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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 discusion.
2. Understand the economic classification and use of codes for revenue and expenditure in accounting - test with calculations.
3. Demonstrate the knowledge of municipality funds and the sources of the funds, documentation, inventories and annual balance sheets - test with calculations.
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.
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. Role and legislation of municipalities (independent work – 3 hours).
2. Cost estimates for municipalities, their compilation procedure and control execution (independent work – 3 hours).
3. Budget chart of accounts for municipalities (lecture – 1 hour, independent work – 2 hours).
4. The essence of cost economic classification codes (lecture – 1 hour, independent work – 4 hours).
5. Cost accounting, accounts, accounting registers (lecture – 1 hour, practical task – 1 hour, independent work – 2 hours).
6. Income accounting, accounts, accounting registers (lecture – 1 hour, practical task – 1 hour, independent work – 4 hours).
7. Municipalities budget accounting balance sheet (independent work – 3 hours).
8. Financing accounts, their meaning and types depending on the funding sources (lecture – 1 hour, practical task – 1 hour, independent work – 2 hours).
9. Fixed assets accounting (lecture – 2 hours, practical task – 2 hours, independent work – 4 hours).
10. Material stock inventories (lecture – 2 hours, practical task – 2 hours, independent work – 4 hours).
11. Capital and funds formation and accounting (lecture – 1 hour, practical task – 1 hour, independent work – 4 hours).
12. Payment types, accounting, documentation (lecture – 1 hour, practical task – 1 hour, independent work – 3 hours).
13. Investment, credit and loan accounting (lecture – 1 hour, practical task – 1 hour, independent work – 5 hours).
14. Review on municipal budget formulation and approval (lecture – 1 hour, practical task – 1 hour, independent work – 2 hours).
15. Municipal funds, settlement and stock inventory (lecture – 1 hour, practical task – 1 hour, independent work – 1 hour).

16. Annual Balance sheet and Cash Flow report (lecture – 2 hour, practical task – 3 hour, independent work – 2 hours).

Requirements for awarding credit points

Accumulating assessment is made up of: 1) two tests successfully completed during the semester: accounting for long-term investment; accounting for current assets; 2) practical tasks enforcement activities. If the test has not been credited, overwriting of the test will be permitted once, in writing, for theoretical issues and practical tasks learned during the semester.

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

Weighting rates %: two tests (25% + 35%), independent work (30%) and practice activity (10%). Accumulating assessment of study results (100%).

Compulsory reading

1. Grāmatvedības uzskaites kārtība budžeta iestādēs: MK noteikumi nr.87 [tiešsaiste]. Pieņemts 13.02.2018. Stājas spēkā 01.01.2019. [Skatīts 23.042020.]. Pieejams: https://likumi.lv/ta/id/297134-gramatvedibas-uzskaites-kartiba-budzeta-iestades
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 R.D.Ebel and J.E.Petersen. 2012. 1056 lpp. ISBN: 9780199765362
4. Zariņa V. Grāmatvedības sistēma: attīstība, standartu prasības. Biznesa augstskola Turība. Rīga, 2004. 263 lpp.
5. Apinis R. Grāmatvedības organizācija un grāmatvedības tiesu ekspertīze. Biznesa augstskola Turība. Rīga, 2000. 117 lpp.
6. Kursīte A. Gada slēguma un inventarizācijas procedūras budžeta iestāžu grāmatvedības uzskaitē. Rīga, 2017. 80 lpp.

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. Pieejams: http//: www.likumi.lv
2. Grāmatvedības uzskaites kārtība budžeta iestādēs: MK noteikumi nr. 87 [tiešsaiste]. Pieņemts 13.02.2018. Stājas spēkā 01.01.2019. [Skatīts 22.04.2020.]. Pieejams: https://likumi.lv/ta/id/297134-gramatvedibas-uzskaites-kartiba-budzeta-iestades
3. Par budžeta ieņēmumu klasifikāciju; Par budžeta finansēto institūciju ieņēmumu klasifikāciju; Par budžeta izdevumu ekonomisko klasifikāciju. LR FM rīkojumi. Pieemams: http://www.likumi.lv
4. Rurāne M. Uzņēmuma finanses. Rīga: Jumava, 2007. 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.
7. Gončarovs G. Finanšu teorija. LU. Rīga, 2000. 107 lpp.

Periodicals and other sources

1. iFinanses, Rīga: iŽurnāli. www.ifinanses.lv. ISSN 2255-985x
2. Bilance: žurnāls par grāmatvedību, likumdošanu un finansēm, Rīga: SIA Lietišķās informācijas dienests. ISSN 1407-5709
3. Bilances Juridiskie Padomi. Rīga: SIA Lietišķās informācijas dienests. ISSN: 2255-9507

Notes

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