Summary
Introduction
II… Analysis of budget execution in Constructive Investment and AFT for the first quarter of 2017
II… Analysis of budget execution in Construction Maintenance for the first quarter of 2017
IV… Financial situation
V… Conclusions
Introduction
Pursuant to the provisions of the Ministry of Finance and Prices, where each state-owned company, the mercantile companies with one hundred percent Cuban capital and the superior business management organizations with the state, present a Valuation and Structured Report in a way that reflects the Budgetary Execution of the items of Capital and Constructive Investments and those of Constructive Maintenance in the first quarter of 2017 at the Investment Department of the University of Camagüey.
Fundamental aspects to highlight within the time interval to which this report is limited are, among others:
- The application and monitoring of the budget approved by the Ministry of Higher Education, which allow having instruments of common application among all the centers for the detailed, systematic and orderly recording of financial executions in order of the approved budget and of the different financial statements. budget execution under the principles of responsibility, transparency, efficiency and effectiveness in the administration of the resources that the members and other institutions contribute. The recognition in the case of programs with specific financing of annual duration of the income corresponding to said programs based on of the degree of execution of the expenses incurred in connection therewith. All this based on the principle of correlation between income and expenses.The imputation of common or undifferentiated expenses in constructive and material activities for the development of the functional activities attributed to the entity has been carried out by distributing them among the different programs, in accordance with their effective dedication to them, following the criteria of general acceptance of the accounting doctrine, all operations have been registered in national currency (CUP) and freely convertible currency (CUC) in which the majority of operations have been carried out using the recommended criterion of prudential valuation.Following the generally accepted criteria of accounting doctrine, all operations have been registered in national currency (CUP) and freely convertible currency (CUC) in which most operations have been carried out, using the recommended valuation prudence criterion..Following the generally accepted criteria of accounting doctrine, all operations have been registered in national currency (CUP) and freely convertible currency (CUC) in which most operations have been carried out, using the recommended valuation prudence criterion..
However, with the aim of offering the information in homogeneous terms and obtaining the consolidated and aggregated statements of both the University of Camagüey and the other centers, its expression in MCUP and MCUC considered as a unit of common currency account is maintained as in previous periods. total (MT) at the end of each financial year.
Tables that appear at the end of the quarter of each year of this Report present the information that refers to the execution of the expense budgets, economic and functional version in the first quarter of 2017.
It should be noted in this regard that some budgetary increases in different headings are mainly due to the implementation of programs that arose after the formulation of the budget and that in most cases have specific financing provided by various Ministries.
II… Analysis of Constructive Investment and AFT for the first quarter of 2017
| UM: Thousands of Pesos | State Investment Execution Plan | Cumulative Execution
March 31, 2017 |
||||||
| DESCRIPTION | Total | Const. And mtje | Teams | Others | Total | Const. And mtje | Teams | Others |
| TOTAL | 831.8 | 300.00 | 521.8 | 0.00 | 121.80 | 0.00 | 121.80 | 0.00 |
| NON-NOMINAL INVESTMENTS | 831.8 | 300.00 | 521.8 | 0.00 | 121.80 | 0.00 | 121.80 | 0.00 |
| Conex. Collector University Los Coquitos | 300.00 | 300.00 | 0.00 | 0.00 | 0.00 | |||
| Unexpected | 0.00 | 0.00 | 0.00 | |||||
| Various Furniture and Equipment | 521.8 | 521.8 | 121.80 | 0.00 | 121.80 | 0.00 | ||
| of it: | ||||||||
| Digital TV | ||||||||
| Eq. Computer scientists 2017 | 0.3 | 0.3 | ||||||
| Eq. Printing and reproduction, 2017 | ||||||||
| Eq. Audio 2016 | ||||||||
| CANON 2016 Printer | ||||||||
| PCi7. pend 2016 | ||||||||
| TV pend 2016 | ||||||||
| Jgo Sala. pend 2016 | ||||||||
| MINDUS furniture | 121.5 | 121.5 | ||||||
| Eq. Laboratory |
In 2017, the University Collector Investment Project with the aim of connecting the oxidation lagoon to that of the Los Coquitos Division. Investment that was pending execution of the previous year but with a total value of 300.0 MT of them 6.5 MCUC. Said approved capital ended 2016 with 0% execution, the lack of raw material being the fundamental cause of said non-execution.
Already for the first quarter of 2017 after the delay of the project and the need to start the work due to environmental damage, it was decided to start the investment in January, expecting an execution until March of at least 50 percent of the approved budget.
The workforce was already waiting to start as well as the appropriate technical documentation. There were also companies supplying materials such as cement, sand and others, as well as materials for steels and rebar.
And once again the beginning of the investment is postponed for the same reason: the lack of a specific raw material. It is a type of 400 mm diameter polypropylene pipe that was very difficult to produce in the country, so it was very expensive to market because the raw material is in foreign currency.
The investment only had that specific type of pipe because it is a type of pipe to dispose waste and for this type of use such pipe was required.
Conditions prone to start the work
- There was a specialized workforce. Reconciled with the builder Approved financing (Construction, sanitary licenses, compatibility with defense and firefighters)
There were also other causes where the non-execution of the budget in the quarter originated:
- Lack of specific raw material Market instability Deficiency at the level of supplying companies Product centralization
Budget for the quarter Trimester I
Los Coquitos Collector Connection 0.0 MP 0%
Various Furniture and Equipment 121.8 MP 23.3%
Total 121.8 MP 14.6%
Tangible Fixed Assets Investment Report for the first quarter of 2017
After the approval this year of a budget of 521.8 MP for the purchase of Fixed Assets, which includes computer and printing equipment, digital TV and Furniture, the budget was broken down on a linear basis per quarter, giving for the first quarter a value of 130.5 MP.
Until the end of March 31, 121.8 MP had been executed, for 23.3% of the total budget and 93.3% for the quarter. Financially, the performance behaved in a stable way, although it was expected to close with 98% after the purchase of various pieces of furniture such as tables, chairs, bureaus, and in the quarter, a number of computer equipment destined for teaching, were mostly purchased.
II… Analysis of budget execution in Construction Maintenance for the first quarter of 2017
| UM: Thousands of Pesos | Construction Maintenance Execution Plan | Cumulative Execution
March 31, 2017 |
| DESCRIPTION | Total | Total |
|
TOTAL Construction materials Construction Maintenance and Repair |
1870.0 870.0 1000.0 |
465.6 136.0 329.6 |
Within the budget approved to the University of Camagüey in the quarter, it shows a plan of 300.0 MP in Construction Maintenance and 196.6 MP in Construction Materials.
Pursuant to such decision, the resources foreseen for the financial coverage of expenses for the first quarter present the following:
Budget for the quarter Trimester I
Construction Materials 136.6 MP 69.2%
Construction Maintenance and Repair 329.6 MP 109.9%
Total 465.6 MP 93.8%
The ratio of materials destined for maintenance and repair behaved in 69.2%. A regular execution is due in part for lack of and the deficit in the supply of materials by the contracted companies.
The heading of Construction Maintenance and Repair corresponds to the greatest weight in this section, contributing 109.9% of execution, 9.9% above due to the high demand for works with a view to the 50th Anniversary of the University.
IV… Financial situation
This section examines the budgetary situation of the Directorate reflected in the Financial Statements, as well as those materialized in investments and construction maintenance.
A comparison is made between the first quarter of 2016 and 2017. It should be noted that the budget varies depending on the work to be carried out, which are planned and must be borne in mind when judging the evolution of the financial situation, which is as follows:
March 31, 2016 March 31, 2017
Los Coquitos Collector Connection 0.0 MP 0.0 MP
Various Furniture and Equipment 89.4 MP 121.8 MP
Total 89.4 MP 121.8 MP
Year-on-year variation - 36.2%
The volume of growth in the purchase of Tangible Fixed Assets by 36.2% is mainly due to the increase in areas that request improvement in equipment and the existence of resources from programs with specific financing pending to be carried out in the previous year.
The Construction Investment remains at 0% due to lack of non-existent raw material.
March 31, 2016 March 31, 2017
Construction Materials 184.9 MP 136.6 MP
Construction Maintenance and Repair 318.1 MP 329.6 MP
Total 503.0 MP 465.6 MP
Year-on-year variation - 92.6%
The total comparison of the Constructive Maintenance budget compared to 2016 behaved in 92.6% achieving stability after the decrease in the heading of Construction Materials and the increase in Constructive Repair.
Valid to specify that the materials are accounted for at expenses after they leave the warehouse.
V… Conclusions
The constructive investment was kept in execution due to the lack of specific raw materials and the instability in the market that produces them.
The budget execution in the AFT item during the first quarter of 2017 amounts to a total of 121.8 MP, representing 23.3% of the initial budget and 93.3% of the quarter.
The ratio of materials destined for maintenance and repair behaved in 69.2%. A regular execution is due in part for lack of and the deficit in the supply of materials by the contracted companies.
The heading of Construction Maintenance and Repair corresponds to the greatest weight in this section, contributing 109.9% of execution.
On the other hand, it must be taken into account that the budget execution includes the effects of the variations experienced in the first quarter of 2017 from the moment of the preparation of the budget to its subsequent execution.
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