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In substantiating the contribution of the project to innovation economy of the regions it is necessary to be guided by integral indicators stated in program documents (Perspective of Socio-Economic Development of the Region; The Main Trends in Regional Investment Policy, etc.). When applying for financing innovation projects from the Investment Fund it is recommended to substantiate the contribution of the project to socio-economic development of the country or the region taking all the above mentioned criteria into account. When applying for financing complex projects it is necessary to point out synergy effect of the projects implementation, i.e., their overall effect on the
economy of the country in general and/or on the economy of certain regions.
1. Zabalueva M.A. Principles of Financial Policy and Financial Mechanism of Attracting Investments // Bulletin of Saratov State Socio-Economic University. 2010. № 2 (31).
2. Zusman E. Innovations at the Investment Fund // Corporate Lawyer. 2008. № 5.
3. Shamshidinova R.A. Factors Which Have an Impact on the Process of Foreign Capital Investment Attraction to the Russian Federation // Bulletin of Saratov State Socio-Economic University. 2009. № 1 (25).
4. Rossiiskaya Gazeta. February 3, 2011 // URL: http//: www.rg.ru.
удк 336.148 M.A. Rezinkin
IMPROVEMENT OF INTERNAL CONTROL IN THE TREASURY SYSTEM
The importance of treasury internal control in government finance management is investigated. Measures to improve the efficiency of treasury internal control are suggested.
Key words: treasury, control, budget, finances, federal.
M.A. Резинкин
СОВЕРШЕНСТВОВАНИЕ ВНУТРЕННЕГО КОНТРОЛЯ В СИСТЕМЕ КАЗНАЧЕЙСТВА
В статье рассмотрена роль казначейского внутреннего контроля в системе управления государственными финансами. Автором предложены меры по повышению эффективности казначейского внутреннего контроля. Ключевые слова: казначейство, контроль, бюджет, финансы, федеральный.
Control being a management function is aimed at ensuring effective functioning of economic systems. One of the most important elements of control is development and improvement of treasury internal control. Treasury internal control is a process which is implemented by the Executive Board and officials of Federal Treasury. The purposes of the internal control are to adhere to legislative, normative acts and regulations, to achieve both greater efficiency and gains in performance of the activities, to improve the quality of the reporting made.
Development of effective treasury control for government revenue assurance formation, its due promptitude and control for legal order and efficiency of utilization and spending of budget money is becoming one of the most important tasks of modern economic policy of the Russian Federation.
The main purposes of treasury internal control are to carry out preventive measures duly and efficiently, to identify the reasons for the revealed violation, and to elaborate a package of measures for further prevention of violations and for minimizing the effects of the already revealed violations jointly with the constituent entity. Being an important function of management, internal control has a great impact on efficient and successful achievement of tasks and functions in State management. The signs of efficient internal control in Federal Treasury are its complexity, and task and requirement orientation with respect to the conditions of its functioning [1].
In accordance with uniform requirements and standards of internal control developed by Ministry for Finance of the Russian Federation it is necessary to ensure the control is organized on systemic and flexible basis which manifests itself in the process of subjects and objects of control selection and in the form it is performed. Anticorruption is the key element of internal control. It is characterized by ultimate regulation of all the processes at the stage of pre-checkout preparation, of control activities conducting, of making up, and of eliminating the violations revealed.
Internal control in Federal Treasury is efficiently developing and functioning. The object of internal control is the whole scope of activities of the departments of Federal Treasury of the Russian Federation. This scope of activities includes the quality of performance of state functions, financing and operating activities including.
The objects of control are subdivisions of the central administrative department and local departments - Federal Treasury departments in constituent entities of the Russian Federation.
Within the framework of treasury internal control expert advisory commissions (supervisory councils) successfully function. They were established under the jurisdiction of the Heads of the corresponding departments of Federal Treasury. As a rule, Heads of all the structural divisions of the corresponding level are the members of these supervisory councils. Heads of divisions or Deputy Directors of the
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corresponding department of Federal Treasury are in charge of supervisory councils.
The purpose of supervisory councils is to perform a triune task:
- to carry out collegiate examination of the revealed during the control activity violations and to qualify them;
- to assist the Head of the inspected object of control, to find out the reasons for these violations, and to make a list of measures preventing them;
- to work out an efficient feedback mechanism to monitor law enforcement practice in terms of legislative and normative acts regulating different spheres of the Treasury departments activities.
It is worth mentioning that a specified normative base and software have been worked out in the departments of Federal Treasury for internal control functioning. The normative base is constantly renewed. The software package includes the following:
- block of local normative acts regulating the aspects of pre-checkout preparation, of control activities conducting, and of processing of the checkout results;
- automated check modules (accessible during the checkout procedure of the objects of control) for quick audit of major operations performed at the divisions of Federal Treasury and for preparing of reporting by structural divisions which perform internal control functions;
- departmental list of violations which enables to perform systemic monitoring of the quality of performing of State functions which are vested on Federal Treasury of the Russian Federation and to focus attention of its executives on elimination the reasons for the revealed violations as well as their negative impact.
At the end of 2008 Ministry for Finance of the Russian Federation by the order № 146-n approved the Regulation on requirements for implementation of government financial control which established unitary standards for carrying out internal control of financing and operating activities. This Regulation is for all federal executive authorities. In this regard Federal Treasury revised local normative acts which specify organization and management of internal control. In the first instance it concerned the procedure of internal financial control implementation.
In management control ensures feedback between the object and subject of management. Thus the subject gets objective information on the condition of the object of management.
Efficiency of functional as well as executive and administrative processes may be enhanced by means of their modernization based on development and introduction of documents regulating execution of powers in this sphere vested on Federal Treasury and its local departments. However, the fact that at present there are no administrative, technological and technical procedures in Federal Treasury of the Russian Federation and its local departments prevents the introduction of internal control and audit from implementation of efficient control and their assessment [4, p. 21].
While working out these procedures special attention should be paid on the documents providing organization and methodical techniques for control activities implementation, internal standards of control, (stages of control implementation including), records management of control activities, norms of conduct for people performing control activities, techniques of assessment of performance of treasury departments specialists.
On the assumption of the principle of finance, internal financial control should not be regarded as a separate occurrence. It is a continuing process characteristic to all the scope of activity of an organization which is State funded. Internal control allows opportunities for minimizing risk of mistakes and violations. Internal control is efficient in case it is an integral part an organization infrastructure. That is the reason for internal control to be a part of management [3, p. 19].
State bodies and organizations irrespectively of types and forms of property using government finances should carry out internal financial control to ensure the finances are used properly and efficiently as well as government finances and material resources are maintained. Internal financial control should also ensure timely and accurate keeping of financial, accounting, and statistics accounts [2, p. 57].
It is our understanding that internal control and audit should not be limited to financing and operating activities. They should embrace all the spheres of an organization functioning. Besides, internal control and audit should provide constant delivery of information on the system in general, on the presence or absence of any deviations from standards and requirement criteria. This makes it possible for the managerial teams of all levels make timely decisions.
The present system of control and audit is predominantly inspectorial. Consequently, the most widely used form of control is inspection of the object of control at its location. This form of control is cost-consuming for both parties: the controlling and the controlled. This form of control uses the method of follow-up control which enables to reveal and register the violations but not to prevent them. In addition, periodicity of these control measures is very rare - once every two or three years. Thus control activities are very low efficient. In modern conditions it should be clear that internal control activities cannot and should not be rare occasions. They should be performed on a daily basis. The results of these control activities will be different in this case.
Considering the tasks that are set aside for modern internal control, it is worth mentioning internal control should incorporate new forms and techniques which should be efficient and not cost-consuming. To achieve this, it is important to implement control activities distantly. Thus expenses on controlling activities will be reduced. Procedures of control activities implementation should also be formalized, unitary standards and techniques for internal control and audit implementation should be developed. Transition to distant control will touch upon the problem of upgrading the experience of specialists of this government agency. The present form of upgrading courses is not sufficient bearing in mind its theoretically-based approach and lack of practical skills acquiring.
Development of internal control and audit in Federal Treasury of the Russian Federation should be carried in three main ways:
1) internal control;
2) internal audit;
3) treasury risk management.
Special attention should be paid to internal audit. Moreover, international experience has shown that internal audit is the more efficient sphere of internal control than external audit. National internal audit from the point of view of professional and legislative aspects has only started its
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development, though. There is no scientifically grounded base of internal audit in government sector. At present it is extremely essential to stop applying old mechanisms of control which are rather cost-consuming and to start applying modern mechanisms which are more efficient. It is vitally important to work out documentation on development and implementation of internal audit in Federal Treasury of the Russian Federation.
Improvement of treasury risk management is of great importance. A treasury risk is a possibility of events which may have a negative impact on all the processes of activities carried out by the departments of Federal Treasury and/or influence the process of meeting the objectives and cause the loss of financial and material resources. To pro-
vide efficient control of treasury risk management it should become a continuing process and should be a part of modern management. In this respect a Regulation on treasury risk management should be developed and approved.
1. Strategy of Development of Internal Control and Audit in Federal Treasury in 2006 - 2011 // Decision of Collegiate Organ of Federal Treasury dated 23.12.2005. № 1/1 // URL: http:// www.simtreas.ru/na/Conc_06-11 .htm.
2. Korovina E.B. On the Issue of Efficient Finance Spending // Finances. 2004. № 11. P 57 - 58.
3. Nesterenko T.G. On Development of Federal Treasury // Finances. 2005. № 12. P. 18 - 20.
4. Prokofiev S.E. On the Increase of Federal Treasury Functions Expanding // Finances. 2003. № 9. P 20 - 21.
удк657.6 A.V. Sonnikova
ANALYSIS OF AN ENTERPRISE WHICH IS AN OBJECT FOR A MERGER AND AN ACQUISITION
Methodology of an enterprise activities analysis preventing a merger or an acquisition is presented. This analysis serves as the instrument for corporate finance management at the market for corporate control.
Key words: market for corporate control, mergers and acquisitions, poison pills, methodology of transaction analysis.
A.B. Сонникова
АНАЛИЗ ОРГАНИЗАЦИИ КАК ОБЪЕКТА СДЕЛКИ ПО СЛИЯНИЮ И ПОГЛОЩЕНИЮ
Статья содержит авторскую методологию анализа деятельности предприятия, которая поможет предотвратить поглощение организации. Данный анализ является инструментом управления финансами корпорации на рынке корпоративного контроля.
Ключевые слова: рынок корпоративного контроля, слияния и поглощения предприятий, защитные меры, методология анализа сделок.
In modern conditions only 35% of cases of corporate restructuring at the market for corporate control have been successful [2]. One of the reasons for that is the lack of well-grounded and developed techniques in the sphere of preliminary analysis. There are many works on the principles of transaction of mergers and acquisitions (M&A) as on the results of these transactions, though. The majority of these works reveals the process of transaction reorganization, approaches to management of the integrated company structure [3]. Much attention is paid to relevancy, efficiency and motivation of these transactions [1]. Financial management of a public corporation should have a set of analytical instruments which assesses the possibilities of an enterprise to become an object for an M&A transaction. Firstly it will enable to objectively assess the market value in the process of M&A transactions. Secondly, it will reveal the possibilities to determine poison pills.
To analyze conditions for M&A transactions both foreign and national scientists have worked out a number of models which enable to carry out diagnostics of an enterprise:
- model of six cells of M. Vaysbord, analysis of which enables to clarify the main aspects of the enterprise activity;
- model 7S's of McKinsey which allows to evaluate competitive advantages of the company;
- model of Burke-Litwin which considers an enterprise as an open system intended for analysis of organization changes.
The main disadvantage of these models is the fact they are static while all the processes and occurrences in economy are dynamic and constantly develop.
From the viewpoint of the market for corporate control the assessment of possibility and relevancy of M&A transactions at different stages of a company life cycle suggested by D.A. Endovitsky and V.E. Soboleva is interesting [2]. Theory of life cycles and the study of different processes in economy on the basis of these cycles are popular. For example, in his works I. Adizes considered life cycles and determines the value which expresses the interrelation between the parameters “flexibility” and “control”. [5]. Later D.A. Endovitsky and V.E. Soboleva proposed their own idea taking the theory of I. Adizes as a basis. They defined that value as market value of an enterprise. Market value best defines flexibility ability to quickly react to changes in market environment along with control and management function.
In their works on evaluation of market value of enterprises F.C. Evans and D.M. Bishop point out the necessity for external and internal analysis of the activities within the framework of corporate control [3]. However, the scientists consider the importance of this analysis in respect to new
