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Accounting of Government Institutions

Course developer

Prior knowledge

Ekon2120, Basics of Accounting

Ekon4102, Financial Accounting

Course abstract

Students learn to use both the general and special annual budget laws for local government institutions in accounting. Students also learn the classifications of budgets and the formation of accounts. The course introduces students to the tasks and responsibilities of government institution directors in organizing accounting work and making financial statements and controlling expenditures at institutions.

Learning outcomes and their assessment

1. Students will be able to: understand the principles of budgeting for the national and local governments and the way budgetary revenue is accounted for and controlled - class discussion.
2. Understand the economic classification and use of codes for revenue and expenditure in accounting - test with calculations, exam.
3. Demonstrate the knowledge of municipality funds and the sources of the funds, documentation, inventories and annual balance sheets - test with calculations, exam.
4. Demonstrate a reasoned understanding of municipality annual reports, which is a basis for creative thinking and research - independent work.
5. Demonstrate the knowledge and understanding of a chart of accounts for budgetary institutions and the application of the chart - independent work.
6. Independently apply accounting techniques at budgetary institutions - discussions in classes.
7. Observe and apply the accounting principles for balance-sheet items and identify their significance - test with calculations, exam.
8. Perform an economic assessment of revenue and expenditure of a local government - test with calculations.
9. Independently acquire information on the execution of a municipality budget - independent work.
10. Responsibly plan the completion of the assignments given and draw up typical documents - independent work.
11. Develop social interaction and cooperation typical of employment - discussions in classes.
12. Present the results of the calculations performed - practical assignment.
13. Substantiate decisions on budgetary accounts at budgetary institutions - practical assignment.

14. Independently formulate and analyse problems in accounting process organisation and control over expenditure estimates at budgetary institutions - tests, practical assignment.

Course Content(Calendar)

1. The role and legislation of local government. Estimates of local government expenses, the procedure for their compilation, implementation control (practical work – 1 hour)
2. The chart of accounts of the local government budget (lecture – 1 hour)
3. The essence of the economic classification codes of expenses (lecture – 1 hour)
4. Accounting for expenses, accounts, accounting registers (lecture – 1 hour, practical work – 1 hour)
5. Accounting for income, accounts, accounting registers (lecture – 1 hour, practical work – 1 hour)
6. Accounting balance of the local government budget. Financing accounts, their meaning and types depending on the sources of financing (lecture – 1 hour, practical work – 1 hour)
7. Accounting for fixed assets (lecture – 2 hours, practical work – 2 hours)
8. Accounting for material stocks (lecture – 2 hours, practical work – 2 hours)
9. Formation and accounting of capital and funds (lecture – 1 hour, practical work – 1 hour)
10. Types of settlements, accounting, documentation (lecture – 1 hour, practical work – 1 hour)
11. Accounting for investments, loans and borrowings (lecture – 1 hour, practical work – 1 hour)
12. Preparation and approval of the municipal budget report (lecture – 1 hour, practical work – 1 hour)
13. Inventory of municipal funds, settlements and stocks (lecture – 1 hour, practical work – 1 hour)
14. Annual balance sheet and cash flow statement (lecture – 2 hours, practical work – 3 hours)

In part-time extramural studies:
All topics specified in full-time studies are implemented, yet the number of contact hours is half of the specified number of hours.

Requirements for awarding credit points

Exam. Cumulative assessment, consisting of
1) 2 test evaluations:
1. test “Accounting for long-term investments” (20%);
2. test “Accounting for current assets” (20%);
2) assessment of the performance of independent and practical work tasks (20%);
3) final exam on the municipal budget report (40%).

Description of the organization and tasks of students’ independent work

Studying the regulatory literature for the accounting indicated throughout the semester, preparing for tests. The student must act as an interpreter of complex technical data of accounting information. The student must also learn to register economic transactions, learn to make a profit or loss account, calculate net profit, and reflect on the balance sheet.

Criteria for Evaluating Learning Outcomes

The assessment of the study course is an exam, which consists of an accumulative assessment of the study course.

Compulsory reading

1. Grāmatvedības uzskaites kārtība budžeta iestādēs, MK Noteikumi nr.87, 13.02.2018. https://likumi.lv/ta/id/297134
2. Kutuzova O. Finanses un kredīts. Biznesa augstskola Turība. Rīga, 2012. - 224 lpp.
3. The Oxford Handbook of State and Local Government Finance/ Edited by Robert D.Ebel and John E.Petersen.- 2012.-1056 lpp. ISBN: 9780199765362
4. Zariņa V. Grāmatvedības sistēma: attīstība, standartu prasības. Biznesa augstskola Turība. Rīga, 2004. g. 263 lpp.
5. Apinis R. Grāmatvedības organizācija un grāmatvedības tiesu ekspertīze. Biznesa augstskola Turība. Rīga, 2000. g. 117 lpp.
6. Kursīte A. Gada slēguma un inventarizācijas procedūras budžeta iestāžu grāmatvedības uzskaitē. Rīga, 2017. g. 80 lpp.
7. Elliott J., Elliott B. Financial Accounting and Reporting. Twentieth Edition. Harlow; UK: Pearson Education Limited, 2022. 801 lpp. ISBN: 978-1292-39980-5
8. Carey M., et al. Accounting: A Smart Approach. Third Edition. New York, Ny: Oxford University Press, 2017. 472 p. ISBN: 978-0-19-874513-6

Further reading

1. Par budžetu un finanšu vadību; Par pašvaldību budžetiem; Par pašvaldībām; Par pašvaldību finansu izlīdzināšanu; Par valsts budžetu finanšu gadam; Par grāmatvedību/ LR likumi/ www.likumi.lv
2. Ministru kabineta 2009.gada 15.decembra noteikumi Nr.1486 „Kārtība, kādā budžeta iestādes kārto grāmatvedības uzskaiti”
3. Par budžeta ieņēmumu klasifikāciju; Par budžeta finansēto institūciju ieņēmumu klasifikāciju; Par budžeta izdevumu ekonomisko klasifikāciju/ LR FM rīkojumi/ www.likumi.lv
4. Rurāne M. Uzņēmuma finanses. Jumava, Rīga, 2007.g. 266 lpp.
5. Fiscal Federalism in the Europeans Union. Edited by A. Fossati, G. Panella. London and New York, 2003.
6. Fisher, R. C. State and Local Government Finance: Institutions, Theory, Policy. Chicago, 2002.

Periodicals and other sources

1. iFinanses, Rīga: iŽurnāli. www.ifinanses.lv. ISSN 2255-985x
2. Bilance: žurnāls un portāls par grāmatvedību, nodokļiem, finansēm un likumdošanu, Rīga: SIA Lietišķās informācijas dienests. ISSN 1407-5709

Notes

Restricted elective course in ESAF Academic Bachelor Study Program “Economics”, “Accounting and Finance” specialization.