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Nematov O.I., PhD Department of Accounting SamIES
NON- PROFIT ORGANIZATIONS IMPROVING FUNDING SOURCES
ACCOUNT
Abstract: in this article, a non-governmental non-profit organization (NGOs) issues of improving the methodology of funding sources are presented.
Keywords: non-profit activities, commercial activities, earmarked income, grants, government subsidies, entrance and membership fees, donations, aid money, donor funds.
Enter. At the heart of the economic reforms being carried out in our republic is attracting more foreign investors to the economy and increasing the volume of exports. Attracting foreign investors to the country's economy, it became necessary to develop information on the financial status of economic entities, which are the core of the economy, on the basis of international standards. Therefore, in order to adapt accounting in our republic to international standards, on February 24, 2020, Resolution No. PQ-4611 " On additional measures for the transition to international standards of financial reporting " [ 1] was signed. In this decision, the issues of gradually adapting accounting in all business entities to the requirements of international standards are reflected.
NGOs, whose number and scope of activity are expanding year by year, should also conduct accounting based on the requirements of international standards. Also, in order to evaluate the activities of NGOs, determine their rating based on their effectiveness and other important performance indicators, the Decree of the President of the Republic of Uzbekistan No. PF-6181 of March 4, 2021 " On approval of the concept of civil society development in 2021-2025 " was adopted [2]. On the basis of this decree, the determination of the rating of NGOs based on the effectiveness of their activities and other important performance indicators is formed on the basis of accounting data.
In our country, there is a need to improve the accounting of NGOs based on the requirements of international standards, based on the current legal documents related to the activities of NGOs and the above decisions and decrees signed by the President.
Analysis of literature on the topic. Some theoretical, organizational and methodological aspects of problems related to accounting in NGOs L.V. Egorova from foreign economists [3], A.V. Brovkin [4], V.I. Podolsky [5] and researched in the scientific works of other scientists.
Some issues of accounting in NGOs M.Q. Pardaev, one of the scientists of our country [6], K.B. Urazov [7], M.S. Khojiev [8], B. T. Yuldashev [9] and studied in the scientific works of others. However, the issues of improving the
accounting of sources of financing in NGOs have not been sufficiently studied in these cited scientific works. Therefore, it is urgent to improve the calculation of sources of financing in NGOs and organize the calculation based on the requirements of international standards.
Research methodology. The methods of comparison, scientific abstraction, logical reasoning, observation and analysis were used in the research process.
Analysis and results. The main activities of NGOs are aimed at solving issues that are very necessary for the life of the country. NGOs are of great importance in solving social issues without depending on the budget, including health care support, development of education, culture, science, art, promotion of religious tolerance, development of professions and strengthening of legal protection, implementation of other goals that are very useful for society. is enough.
We believe that non-governmental non-commercial organizations have a number of characteristics that should be taken into account when organizing accounting and reporting.
First, the purpose of non-governmental non-profit organizations is clearly defined. In order to achieve the goal, statutory tasks are set for the organization. The organization unites and performs its activities in order to fulfill this goal and tasks for its implementation. It is considered appropriate for NGOs to form a charter fund in order to have the necessary economic resources to carry out their full-fledged charter activities. The charter fund is formed at the expense of the founders' contributions directed for this purpose, initial contributions, and additional contributions.
Secondly, all property of non-governmental non-profit organizations, all funds received, including the founders' entrance and membership fees, donations, aid money, donation funds, targeted contributions, funds received from entrepreneurial activities only fulfill the charter tasks and the purpose for which the funds were received. its use for this purpose is strictly defined. Therefore, it is strictly forbidden to use the targeted funds for other purposes.
Thirdly, grants and state subsidies are also the main sources of financing the activities of NGOs. Funds received from grants and state subsidies are spent on the basis of approved budgets for the purpose for which they were received.
Fourthly, the founders and members of NGOs do not have property rights to the property of the organization. The property of the NGO is not distributed among the founders. Funds contributed by the founders to the charter fund and targeted contributions are not returned. Profits from commercial activities are not distributed among the founders and members, that is, they are directed to the implementation of the charter duties. If the non-profit organization is liquidated by the decision of the general meeting, then the proceeds from the liquidation of its property shall be directed to the fulfillment of the organization's statutory duties.
Fifth, NGO members and founders benefit socially and economically. Social benefits are realized in the form of protection of the rights of its members, protection of health, receiving assistance in the fields of education, science, and culture, and having privileges. Economic benefits can be in the form of grants and subsidies, business development, poverty alleviation, treatment of social ills, contract payments for educational programs, etc.
We believe that it is appropriate to take these features into account when organizing accounting in NGOs. In our opinion, the formation of funding sources in NGOs can be divided into the following types (Table 1):
Table 1
Sources of financing of non-governmental non-profit organizations and
directions of their use55
Funds for the formation of the charter fund (formed on the basis of initial contributions and additional contributions of the founders and members of the organization) -permanent and temporary permanent funds Fixed assets, including land, buildings, machinery and equipment, vehicles, computer equipment, furniture and equipment; intangible assets, intangible assets, investments, capital investments.
Funds allocated for the implementation of the tasks of the Charter - regular membership fees, targeted contributions, donations, assistance, benevolence funds, donor funds and other funds Pursuant to the Charter, on the basis of the budget: project implementation costs; the costs of performing the envisaged works; program implementation costs; costs of implementation of activities; costs of organizing and holding lectures, talks, classes, conferences; will be directed to cover additional costs, administrative and management costs and other costs.
Funding for the implementation of targeted tasks - grants, state subsidies and other targeted receipts Grant expenses; expenses for the specified purpose from state subsidies; will be directed to cover other targeted expenses.
Income from commercial activities -income from the sale of manufactured products (services rendered, works performed) It is directed to cover production, period expenses, other expenses in commercial activities.
Net profit from commercial activities is the amount that remains at the disposal of the organization after deducting expenses from its income The private funds of NGOs are directed to the formation of the source - the profit is not distributed to the founders, it is directed to the formation of the charter tasks.
We can show the results of non-commercial (non-profit) and commercial activities in non-governmental non-profit organizations and their relationship in the following figure (Figure 1)
55 Author development based on research.
Figure 1. Sources of financing of the activities of non-governmental nonprofit organizations56
As can be seen from the data in this figure, non-profit activities are the main activity of NGOs. If the charter of the organization also provides for commercial activities, then they will be able to engage in entrepreneurial activities.
Unlike commercial organizations, the profit received in non-commercial organizations is not distributed among the founders, it is directed directly to the performance of the statutory tasks in non-commercial activities. As a result, the net profit serves as a source of financing the activities of NGOs as part of retained earnings.
It is necessary to take into account the needs of information users in order to organize the account of funds for financing tasks in the activities of the charter (membership fees, targeted contributions, donations, assistance, charity funds,
56 Author development based on research.
donation funds and other funds). Information users in NGOs can be divided into two groups: main information users and other information users.
Conclusions and suggestions. In connection with the transition to conducting accounting and auditing in our republic based on the requirements of international standards, this procedure will not be avoided by NGOs. Based on the requirements of international standards, there is a need to improve accounting in NGOs, including funding sources. Summing up from the above analysis, we can recognize the following proposals for improving the calculation of sources of financing in NGOs:
- It is intended to study and justify the sources of funding of NGOs into non-commercial and commercial activities. Accounting for the main activity (non-profit) and other incomes (commercial) from the main activity as sources of financing, profiting through other incomes has a positive effect on the effectiveness of NGO activity;
- NGOs to form a charter fund in order to have the necessary economic resources to carry out their full-fledged charter activities. The charter fund is formed at the expense of the founders' contributions directed for this purpose, initial contributions, additional contributions;
- it is strictly determined that the founders use the entrance and membership fees, donations, aid money, donor funds, targeted contributions, and funds received from business activities only for the purposes of the charter and the purpose for which the funds were received. Therefore, it is strictly forbidden to use the targeted funds for other purposes;
- Funds contributed by the founders to the charter fund and targeted contributions are not returned. Profits from commercial activities are not distributed among the founders and members, that is, they are directed to the implementation of the charter duties. If the non-profit organization is liquidated by the decision of the general meeting, then the proceeds from the liquidation of its property shall be directed to the fulfillment of the organization's statutory duties.
References:
1. Decision of the President of the Republic of Uzbekistan "On additional measures for the transition to international standards of financial reporting". February 24, 2020. No. PQ-4611.
2. Decree of the President of the Republic of Uzbekistan "On approval of the concept of civil society development in 2021-2025". March 4, 2021. PF-6181.
3. Egorova L.V. Auditing and non-commercial organizations: theory, methodology and practice. Abstract diss. d.e.n. Rostov-on-Don, 2008.
4. Brovkin A.V. Concept of formirovaniya finansovoy otchetnosti negosudarstvennyx nekommercheskix organizatsiy. Abstract diss. c.e.n. M.: MGU, 2010.
5. V. I. Podolsky Audit: he is a chebnik. - M.: Walters Kluwer, 20 10. - 672 p.
6. M.K. Pardaev, I.T. Abdukarimov, J.I. Israilov, B.I. Israilov. Analysis of financial statements in enterprises. Study guide. - T.: Tax Academy, 2009. -76 p.
7. Urazov K.B. Accounting and auditing. Study guide. - T.: Teacher, 2004.
8. M.S. Hojiev. N is the state non-profit accounting in organizations improvement. 08.00.08- buxg a lteriya account, economic analysis and audit specialty economy sciences according to philosophy PhD thesis___abstract. Tashkent, 2019. 55 p.
9. B.T. Yuldashev, I.A. Indina, Sh.U. Haydarov, E.A. Indina. Negosudarstvennye nonkommercheskie organizatsii v Uzbekistan: legal regulation, economic fundamentals, accounting, accounting and taxation, and the latest zakonodatelstva. Metodicheskoe posobie. - T.: Jurist-media center; 2010.
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