This work was carried out in the accounting area of the University Center of Sancti Spíritus José Martí Pérez (CUSS) with the aim of updating the Accounts List.
nomenclator-of-accounts-for-the-registration-and-control-of-economic-facts-in-the-university-center-of-sancti-spiritus-jose-marti-perezFor its development, it was necessary to diagnose the current situation of the CUSS on the application of Resolution No. 9-2007 of the Ministry of Finance and Prices and the Methodological Guidelines of the Ministry of Higher Education. It was found that said area does not have Updated the Accounts Nomenclator of the Cuban Manual of Financial Information Standards.
The Accounts Nomenclator to be used by the CUSS in the registry of economic events is updated and the economic content of the accounts classified as Assets, Liabilities, Income, Expenses and Capital is summarized.
In development we will use the historical-logical, dialectical, and systemic approach as methods.
Introduction
Accounting is the language of financial decisions and the more you know the language the better you can manage the financial aspects of a company. The success of the company depends, in part, on the knowledge that managers have of the Accounting language.
Accounting is the science that helps to make decisions regarding the way to distribute scarce resources by recording, classifying, summarizing, analyzing and interpreting financial statements.
In the Manual of Accounting Norms and Procedures of the CUSS the Accounts Nomenclator is not updated, so the scientific problem of our research is given by the Non-Updating of the Accounts Nomenclator for the registration and control of the operations that take place in the CUSS.
The object of the investigation is given by the accounting processes of economic events in the CUSS.
Therefore the general objective is to update the Accounts Nomenclator that enables the processes of registration, classification, summary, analysis and interpretation in monetary terms, of the transactions in the CUSS Accounting on the basis of the Cuban Accounting Standards
The field of action is the Norms and Procedures with which the CUSS operates to update the Accounts Nomenclator.
The following hypothesis is proposed, if the Accounts Nomenclator is updated, the registration, classification, summary, analysis and interpretation of economic events is achieved.
The specific objectives are:
1. Carry out the bibliographic review and analysis of the documentation for the theoretical foundation.
2. Carry out the diagnosis of the CUSS situation.
3. Update the Accounts Nomenclator in the CUSS Economic Subdirectorate.
It was structured as follows:
Chapter I Theoretical Foundation.
Chapter II List of Accounts. Summary of its content.
Chapter І: Theoretical Foundation.
1.1 Concept, importance and objectives of accounting.
Accounting dates back to very ancient times, when man was forced to keep records and controls of his properties because his memory was not enough to store the required information. It has been shown through various historians that in times such as the Egyptian or Roman, accounting techniques that were derived from commercial exchange were used.
The beginning of accounting literature is limited to the work of the Franciscan Fray Luca Paccioli of 1494 entitled "The Summa of Arithmetic, Geometry Proportioni et Proportionalitá", where the concept of double entry is considered for the first time.
Currently, within what are business information systems, accounting stands as one of the most notable and effective systems to publicize the various areas of information of production units or companies. The concept has evolved greatly, so that the degree of "specialization" of this discipline within the business environment is increasing.
The importance of resource control for the economic development of our country is indisputable, Accounting plays an essential role, since it constitutes a management tool for decision-making that contributes to increased effectiveness and efficiency in use. of the resources.
In this sense Lenin in Selected Works expresses Accounting and Control, here is the main thing to set up and make the first phase of the Communist Society work properly correctamente. (Lenin, 1891, p.580)
Accounting as a science has its own methods, which were used to carry out the Accounting and bookkeeping created after the development of commerce, come from antiquity and the Middle Ages.
The accounting is in charge of:
• Analyzing and evaluating the economic results.
• Group and compare results.
• Plan and synthesize the procedures to follow.
• Control the fulfillment of the programmed.
Meanwhile, bookkeeping deals with:
• Collect, record and classify company operations.
• Narrate the accounting facts in writing.
• Execute tasks according to pre-established procedures.
• Be under the control and supervision of the accountant.
The Industrial Revolution caused the need to adapt accounting techniques to be able to reflect the increasing mechanization of processes, typical factory operations and the mass production of goods and services. With the emergence, in the mid-19th century, of industrial corporations, owned by anonymous shareholders and managed by professionals, the role of Accounting became even more important.
Bookkeeping, an essential part of any complete system, has been computerized since the second half of the 20th century, so that increasingly, it is up to computers to carry out these tasks. The generalized use of computer equipment has made it possible to obtain a greater benefit from Accounting, the term data processing being often used, since nowadays the concept of bookkeeping has fallen into disuse.
Accounting is a technique that deals with recording, classifying and summarizing the business operations of a business in order to interpret its results. Consequently, managers or directors through accounting will be able to orient themselves on the course that their businesses follow using accounting and statistical data. These data allow to know the stability and solvency of the company, the current of collections and payments, the trends of sales, costs and general expenses, among others. So that the financial capacity of the company can be known.
Magdonado in his book Study of General Accounting relates the following concepts of Accounting given by different authors
The American Institute of Public Accountants defines it as:
"The art of recording, classifying and summarizing in a significant way and in terms of money, operations and events that are at least financial in nature, as well as interpreting their results."
"The basic purpose of Financial Accounting and Financial Statements is to provide financial information about individual companies, useful for making economic decisions."
According to the American Association of Accountants, Accounting is:
"The process of identifying, measuring, and communicating economic information that enables information-based judgments and decision-making to be made by those who use the information."
Venezuelan author Enrique Luque de Lázaro defines Accounting as
"The science that is in charge of the qualitative and quantitative study of heritage, both in its static and dynamic aspects, in order to achieve the proper direction of the riches that comprise it."
Subsequently Magdonado defines Accounting as
“A constantly evolving technique, based on reasoned and logical knowledge whose main objective is to show and synthesize the financial operations of an entity and interpret the results.”
(Magdonado, 1994, p.11)
In the aforementioned definitions, no significant differences are observed in relation to the concept of Accounting.
According to James A Cashin
"Accounting is the technique that helps to make decisions regarding the way to distribute resources by recording, classifying, summarizing, analyzing and interpreting transactions and their effects on the economic and financial results of a business." (Cashin James A, 1973, p.254)
From the analysis of the different conceptualizations of the Accounting term, James A Cashin specifies the phases and implicitly highlights their role as a tool for decision-making, but does not take into account their importance as the language of financial decisions.
The author considers that:
“Accounting is the science that helps to make decisions regarding the ways to distribute scarce resources through the process of recording, classifying, summarizing, analyzing and interpreting the economic facts that originate in companies and in budgeted units. Accounting is the language of financial decisions and the more the language is known, the better the entities' financial aspects can be managed. ”
As a business language, the field of Accounting provides basic knowledge for communication between all levels of management, from the smallest department to the board of directors of a company.
The design of the accounting system, its proper functioning, and the interpretation of the data offered by the Accounting are integral parts of the three functional areas of the company (production, market and finance). Many of the business decisions of these functions rest on accounting information.
This is why the intellectual ability to contribute to the success of the company, in part, depends on the knowledge of the Accounting language and the messages it offers when the system has been correctly designed and in its operation the Cuban Standards have been met. Accounting.
Accounting is of great importance because all companies have a need to keep track of their business and financial negotiations. This way you will obtain greater productivity and use of your assets. On the other hand, the services provided by accounting are essential to obtain legal information.
The language of Accounting also unites the company with the world outside it, since they need this information: tax, financial, banking, other companies, shareholders or owners, the State, workers, among others.
Accounting has among its objectives:
a) Methodologically record the financial operations that occur in a company.
b) Provide clear and precise information on:
- The financial situation of a company at a given time.
- The results of operations in a defined period.
c) Analyze and interpret the results obtained in the activity of a company.
d) Prepare budgets of various kinds on the future activity of the company.
e) Present accurate, measurable and analyzable data that allows the administration to make decisions at any time, establish responsibilities, define policies, delegate authority, among others.
The phases of the Accounting include the registration, classification, summary, analysis and interpretation.
The record is the exact, constant and systematic record of the economic and financial operations of the company, backed by the primary documents, it is a requirement to keep this practice updated. These entries are made in the accounting records.
The registration of economic events is carried out through an account system that reflects the economic movement that occurs in each operation carried out by the company, where each account meets a different objective. The most generalized records of use are the Diario and the Mayor.
This phase consists of 5 steps:
1. Identify the operation of the primary documents bank deposit slips, sales stubs and check matrices, income receipts, among others.
2. Specify each account affected by the operation and classify it by types (assets, liabilities and stockholders' equity).
3. Determine if the affected account increases or decreases in the operation.
4. Use the rules to debit and credit
5. Record the operation in the journal, including a brief explanation of the entry made.
The classification consists of noting in the classification records and in the Mayor the economic facts that originate in the companies. The complete record of all the activities of an entity implies a large volume of data, hence the need to classify the information into groups or categories, for example: grouping those transactions through which cash is received or paid.
On the other hand, the summary of the economic facts is materialized in the Financial Statements of the Accounting. For accounting information to be used by decision-makers, it must be highly summarized and provide clear and precise information on the financial situation of the entity at a given time and on the results of operations in a defined period.
The last phase is the analysis of the Financial Statements for decision making. In this phase Accounting plays its active role as a decision tool.
The analysis of economic-financial management is of great importance for the work of the company. It is not only a requirement of the planned direction of the economy, but it allows the continuous improvement of the company's work to strengthen it.
The recording of economic-financial indicators does not in itself show the relationships that exist in the fulfillment of the company's plan. Hence the need to carry out a comprehensive analysis of the entire economic and financial process, which cannot be done with simple annotations of the records. The register is the source, the basis of the analysis, the essence of which is to find the causes of the economic events.
1.2 The Accounting Cycle.
The accounting function plays a vital role in all economic activities, Accounting is used to control resources, it is essential for the evaluation and successful management of any economic and financial operation.
An accounting system includes the methods, procedures and resources used by an economic entity to analyze financial activities and synthesize them afterwards, in such a way that it serves as a tool for those who must make decisions to achieve higher objectives.
The ASSETS automated accounting system contains the necessary steps that must be carried out so that the entities of the MES use information related to financial activities efficiently; In the accounting cycle of the ASSETS system, the data must be recorded, classified and summarized in correspondence with the Cuban Accounting Standards.
Steps to develop the accounting cycle:
1. Record of economic activity. The first function that the system fulfills is the creation of a systematic, daily registry for each event or economic activity. These transactions must be recorded in the accounting books through entries-types that are designed according to the needs of each entity in this regard.
2. Classification of information and records in the Major. A logical step in the treatment of all kinds of useful information on the financial management of economic activities is the grouping of transactions that originate, through which monetary resources are entered or withdrawn.
The entries of all the accounting processes must respond to the accounting classifications defined by each entity, each entry must reflect the type of operation that is generated from each of the transactions originated, hence it is necessary to have the products in stock well classified, since a poor definition prevents the correct preparation of the operations receipt.
3. Financial information. For accounting information to be used by those who must make decisions, it must be summarized according to the needs of the different levels of management.
Financial information requires the necessary means for its formation, that is, the registration, classification and summary of the accounting process; however, this process includes something else, since it includes communication to all those involved in the management of the entities and the interpretation of accounting information to help in decision-making.
It is observed that the entire accounting cycle consists of the process of identifying the economic operation, the determination of the accounts affected by each economic event, the use of debit and credit rules, the recording of operations in the corresponding homogeneous register, in accordance with all the requirements to achieve the completeness of the economic and financial information.
The previous steps are summaries of the requirements to efficiently develop an accounting process in all entities, whether or not there is an automated system to process each of the economic operations; adapt each of the registration processes to its conditions and comply with the indicated steps.
According to the analyzed steps, it should be emphasized that the type of information that each manager or specialist needs depends on the nature of the decisions that must be made or the analyzes that must be made. Taking into account that the information that different users need is not the same, the accounting must provide reports that are presented in accordance with certain basic rules, so that the users of this information are able to interpret them appropriately.
Among these reports are the financial statements, which are the main source of information and a summary of the entity's activity at a given time or during a specific period, which show leaders and officials the financial situation at the end of each period. and helps them assess the present situation and perspective. There are also systematic, monthly and quarterly control reports that allow for sound decision-making if used properly, these are:
1. In control of budget execution:
• Monthly payment reports.
• Monthly execution of expenses.
• State of execution of income and expenses.
• Income report to the budget.
• Budget expenditure executed by each student.
2. In the control of patrimonial resources.
• Status of the situation.
• Statement of income.
• Cost for teaching activities.
• Cost for extra-teaching activities.
• Cost for service activities.
• Unit cost of a student by faculties.
• Cash flow in currency and in national currency.
• Analysis of solvency and liquidity.
• Rotation of Accounts Payable and Receivable.
• Rotation of Inventories.
• Cost effectiveness.
1.3 Cuban Accounting Standards.
The Cuban Accounting Standards come into force for all entities as of January 1, 2006. These standards arise as a result of the process of perfecting the exercise of the accounting profession that is carried out in the country. The General Accounting Standards for business activity, as well as the budgeted one, have had a significant place in this process, which defined the Generally Accepted Principles and the Valuation and Exposure Standards, as well as the Accounts List.
The Cuban Accounting Standards are harmonized with International Standards, according to the characteristics of the Cuban economy, with Resolution No. 10 dated February 28, 1997 being repealed, the Second and Third sections of Resolution No. 57 dated December 1 of 1997, sections sixth to eighth of Resolution No. 18 dated July 13, 1999, as well as resolutions No. 6 dated March 8, 1993, No. 23 dated December 3, 1993, No. 1 of dated January 17, 1994, No. 148 dated April 19, 2002, No. 99 dated March 11, 2003, No. 300 dated September 11, 2004, No. 301 dated September 11, 2004 and subsection b (from Article 72 of Resolution No. 379 dated December 31, 2003 issued by the Ministry of Finance and Prices.
In this context, the following rules have been conceived:
• No 1. It establishes the presentation of the Financial Statements.
• No2. Addresses the topic on the Statement of Cash Flows.
• No3. Financial Intermediate Information.
• No 4. Accounting policies, changes in accounting estimates and errors.
• No 5. It sets forth the provisions for recording events that occurred after the Balance Sheet date.
• No 6. It deals with Foreign Currency Operations.
In addition, within the general aspects, the Accounts Nomenclator, the economic content of these, as well as the valuation and exposure regulations are established.
1.4 Valuation and Exposure Standards.
The Valuation and Exposure Standards constitute a normative reference framework, through which economic and financial events are recorded on predetermined and permanent bases that ensure the transparency of the entity's management, presenting below those that must be applied by all companies based in Cuba.
Conceptually, the basic content of the accounts that make up the Financial Statements are referred to five groups: Assets, Liabilities, Equity, Income and Expenses.
Assets
It is made up of the set of quantifiable assets and rights, derived from transactions or from the entity's own events, capable of producing financial economic income, reasonably projected during the course of its management. Among them we can cite for their importance:
Cash in Cash and Bank
It includes the existence in the power of the entity of the legal tender, foreign currency, checks, money orders and sight cards, deposits in banking entities and placements made in financial institutions.
Valuation:
The national currency is valued at its nominal value.
The foreign currency at the bank rate or exchange rate that is in force at the time of each transaction, at the end of each financial year, it is necessary to adjust the existing balances to the current price or exchange rate on that date, the benefits or the resulting losses are part of the result of the financial year.
The fixed funds in the Balance Sheet or Statement of Situation must show only the unused cash, therefore requiring that at the end of each economic period the assets and expenses that have not yet been reimbursed be recorded.
In the case of cash deposited in closed or closed banks, subject to suspension of payments or liquidation procedures, if the possibility of loss exists, it must be recorded and included in the result of the financial year in which it occurs, ceasing to be a Active.
Exposure:
The items corresponding to these accounts will be exposed according to the relationship order resulting from their degree of liquidity, starting from the highest to the lowest.
Balances in foreign currency can be shown, if desired, separately, in subaccounts or complementary accounting analyzes, broken down by their currency of origin, but expressing their value in the financial statements for their equivalence to the national currency.
Effects and Accounts Receivable
They are rights of the entity product of obligations contracted by third parties for the purchase of products, provision of services, sales of goods, leasing of real estate, concessions or licenses for the exploitation of goods of any nature, services or similar activities. They also include payments on account or in excess of taxes and contributions.
They are generated at the time the events that originate them are configured and are canceled when the collection occurs, in accordance with the agreed contractual clauses.
This group includes Advance Payments for expenses, services or goods that will be received in subsequent years and tax debts for overpayments.
Assessment:
The Bills and Accounts Receivable are valued at their nominal value in the case of Short-Term Bills, their value is updated by the amount of the Discounted Bills, that is, for those that the bank has paid before maturity.
In the Accounts Receivable, its value is updated by the valuation provision corresponding to the estimate of bad debts, the variation of said provision being part of the result of the year.
The Accounts and Receivables in foreign currency will be valued at the exchange rate in force at the time of their origin and at the rate in force on the year-end closing date. When this means a decrease in the value originally agreed, the loss will affect the result of the financial year.
Exposition:
Short-term bills and accounts receivable will be exposed as those whose maturities are projected within twelve months after the operation that gave rise to them was arranged. Those that expire after twelve months from the origination of the transaction will be exposed as Long-Term Accounts and Accounts Receivable, and those that expire in the next fiscal year should be reclassified, moving to Short-Term Accounts and Accounts Receivable..
When presented in the Assets of the Statement of Situation, the total amount will be presented, deducting the amounts from the Provisions for Unused Bills and Bad Accounts.
Likewise, Accounts Receivable in foreign currency can be analyzed in subaccounts or complementary analyzes in the Financial Statements, broken down by type of currency, but expressing its value by equivalence to the national currency.
The Advance Payments will be classified depending on their maturity in Short or Long Term.
Inventories
Inventories are the entity's material reserves, either for consumption, production or for marketing.
Assessment:
Inventories are valued at the acquisition price or the real cost of production incurred to obtain them. The acquisition cost is constituted by the sum of the expenditures made for its purchase or production, the expenses incurred to place them in the place of storage and the corresponding ones for its use or delivery.
The valuation method established for inventory control for business and budgeted entities is the "Moving Average Price". In the case of entities that are subject to profit tax, the valuation methods are those defined by the profit tax regulation: "First in first comes out (FIFO)" and "Moving Average Price" the goods acquired to market that are controlled at the sale price to the population, are reported in the Financial Statements at their acquisition cost, so that at the price that is controlled, the amounts of the corresponding commercial discounts and surcharges and that of taxes will be deducted or included contained in said price.
When the entity chooses to apply amortization methods to supplies and tools or to include their values in costs or expenses partially when putting them to use and when they are derecognized, these assets will be exposed in the Financial Statements for the amount dependent on charging expenses or costs.
Included in the valuation of inventories are orders that have been firmly accepted for goods, raw materials and materials that are in transit and have been paid.
When the value of the use or sales of merchandise or products is lower than the value registered in Books, a difference will be produced, which should be considered as a loss affecting the economic result of the period, regardless of whether the cause was due to deterioration or obsolescence..
Exposure:
The group of inventories must appear in Current Assets, analyzed by the items that compose it according to its nature, that is, finished products, in process, merchandise to market, supplies and raw materials.
If there are established liens that restrict the free availability of the Inventories, or if they have been delivered in guarantee of loans, these details will be presented in a supplementary annex to the Financial Statements, identifying with the corresponding liabilities.
Inventories held by third parties whose ownership is exercised by the reporting entity, must be included in the financial statements, clarifying their situation in a complementary note to them.
Accumulated Revenue Receivable
Corresponds to the accrued (earned) income to which the entity is entitled and which has not been received for not having arrived at the date of its liquidation according to the signed contracts, or for corresponding to services (such as the deposit service or transportation) that have not been invoiced. Includes interest, commissions, dividends, services rendered, among others.
Valuation:
The former are valued at their nominal value and the latter at their sales values.
Exposure:
They are reported in the Financial Statements as Current Assets.
General repairs in process
They constitute the expenses incurred to insure or restore, in whole or in part, the useful life of assets of a permanent nature, corresponding to repairs that have not yet been completed.
Valuation:
They will be valued by the real cost of the repairs in process, executed with own means and by the agreed price, in those contracted with third parties.
Exposure:
They will be reported in the Financial Statements according to the completion date of said works.
Tangible Fixed Assets
Includes real estate, furniture and office supplies, computer equipment, other equipment and machinery acquired, received in donation or made by the entity, which have a useful life of more than one year, are not depleted in the first use and their incorporation is carried out with the purpose of using them in the activity carried out by the entities and they are not acquired for sale. Said assets are depreciable in uniform periods of time, according to their characteristics.
Assessment:
Tangible Fixed Assets are valued at the acquisition price, or at their real cost of elaboration, production or, where appropriate, an equivalent value when fixed assets are received without monetary consideration.
The acquisition price includes the net price paid for the goods, represented by the amount of cash delivered or its equivalent, plus all the expenses necessary to place them in the place and conditions of use, such as: freight, insurance, rights and expenses of import and installation, until its start-up, or upon discharge.
The actual cost of elaboration or production includes direct and indirect costs, such as: materials, labor, labor administration, planning and other expenses incurred or executed during the production period, when it is carried out with its own means of the entity. This period ends at the moment when the property is in use condition.
The value of these assets is updated for accounting purposes by recording depreciation, when applicable, including the amount thereof in the result of the fiscal year.
The goods received as a donation without an origin value must be accounted for at an estimated value that represents the disbursement that would have been necessary to acquire them under the conditions in which they are received.
Goods acquired in foreign currency will be recorded in the national currency, applying the exchange rate in force on the date of acquisition.
Assets received at no cost or at an inappropriate cost are valued at the current acquisition price and, if this does not exist, by appraisal by experts. This valuation rule is also applicable to assets received as capital contributions.
When acquiring a lot without specifying the price that corresponds to each of the Assets, the total cost of the lot is distributed among the different assets, based on the value of each one, determined by the current price or by appraisal made by experts.
Of Tangible Fixed Assets in Execution or Material Investments
They include the equipment that requires installation and the materials acquired for the execution of Tangible Fixed Assets that increase the production capacity or execution of other activities by the entity as well as the expenses incurred for the execution of these with its own means and the amounts paid to construction companies.
Valuation:
They are valued at the acquisition cost of the contracted goods, plus the actual expenses incurred in the investment process.
Repairs or Improvements
Expenses for adaptations or improvements made to Tangible Fixed Assets, which increase production capacity, efficiency, prolong useful life or help reduce future operational costs, increase the value of existing Assets and therefore They are capitalized jointly with the existing asset, or separately depending on the nature of the operation performed and the asset incorporated.
In the cases in which when the adaptation or improvement is carried out, the substitution of parts is necessary, these are written off, either for their value in Books if they exist or for an estimate made by experts.
The costs incurred in adaptations or improvements to leased premises are amortized during the term of the lease, even when the contract may be renewed, the amortization amount being part of the result of the fiscal year.
Of the Reconstructions
The reconstructions that increase the value of the original Tangible Fixed Assets, are capitalized items, taking into account for its registration the following aspects:
- If it has been practically total, its cost is considered as a new unit of Assets, consequently giving go down to the previous one.
- If the reconstruction has been partial, the replaced parts are removed, either for their value in Books if it exists, or for an estimate made by experts.
Intangible Fixed
Assets Intangible or Intangible Fixed Assets are understood as those assets that are not physically quantifiable, but that produce or may produce a benefit to the entity, whose life is greater than one year from the moment it originated them, amortized with expenses in subsequent exercises.
This item includes goods that, although they have immaterial characteristics, imply a right or privilege that makes it possible to reduce costs or improve the quality of services or products, such as: patents, trademarks, copyright, concessions, franchises, licenses, benefits inherent to environmental policies, research and development activities, computer programs, among others.
Assessment:
They are valued at their acquisition cost by the estimate made by experts, when there is no monetary counterpart, or at their real cost of development or production. All expenses incurred in obtaining it will be considered within the cost.
The value of these assets is updated through the amortization, in the corresponding cases and the amount of the aforementioned amortization forms part of the expenses of the periods to which it is attributed.
Deferred Assets
These Assets are valued at their historical cost and are subject to amortization, the amount of which is credited to the account (s) that the representative (s) represents, including their amount in the result. of the financial year.
Current Liabilities Current
Liabilities are the short-term debts of an entity, whose payment commitments do not exceed twelve months, and may consist of the following concepts:
- Simple or documented obligations arising from the acquisition of goods and services related to the activity of the entity, acquired for consumption.
- Operations arising from labor, provisional, fiscal or other obligations, such as salaries, commissions, awards, taxes, among others.
- Anticipated income from future sales of services.
Valuation:
The amount of the Current Liabilities for debt is configured by its nominal value, that is, by the value of the goods acquired and services rendered received.
- Liabilities in foreign currency (bills and accounts payable) are valued according to the price of the currency in question, taking into account the existing exchange rate.
Exposure:
The Liabilities in the Budgeted Units are classified into Current Liabilities and Other Liabilities, the following should be taken into account in their exposition:
- According to the date on which the obligation to settle them in money is assumed and consequently according to the cancellation date, that is, within twelve months of contracting it, they will be classified as Circulating.
- The Current Liability accounts must be ordered according to their nature, enforceability or relative importance.
- The obligations for employee benefits for salaries, contributions, benefits, withholdings and contributions to social security will be exposed individually, as will the tax obligations.
- The Liabilities constituting provisions will be considered as regulatory accounts of the Asset for which they were created, except for the Operational Provisions created for specific purposes that will be included in the Current Liabilities.
Equity
Conceptually constitutes the difference between the total Assets of a state entity and the total of its Liabilities.
Based on this concept, we can say that the Equity of a Budgeted Unit is formed by the difference between its Assets and Liabilities plus the transfers and contributions received, as well as the accumulations for the results obtained in the different financial years.
The transfers and contributions received reflect the items entered to finance the formation of their Patrimony. They are operations without consideration that are part of the patrimonial assets for their specific destination destino including in these concepts the Donations Received.
Valuation:
These items must be recorded and exposed at their nominal value.
Exposure:
They will be exposed in the following order:
- State Investment
- Resources Received from the Budget
- Donations Received
- Cash Deposited to the State Budget
- Results
1.5 Internal Control Internal
control means different things for different people. This causes confusion among business people, legislators, regulators and others. Resulting in poor communications and different expectations, which causes problems. Such problems intermingle when the term, if not clearly defined, is written in laws, regulations or rules.
This report addresses the needs and expectations of administrators and others.
Internal control is defined and described to:
• Establish a common definition that serves the needs of different parties.
• Provide a standard by which business entities and other large or small, in the public or private sector, for profit or cannot assess their control systems and determine how to improve them.
Internal control is broadly defined as a process carried out by the Board of Directors, administrator and other personnel of an entity, designed to provide reasonable security by looking at the fulfillment of the objectives in the following categories:
• Effectiveness and Efficiency of operations.
• Reliability of the financial information.
• Compliance with applicable laws and regulations.
Internal control systems operate at different levels of effectiveness. Internal control can be deemed effective in each of the three categories, respectively, if the board of directors and management have reasonable assurance that:
• It comprises the extent to which the objectives of the entity's operations are being achieved.
• The published financial statements are being prepared reliably.
• Applicable laws and regulations are being followed.
Since internal control is a process, its effectiveness is a state or condition of it at one or more points over time.
Internal control consists of five interrelated components, derived from the way management conducts business, and are integrated into the management process. Although the components apply to all entities, small and medium-sized companies may implement them differently than large companies. Its controls may be less formal or less structured, yet a small company may have effective internal control. The components are:
• CONTROL ENVIRONMENT. The control environment sets the tone for an organization, influencing the control consciousness of its employees. It is the foundation of all other components of internal control, providing discipline and structure. Control environment factors include the integrity, ethical values, and competence of the entity's people; the philosophy and style of operation of the administration; how the administration assigns authority and responsibility, and how it organizes and develops its people; and the care and direction provided by the board of directors.
• RISK ASSESSMENT. Each entity faces a variety of risks from external and internal sources, which must be valued. A precondition to risk assessment is the establishment of objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of the risks relevant to achieving the objectives, constituting a basis for determining how risks should be managed. As the economy, industry, regulations, and operating conditions will continue to change, mechanisms are required to identify and address the special risks associated with the change.
• CONTROL ACTIVITIES. Control activities are the policies and procedures that help ensure that administrative policies are carried out. They help to ensure that the necessary actions are taken to guide risks towards achieving the entity's objectives. Control activities occur throughout the organization, at all levels and in all functions. They include a range of diverse activities such as approvals, authorizations, verifications, reconciliations, operational performance reviews, asset security, and segregation of duties.
• INFORMATION AND COMMUNICATION. Relevant information must be identified, captured and communicated in a manner and at a time that enables employees to fulfill their responsibilities. The information systems produce reports, contain operational, financial and compliance-related information, which makes it possible to operate and control the business. It has to do not only with the data generated internally, but also with information on events, activities and external conditions necessary for decision-making, business reporting and external reporting. Effective communication must also occur in a broad sense, flowing down, across, and up the organization.
All staff should receive a clear message from senior management that control responsibilities must be taken seriously. They must understand their own role in the internal control system, as well as how individual activities relate to the work of others. They must have a means of communicating meaningful information. They also need to effectively communicate with external parties, such as customers, suppliers, regulators, and shareholders.
• MONITORING. Internal control systems must be monitored, a process that assesses the quality of system performance over time. It is done through ongoing monitoring activities, separate evaluations, or a combination of the two. Ongoing monitoring occurs in the course of operations. It includes regular administration and supervision activities and other personal actions carried out in compliance with its obligations. The scope and frequency of separate evaluations will first depend on the risk assessment and the effectiveness of ongoing monitoring procedures. Deficiencies in internal control should be reported throughout the organization, reporting only to senior management and the board on serious matters.
There is an interrelation between these components, forming an integrated system that dynamically reacts to changing conditions. Internal control systems are intertwined with the entity's operating activities and exist for fundamental business reasons. Internal control is most effective when controls are built on the entity's infrastructure and are part of the core of the business. Building on controls supports quality and empowerment initiatives, avoids unnecessary costs, and enables quick responses to changing conditions.
There is a direct relationship between the three categories of objectives, which are: what an entity strives to achieve, and the components, which represent what is required to achieve the objectives. All components are relevant to each category of objectives. When we review any category - the effectiveness and efficiency of operations, for example - all five components must be present and function effectively to conclude that internal control over operations is effective.
The definition of internal control - which is the underlying fundamental concept of a process, performed by people, that provides reasonable assurance - together with the categorization of objectives, the components and criteria for effectiveness, and the associated discussions, constitute this structure. Conceptual of internal control
For an Accounting System to guarantee efficient internal control, it must be made up of:
- The Accounts Nomenclator, which requires the account, subaccounts and analyzes, both for general and specific use.
- Definition and use of the accounts, subaccounts and analysis of specific use, attending to their peculiarities, as well as the clarifications that proceed to those of general use.
- Compilation of the Norms and Procedures to be applied, based on the regulations issued by the corresponding Organisms as well as those specific to the entity itself, attending to the particularities and requirements of the activities it carries out.
- A consequent Cost Accounting System conditioned to the particularities that the Center develops.
- The set of models and documents that the entity needs to use, both those in common use that establish relationships with third parties, and those that support internal operations, as well as those for specific use, according to the peculiarities of the activities that they develop, with their corresponding methodology, foreseeing the adequate filing and conservation of the same, according to what in the matter of prescription is legislated to the effect.
- An Internal Information System compatible with the General Information System for the economy, which guarantees the analysis needs of that level.
From the foregoing, the importance of the Accounts Nomenclator for the Sancti Spíritus University Center is inferred, which enables the registration, classification, summary, analysis and interpretation of transactions according to the Cuban Accounting Standards.
Chapter II: List of Accounts. Summary of its Content.
2.1 Characterization of the CUSS.
The Sancti Spíritus University Center is subordinate to the Ministry of Higher Education. It is located on Avenida de los Mártires # 360, in the municipality of Sancti Spíritus, province of the same name. Its main mission is “to train integral and revolutionary professionals identified with the history and the best traditions of the Cuban nation, continuously surpassing them, counting on a fully prepared cloister and adequate material and financial assurance, which allows the development and promotion of science, culture and technological innovation, in order to respond to the needs of Cuban society with an emphasis on the territory and in correspondence with the PCC's policy and the programs of the Revolution. ”
2.2 Diagnosis of the current situation of the Economic Area on the rules and procedures for the control of resources.
In the course of the 32 years that the CUSS has today, and based on the development achieved in teaching, the demands were increasing for the economic area, which in the beginning had a person in charge of controlling economic operations and was a Center for Payment of the Central University of Las Villas (UCLV).
When the University Headquarters was established, only the primary documents were processed and the operations receipt was reached, then all that information was delivered to the Accounting Directorate of the UCLV to complete the economic information in the UCLV and to be part of its Financial statements of this institution.
The development and increase in teaching activity, enrollment and the general infrastructure necessary to respond to the demands, lead to the fact that at the end of 2002 it became economically independent from the UCLV, managing to obtain it for the first time, at the end of this year., the CUSS Financial Statements.
This separation gave the Economic Area advantages and disadvantages, among which we can point out:
Advantages: Establishment of new work strategies, changes in the organizational structure, increase in the workforce, maintaining direct contact with the Economic Directorate of the MES and other entities and organizations in the territory, as well as exchanges of experience with other Centers of Higher Education in the Country. Also conducive to development, achieving that the entity in 2003 became a University Center of Sancti Spiritus. It favored the application of solutions corresponding to the New Economic Financial Management Model.
Disadvantages: Improvisation as an Economic Entity due to not having a workforce that meets the requirements, due to poor preparation, lack of technical-professional advice, lack of total knowledge of the informative discipline of the area that as an economic entity had to render, but also the lack of table prepared in the activity of the Higher Education System.
Today the workforce is 95% covered, with a total of 18 workers in the area. The preparation of the staff is 4 graduates and the rest are middle technicians, of them 13 study university degrees in the Regular Course for Workers (CRPT) modality, 10 study the Degree in Accounting and Finance in the Center itself, 1 Degree in Law and 2 study for a degree in Socio-Cultural. We also have one of the graduates studying a Master's in Computer Science.
The area has an adequate structure that meets current requirements (Annex 1). Its mission is to record, classify, summarize and analyze accounting information so that management makes effective decisions that contribute to increasing efficiency and effectiveness in the use of resources.
Each of the workers has a design of their job, they have received training to face it adequately and they receive courses and diplomas without distinction.
This area has not updated the Nomenclator of Accounts of the Cuban Financial Information Standards, for the registration of economic events in accordance with Resolution No. 9-2007 of the Ministry of Finance and Prices and the Methodological Guidelines of the MES.
2.3 List of Accounts.
To achieve the proper application of the Cuban Financial Information Standards, it is necessary to have an updated Accounts Nomenclator (Annex 2), since this in accounting practice constitutes a basic tool for the faithful recording of economic transactions.
In the preparation of the Accounts Nomenclator, Resolution No. 9-2007 of the Ministry of Finance and Prices and the Methodological Guidelines established by the MES are taken into consideration, which we show below:
General Aspects, (Summary of its content).
-
Current
Assets Long-term
Assets Fixed Assets
Other Assets
Regulatory Assets
-
Liabilities Current
Liabilities Long-term
Liabilities Deferred
Liabilities Other Liabilities
- Equity
Production expenses
Nominal Accounts
In our Nomenclator of Accounts are the expense accounts first, and then the assets, the liabilities and finally the capital or equity accounts.
2.4 Use and Economic Content of the Accounts.
The author based on the Cuban Accounting Standards, expresses the use and content of the accounts defined for each account in this nomenclator.
Budget execution accounts
007 Central budgetary running costs.
It represents the current budgetary expense accrued by the resource commitments contracted by the budgeted unit according to its level of subordination. This includes, among others, personnel expenses, current transfers, and expenses for goods and services, reflecting their real value or estimated, if the final amounts are not available at the end of the accounting year-end.
This account will be analyzed by budget groups, as established by the classifier of budget groups and by subsections, headings and items according to the classifier by object of expenditure of the state budget.
Your balance is canceled at the end of the year against the budget result account.
009 Central budget current results.
It represents the current result that the budgeted unit obtains during the year according to its level of subordination.
It is debited for the amounts recorded in the Budget Income memorandum account and credited for the amounts registered in the Budget Current Expenses Account.
Your balance is canceled with the Budgeting Current Expenses and Budgetary Income accounts at the end of the year.
012 Central capital expenditure.
It represents the capital expenditure accrued by the resource commitments contracted by the budgeted unit according to its level of subordination.
This account will be analyzed by budget groups, as established by the Budget Group Classifier, by type of investment and by subsections, headings and items according to the Classification by Objects of Expenditure of the State Budget.
Your balance is canceled at the end of the year against the Capital Expense Counterpart Account.
013 Counterpart of capital expenditure.
Represents the counterpart of the capital expenditure accounts.
Your balance is canceled at the end of the year against the capital expenditures accounts.
Group of Assets
Represents the economic resources owned by the entity as a result of transactions or activities previously carried out and through which it can carry out its activities.
All tangible or intangible resources that the entity owns or has the right to possess and that it uses in the execution of its operations are assets.
The Assets have as characteristics:
• Having the capacity, alone or in combination with other Assets, to contribute directly or indirectly to the development of the entity's activities.
• That the transactions or activities that gave rise to the possession or right over the Asset have already occurred, that is, they are the consequence of previous operations.
Current Assets
101 Cash in Cash.
They represent the stocks of monetary means and values deposited in the entity's boxes.
They include, among others: cash for minor payments, for changes, fixed fund for specific services or other destinations, as well as the amounts paid into the cash register, to be deposited in the corresponding bank accounts or for payroll payments. They include the stock of stamps acquired for the entity's use and the checks received in foreign currency by entities that do not generate these currencies, for payments to suppliers, as well as the amounts and checks received in national currency and in foreign currency to be deposited in bank accounts or at other financial institutions.
They are debited for the cash transfers to these accounts, when creating the funds or increasing them, as well as for the cash receipts pending deposit at the bank branch, for the amounts of the stamps purchased that are in stock and for the checks received and credited for the use or cancellation of the funds and for the deposits made in the bank accounts of the entity.
109 Cash in Bank.
They represent the existence of monetary means deposited in bank accounts or in other authorized financial institutions.
They include all bank accounts that are operated, whether in national or foreign currency, as well as those of a specific destination. It includes the resources deposited in other entities and in financial institutions, without character of temporary investments.
They are debited for deposits of cash, checks or other documents that represent cash and are credited for the withdrawals and payments made.
136 Accounts receivable purchase of currency.
The amount of sales of products and merchandise is recorded in these accounts, as well as the value of the works carried out and of the Work Progress Certifications invoiced, which must be analyzed by clients and by type of currency; considering each document issued and collected. Includes the countervalue receivable.
They are debited for the Invoices or Certifications issued and are credited when these are collected, for cancellations, those declared in the process of litigation and protest.
146 Advance Payments MN.
The amount of the payments made to the suppliers for the future reception of the products or merchandise, as well as for the subsequent acceptance of the works or services, is recorded in these accounts, by virtue of the subscribed contracts or accepted agreements.
They are debited for the advance payments made and are credited for the amount of the products, merchandise and / or services received, as well as the refunds for overpayments. It must be analyzed by suppliers.
150 Advance Payments, Investor Process.
These accounts record the amounts of the payments made to the executors of the investments (construction entities, projects or suppliers of equipment that require installation and materials) prior to the receipt of the equipment and materials or the execution of the works, according with the signed contracts.
They are debited upon making the advance payments and are credited upon receipt of the equipment, materials and the Works Progress Certifications justifying the execution of the material investments.
161 Advances to Justify.
They record the amount of advances given to workers with the aim of financing administrative or operational expenses incurred in the service commission.
They are debited for the advances paid by check and for those pending settlement and settled, pending repayment at the end of each month and are credited for their settlement, for the refund of unused cash and for the reversal of the amounts recorded. in this account at the end of each month.
165 Debts from the State Budget.
They represent the amounts pending receipt from the State Budget, in accordance with current financial regulations.
They include, at the end of the accounting period, the amounts pending receipt for overpayments to the State Budget for taxes, contributions and short-term social security payments, pending repayment.
172 General repairs in progress.
It represents the amount of the works destined to insure or restore totally or partially the useful life of the goods of a permanent nature, as well as their efficiency, carried out with own means or contracted with third parties.
It is debited for the amount of the works received from third parties or those executed with its own means, corresponding to general repairs not completed and is credited to the completion of the repairs, for their cost, to reduce the provision created to finance these works.
Fixed
Assets 240 Tangible Fixed Assets.
They represent physically tangible properties that are to be used for a long period in the entity's regular operations and are not normally intended for sale. These Assets, with the exception of the productive land and animals of the larger livestock, transfer their value gradually, during their useful life, to the production of goods and the provision of services. In the case of productive animals, their value is transferred at once, at the end of their productive useful life.
They include, among others, land (when the legislation considers it), permanent plantations, productive animals for large livestock, work animals, tamed and exhibition animals, buildings and constructions, machinery and equipment, transport equipment, furniture, fixtures and equipment for office, laboratory equipment, museum works, mining sites and developments and forestry developments and developments, among others.
They are recorded at their acquisition value and transportation and assembly costs, in the case of those acquired and those executed with their own means, are valued in accordance with the provisions in force.
They are debited for the addition of Fixed Assets and are credited for the withdrawal or sale of these.
255 Intangible Fixed Assets.
They include the non-material assets that are owned by entities to carry out operating activities. Its fundamental characteristic is that they do not take a corporeal form and are only visible in the legal instrument that justifies the right to their usufruct.
They include, among others, patents, trademarks, trade names, franchises, intellectual property, leasing with a purchase option, computer programs, intellectual and surface rights (when they are not paid by rents), improvements in leased properties, etc.
They are debited for payments made for these assets, except for leases with a purchase option where they are debited for the amount of the debt of the principal or the latter, plus interest, and are credited for their initial value upon withdrawal.
265 Material investments.
They include the amounts of the expenses incurred in these activities, either executed with their own means or contracted with third parties.
They include the equipment that requires assembly work and the materials that are transferred from the Equipment to Install and Materials for the Investment Process accounts.
They are debited for the Works Progress Certifications, for the real cost up to the established limit of the investments executed with own means and for the acquisition value of the installed equipment and the construction materials used and at the end of the year, for the estimate of the expenses of the works carried out and that have not yet been invoiced and are credited upon completion of the investment and transfer to Tangible Fixed Assets. They are also credited, at the end of the year, for the cancellation of accumulated expenses for forestry developments and developments.
.280 Equipment to Install and Materials for the Investment Process.
They include the amounts of the technological, energetic and productive equipment that require assembly and installation, as well as the construction and assembly materials (including structures), which are destined to be included in the Material Investments.
They are debited for their value when purchased and are credited for the delivery of the equipment to be installed or the materials used or delivered to the contractor, when they are included in the price of the work.
Deferred Assets
300 Short-Term Deferred Expenses.
They represent disbursements and expenses paid in advance, which must be absorbed in aliquots of the costs or expenses of subsequent periods, not exceeding one year.
They include but are not limited to: insurance, rentals, interest, newspaper and magazine subscriptions, taxes, preparatory work for the mass or serial production of new types of products, and routine repairs of plants and equipment in non-uniform periods.
The amount of expenses charged to these accounts must be analyzed by the elements established in the Cost Systems.
They are debited for the expenses incurred and credited for the proportion included in the expenses or costs of subsequent periods.
Other Assets
330 Investigation Losses.
They represent, on a temporary basis, the amount of losses due to deterioration of resources or exceptional situations that originate or are detected when making inventories or during any other verification. Includes: Losses in harvests, due to deterioration, due to retail prices, accounts receivable, etc.
They are debited for losses at the time they become known and are credited after carrying out the investigations and receiving the corresponding approvals.
If subsequent recoveries of these amounts occur, these will be treated as Income from Previous Years, if the cancellations correspond to previous periods or as credits to Expenses for Loss of Assets, if they correspond to the period in which they were recorded.
332 Lack of assets under investigation.
They represent, in a transitory way, the amount of the shortages, that originate or those that are detected when making inventories or during any other check.
They include, among others: shortages of Tangible Fixed Assets for the amount of their undepreciated value, Inventories, monetary means and Fixed Assets in Execution (equipment to be installed and materials for the investment process), among others.
They are debited for the missing at the time of becoming aware of them and are credited after carrying out the investigations and receiving the corresponding approvals.
In the case of shortages that originate from criminal acts, whose complaints are accepted by the Organisms of Internal Order for their investigation and judicial prosecution, these accounts will be canceled, when the complaints are accepted, against the result of the period. If subsequent recoveries of these amounts occur, these will be treated as Income from Previous Years, if the cancellations correspond to previous periods or as credits to Expenses for Missing Goods, if they correspond to the period in which they were recorded.
334 Accounts Receivable Various Operations.
They represent the amounts pending collection for items not related to the fundamental activities of the entity's current operations. It must be analyzed by debtors.
They include, among others, sales of Tangible Fixed Assets and Inventories, indemnities accepted for breaches of contracts, sanctions for workers, loans to students, debts of workers for different concepts, claims to suppliers, merchandise consignment operations, etc.
They are debited for sales or debts and are credited for the amount of the collections made.
345 Various Accounts Receivable from the Investing Process.
The amounts pending collection for operations associated with the investment process are recorded in these accounts. It must be analyzed by debtors.
They include, among others, claims to contractors and equipment suppliers that require installation and investment materials, purchased materials and equipment and materials delivered to contractors to be subsequently deducted from the price of the works.
They are debited for claims or deliveries of equipment and materials and are credited when these are deducted from the price of the works or when the first ones are collected.
350 Operations between Dependencies- Assets.
They represent the amounts corresponding to the transfers of resources and other operations carried out between the entity and its dependencies, factories and establishments, without any payment.
These accounts only receive debits for the delivered goods or operations.
They are debited for the transfers to other dependencies or establishments or between these.
The sum of the balances of these accounts must coincide at the end of the period with that of the balances of the Operations between Units - Liabilities accounts and they are closed against each other at the end of the year.
In the case that works with decentralized accounting, the establishments and the central office will close them against the State Investment accounts. This affectation to the State Investment accounts must be at zero in the consolidated business.
In Mercantile Companies with decentralized accounting, it is closed against an analysis of the Other Capital Operations accounts, called “Closing of operations between Units”, which must be zero in the consolidated company.
Group of Regulatory Assets Accounts
375 Depreciation of Tangible Fixed Assets.
These accounts correspond to the loss in value that Tangible Fixed Assets suffer and that is recorded in them (except for productive land and animals), due to the wear caused by normal or extraordinary use during the periods that they provide services or participate in the production or technological obsolescence.
They are credited for the amount of the depreciation for replacement corresponding to the period and are debited for the accumulated depreciation at the time of the decrease of Tangible Fixed Assets or for the modifications of the rates.
390 Amortization of Intangible Fixed Assets.
The loss in value of certain Intangible Fixed Assets is recorded in these accounts, due to the expiration of the time established as the term of their usufruct.
They are credited for the systematic charging of the proportion of their value to costs or expenses for the period and are debited for the write-down of Intangible Fixed Assets.
Group of Liabilities They
constitute the obligations of entities arising from previous activities or transactions, the settlement of which may result from the receipt or use of assets, the provision of services or other benefits received.
Current Liabilities
405 Accounts Payable Short Term.
They represent the amounts pending payment to suppliers for current operations, regardless of whether their payment is made before or after receipt or acceptance of the goods, materials, services received, etc., and these should be analyzed by suppliers and for each document received or prepared and paid.
They are credited for the obligations contracted when purchasing products or receiving services and are debited for the amount of payments made.
421 Accounts Payable Tangible Fixed Assets.
In these accounts, the obligations contracted with the suppliers of Tangible Fixed Assets are recorded, and they must be analyzed by suppliers and for each document received or prepared and paid.
They are credited for the documents received or prepared and debited for the payments made.
425 Accounts Payable Investor Process.
They include the recognized obligations to be paid to the entities with which the material investments are contracted, regardless of whether their payment is made before or after receipt of the constructions, installation and assembly works, equipment, materials, projects and other expenses. It must be analyzed by clients, considering each document issued and paid.
They also include, at the end of each year, the amounts pending reimbursement for investments executed with own resources and the estimates of obligations whose documents have not been received from the builders or suppliers.
They are credited for the obligations contracted with the entities executing the material investments and suppliers of the equipment and materials and for the amounts pending repayment for investments executed with their own means (only when they are financed with resources from the State Budget) and debited. for the payments made and for the reimbursements made at the beginning of the year for the material investments executed with own means the previous year, if applicable.
430 Advance Collections.
These accounts are used to record the cash received from customers without the consideration of the service or the delivery of the product or merchandise. It must be analyzed by clients, considering each document issued and paid.
They also include the planned collections made during the month, in accordance with what is agreed in the signed contracts.
They are credited for the amounts collected in advance and are debited by the application of the advance collections to the services, products or merchandise delivered or by the compensation of the Accounts Payable registered by these operations.
440 Obligations with the State Budget.
They represent the amounts pending to contribute directly to the State Budget, in accordance with current financial regulations.
They include, among others, obligations for taxes and contributions, as well as pending amounts to contribute for the preparatory documentation of material investments. Includes dividends received by state entities.
They also include, at the end of the accounting period, the amount pending contribution for profits.
They are credited for the amounts pending contribution to the State Budget and debited for the payment of the contracted obligations.
455 Payroll Payable.
They include the accumulated amounts to be paid to workers for wages, vacations and stipends authorized to pay, for short-term social security subsidies, in the cases of those who are entitled to the benefits of the same and for unclaimed wages.
They are credited for the accumulations of payrolls to be paid and are debited for their payment and for unclaimed wages.
460 Withholdings Payable.
The amounts of the withholdings made from the wages of the workers are recorded in these accounts, under the established legal provisions.
They include, among others: alimony, housing payments, personal loans granted by the Bank, judicial liens, etc.
They are credited for withholdings made and debited for payment to the entities or beneficiaries thereof.
480 Accumulated expenses payable.
They comprise, at the end of each economic period, the expenses incurred that are in the process of payment and include such concepts as: income, interest, equal, sales or collection commissions, freight, warehousing, insurance premiums, energy service, telephone, gas, water, etc.
They are credited for the actual or reasonably estimated accumulation of expenses incurred in the period, pending payment and are debited for the payments made.
492 Provision for Holidays.
It includes the accumulated amounts on the wages accrued by the workers, for the payment of vacations, in accordance with the provisions in force.
It is credited for the accumulation of vacations and is debited for the amounts paid when they are enjoyed by the workers.
Other Liabilities
555 Surpluses in Research.
During the investigation period they include the surpluses of Tangible Fixed Assets, Inventories, monetary means and assets of the investment process (equipment and materials), detected in physical counts or in other verifications.
They are credited for the detected surpluses, when they are known and are debited after carrying out the investigations and receiving the corresponding approvals.
565 Miscellaneous Accounts Payable.
They include the amounts pending payment for: accepted claims, unclaimed wages that are within the term established for settlement, indemnities accepted to customers, leasing of fixed assets to other entities and purchase of fixed assets to dismantle, operations of consignment of goods among others. It is analyzed by creditors.
They are credited for the obligations contracted by the concepts stated and debited for payments made to clients and creditors or for Contributions to the State Budget for unclaimed wages whose settlement period has elapsed, in accordance with current financial provisions.
575 Operations between Units (Liabilities).
They include the amounts corresponding to the transfers received of resources and other operations that are carried out between the entities, their dependencies, factories and establishments, without any payment.
These accounts only receive credits for the means or operations received.
The operations that are in transit at the end of the month, whose credits in these accounts have not yet been produced, will be registered and credited to these accounts, with a debit to the accounts that gave rise to them, analyzed as "Items in Transit".
The sum of the balances of these accounts must coincide at the end of the period with that of the balances of the Transactions between Units-Assets accounts and is closed against the State Investment accounts.
In the case that works with decentralized accounting, the establishments and the central office will close them against the State Investment accounts. This affectation to the State Investment accounts must be at zero in the consolidated business.
In Mercantile Companies with decentralized accounting, it is closed against an analysis of the Other Capital Operations accounts, called Closing of operations between Units, which must be set to zero in the business consolidation.
Heritage Group
Includes the state's participation in the assets of the entity, after deducting its obligations to third parties, includes specific categories, such as: State Investments, Distribution of Profit, Financing of Losses, among others.
Heritage
600 State Investment.
These accounts record the resources assigned by the State to the entity to carry out its economic activities, both when it is created and subsequently, including those corresponding to the use of the patrimonial reserves created.
It is necessary to establish in these accounts analyzes that allow to clearly determine the concepts of their movements.
At the end of the fiscal year, you receive the balances of the Accounts between Assets and Liabilities, Resources Received and Donations Received.
They are credited for concepts such as: allocation of Tangible Fixed Assets and Inventories, Leftovers of Tangible Fixed Assets whose causes cannot be determined, acquisition of fixed assets when financed with decentralized resources, use of the equity reserves created, increase in working capital, authorized receipt of fixed assets from other entities, receipt of resources and material investments in process for completion by administrative restructuring, among others.
They are debited for the following operations: transfers for authorized deliveries of Tangible Fixed Assets to other entities, transfers for administrative restructuring of resources and material investments in process pending completion, removal of fixed assets, excess liquidity that will be contributed, among others.
617 Resources Received.
Represents the resources received from the State Budget to finance the approved expenses, including Capital Expenses. In the entities that administer the subaccounts of the Single State Income Account, the resources deposited as contributions from the entities are included.
It is credited for the deposits received directly from the State Budget, the notification of the issuance of a payment instrument in those budgeted units that operate under the single treasury account regime, the contributions made to the sub-account of the Single State Income Account, or the collections of income generated in the budgeted units that have received express authorization for it and that correspond to it and is debited for the transfer of its balance, at the end of the accounting period to the State Investment account.
The following concepts must be taken into account in the analysis:
Current
Expenses Capital Expenses.
Contributions to the subaccount of the Single State Account
620 Donations Received.
They comprise the resources received from the highest organ or body, from foreign entities, individuals or governments, without obligation to pay.
They are credited for receiving Tangible Fixed Assets, Inventories and monetary means and are debited at the end of the year, against the State Investment accounts. Includes the receipt of resources that come from seizures, for use in the entity.
626 Donations delivered.
It includes the delivery to the beneficiary entities or persons, of the cash received in foreign currency or the goods from donations from national or foreign institutions and entities, for which they were donated.
It is debited for the delivery of cash in foreign currency or goods from donations received to the beneficiary entities, when the corresponding payment instruments are issued.
It is credited for the transfer of your balance at the end of the economic period against accounts 600 to 618 State Investment.
655 Cash Deposited to the State Budget.
It includes the amounts that are deposited by the unit budgeted to the State Budget for: sales of Tangible Fixed Assets, repayments of investments with its own means, surplus cash on hand, income from sales of productions and merchandise marketing (in authorized units to develop these activities), among others.
It is debited for the deposits made and is credited, at the end of the fiscal year, for the transfer of their balances to the State Investment accounts.
Nominal debtor accounts
870 Current Expenses of the Entity.
The amount of material consumption expenses, wages, services received and the more expenses incurred in the budgeted unit in the development of its activity when no cost systems are applied are recorded in these accounts.
These accounts are analyzed by executing areas and according to the expense concepts established by each entity.
The balances of these accounts reflect during the year, the accumulated amount of expenses, in the activities of communal services, science, education, culture and art, public health, social assistance, sport, administration and other non-productive activities, transferring at the end of the year, to the Result account.
Nominal Credit Accounts
955 Earned Income.
The amount of income obtained by the budgeted unit is recorded in these accounts, in the development of its activity for those concepts considered as such.
It includes among others:
- Dining rooms and cafeterias.
- Children's circles and gardens.
They also include receipts for income from future periods when the total or partial amounts of the debt are received, when they correspond to damages and losses collected.
The surpluses of material and monetary means that after investigating their causes, as well, are also recorded.
The balances of these accounts reflect the accumulated amount of income made during the year for the aforementioned items, being transferred at the end of the year to the Profit account.
Closing Account
999 Result for the current year.
This account reflects, at the end of the accounting period, the result obtained by the entity, either profit or loss, as a result of the closing of the balances of the nominal accounts.
Its balance is transferred once the balances of the nominal accounts have been closed, from being positive to the Retained Earnings accounts and from being negative to the Loss accounts.
In the case of the budgeted units, this account reflects at the end of the accounting period, the result obtained by the entity, either positive or negative, as a result of the closing of the balances of the nominal accounts.
Its balance is transferred once the balances of the nominal accounts have been closed, at the end of the year, to the State Investment accounts.
In the case of budgeted differential treatment units, the balance is transferred to the Positive or Negative Result account, as appropriate.
Conclusions
1. The bibliographic review and the analysis of the documentation for the theoretical foundation were carried out.
2. When making the diagnosis of the CUSS situation, it was found that the Accounts Nomenclator had not been updated in accordance with the provisions of Resolution No. 9-2007 of the Ministry of Finance and Prices and the Methodological Guidelines of the Ministry of Higher Education.
3. The updated Accounts Nomenclator responds to the structural organization of the CUSS, not violating the ranges established by the Ministry of Finance and Prices for each account, scientifically reflecting the economic content of the accounts, this being a basic tool for recording the events economic that take place in the Center.
recommendations
1. Propose to the CUSS economic management that the Accounts Nomenclator designed to record the economic events that take place in the CUSS be implemented.
2. Consider the proposed Accounts Nomenclator, for the elaboration of the accounting procedures when preparing the Center's Accounting Manual.
3. To the extent that changes in financial legislation arise, the Accounts List will be updated by specialists in the accounting area.
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Annex 1
Organizational chart of the CUSS Economic Area
Organization chart of the CUS Economic Area
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