Selecting an expense type code according to budget classification when purchasing goods, works, and services in the field of information and communication technologies (hereinafter referred to as ICT) often causes difficulties. After all, determining whether expenses belong to this area is not the subject of Instructions No. 65n. In what cases is financial support for activities on the use of ICT carried out according to type of expenditure 242? How are related expenses planned and authorized?
What does Directive No. 65n say?
According to Instructions No. 65n, by type of expense 242 “Purchase of goods, works, services in the field of information and communication technologies” the following are subject to reflection:
1) federal budget expenses:
for the implementation of measures to create, taking into account trial operation, development, modernization, operation of state information systems and information and communication infrastructure;
on the use of ICT in the activities of federal government bodies, including federal government institutions under their jurisdiction, and management bodies of state extra-budgetary funds of the Russian Federation;
2) expenses of the budget of a constituent entity of the Russian Federation, the budget of a territorial state extra-budgetary fund, the local budget for the implementation of measures for the use of ICT (hereinafter referred to as informatization measures) in terms of regional (municipal) information systems and information and communication infrastructure if a decision is made by the financial body of a constituent entity of the Russian Federation ( municipal formation) on the application of expense type 242.
For reference: budgetary and autonomous institutions should reflect expenditures on purchases in the ICT sector using expense type code 244 “Other procurement of goods, works and services to meet state (municipal) needs.”
At the same time, Instructions No. 65n do not contain a list of specific types of goods, works and services that can be purchased using expense type code 242.
The allocation of budget expenditures to the ICT sector is carried out on the basis of the provisions of regulatory legal acts regulating relations in this area.
It should be noted that providing clarifications on the issues of classifying goods, works, and services as the ICT sector falls within the competence of the Ministry of Telecom and Mass Communications, which is assigned the functions of developing and implementing state policy and legal regulation in the ICT sector (clause 1 of the Regulations on the Ministry of Telecom and Mass Communications of the Russian Federation, approved by Decree of the Government of the Russian Federation dated June 2, 2008 No. 418). On this issue, see also letters of the Ministry of Finance of the Russian Federation dated December 13, 2016 No. 02-05-10/74428, dated July 4, 2016 No. 02-05-10/38905, dated December 17, 2014 No. 02-05-10/65250, dated July 10. 2014 No. 16-01-08/33028).
Planning of informatization activities
Expenditures in the ICT sector must be consistent with the informatization plan (another similar document), adopted taking into account the documents developed by the Ministry of Telecom and Mass Communications.
At the federal level, the issues of preparing informatization plans, including informatization activities, as well as the goals and powers of the participants (government agencies and the Ministry of Telecom and Mass Communications) of coordination of informatization activities, the rules for preparing conclusions on the assessment of these activities are determined by the Decree of the Government of the Russian Federation of May 24, 2010 No. 365 “On the coordination of activities on the use of information and communication technologies in the activities of government bodies" (hereinafter referred to as Resolution No. 365), which approved:
– Rules for the preparation of informatization plans for government bodies and reports on their implementation (hereinafter referred to as the Rules);
– Regulations on the coordination of activities on the use of information and communication technologies in the activities of government bodies (hereinafter referred to as the Regulations).
Formation of an informatization plan.
According to the Rules, only those informatization activities that are included in the approved informatization plan are subject to financial support from the relevant budget. Government agencies draw up such a plan annually (for the next financial year and for the planning period, if provided for by the budget legislation of the Russian Federation).
Preparation of draft informatization plans is carried out in accordance with methodological recommendations for planning informatization activities and preparing informatization plans by government agencies approved by the Ministry of Telecom and Mass Communications. Today, such recommendations are regulated by Order of the Ministry of Telecom and Mass Communications of the Russian Federation dated August 31, 2016 No. 420 (hereinafter referred to as Methodological Recommendations No. 420).
Informatization activities are included in the plan in the following sequence:
1) all informatization activities for which government contracts have been concluded for the purchase of goods, works, and services for government needs for the next year and for the planning period;
2) all informatization activities aimed at the operation of information systems and information and telecommunications infrastructure put into operation;
3) all informatization activities aimed at the creation and development of information systems and information and telecommunications infrastructure as part of the implementation of priority areas for the use and development of ICT;
4) other informatization activities not listed above.
The process of developing informatization plans consists of two stages:
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Stages of forming informatization plans |
Actions of government agencies |
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Stage 1 – preparation of preliminary draft plans |
Government agencies, no later than 15 days from the date the Ministry of Finance communicates the projections of the maximum volumes of budgetary allocations of the federal budget for the next financial year and planning period, and submits to the Government of the Russian Federation by the Ministry of Health and the Ministry of Labor the main characteristics of the budgets of state extra-budgetary funds of the Russian Federation for the next financial year and planning period, develop and send for conclusion preliminary drafts of informatization plans in the Ministry of Telecom and Mass Communications |
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Stage 2 – preparation of final draft plans |
After the adoption of federal laws on budgets for the next financial year and planning period, within 10 working days from the date the limits of budget obligations (hereinafter referred to as LBO) are communicated to government agencies, preliminary draft informatization plans are adjusted by government agencies in terms of financing and (or) the list of measures for informatization in accordance with the parameters of the finalized LBO and sent to the Ministry of Telecom and Mass Communications for conclusion |
Submitting the informatization plan to the Ministry of Telecom and Mass Communications.
It is recommended to submit draft informatization plans, information about which is not classified as state secret or confidential information, to the Ministry of Telecom and Mass Communications in the form of an electronic document using the federal state information system for informatization coordination (hereinafter referred to as FSIS CI).
Informatization plans containing information classified as state secrets or information of a confidential nature are recommended to be sent on paper in accordance with Methodological Recommendations No. 420 and the legislation of the Russian Federation, which define the rules for working with such documents.
Consideration of the informatization plan.
The Ministry of Telecom and Mass Communications evaluates the informatization activities provided for by draft informatization plans submitted by government agencies, and based on the results of this assessment, prepares a conclusion (positive or negative) on the feasibility of carrying out and (or) financing each informatization activity (clause 11 of the Regulations).
The period for preparing a conclusion on a preliminary (final) draft informatization plan cannot exceed 10 working days (20 days in relation to draft plans, information about which is classified as state secret and confidential information) from the date of receipt of the corresponding draft by the Ministry of Telecom and Mass Communications.
If the draft informatization plan is negative, the government agency finalizes it taking into account comments and suggestions and re-sends it to the Ministry of Telecom and Mass Communications. After this, the draft plan is reviewed no more than five working days (10 days for draft plans, information about which is classified as state secret and confidential information) from the date of receipt.
For your information: settlement of disagreements regarding the conclusions of the Ministry of Telecom and Mass Communications on the draft informatization plan is carried out in accordance with the provisions of clause 21 of the Rules.
Approval of the informatization plan.
The final draft of the informatization plan, which has received a positive conclusion from the Ministry of Telecom and Mass Communications, is approved by an act of the government agency and, within three days, is posted on its official website on the Internet, sent to the Ministry of Finance, and also, within five days from the date of its approval, is posted in electronic form in FSIS KI.
At the same time, informatization activities that received a negative conclusion based on the results of consideration of the final draft plan may be included by the government agency in the approved informatization plan after receiving a positive conclusion from the Ministry of Telecom and Mass Communications.
Generating information about the consolidated budget schedule.
According to clause 26 of Order No. 187n, the Ministry of Finance, within five working days from the date of receipt from the Ministry of Telecom and Mass Communications of information on the preparation of a positive conclusion on the feasibility of carrying out and (or) financing activities for the use of ICT, creation, development, operation of information systems and information and communication infrastructure, and also information on the preparation of a negative conclusion on the feasibility of carrying out and (or) financing a modified informatization event, for which a positive conclusion was previously prepared, generates information on the consolidated budget breakdown of the federal budget in terms of informatization activities for the 20__ financial year and for the planning period 20__ and 20__ years (f. 0501155) (hereinafter referred to as information).
Based on the results of forming informatization activities and filling out information, the activities are assigned the appropriate code (unique number).
For reference: The structure of the informatization event code is reflected in Appendix 1 to Methodological Recommendations No. 420.
The information is sent to the Federal Treasury, which, within five working days from the date of receipt, ensures that it is communicated to the territorial bodies of the Federal Treasury (hereinafter referred to as the OFK).
Authorization of payment of monetary obligations
The procedure for authorizing the OFC to pay at the expense of federal budget funds the monetary obligations of recipients of budget funds whose personal accounts are opened with the OFC is determined by Order of the Ministry of Finance of the Russian Federation dated November 17, 2016 No. 213n (hereinafter referred to as Procedure No. 213).
By virtue of the provisions of this procedure, in order to pay monetary obligations regarding the purchase of goods, works, and services in the ICT sector, the institution forms 242 by type of expense and submits to the OFK an application for cash expenses (f. 0531801) or an application for cash expenses (abbreviated) (f. 0531851) (hereinafter referred to as the application).
When authorizing the payment of monetary obligations, the OFK checks the application for the presence in it, including the code of the informatization event for the relevant institution (clause 4 of Procedure No. 213).
If the application for cash expenses indicates a code for an informatization event that is not included in the information on the corresponding main manager (recipient) of budget funds, or if this code is not indicated, as well as if there is no such information in the OFK, expense transactions by type of expense 242 are not carried out. According to this on the issue, see the explanations of the Ministry of Finance and the Federal Treasury given in Letter No. 09-01-08/30262, 07-04-05/03-425.
Exceptions to the rules
The requirements for mandatory submission of informatization plans to the Ministry of Telecom and Mass Communications do not apply to everyone. Based on the norms of Resolution No. 365 and Decree of the Government of the Russian Federation of April 25, 2012 No. 394, for some government bodies, the provisions of Resolution No. 365 are advisory in nature. The list of these bodies is given in the appendix to Letter No. 09-01-08/30262, 07-04-05/03–425. These are the Supreme Court and its Judicial Department, the Prosecutor General's Office, the State Duma, the Constitutional Court, the Investigative Committee, the Federation Council, the Accounts Chamber, the Commissioner for Human Rights in the Russian Federation, and the Central Election Commission.
In addition, in accordance with paragraph. 2 clause 36 of Methodological Recommendations No. 420 are not subject to submission to the Ministry of Telecom and Mass Communications of information on informatization activities and informatization plans, data on which constitute state secrets in the military field, in the field of intelligence, counterintelligence, operational investigative activities, as well as in the field of countering terrorism and in areas of provision for persons in respect of whom a decision has been made to apply state protection measures. Information about such events is submitted by the main manager of federal budget funds to the Federal Treasury for further communication to the OFC. Information is sent in compliance with the requirements of the legislation of the Russian Federation on the protection of state secrets in writing signed by the manager, chief accountant (other persons authorized by the manager).
Summarize
Federal government agencies, as well as government agencies and management bodies of state extra-budgetary funds under their jurisdiction, have the right to purchase goods, works, and services in the ICT sector by type of expenditure 242. Moreover, such expenses must be consistent with the informatization plan (another similar document) adopted by the relevant government body, taking into account the documents developed by the authorized body in the field of ICT (Ministry of Telecom and Mass Communications), and are provided for in the budget estimate.
Recipients of budget funds of a constituent entity of the Russian Federation (local budget) apply expense type code 242 only if the financial body of the constituent entity of the Russian Federation (municipality) makes such a decision. In other cases, expenses in the ICT sector are made according to expense type 244.
When authorizing the payment of monetary obligations of recipients of budget funds by type of expense, 242 OFK checks the application for cash expenses for the presence of an informatization event code in it and its compliance with the code specified in the information. If information is missing, payment documents will not be accepted for execution. There is one exception to this. These requirements do not apply to expenses incurred:
government bodies for which the provisions of Resolution No. 365 are advisory in nature (the list of these bodies is given in the appendix to Letter No. 09-01-08/30262, 07-04-05/03-425);
regarding individual events.
Author: Natalya Evdokimova November 29, 2017 In this article, we will reveal the concept and procedure for using expense type codes (COC) by budgetary institutions, and also determine the relationship with the classification of operations of the general government sector (KOSGU) when planning and executing the budget. The concept of “KOSGU” First of all, let’s define what KOSGU is in the budget; the decoding of the abbreviation sounds like this: classification of operations of the public administration sector. This numeric code allows you to accurately classify the completed operation according to its content. IMPORTANT! The determination of KOSGU in 2018 for budgetary institutions, as well as autonomous and state-owned ones, should be carried out in accordance with Appendix No. 4 to Order of the Ministry of Finance of Russia dated 07/01/2013 No. 65n, as amended by Order of the Ministry of Finance of Russia dated 06/09/2017 No. 87n.
Ministry of Finance No. 65n (as amended by Order of the Ministry of Finance No. 87n). The legislation provides for the following grouping of codes. Group Contents 100 Expenses for remuneration of personnel of government institutions, management bodies of state extra-budgetary funds, as well as state (municipal) authorities 200 Expenses for the procurement of goods, services or work necessary for the implementation of state needs 300 Social security of the population, other payments to citizens 400 Capital investments in state or municipal property 500 Interbudgetary transfers 600 Subsidizing public sector institutions, including state-owned, budgetary, autonomous and non-profit organizations 700 Public debt servicing 800 Other budgetary allocations The procedure for determining CVR and KOSGU Detailing each expenditure transaction of an economic entity of the budgetary sector - the basis of planning and budget execution.
Decoding and application of KVR 242 and 244 in 2018
That is, the capabilities of the “new generation” cash register systems have expanded significantly compared to the previous ones. The procedure for applying the classification of budget expenses is determined by the Instructions approved by Order of the Ministry of Finance of Russia dated July 1, 2013 N 65n (hereinafter referred to as Instructions N 65n). By type of expenses 242 federal budget expenses are subject to reflection : - for the implementation of measures to create, taking into account trial operation, development, modernization, operation of state information systems and information and communication infrastructure; - for the use of information and communication technologies (ICT) in the activities of federal government bodies, incl.
Which kvr and kosgu to use for government procurement
ICT; purchase of navigators; purchase of equipment for cable (satellite) television; acquisition of special machinery and equipment not related to the ICT field, payment of contracts for the provision of training services in the field of information and communication technologies; payment for contracts for the provision of training services (educational services); payment of subscription fees for cable (satellite) television, for the use of a radio point; — The above transformations are purely editorial in nature, since changes in the order of application of elements of types of expenses of subgroup 240 “Other purchases of goods, works and services to meet state (municipal) needs” are not provided for since 2018.
ICT procurement: application of expense type code 242
Important
Rationale for the conclusion: Federal Law dated July 3, 2016 N 290-FZ Federal Law dated May 22, 2003 N 54-FZ was supplemented with Article 1.1, which reveals, in particular, the concept of cash register equipment (hereinafter referred to as CCT). CCP refers to electronic computers, other computer devices and their complexes that provide recording and storage of fiscal data in fiscal drives, generate fiscal documents, ensure the transfer of fiscal documents to the tax authorities through the fiscal data operator and print fiscal documents on paper in accordance with the rules established by the legislation of the Russian Federation on the use of cash register equipment.
Features of using expense type 242 (ICT purchases)
Attention
Letters No. 02-05-11/52212) 521 “Subsidies, with the exception of subsidies for co-financing of capital investments in state (municipal) property” The description of types of expenses has been changed (clause 1.4. Letters No. 02-05-11/52212) 523 “ Consolidated subsidies" 634 "Other subsidies to non-profit organizations (except for state (municipal) institutions)" The description of the content of expenditure transactions has been changed (clause.
1.2 Letters No. 02-05-11/52212) 814 “Other subsidies to legal entities (except for non-profit organizations), individual entrepreneurs, individuals - producers of goods, works, services” 815 “Subsidies to legal entities for capital investments in real estate” A new expense type code element has been added. The content and descriptive part are presented in paragraph.
All-Russian Municipal Forum
For information: Information on the expenses incurred by the subject of budget reporting on information and communication technologies necessary to support its activities is subject to reflection in the Information on the use of information and communication technologies (form 0503177) (hereinafter referred to as Information (form 0503177)). An approximate list of expenses reflected in the Information (form 0503177) is given in paragraph.
172 "Instructions on the procedure for drawing up and submitting annual, quarterly and monthly reports...", approved by order of the Ministry of Finance of Russia dated December 28, 2010 N 191n. We also recommend that you familiarize yourself with the following material: - Encyclopedia of Solutions.
Subgroup of types of expenses 240 “Other purchases of goods, works and services to meet state (municipal) needs.”
The federal government agency plans to purchase cash register equipment (hereinafter referred to as CCT) in 2018. It is expected that in 2018, according to expense type code 242, the funds limits will be brought to the institution. Which expense type code (242 or 244) can the expenses of a federal government institution for the purchase of cash registers be attributed to? Having considered the issue, we came to the following conclusion: Expenses of a federal government institution for the purchase of cash register equipment can be attributed to: - CVR 242, if these expenses are provided for in the budget estimate and are consistent with the informatization plan (other similar document), adopted taking into account the documents developed by the authorized body in the field of ICT (Ministry of Telecom and Mass Communications of Russia); - on KVR 244, if expenses cannot be attributed to KVR 242.
Application of expense type 242 in 2018
Budget expenses for the purchase of goods, works, services for state (municipal) needs, not classified according to Instructions No. 65n to other elements of types of expenses, are subject to reflection under the code of types of expenses 244 “Other purchase of goods, works and services to meet state (municipal) needs "Note that Instructions No. 65n do not contain a list of specific types of equipment, materials, works and services, the costs of payment for which should be attributed to expense type code 242 “Purchase of goods, works, services in the field of information and communication technologies.” Determining whether budget expenditures belong to the field of information and communication technologies is not the subject of Directive No. 65n and is carried out on the basis of the provisions of regulatory legal acts regulating relations in this area (letter of the Ministry of Finance of Russia dated December 17, 2014 N 02-05-10/65250).
Letters No. 02-05-11/52212 Download Main errors in the application of CVR An incorrectly defined type of expense for the operations of public sector institutions is recognized as misuse of budget funds. This violation is subject to significant fines and administrative penalties.
Let's determine which violations occur most often and how to avoid them. Error Fine, punishment How to avoid The applied linkage KVR-KOSGU is not provided for by the current legislation Art.
15.14 Code of Administrative Offenses of the Russian Federation:
- fine for an official (20,000–50,000 rubles) or disqualification (1-3 years);
- fine for a legal entity - 5-25% of the amount of funds spent for other purposes
If an institution is planning an operation that is not in the current Order No. 65n, write a letter to the Ministry of Finance demanding clarification.
CVR 242. We will consider the procedure for assigning expenses to CVR 242 or 244 in this article. What are KVR 242 and 244? The description of KVR 242 and 244 is contained in the Directives, approved.
by order of the Ministry of Finance of Russia dated July 1, 2013 No. 65n (hereinafter referred to as Instructions No. 65n):
- KVR 242 “Purchase of goods, works, services in the field of information and communication technologies”
For this type of expenses, federal budget expenses for the implementation of measures for the creation, taking into account trial operation, development, modernization, operation of state information systems and information and communication infrastructure, as well as expenses for the use of information and communication technologies in the activities of federal government bodies, are subject to reflection. including those under their jurisdiction of federal state government institutions, and management bodies of state extra-budgetary funds of the Russian Federation.
Question to the auditor
For which element of the type of expenses - 244 or 242 should a municipal autonomous institution record expenses for communication services and software?
For example, by order of the Ministry of Telecom and Mass Communications of Russia dated April 1, 2013 No. 71, Methodological Recommendations for the preparation of informatization plans for government agencies, including the form of an informatization plan for a government agency, were approved. Appendix 3 to the recommendations contains a list of areas for spending budget funds by types and types of costs, through which the costs of carrying out informatization activities are carried out.
Thus, type of expenses 242 is used only by authorities and government agencies when creating state information systems and information and communication infrastructure. Budgetary and autonomous institutions, when purchasing goods, works, and services related to ICT, use the element of expense type 244 “Other procurement of goods, works and services.”
That is why in the comparative table of correspondence between types of expenses, classification of budget expenses and articles (sub-items) of the KOSGU related to expenses and applied by budgetary, autonomous institutions, there is no type of expenses 242. The table is posted on the website of the Ministry of Finance of Russia http://minfin.ru/ (section " Budget", subsection "Budget classification of the Russian Federation", tab "Methodological office").
with changes from 03/11/2019
See also article"KVR 2018 – applied without errors"
Often in public sector institutions the question arises about attributing certain expenses to the field of information and communication technologies, which in turn are subject to payment at the expense of CVR 242. We will consider the procedure for attributing expenses to CVR 242 or 244 in this article.
What are KVR 242 and 244?
The description of KVR 242 and 244 is contained in the Procedure, approved. by order of the Ministry of Finance of Russia dated 06/08/2018 No. 132n (hereinafter referred to as Order No. 132n):
- KVR 242 "Purchase of goods, works, services in the field of information and communication technologies" (clause 51.2.4.2 clause 51 of Order No. 132n)
For this type of expenses, expenses of the federal budget and budgets of state extra-budgetary funds of the Russian Federation for the implementation of measures for the creation, taking into account trial operation, development, modernization, operation of state information systems and information and communication infrastructure, as well as expenses for the use of information and communication technologies are subject to reflection. in the activities of federal government bodies, including federal government institutions under their jurisdiction, and management bodies of state extra-budgetary funds of the Russian Federation.
Also, for this type of expenses, expenses of the budget of a constituent entity of the Russian Federation, the budget of a territorial state extra-budgetary fund, the local budget for the implementation of informatization measures, in terms of regional (municipal) information systems and information and communication infrastructure, are reflected, if a decision is made by the financial authority of a constituent entity of the Russian Federation ( municipal formation) on the application of expense type 242 “Purchase of goods, works, services in the field of information and communication technologies.”
- 244 “Other procurement of goods, works and services” (clause 51.2.4.4 clause 51 of Order No. 132n)
This CWR includes, in particular, the purchase of goods, works, services in the field of information and communication technologies for the needs of constituent entities of the Russian Federation (municipal entities), governing bodies of territorial state extra-budgetary funds, unless otherwise established by an act of the financial authority of the constituent entity of the Russian Federation (municipal entity) ), as well as expenses of state (municipal) budgetary and autonomous institutions for similar purchases.
What expenses are related to ICT?
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The budget classification, which contains a grouping of budget indicators at all levels by profits and expenses, as well as all sources of financing that are attracted to cover deficits. Thanks to this classification, it is possible to compare the indicators of all budgets. Codes for types of expenses and income are systematized in order to have complete information about the generation of income and the implementation of budget expenditures.
Budget classification
The budget classification of the Russian Federation was adopted in 1996, and in 2000 it was significantly changed and supplemented. The budget classification includes sections codes for types of budget income, codes for types of budget expenditures, sources of financing deficits, and operations of the public administration sector. In addition, sources of internal financing for budget deficits and external financing of the federal budget, types of internal debt of the Russian Federation, its constituent entities and municipalities, as well as types of external debt of the country are indicated. This article will focus on one of the sections that lists expense type codes. carried out according to the following criteria.
The functional section reflects budget funds aimed at carrying out the main activities of the state. For example, defense, management and the like. A classification of codes for types of expenses is compiled in this way: from section through subsections to target items, then the types of expenses themselves are revealed. The type of departmental classification is associated with the management structure, it displays the grouping of legal entities that receive budget funds, that is, they are the Type of economic classification demonstrates the division of government expenditures into capital and current, it also reflects the composition of labor costs, all material costs and the purchase of services and goods. This is classified according to the following principle: from the category of expenses into groups, then from subject items into subitems.
Functional classification
Functional classification is a grouping of budget expenditures at all levels of the Russian Federation system, which reflects the expenditure of funds (purchase of goods, defense needs, etc.) to perform all the main functions of the state. There are four levels of classification: from sections to subsections, from which target items are identified, then the types of expenses are determined for each. For example, state administration and local self-government are coded 0100, and the judiciary is coded 0200. International activities - 0300, national defense - 0400, state security and law enforcement - 0500, promotion of basic research, scientific and technological progress - 0600, industry, construction and energy - 0700, agriculture and fishing are given the code 0800, and the protection of natural resources, geodesy, cartography and hydrometeorology - 0900.
Next comes transport, communications and computer science, road management - 1000. Market and development of its infrastructure - 1100, housing and communal services - 1200, Ministry of Emergency Situations - 1300, education - 1400, art, culture and cinematography - 1500, media - 1600, healthcare and physical education - 1700 Social policy is given code 1800, public debts - 1900, state reserve funds and replenishment of reserves are coded 2000. Budgets of other levels are financed under code 2100, the elimination and disposal of weapons (including under international treaties) - 2200, 2300 - special expenses for mobilizing the economy, space - 2400. Coded 3000 are the so-called other expenses. And KOSGU code (Classification of operations of the general government sector) 3100 belongs to target budget funds. Next comes the detailing, which can be seen in the following example. In section 0100 (state government and local self-government), subsection 0101 is the activity of the head of state (president of the country), the target article is 001, indicating the maintenance of the head of state, the type of expenses is 001, that is, monetary maintenance. In the same way, budgets are built at each level, taking into account the specifics and specifics. Functional classification is necessary to determine federal needs, where budget investments are directed.
Departmental classification
This grouping of expenses relates to recipients of funds from the budget, and every year this list is re-approved by law, that is, the budgets of each subject of the Federation and each local budget must be approved by the relevant authorities. The KOSGU comparative table includes all government bodies, all extra-budgetary funds, all self-government bodies and municipal institutions that must apply CWR (expense type codes). Since 2016, autonomous and budgetary institutions have been using them mandatory. The KOSGU code is the main component of the classification of budget expenditures. The structure of such a code is: the corresponding group, subgroup and element from 18 to 20 bits. The rules of application and the list of types of expenses are the same in all budgets of the country’s system. Code 100 denotes expenses for ensuring the functioning of municipal bodies and management bodies of extra-budgetary state funds and government institutions. Code 200 - purchase of goods and services. This also includes work for municipal and state needs. Code 300 - social payments to citizens. Code 400 denotes capital investments in municipal state property.
Interbudgetary transfers are carried out under code 500. Subsidies to autonomous, budgetary and non-profit organizations - code 600. Municipal public debt - code 700, and 800 - other budgetary investments. Here the classification is detailed down to subgroups (such as 340, 110, and so on) and elements (such as 244, 119, 111). For autonomous and budgetary institutions the list is greatly reduced. Only the following codes are used: 111, 112, 113 - wages and other payments to workers, 119 - insurance contributions, payment of benefits, 220 and 240 - purchase of goods, services, works (for social security such purchases are coded 323), and social payments citizens - 321. Scholarships - 340, grants, bonuses to individual individuals - code 350, other payments to the population - code 360. Capital investments - 416 and 410, and for capital investments in construction - 417. For the execution of judicial acts, code 831 is used. Payment of taxes , fees and other payments - code 850. Contributions to an international organization are coded 862, and payments under agreements with international organizations and governments of other states - 863.
Linking by classification
Distribution of costs requires the mandatory management of a table of correspondence between KOGSU codes and the above codes, and this is done by all government agencies and local governments, all institutions and extra-budgetary funds. Especially for autonomous and budgetary institutions, the Ministry of Finance has provided an additional clarifying table of compliance with KOSGU and KVR. If expenses are paid according to codes that do not correspond to departmental details, this is considered an inappropriate expenditure of budget funds and is subject to liability, including criminal liability. The examples of classification linking given below will help you correctly draw up such documentation.
Today, no institution or organization can live without constant costs for information and communication technologies. They are paid differently at the municipal, regional and federal levels; even for autonomous and budgetary institutions there are some features in payment. The recipients of budget investments are different bodies. ICT at the federal level is paid using code 242 (refers to the purchase of goods, services and works - the ICT sector). At the municipal and regional level, this code is used only with a corresponding decision of the financial authority of a constituent entity of the Russian Federation or municipal entity. If such a decision has not been made, ICT is paid for using code 244 (other purchases of goods, services and works). In the same way, budget expenditures are carried out in territorial extra-budgetary funds. For autonomous and budgetary institutions, ICT expenses are provided for under code 244, but code 242 is not provided.
Purchase of equipment
For example, the situation is this: how to document the costs of purchasing GLONASS equipment to equip vehicles, what type of expenses should be applied here? If this is a defense order, then the expense type code will be 219, if not, then one of the elements of type 244 (other purchases of goods, services and works). It is necessary to accurately determine the article, sub-article of KOSGU and then correctly reflect these expenses in the financial statements. Defining an article is not such a simple matter. For example, a car antenna is purchased, installation and configuration are paid for (not a defense order). These expenses are also reflected under code 244, because a car antenna cannot be included in other elements of the expense type. This is not a code 241 because it is not a scientific or research work or an experimental design work. This is not code 243, because this product cannot be classified as intended for major repairs of municipal property. And this is not code 242, because the antenna is not a means of communication in itself, and its installation is not an information technology service.
Only code 244 remains, and using it in this case is the only correct solution. Or another situation. A new elevator car is being installed (not a defense order), and it is necessary to determine the type of expenses of such costs. The installation of an elevator involves the replacement of an old cabin with a new one (major repair contract) or the elevator cabin is installed initially (change in technical characteristics, contract for reconstruction or construction). In the first case, expenses must be reflected in element 243 (purchase of goods, services, work for major repairs of municipal property). In the second case - element with code 410 (budget investments). Or, for example, you buy a DVR. If this is a defense order, the costs should be reflected under code element 219, and if not, then again the required code is 244 (for the same reasons as antenna costs).
Business trip
In 2016, municipal government institutions, when planning budgets and executing them, must ensure the comparability of indicators, that is, conduct analytics of accrued expenses by their types, and not just by KOSGU codes, the details of which are preserved. Now this needs to be done simultaneously using both KOSGU codes and VR codes. The procedure for assigning travel expenses to the corresponding codes has also changed. What code is used to pay for a business trip and services associated with it (ordering tickets, their delivery, hotel reservations, etc.)? These services are provided by a third party on the basis of a contract, and therefore they are reflected in the BP element with code 244.
If an employee of a municipal government agency goes on a business trip, then everything related to his expenses during the trip goes under code 112 (other payments to staff other than wages). If the seconded person works in any government agency (hereinafter referred to as a division into civil and military bodies), then his expenses are coded 122 (other payments to the personnel of municipal government agencies except for wages). If a military serviceman or a person equivalent to him is sent on a business trip, there will be code 134 (other payments to personnel with special ranks). And finally, if the business traveler is an employee of an extra-budgetary state fund, then his expense code is 142 (other payments to staff other than wages).
Travel expenses
Let’s say a civil legal contract is concluded with a certain citizen for the provision of any services or performance of work. Question: how to spend these expenses if compensation for his travel expenses is part of the payment under the contract and if this is paid separately? In the first case, the payment is reflected in the same BP code as the contract. These expenses are paid depending on the budget level and type of institution - according to expense element 244 or 242. In the second case (when separate compensation), travel costs are reflected under element BP 244 (other purchase of goods, services and works for municipal needs).
Next, you need to act according to the elements of VR group 100 (expenses for payment of personnel for the functioning of state bodies, management bodies of extra-budgetary state funds, government institutions), codes 142, 134, 122, 112, which reflect the payment of travel by employees for reporting. But in the second case (when a civil legal contract was concluded), it is under no circumstances possible to apply the elements of VR group 100, because labor legislation does not apply to citizens who are not employees of government agencies and institutions. And such expenses do not apply to subgroups 230, 220, 210, or to elements 243, 242, 241. Only one code is suitable here - 244.
Entertainment expenses
Expenses associated with the reception of official delegations must be reflected in element RV 244 (other purchase of goods, services and works for municipal needs), because this type of expense cannot be attributed to any other element. This cannot be coded 241 as scientific, research or experimental design work; it does not fit code 243 as the purchase of goods, services and work for major repairs of municipal property; these expenses cannot in any way be designated by code 242 as the purchase of goods, services and work in the sphere ICT.
Section III of the instructions, which were approved by order of the Ministry of Finance of the Russian Federation No. 65N dated July 2013, states that all entertainment expenses of each institution must be reflected according to element BP 244. All other decisions will be incorrect and may entail accusations of misappropriation of public funds .
Outsourcing
Outsourcing (providing the necessary personnel under a contract) also involves costs for paying for services. For example, an institution needed a watchman, a disinfector or a plumber. Expenses for payment for such services according to the contract must be reflected in element BP 244 (other purchase of goods, services, work for municipal needs).
In the legislation of our state there is no such thing as outsourcing. However, there are private explanations where specialists from the Ministry of Finance indicate that concluding an outsourcing agreement is equal to an agreement for the provision of services or the performance of work by contract. Costs under the contract are considered as expenses for the purchase of security services (watchman), disinfection, and repair of water supply or sewerage systems. Such expenses cannot be attributed to any of the BP elements, except for the element under code 244. Just as in the previous examples, this type of expense does not fit either code 241, 242, or 243.
Providing subsidies
Often a situation arises when a subsidy is provided from the regional budget to an operator in the region (an autonomous non-profit organization) in order to carry out major repairs of apartment buildings. The transfer of subsidies is reflected in the BP element of code 630, while in the financial statements, in parallel, these expenses are designated under the KOSGU subarticle with code 242. Government authorities have the right to provide subsidies to autonomous non-profit organizations that are not municipal and state-owned, since such organizations are created to perform precisely such functions.
Expense type element 630 and subitem 242 reflect subsidies to organizations (except municipal and state). This fully fits the situation when a regional operator is renovating apartment buildings. Providing a subsidy to a non-governmental organization and monitoring repairs does not contradict the law; moreover, even BP codes are provided for such payments.