We continue the advice series from U-LEAD experts Iryna Drozd and Tetiana Larikova.
Learn recommendations to budget institutions regarding the initial recognition of green spaces here and advice on accounting of green plantings after initial recognition here.
To find out when a centralised accounting system should be created and how to organise it best, click here:
If you are interested in recommendations for municipality institutions on the specifics of fixed asset accounting, please visit here.
The experts also talked about the specific aspects of accounting and stock assessment in budget institutions.
Summer is a vacation season. Commodities and materials must be kept in safe storage by financially liable persons (hereinafter FLPs) appointed by order of the head of the budget institution (Clause 2 of Section II of the Guidelines on Fixed Assets Accounting and Clause 3 of Section III of the Guidelines on Inventory Accounting approved by Order of the Ministry of Finance No. 11 dated 23 January 2015).
For the duration of the FLP’s leave, their duties can be transferred to another employee. This is determined by the decision of the head of the institution, who assigns the duties of the temporarily absent employee to another employee by their order. When choosing a temporary FLP, follow the same requirements as when choosing an FLP on a permanent basis.
Pursuant to Article 1351 of the Labour Code of Ukraine, to be eligible for a written agreement on full financial liability, a person shall:
1) Hold a position or perform duties directly related to the storage, processing, sale (output), transportation or use in the production process of the assets transferred to them. The list of such positions and duties, as well as the model agreement on full individual financial liability, shall be approved in accordance with the procedure established by the Cabinet of Ministers of Ukraine;
2) Perform duties under an employment contract for remote work or work from home and use the employer’s equipment and facilities provided to them to perform their duties.
The employee must enter into an agreement on full financial liability.
Material assets should be transferred from an employee (FLP) who goes on leave to another FLP subject to a mandatory inventory. This is a requirement of Clause 7 of Chapter I of Regulation No. 879 (Regulation on the Inventory of Assets and Liabilities approved by Order of the Ministry of Finance No. 879 dated 2 September 2014).
The head of the institution should issue an order to conduct an inventory of assets entrusted to the safe storage of this person. The date of the inventory should be the day of acceptance of affairs from one FLP to another — the last working day before the leave of the FLP.
Based on the inventory, inventory records are drafted, whereunder the temporary FLP accepts material values against acknowledgement, and the FLP who is going on leave hands them over.
Following the inventory, the commission can draw up an Acceptance Certificate (of any form) to be approved by the head of the institution. According to Regulation No. 879, this certificate is not mandatory.
Once the leave is over, the permanent FLP accepts material assets back under their supervision also on the basis of the inventory in accordance with Clause 7 Chapter I of Regulation No. 879. Organisationally, all the steps regarding its implementation in the institution must be repeated on the first working day after the permanent FLP’s leave.
Therefore, an FLP going on leave is accompanied by the transfer of material assets administered by them to the temporarily appointed FLP on the basis of an inventory, and at the end of the leave, the assets are also accepted against the inventory results. These inventories are mandatory and should be approved by order of the head of the institution.