June 2004.
The main tasks of the Ministry of Finance of Russia
The main functions of the main financial authority are:
- Development of draft normative legal acts in the field of development of the budget funds system, the fundamentals of the implementation of the process of redistribution of finances, the division of powers between the Federation, subjects and local authorities.
- Coordination of monetary and budgetary policies.
- Development of draft regulatory legal acts in the field of taxation and reporting forms that are related to the implementation of these standards.
- Management of Russian public debt and the issue of securities carried out on behalf of the Federation.
- Development of draft normative legal acts in the field of organization of the implementation of the consolidated and federal budget, preparation of reports on the work performed.
- Maintaining an account book indicating state debts and registration of the issue of securities in subjects and municipalities.
- Development of draft regulatory legal acts in the accounting sector and the field of compiling reports on the movement of finances.
The essence of the Federal Treasury
An important role in the current and preliminary control and accounting of money, as well as the management of all finances in an operational manner, is played by the treasury created in 1993 by the financial body of the Russian Federation. Its activities are regulated by law at the state level.
The purpose of the body is to ensure the management of money in the federal budget in an operational manner. The functions of the accounting and control types were transferred to the federal treasury from credit organizations.
According to the provisions of Article 78 of the Constitution of Russia, federal executive bodies are entitled to create territorial bodies in the regions and municipalities that will be part of the country's financial system.
The value of the treasury and its organs
The creation of the Federal Treasury as a financial body of the Russian Federation initiated the improvement of the regulatory framework in the field of implementation of budgetary obligations in the system and contributed to the introduction of information type technologies in this process.
The system of financial bodies of the Treasury now makes it possible in real time to provide effective collection of information about all cash injections into budgets of various levels and payments from them.
Due to the fact that the specified financial authority has a terminal connection with banking institutions, every day all funds transferred during cash transactions are accumulated in one account, which is open for the central office of the treasury.
This allows you to take part in the allocation of funds that are temporarily freely used, and the implementation of cash planning activities in budget execution at the federal level.
Powers of the Federal Treasury and territorial bodies
The powers of the Federal Treasury as a state financial body are set forth in the Budget Code and Resolution No. 703, issued by the Russian Government in December 2004.
According to the norms of legislation, this body is engaged in cash services for the execution of budgetary actions in the financial system of the country. He works with accounts opened for him, keeping records of funds that are in the respective budgets.
The Treasury also takes into account all receipts and payments to the treasury through the cash desks of the branches of the Central Russian Bank, participating in the exchange of information between all participants in financial transactions.
Almost all taxes at the federal level in the state form the income of various budget systems of the country. Therefore, the Federal Treasury is entrusted with the function of distributing revenues to the corresponding budgets of the state, regional and local levels in Russia.
In the process of budget execution at the federal level and in exceptional cases at the level of entities, financial authorities open personal bank accounts of senders, recipients and managers of receipts and keep them. They also organize the delivery of the necessary information to the relevant participants in this process, which allows entities to exercise the right to spend budget funds.
In the conditions of the system of modern financial turnover, income-bearing type transactions are carried out by credit institutions, engaged in cash execution of the budget. At the same time, the Treasury is responsible for taking into account the operations and reporting on the results of the work of the bodies.
Units subordinate to it are engaged in maintaining a register of participants in the processes taking place in the budget system at the federal level, and in recording information on state-type contracts concluded by Russia.
Functions of specialized financial authorities
A special subject that is associated with the financial aspect of the development of the state is the President. As a participant in the budget processes taking place in the country, he decides to start work on drafting budgets at the appropriate levels for next year in the form of a budget message. The deadline for announcing the start of the planning process is eighteen months.
Article 77 of the Constitution establishes that the subjects of the Federation have the right to independently structure the system of state authorities at the regional level.
When forming units, the general principles enshrined in the norms of federal law should be used. The following bodies are subordinate entities:
- financial ministries (in republics, regions, territories);
- Departments
- budget and finance committees;
- management etc.
The functions of subordinate entities are similar to the list of actions carried out by a higher authority, but differ in terms of competence of executive authorities of the constituent entities of the Federation.
The main functions of subordinate financial units:
- Development of a regional finance policy.
- Drafting budgets at the non-state level.
- Organization of the execution of accepted documents.
- Development of government programs to support organizations and industries of the region in the financial sector.
- Borrowing money by entities from the state.
In order to fulfill the function of the state transferring finances to the territories, regions, etc., a specialized executive power body may be created (for example, the Committee on Municipal Loans of the Government operates in Moscow).
Regional financial authorities also have the right to create units at the local level in the form of branches and financial-treasury-type directorates.
Features of the work of financial institutions of the constituent entities of the Russian Federation
The bodies that carry out financial functions in the regions, unlike the subjects of the federal level, which work in the administrative-command system, are not directly subordinate to the Ministry of Finance of the Russian Federation. At the same time, units report to him on the execution of budgets on their territory.
The majority of bodies exercising powers in the financial sphere include federal treasuries created by them. The powers of these entities include maintaining personal accounts of recipients and managers of money at the regional and local levels. The purpose of this activity is to exercise ongoing control over the use of targeted budget money for its intended purpose.
If the Russian entity has not received the subsidy due to it from the federal budget (or is insufficient), the financial-treasury or other body of the region has the right to provide cash services for budget execution in the specified territory. To carry out this work, the respective budgets must open their bank personal accounts for the body.
Local finance management
Money management at the local level is carried out by the municipal financial authority. Representative-type local governments make decisions on approving the appropriate budget and drawing up a report on how it is implemented.
Municipal financial entities make important decisions on all monetary matters that are the responsibility of local authorities. The subjects of the executive branch of government are responsible for the development of financial municipal policies.
The list of powers of local authorities also includes work in the area of debts of the territory to the state and vice versa, as well as in the field of execution and budgeting of the municipality.
As part of the management often operate the local financial authorities of the financial and treasury type. The regulation on their work was developed and approved by the Board of the Union of Russian Cities in 1998.
Article 132 of the Russian Constitution enshrines the right of municipalities to form and execute local budgets. Control over these powers is also carried out by higher authorities.
Powers of state (municipal) bodies in the field of financial budget control
Special federal financial bodies include the following entities:
- Russian Audit Chamber;
- bodies of control and counting type in the subjects and municipalities;
- service providing financial and budgetary supervision at the federal level;
- entities involved in state and municipal financial control, being at the same time officials of the executive bodies or administration at the local level.
The budgetary powers of the Russian Accounts Chamber, the control and accounting bodies of the subjects and territories of the municipal type exercise a number of powers in the budget sphere:
- Examination of municipal, regional and state programs related to the transfer and redistribution of money in accordance with the needs of the subject.
- Performance audit, which is aimed at establishing the effectiveness and efficiency of the use of budget funds.
- Examination of draft regulations and decisions related to the financial sector.
- Analysis and monitoring of processes occurring in the budget.
In addition to these powers, the federal oversight service in the financial and budgetary sphere, municipal and state financial control bodies analyze the implementation by the leading administrators of the funds of the internal control budget and financial internal audit.
State and municipal control bodies must provide information and documentation that the Federal Financial and Budget Supervision Service may request. The purpose of the audit is to analyze the execution of the powers of the relevant bodies in the field of the budget, as well as to monitor the implementation of their functions by the bodies and officials of the executive authorities in the constituent entities of the Federation and municipalities.
The financial authorities of the state carry out activities to control the distribution of funds within the respective budgets and conduct transactions between specific entities with other bodies at the local, regional and municipal levels. The structure of the control and supervision system is established by the provisions of the relevant regulatory legal acts.