Budgeting issues in recent times most acutely faced the heads of many commercial banks. This is due to the fact that in connection with a decrease in the profitability of banking operations in conditions of competition for customers, it is necessary to increase the efficiency of the activities of their organizations. One of the ways to achieve this goal is to apply or improve the budgeting system.

This article is devoted to a summary of the basic principles of an integrated budgeting technology, obtained as a result of generalizing the experience of budgeting specialists from many banks and enterprises. A distinctive feature of this technology is that its development took place with the unswerving adherence to three principles:

• Following current trends in management commercial organization.
• Use of real budgeting technologies, proven in practice.
• Designing a system for automating the budgeting process together with the development of its technology.

Modern trends in the field of management declare that the construction of a budgeting system at the present time should be based on a deep study of the market, an understanding of the clientele and counterparties of the bank, as well as the involvement of a large number of managers and specialists of different levels of responsibility in the process of budgeting and management of the bank (see Niels Rasmussen, Christopher J. Eichorn, "Budgeting Today: Overview and Trends," John Wiley & Sons; 2000, ISBN: 0471392073).

Applying elements practical technologies on the contrary, it allows not to break away from reality, but to use mechanisms that are guaranteed to give a positive result. Usage practical experience all the more valuable because it allows you to significantly reduce costs when introducing or improving the budgeting system.

Designing an automation system simultaneously with the development of budgeting technology allows you to check it for the consistency and sufficiency of information during its implementation. Indeed, the description of budgeting technology in algorithms and information flows eliminates the ambiguity and vagueness of its individual elements.

Perhaps some specialists will find this approach to the development of a budgeting system somewhat unusual. However, any technology of business management (and budgeting is a part of this technology) is the result of the application of knowledge and experience of specific managers and specialists. Budgeting is not a product of lawmaking that defines uniform rules and norms of work for everyone.

So, let us first consider what concepts and technologies are traditionally related to the budget, and then - what transformations they undergo when expanding the scope financial planning and control to the tasks of managing the bank's business as a whole.

The budget as a financial reflection of the bank's activities

Traditionally, when they talk about the budget, they mean item-by-item planning and accounting of income and expenses in the context of Profit Centers and Cost Centers. The focus is on financial reflection activities of the bank. So, the basic concepts of the budget include:

• Accounting centers that are defined as income and expense centers are Profit Centers and Cost Centers. The composition and hierarchy of Accounting Centers determines the financial structure of the bank, which, as a rule, does not always coincide with its organizational structure. For example, the Profit Center can be both the Customer Relations Department and the Credit Department. Moreover, they can have a different composition of income items. Financial Responsibility Centers are also distinguished, which include the functions of both Profit Centers and Cost Centers. They can be quite independent branches of the bank or specialized projects. Under Funding Centers or Centers financial management usually understand the Treasury of the bank.
• The budget plan, consisting of items of income and expenses, is an integral part of the management chart of accounts. The composition of the articles of the budget plan reflects the view of the bank's management on what indicators of the bank's activity should be subject to planning and control. Usually, the basis for developing a budget plan in banks is Form N102, which contains a wide list of items of income and expenses, as well as items on the disposal of profits or compensation for losses.
• A financial plan or payment calendar, the development of which is the final stage of budget planning. In the process of developing a financial plan (payment calendar), the values ​​of budget lines with homogeneous financial instruments are aggregated within the planned budget period. The payment calendar, in turn, is the initial information for performing work on financial management, since it contains information about the movement of funds in the context of financial instruments, and not in the context of income and expense items.

Traditional budgeting technology focuses primarily on the financial description of the bank's activities. There are differences in the work on the formulation of budgeting technology and work on its implementation:

• Setting up a budgeting system begins with building the financial structure of the bank and developing a plan for income and expense items. Then certain items of income and expenses are assigned to responsible specialists and managers who fill them out in planning and accounting. Consolidation of budget plans is required in the case of a hierarchical financial structure of the bank. Thus, the composition of the participants in the budgeting process is determined and their roles in this process are distributed.
• The allocation of direct and indirect costs, fixed and variable income and expenses is important element budgeting technologies. The result of this work is the grouping of income and expense items, which is not due to planning and control purposes, but is determined by the use of similar planning and accounting technologies. For example, income from settlement or cash services, commissions from servicing credit cards are largely subject to the behavior of the bank's clientele and are variable or conditionally constant items. In this case, statistical planning methods based on the processing of historical customer service data are more applicable. In turn, the costs of renting premises, security and utilities are constant and it is advisable to plan them on the basis of concluded contracts. Income from lending or working with promissory notes is the direct income of the respective Profit Centers. When planning them, it is necessary to take into account an integrated risk assessment, which in the budget can be transformed into a set of budget plans reflecting various options development of events (examples of plans: optimistic, pessimistic, optimal).
• The complete set of stages in the implementation of budgeting is presented in the form of planning, accounting, execution control and budget analysis. In the simplest case, managers make do with actual performance and budget analysis.

Traditional concepts and technologies of budgeting are focused on the financial expression of the bank's business as a whole. At the same time, for planning and accounting for the values ​​of budget items, concepts such as contracts, applications for the purchase of equipment are used, rationing of employees' labor can be performed, the seasonality of the demand for banking services is taken into account. That is, concepts are used that are not directly related to the task of financial planning.

New directions in the field of budgeting

Recently, more and more attention has been paid to a number of tasks in the field of business management related to business orientation to the consumer, market research, "fine" planning, namely:

• Performance management of departments and personnel
• Management of the composition and quality of banking services
• Client base analysis
• Analysis of suppliers of goods and services, as well as contractors and business partners.

Typically, these tasks are viewed as independent and are not directly related to budgeting. At the same time, the connection between them still exists, since any of these tasks can also have its own financial expression. Therefore, if you establish a connection in finance between the budget and various areas of business management, then we can talk about new budgeting technologies that push the boundaries of financial management to the scale of integrated planning and accounting for the bank's business activities.

Let's consider how you can solve these problems using budgeting technology:

• Management of the activities of departments and personnel. To form a budget of income and expenses in the context of divisions, it is necessary to make a transition from the structure of income and expenses by Accounting Centers (financial structure) to income and expenses by divisions and branches ( organizational structure). For this purpose, various algorithms for the distribution (posting) of the values ​​of budget items are used. For example, income from lending can be distributed by divisions in accordance with the amount of salaries of employees engaged in lending (using indirect accounting of employee qualifications); It is convenient to spread the cost of the telephone according to the number of employees in the departments. Part of income and expenses can be automatically transferred from Accounting Centers to divisions if there are local coincidences in the financial and organizational structure of the bank. The most characteristic coincidences are a branch in the organizational structure and the corresponding Center for Financial Responsibility in the financial structure. After completing such postings, a full-fledged analysis of the effectiveness of the activities of departments and personnel is performed.
• Management of the composition and quality of banking services. To solve this problem, as well as to assess the profitability and efficiency of the bank's businesses, it is also possible to use the results of budgeting by Accounting Centers. In this case, items are posted or income and expenses are directly assigned on the basis of contracts, payment documents and transactions in the context of banking services. At the same time, it is more convenient to plan income and operating expenses in the plane of banking services and products, and then reflect them in the financial structure of the budget by Accounting Centers. This approach improves the quality of information both in planning and in accounting for the bank's business activities.
• Analysis and management of the bank's client base. It is possible to analyze the bank's client base on the basis of information about the profitability of the client base both by groups of clients and individually - for each. To do this, you need to post the revenue side of the budget by customer. This additional posting and direct accounting is not difficult because the original budget execution information is always referenced to a specific customer or group of bank customers. You can then assess the structure and quality of the customer base, and rank customers and customer groups. Information about customer base also used when planning the revenue side of the budget.
• Analysis of suppliers, contractors and business partners. The solution to this problem is also possible with a budgeting orientation. Identification of profitable and disadvantageous counterparties, reliable and unreliable partners, tracking the migration of counterparties from one classification group to another, as well as in the case of the bank's client base, can be based on financial information on budget execution.
• Bank economy management. There is a widespread practice when adjustments are made to the concept of Cost Centers and Profit Centers, classifying them in terms of consuming and supplying units. AXO, Automation Department, Bank Security Service, being Cost Centers, are at the same time considered as supporting subdivisions. All other Accounting Centers (both Profit Centers and Cost Centers) are consuming. With this approach, additional cost posting mechanisms are included in the budgeting system, transferring the costs of the supporting departments to the consuming ones. At the same time, it is possible not only to use posting mechanisms, but also to directly reassign costs from providing departments to consuming ones in the case of targeted use of funds. Budgeting by Accounting Centers in the plane of the supplying and consuming subdivisions allows to provide efficient management material resources of the bank, to minimize the purchase prices for goods and services.
• Bank resource management. The task of managing the bank's resources has two types of connection with the budgeting task. Firstly, the schedule of payments in the context of financial instruments is the initial information for the Bank's Treasury when choosing a strategy for managing liquidity and risks. Secondly, the characteristics of Accounting Centers in the context of subdivisions that attract resources (passive operations) and subdivisions that place them (active operations) allows planning and monitoring the efficiency of use financial resources jar. To solve this problem, the profitability of the allocated resources is posted based on the unprofitability of the attracted resources. In the case of using internal pricing when transferring resources from one department to another, the logic of planning income and expenses in these accounting centers changes. In this case, the posting of income and expenses is replaced with accounting for direct income and expenses between departments. Budgeting in separate planes of both business expenses and income and expenses from business activities allows you to get a more accurate picture when assessing the efficiency of resource use. This applies equally to both material and financial and labor resources jar. The fact is that sometimes the level of overhead costs becomes commensurate with the level of expenses from business activities in a number of Accounting Centers, which negatively affects their assessment from the point of view of resource management.

The advantage of integrated budgeting technology is that with this approach, these budgeting tasks can be considered independently of each other, while maintaining the integrity of the overall financial picture. So, you can focus on the narrowest direction of the bank's activities and apply management influences more purposefully than when using the budget only in its classical sense. For example, in a bank there are large overhead costs - it is necessary to focus on the analysis and management of the bank's economy, poorly with the resources involved - an analysis of the activities of counterparties is performed. It doesn't matter how things are with income - it is necessary to apply the analysis of banking services and the client base. At the same time, there is no separation from the central component of budgeting - its financial structure. This structure is a universal connecting and harmonizing for all components of the areas of the complex budgeting problem. Thus, having paid attention to one or another direction, you can move on to another task of importance, while remaining confident that the solved tasks are automatically linked to others.

Multivariate budget analysis

There is another level of business management that arises at the intersection of information on certain areas of budgeting. To perform this type of analysis, you no longer need additional posting of item values. Sufficient to use for joint analysis data of various directions:

• Analysis of income and expenses of the bank's divisions in the context of banking services. This direction gives an idea of ​​what services in which departments are performed more efficiently. You can analyze the participation of various departments in the implementation of certain banking services. As a result of performing this kind of analysis, it may be found that it is more profitable to allocate some divisions to Financial Responsibility Centers if the bulk of operations are concentrated in them. You can also evaluate the activities of branches by profitability in the context of banking services. This information can be useful in calculating internal prices for resources and services.
• Analysis of income and expenses from customers and customer groups in the context of banking services. It makes it possible to manage the composition and quality of services in the client base. The analysis results are also valuable information when performing work on calculating prices for banking services. This information is indispensable when preparing management decisions on changing the structure of customer groups in terms of types of bank businesses.
• Analysis of income and expenses from transactions with counterparties or suppliers of goods and services in the context of banking services or inventory items. Here, the tasks of identifying the migration of contractors from profitable to disadvantageous for certain services are solved. For example, it may turn out that it has become unprofitable to work with a counterparty on interbank credit, but it is worth increasing the volume of cash transactions with him. You can also discover that a long-term supplier of computer equipment for the bank is already becoming unprofitable and it is necessary to make a decision to reorient to another supplier.

In the considered budgeting technology, the issues of managing assets, capital, liquidity, and risks remained unaffected. This was not done by chance, since their solution is possible only in relation to the Financial Responsibility Centers, which is the bank as a whole or rather independent branches. Also, the solution of these tasks is a different view of the business activities of the bank - from the standpoint of assessing and forecasting such results of the bank's activities as reliability, stability, etc. In addition, there are differences in the technology for solving these problems. It is much easier and more efficient to carry out such assessments and calculations based on the current financial condition of the bank. At the same time, the primary information used in the budgeting process is contracts, planned payments, contracts, etc. can also be used to calculate the projected financial condition of the bank.

Another difference between technologies is that consumers of information about the reliability and stability of a bank can be not only the bank's management, but also entities external to the bank: the state, tax authorities, shareholders, clients. Therefore, to obtain the values ​​of the same indicators, different methods of assessing the bank's activities can be used. This is the difference between this kind of analysis and the technology of budgeting business activities, since budgeting is focused exclusively on the tasks of the head of the bank's business.

The proposed technology is a harmonious bank management scheme based on complex budgeting. This model is a synthesis of many technologies and schools. Its notable feature is that the construction of an integrated budgeting system can start small and gradually increase the attributes of budgeting, clearly understanding the intermediate stages, as well as the ultimate goal of the process of improving the structure of bank management. Adhering to the proposed technology, one can gradually move from the financial management of the bank to a full-fledged system of management of its business. In order to apply this technology in practice, it is necessary to resolve a number of organizational and consulting issues. Here it is necessary both the desire of the bank's management to introduce an effective budgeting system, and the availability of qualified specialists who contribute to the process of introducing the system. The only issue that can be safely called resolved is the provision of budgeting technology in terms of automating its processes. This issue has long been studied by the author of the article and implemented in practice.

Currently, the banking system of our country can be classified as developing. It is characterized by an intensification of competition, an expansion of the range of banking products and services, an increase in the volume of transactions, and the expansion of bank branch networks. The effectiveness of banking in such conditions largely depends on the banking management system.

Meanwhile, the existing modern problems of banks, expressed in its weak business activity in comparison with Western countries, lack of Money etc., are often associated with misunderstanding or ignorance of the most important component of banking management - financial planning. The low level of financial planning of the activities of commercial banks is one of the factors hindering the development of banking activities.

Recently, the heads of many commercial banks have been particularly acutely faced with the financial planning of the bank as a whole and its divisions, the determination of the cost of banking services, and the search by commercial banks of internal reserves of survival. In this regard, the role of intra-bank financial planning is increasing, implying the introduction of a system for evaluating the performance of various departments of the bank and individual areas of its activities.

Budgeting is a management tool designed to solve the existing variety of tasks of commercial banks by increasing the efficiency of financial planning and management in general. In addition, at present, budgeting is a tool for strengthening control over the expenditure of resources, balancing cash flow, organizing an effective assessment of the activities of a commercial bank and the prospects of certain areas of business, etc.

Budgeting is one of the effective management tools, which, with a competent approach to its use, allows a commercial bank to more efficiently earn profits and manage financial flows.

Budgeting allows managers to timely and adequately respond to changes in external and internal conditions and coordinate the activities of a commercial bank with them

Budgeting helps you make decisions more effectively, implement those decisions, and monitor their implementation. That is, the budgeting system allows you to assess in advance the future results of decisions that need to be made today.

Budgeting as a management tool is also good because it covers almost all areas of the company. Therefore, when companies actively use budgeting technology, whether it wants it or not, it will still have to monitor and evaluate how effective it is in general and in all its functional areas of activity, how efficiently the company's divisions / branches work.

Budgeting is based on the principle of "control by centers of responsibility", according to which the heads of departments and other employees of the company are responsible for planning and meeting the targets that are associated with the implementation of their activities.

A budget is a plan in monetary terms, covering all aspects of the organization's activities, allowing you to compare the costs incurred and the results obtained in general and for individual periods. This is the main source of information for assessing the future (projected) financial condition of the company, correcting management decisions.

Budget planning is the process of drawing up and budget execution, which is a financial, quantifiable expression of the marketing and production plans necessary for the goals set by the company.

Consequently, budgeting becomes the link between strategic management carried out by top management and operational management carried out at the lower level.

The aim of the work is to study the essence of budgeting of the activities of a commercial bank and the direction of improving the budget process.

Within the framework of this goal, the following tasks have been set:

Consider the theoretical foundations of budgeting as a system of financial management of a company.

To reveal the specifics of budgeting in a commercial bank and the assessment of the activities of its divisions using the example of Tolubai OJSC;

Used in the work scientific works leading scientists in financial management, in particular financial planning and budgeting. The importance and necessity of introducing budgeting as a financial planning technology into the banking management system has been repeatedly emphasized in the works of such scientists who study planning problems as H. Vorshtecher, E.Yu. Dobrovolskiy, N.N. Kunitsyna, M.A.Pomorina, Rumyantsev. M.V., Sadvakasov K.K., Tilms R., Tyutyunnik A.V., Shirinskaya E.B. and others. In the course of the study, general and specialized literature, the development of leading specialists in the field of management and solving practical problems were studied and summarized.

Structurally, the thesis consists of an introduction, three main chapters, a conclusion and a list of used literature.

Chapter 1. Theoretical foundations of budgeting as a system of financial management of a company

1.1 Fundamentals of budgeting and its place in the management system

In conditions of complicating economic ties, intense competition and increasing importance of strategic decisions, the processes of anticipating the company's position in the future, developing goals, and their implementation. Thus, on the one hand, budgeting is planning, and on the other, it performs control functions. This complex process has many elements.

The terms and concepts associated with the budgeting process: budget, plan, estimate, are interpreted differently in the domestic economic literature, which sometimes makes the meaning of this process lose. So, the concept, the budget, is often identified with the business plan of the organization for the current period; management planning process - with budgeting; the organization's business plan - with a consolidated budget, and estimates of production costs, administrative and commercial expenses - with budgets.

In practice, the plan in its content is a program of actions (or work) scheduled for a specific period of time, indicating the goals, content, objects, methods, sequence and deadlines.

Business plan, respectively - a comprehensive plan for the development of the organization.

Estimate - a documented plan of funds to finance the organization's expenses (estimate of production costs, estimate construction works etc.).

Budget - a financial plan in monetary terms, a document that provides the interconnection of the organization's expenses with the available (or possible) income.

Foreign economists do not make linguistic distinctions between the concepts under consideration. They see the main difference between the estimate and the budget in that the estimate is a document (calculation) containing information for planning and analysis of regulated costs at the production level, and the budget (calculation) - at the level of the organization's finances. Ultimately, it should be recognized that with all the differences in the role played and calculation methods, the budget, plan, estimate are interconnected by a single budgeting process.

Specialists in setting up intra-firm budgeting offer an internationally accepted entrepreneurial terminology that characterizes this process: budgeting, on the one hand, is the process of drawing up financial plans and estimates, on the other, a management technology designed to develop and improve the financial feasibility of management decisions.

The object of budgeting is a business (type or area of ​​economic activity).

Budgeting is financial planning that covers all aspects of the organization's activities, allowing you to compile all costs incurred and income (results) received in financial terms for the coming period. These are the planned financial estimates, and the projected volumes of attracted external resources, etc. For example, in the presentation of V.V. Bocharova budgeting is the process of developing and forming planned budgets that combine the plans of the company's management and, first of all, production, marketing and financial plans.

There are other definitions of the concept of "financial planning". Despite their differences, the main and determining factor in all the above concepts is the idea of ​​financial planning as a form of management activity aimed at setting and implementing the company's goals. In this regard, we can conclude that financial planning determines future actions for the formation and use of financial resources.

Depending on the periods of financial planning (the planning period is the time period for which financial plans are drawn up and during which they are implemented), the budget period is distinguished (the duration of the time interval covered by the budget) for strategic budgeting is from 3 to 10 years, for operational - 1 year.

Anshin V.M., Tsar'kov I.N., Yakovleva A.Yu. Budgeting in the company: Modern technologies staging and development: Textbook. allowance. - M .: Delo, 2007 .-- p. 8

Commercial budgeting / Bocharov V.V. - SPb .: Peter, 2007 .-- p. 257

Budgeting. Kozhin V.A., Shagalova T.V. and etc.

Novgorod: NNGASU, 201 6. - 2 45 p.

The tutorial provides a summary of the discipline "Budgeting" in accordance with the Federal State Educational Standard 3+ VO, focusing on a competence-based approach to the study of economic disciplines. The material is presented in an accessible, visual and concise form using diagrams, tables, graphs and formulas. The tutorial contains: lecture notes, bibliography, test questions, glossary and applications. Tutorial intended for undergraduates, university students studying economic disciplines. It can also be useful for teachers, graduate students and specialists in their practice. The textbook "Budgeting" "was considered and approved at a joint meeting of the departments of the Federal State Budgetary Educational Institution of Higher Professional Education of the Nizhny Novgorod University of Architecture and Civil Engineering from" "2016, protocol No. Recommended for publication as a textbook for undergraduates studying in the directions: 38.04.01 "Economics", 38.04.02 "Management" and postgraduates studying in the direction 38.06.01 "Economics".

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Content
Names of sections (modules) Page
Introduction 4
Section (module) 1. Theoretical foundations of budgeting 6
Topic 1.1. The state of theoretical research on budgeting based on materials 6
literary sources
Topic 1.2. World practice and place of budgeting in the management system 9
enterprise
Topic 1.3. The relationship and difference between budgeting and planning, a plan from 11
budget
Topic 1.4. Historical and dialectical approach to understanding the essence 12
budgeting in Russia
Topic 1.5. Socially - oriented concept of economic development - the basis for 14
justification of the purpose of budgeting
Topic 1.6. Budgeting as a business method 16
Control questions for section (module) 1 19
Section (module) 2. Organization of budgeting 20
Topic 2.1 Analysis of elements of budgeting as a method of management 20
Topic 2.2 Scientific approaches and methods of influencing personnel used in 21
budgeting system
Topic 2.3 Principles of Budgeting 24
Topic 2.4. Budgeting Functions 25
Topic 2.5 Organization as a function of budgeting 25
2.5.1. Function of budgeting goal setting 26
2.5.2 Budgeting Management Framework 30
2.5.3. Delegation of authority 31
2.5.4 Building long-term partnerships based on 39
multi-orbit control structure
2.5.5 Regulation of budgeting document flow 41
Control questions to section (module) 2 43
Section (module 3). Planning as an essential function 44
budgeting
Topic 3.1. Essence of Planning 44
Topic 3.2. Planning principles 47
Topic 3.3. Planning methodology in the budgeting system 49
Topic 3.4 Budgetary process (cycle), budget period, planning stages 52
Topic 3.5. Steps in the planning process 53
Topic 3.6. Composition of the master plan (budget) 55
Topic 3.7. Organization of events of the preparatory period 57
planning
3.7.1. Conducting a retrospective express analysis "costs-volume - 57
profit"
3.7.2. Development of a plan for innovative development of the enterprise 60
3.7.3. Development and approval of prices for products and services 65
3.7.4. Development and approval of norms for the consumption of resources for products and 74
services and cost standards
Topic 3.8. Development of plans for the basis of production activities of the enterprise 75
3.8.1. Development of the production program of the enterprise 75
3.8.2 Sales Plan 85
3.8.3. Production and sales plan for the main production activity, 86
subsidiary and service industries of the enterprise
3.8.4. Calculation of the production capacity of the enterprise 88
3.8.5. Calculation of the need for basic and auxiliary materials and costs 92
for their purchase and creation of warehouse stocks
Topic 3.9 Labor plan and fund budget wages 93
Topic 3.10. Development of an investment plan 100
3.10.1. Investment plan 100
3.10.2. Business plan 104
Topic 3.11. Cost plan for software products
3.11.1. Calculation of the budget of general production costs 116
3.11.2. General expenses budget calculation 118
3.11.3. Calculation of the cost of production 122
3.11.4. Budget of costs for production and sales of products 123
Topic 3.12. Plan social development enterprises 127
Topic 3.13. Financial planning 130
3.13.1 Theoretical foundations of financial planning in the enterprise 130
3.13.2. Composition of the financial plan 134
3.13.3 The procedure for drawing up budgets included in the consolidated financial 134
budget
Control questions to the section (module) 3 140
Section (module) 4. Control and analysis of the execution of plans (budgets) 141
Topic 4.1. Organization of the accounting system 141
Topic 4.2 Economic analysis of the enterprise 145
4.2.1. Analysis of the implementation of the plan in terms of production and sales 148
products
4.2.2 Analysis of indicators of production costs 151
4.2.3 Analysis of factors affecting the profit of the organization 154
4.2.4. Analysis of the financial condition of the company 156
4.2.5. Rating assessment of the financial condition of the enterprise 169
4.2.6. Rating assessment of the financial condition of financial centers 172
responsibility (CFD)
4.2.7 Bankruptcy Prediction Diagnostic Models 173
enterprises
Topic 4.3. Organization of personnel motivation in the context of budgeting 179
Topic 4.4. Organization of control and regulation of the budgeting process 189
4.4.1 Organization internal control 189
4.4.2 Organization of regulation 192
Topic 4.5. Budgeting Automation Challenges 200
Control questions to the section (module) 4 208
Conclusion 209
List of used literature 211
Glossary 216
Applications 225

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Planning the operational budget of a commercial bank

Budgeting technology assumes sequential iterative execution of the following stages (see Fig. 1):

Setting limits for budget items,

· budget planning,

Actual accounting of the budget,

Control over budget execution,

· Analysis of the discrepancy between the plan and the fact.

Rice. 1.Stages of budgeting

Concept, purpose and objectives of operational planning

Operational planning is the budgeting stage, which consists in developing, agreeing and approving plans that determine the future financial condition of the bank, as well as ways, methods and means of achieving it.

Operational planning of the bank's budget specifies the tasks of financial activities for a relatively short term (quarter with a breakdown by months) by transforming strategic indicators into planned values ​​of the bank's budget items. At the same time, updated forecast information about market and other restrictions in force in the operational planning interval is used.

Thus, planning takes into account a number of external and internal constraints that are imposed on the model being developed.

External constraints- these are the CBR standards (capital adequacy, allowable size open currency position, standards of instant and current liquidity, etc.).

Internal restrictions- these are limits and requirements established by internal bank documents, in particular, limits on the volume of investments and on the level of risk, the required level of profitability and / or interest margin of the bank, the volume of highly liquid assets, the size of the gap, etc.

Target operational planning of the bank's budget - to ensure effective management of the bank's resources in the medium term.

The tasks for the planned period can be presented as follows:

· Quantitative indicators (by the volume of transactions, the number of clients, etc.);

· Increase in the profitability of operations (for profit centers);

· Increase in income and / or decrease in costs (for cost centers);

· Improving the organizational structure and increasing the efficiency of personnel management;

· Balance of payments;

· Reduction of surplus of reserve funds, etc.

Bank budget planning stages

The process of building a bank budget plan includes the following stages:

Analysis of work efficiency structural units jar;

· Analysis of the reasons for deviations of actual data from the planned budget items for the previous reporting period;

· Development of proposals for the redistribution of financial and material resources of the bank;

· Formation of the optimal structure of the bank balance;

· Construction of planned forms of the budget of assets and liabilities and the budget of incomes and expenses, providing maximum protection against structural risks;

· Construction of the planned form of the cash flow budget;

· Formation of estimates of capital investments;

· Determination of parameters of budgets for structural divisions of the bank.

Bank budget planning methods

Planning the operational budget of a bank can be organized in several ways. Consider the advantages and disadvantages of using certain planning methods.

1. Method of planning the bank's budget "top down" used for centralized budgeting.

The advantages of the method:

The management, as a rule, is much better than the lower-level managers, aware of the tactical and strategic plans for the development of the credit institution. Thus, it has the ability to "lower" such planned values ​​for budget items to each structural unit, which will reflect the real plans of the bank. A top-down budget requires the bank's management to have a clear understanding of the main features of the organization and the ability to formulate a realistic business development plan.

This approach ensures consistency in the budgets of individual departments and allows you to set benchmarks for assessing the performance of the responsibility centers.

Top-down planning of the bank's budget should be aimed at meeting, first of all, the interests of the founders, owners and investors of the bank. If this principle is not followed, then all the advantages of the method are lost.

Disadvantages of the method:

The bank's management may not take into account the peculiarities of the activities of individual divisions of the bank and set unrealizable planned budget values.

2. Method of planning the bank's budget "upwards" used for decentralized budgeting.

The advantages of the method:

The managers of each center of responsibility plan budget positions related to the core activities of only their division, and provide bank managers with filtered and summarized budget information only for their division. Thus, the managers of each center of responsibility and the business area as a whole can put into practice all their knowledge and experience, take part in the development of their business area.

Disadvantages of the method:

Quite often, the planned budget indicators presented "from below" are changed by managers in the process of budget approval, which, if the decision is unreasonable or insufficient reasoning, can cause a negative reaction from subordinates. In the future, such a situation often leads to a decrease in trust and attention to the budget process on the part of lower-level managers, which is expressed in carelessly prepared data or deliberately overstated figures in the initial versions of the budget.

Often, the managers of the responsibility centers do not have an understanding of corporate goals, there is no link between the development plans of the unit and resource capabilities. It happens that the preparation of the bank's consolidated budget comes down to a simple summation of the budgets of the bank's divisions without any comprehension and adjustment. If the agreement of the budgets of individual structural units of the bank still occurs, then, as a rule, it takes a lot of time and effort.

3."Combined" method of planning the bank's budget allows you to use the advantages of methods "top-down" and "bottom-up" and at the same time leveling their disadvantages.

Top management and supervisors of business areas determine the general bank consolidated values ​​of budget items, which are transferred to divisions and branches using the "top-down" technology. In subdivisions and branches, within the framework of the specified general bank values, the values ​​of budget items are established using the "bottom-up" technology.

4. Method of planning the bank's budget "combined with limandtami " additionally supports for the governing bodies the ability to set limits on the values ​​of all or some items of the budget of divisions and branches.

The construction of the operational planned budget of the bank is a complex multi-level process based on the interaction of the bank's divisions with the planning department and the bank's management. In practice, the unit's budget planning operation can be repeated several times, as changes and adjustments are made to the budget of this center of responsibility until the optimal result is achieved.

Planning department functions

The planning function is carried out under the supervision of the CFO of the bank. To organize and methodically support the planning process, as well as monitor the implementation of the bank's plans, it is necessary to create a permanent functional unit, for example, a planning department or department, directly subordinate to the Financial Director. In the branches of the bank, under the leadership of the Branch Manager, there are also planning departments that ensure the involvement of as many as possible in the planning process. active managers and leading specialists of the branches.

Thus, the planning department is the main developer of financial plans, as well as a unit that consolidates around itself the entire process of preparing and making decisions on financial planning.

In the case of using the "combined" or "combined with limits" method, financial planning can be an iterative process that includes the following main steps:

1. Specialists of the planning department, based on short-term perspective tasks, forecasting the development of the economic situation, changes in the parameters of financial markets and projected write-offs and cash inflows, develop the likely desired structure of the bank's assets and liabilities, as well as the corresponding structure of income and expenses. In this case, all restrictions, both prudential, and intrabank limits are taken into account. On the basis of these structures, preliminary values ​​of the planned indicators for the branches and all structural divisions of the bank are formed.

2. The preliminary values ​​of the planned indicators are transmitted for approval to the appropriate divisions and branches of the bank. Managers and analysts of divisions and branches evaluate the possibility of achieving the specified planned indicators and, if necessary, express their opinion on the need for their correction.

3. All materials, including forecasts of changes in external and internal factors, substantiation of the dissenting opinion of structural divisions, are submitted for consideration by the collegial financial body of the bank or a financial manager vested with the appropriate powers for making a final decision.

4. The planning department forms the financial plan of the bank, branches and structural divisions.

At the end of the planning period, the planning department, based on the data management accounting, generates reports for the management of the bank, branches and structural divisions on the achievement of planned indicators and the efficiency of the divisions.

Reporting forms of bank budgets

The financial plans of the bank must be fixed in a certain form that allows integrating, coordinating and coordinating the plans of various planning objects.

The form for providing planning information is determined by the planning department and is coordinated with the curators of business areas.

The reporting forms should be detailed enough to uniquely identify the budget item.

Budget planning is carried out sequentially: first, the budget of assets and liabilities (BAP) is planned, then the budget of income and expenses (BDR), the estimate of capital investments and the budget of cash flows (BDDS). Further, with the accumulation of experience in using budgets, bank specialists can develop any other forms of budgets necessary for operational management activities of a particular credit institution. An example of the reporting form of the analytical balance sheet of the bank (budget of assets and liabilities) is presented in table 3.

Table 3. Analytical balance of the bank, thous. rub.

Types of claims / liabilities (Type of assets / liabiities) Incoming bbutLance for 01/07/2001 Plan for3 block 2006 G. July butinthick September Assets (ASSETS) Cash and documents (Cash) Balances on Nostro Accounts at the NBU (except for ENT) in commercial banks in banks of other countries Due from Corporate customers Loans to individuals (Due from Private customers) Loans and deposits to banks (Due from Banks) unrelated (MM) active REPOs Collaterials & Margins placed Promissory notes bought poste restante urgent Bonds goc. and munits. RF bonds (Government & municipal bonds Developed countries bonds Other bonds Stocks Shares and Participations FOR (Central Bank Reserve) Other assets Tangible assets and intangibles, participation (Fixed assets & intangibles) Expenses Liabilities (LIABILITIES) Corporate clients on demand deposits and certificates of deposit (Time deposits) Individuals (Due to Private customers) on demand deposits and savings certificates (time deposits) Banks (Due to Banks) on demand loans and deposits (time deposits) Passive REPOs Promissory notes issued poste restante Urgent Means in calculations (Other liabilities) Reserves loan loss provisions allowances for impairment of investments provisions for off-balance sheet liabilities Equity Income

Bank budget indicators planning technology

Table 2 shows the technology for determining the planned values ​​of the bank's budgets: BAP, BDR and BDDS.

Table 2. Planiro technology bank budget indicators

Indicators planningbutniya Pl technologybutning Assets and Liabilities Budget (BAP) The amount of funds raised or placed. Planning is carried out on the basis of forecasts of attraction / placement of the relevant divisions, drawn up on the basis of concluded and planned contracts, based on the types of resources, terms and average rates. Income and Expenditure Budget (BDR) Planning interest income and expenses. Planning is carried out on the basis of the projected volumes and types of operations of the division, the values ​​of attracted and allocated resources by their types and terms and average rates. Planning transfer income and expenses (only for profit centers and business lines). Planning is based on the predicted values ​​of resources transferred to the Treasury for placement or received from it at rates set by the Treasury. Planning of commission income and expenses. Planning of commission income and expenses can be carried out in the following ways: 1. on the basis of the projected volumes of the relevant transactions, taking into account their increase or decrease in comparison with the previous period; 2. on the basis of planning the value of tariffs for some services, including those predicted for the introduction of new types of services to clients. Similarly, other non-interest income and expenses are planned (from operations with securities and foreign exchange values, etc.) Personnel cost planning (salary, bonuses, taxes, etc.) Planning is carried out based on the projected change in the number of personnel by job category Operating and administrative expenses by item. Planning is carried out on the basis of the actual values ​​for the previous period, taking into account their possible changes. Cash flow budget (BDDS) The flow of funds from operating activities: 1) stream of income / expenses from operating activities: · Interest income and expenses; · Commission income and expenses; · Income and expenses from operations in foreign currency, with precious metals and securities. 2) the flow of funds for attracting and allocating resources: · Currency and precious metals; · securities; · Loans and deposits of legal entities and individuals; Balances on customer accounts (banks, legal entities and private individuals) 1. Planning of interest income and expenses and cash flow for attracting and allocating resources is based on concluded and planned contracts. 2. Planning of commission income and expenses, as well as income and expenses from operations with foreign exchange, precious metals and securities is made on the basis of historical data, taking into account the planned dynamics of the volume of transactions. 3. Planning of balances on customer accounts is based on historical data, taking into account the planned dynamics of the volume of transactions. Consideration of seasonal factors is also possible. Tax payment stream 1) planned income (initial data from the BDR); 2) planned payroll (initial data from the BDR); 3) the cost of equipment and funds (initial data from the BAP); 4) the number of cars on the balance sheet (non-systemically); 5) other base rates for calculating planned taxes. Funds flow from non-operational activities: 1) personnel costs; 2) operating and administrative costs; 3) transfer of funds to the FOR / return from the FOR; 4) purchase / sale of fixed assets Planning is based on: 1) planned payroll (initial data from the BDR); 2) estimates of operating and administrative costs (initial data from the BDR); 3) the planned dynamics of attracting and returning resources involved in the formation of the PBF; 4) estimates of investments in fixed assets Funds flow from financial activities: 1) distribution of profits; 2) issue of ordinary shares. Planning is based on: 1) estimates of profit distribution, 2) the emission plan.

Bank budget planning principles

In order for the entire budgeting system to function effectively, it is recommended to adhere to the following budget planning principles:

1.the planning system must be tied to the system of responsibility centers, powers, and controlling system available in the bank, otherwise the implementation of even the most best plans will be ineffective;

2. the process of adjusting the planning system must keep pace with changes in the organizational, staff and financial structures and management systems of the bank;

3. the planning system should include a motivation system for top managers, "key" managers and specialists;

4. should clearly define the rights, duties and responsibilities of managers of business centers of the bank for the results of work;

5. planning is preferably carried out "combined" or "combined with limits" methods, then the plans will be objective, comprehensive and self-sufficient;

6. the calculation of the planned values ​​of budget items should be based on a deep analysis of the initial situation, the results achieved, the strengths and weaknesses of the bank's business, taking into account the identified reserves for increasing income and / or reducing costs;

7. it is necessary to carry out scenario planning taking into account risks and changes in the external environment;

8. it is necessary to plan protective actions and countermeasures to compensate for losses in the event of risks;

9. plans should be optimized taking into account the interests of the owners, as well as taking into account economic and investment criteria;

10. the financial activity of the bank (including the goals and objectives of its development) should be formalized so that mathematical methods can be used to solve planning problems;

11. the process of operational financial planning is continuous: after one planning period, simultaneously with the analysis of the results of the execution of financial plans, financial plans for the next period are adopted;

12. use of a multivariate approach in planning: the planning department develops and approves the "optimal" version of the budget for a given planning period, "pessimistic" in case of unfavorable developments and "optimistic" in case of unplanned positive developments.

The bank needs to involve as many of its specialists as possible in the budgeting process. This is due to the fact that the planning function is closely linked with other management functions, especially with the motivation of the bank's personnel. The results of the implementation of the bank's plans largely depend on the remuneration for labor.

Typical budgeting algorithm

Knowing the budgeting algorithm will allow you to understand the sequence and sources of information at each step of the process, as well as to account for the "powerful connections of power" that run your business. Now, not they, but you will be in charge of the course of events.

Such a concept as the main budget (in English master budget) covers all aspects of the enterprise. Knowledge of the algorithm for its compilation makes it possible to:

1. to get an idea of ​​the logic of budgeting of the enterprise in all its aspects;

2. understand the sequence and sources of information at each step of this process;

3. to be able to revisit each budget in more depth - to identify factors that should be taken into account during budgeting, and to simplify the subsequent formation of the financial and budgetary structure.

Basic budgeting scheme:

Block 1. Sales forecast;

Block 2. Production budget;

Block 3. Budget of reserves;

Block 4. Budget of commercial expenses;

Block 5. Budget of administrative expenses;

Block 6. Supply budget;

Block 7. Budget of expenses of basic materials;

Block 8. Budget of direct wages;

Block 9. The budget for indirect production costs;

Block 10. cost budget;

Block 11. Budget of income and expenses;

Block 12. Revenue forecast;

Block 13. Forecast balance;

Block 14. Investment project;

Block 15. Cash flow budget.

The beginning of the beginning - sales and implementation - production.

The first step is almost always the sales forecast (block 1). This categorical statement is consistent with the market principle of planning, and it can be objected only by those enterprises whose output is limited by their production capacity and they sell as much as they can produce. In part, their objections will be correct: the volume of sales in the next forecast period for them will really be determined by the volume of production, this, in turn, by the available production capacity or the throughput of equipment. But if such an enterprise is independent, it will be interested in expanding - if everything that can be produced is realized, it is necessary to produce more, no? And a sales forecast for a longer period is necessary for drawing up expansion projects, primarily an investment project. If such an enterprise is part of a holding, then its budget will be only part of the main budget of the parent enterprise, and that budget will begin with the sales forecast.

The second step is the parallel (in the sense of simultaneous) preparation of the production budget (block 2) and the inventory budget (block 3). Generally, it usually seems that the production budget is much more important than "some stock", but this is an illusion. The production budget is not so much more important as more complex, reflects the more troublesome sphere of production and financial activities and therefore attracts more attention from the management; but if you do not know your reserves, for example, at the beginning of a period, how can you calculate how much you need to produce? Maybe in the near future there is nothing at all to produce suites, but it makes sense to sell what has accumulated? If you do not plan stocks within the period, how to send people on vacation, how, in the end, to cope with the seasonality of production? And almost everyone has it - seasonality, big or small. This means that we plan stocks - production - stocks again - check them against storage capacity - adjust production - stocks, etc.

The third step will be to budget for business expenses (block 4) and budget for administrative costs (block 5). It should be recalled, however, that business costs are usually semi-variable or even purely variable in nature and therefore must be planned in conjunction with implementation. At the same time, administrative expenses reflect only the size of the management staff and the desire for office luxury. This means that these are purely constant expenses, and their budget can be drawn up separately. Therefore, block 5 is, as it were, "suspended in the air."

At the next, fourth, step, you should draw up a supply budget (aka procurement budget). This is a complicated matter, but real and necessary. The initial data for it are taken from the inventory budget (block 3) and the sales forecast (block 1), sometimes from the production budget (block 2), which allow you to calculate how much and what kind of raw materials, materials and components in what time frame you need to deliver. The information about payments for deliveries is then used to budget the cash flow.

Shaft or specific?

The production budget at the fifth step flows into the budget for the consumption of basic materials (block 7). On the one hand, it is this budget that forms the second line: cost products sold in the Profit and Loss Statement, on the other - it tingles how much raw materials, materials and components will be consumed for the planned production volume (resource requirement). Consequently, “where it is possible to budget for basic materials not only in monetary terms, but also in kind, it is highly desirable to do so. Technically, there is almost always such an opportunity - just like almost everyone now has decent warehouse programs. represents the absence of a regulatory framework for material consumption.

At the same, fifth, step, direct (piece-rate) wages (block 8) are planned, depending on the volume of production. Drawing up all the budget also depends on the availability of a tariff and qualification reference book. I would like to draw your attention to two points:

First, it would be very nice to add the total amount of piecework wages to the costs of basic materials and enter the resulting amount into the Profit and Loss Statement instead of the traditional "material" cost price. Calculation trade margin after that it will become much more correct, and the analysis of financial statements - much more informative. We will return to the analysis questions in the corresponding section.

Secondly, the sum of the costs of basic (direct) materials and piece-rate (direct) wages for each type of product and per unit will give us the direct cost of each product, batch of products or all products of this type produced during the period. This information is invaluable for those enterprises that depend on structural changes, i.e. produce both more and less profitable products and suffer when the less profitable "outweighs". Let's remember this - in the fifth step, when drawing up budgets of direct costs and direct salaries, we receive data on direct costs as intermediate information.

In the sixth step, a budget for indirect production costs should appear, i.e. costs incurred by the company to maintain production in working order, but which cannot be associated with any particular product. Expenses can also show varying degrees of relationship with income and be both semi-variable and constant.

Indirect production costs per unit of production, combined with direct costs, will give us the production costs of our products / services. Let's remember this too.

But in relation to block 10 - the cost budget - there are several very serious questions related to cost management:

It is clear that the gross cost is essentially equal to the total cost of the product sold in a given period. But how to deal with this total so that you can estimate it? A lot or a little that has changed compared to the previous period or plan, is there something that can be saved, etc.?

"A lot is a little" and all sorts of changes are easy to track in terms of unit cost, i. E. at cost per unit of Production. But then how to relate gross costs (indirect production, commercial, administrative) to the total mass of goods produced or sold?

The answers to these questions are extremely important. Drawing up two cost budgets - gross and specific - is the content of the seventh step of the main budget algorithm.

We foresee financial statements.

And now we turn to the eighth step and block 11 - the budget of income and expenses (BDR) for core activities. By itself, it is quite simple, since we already have all the information necessary for compiling the BDR. And with the enlargement of the BDR, it forms that part of the Profit and Loss Statement, which reflects the main activities of the enterprise - without financial, "other" and investment activities (non-sale transactions).

If your company does not have "other activities" in large volumes and does not plan to receive large incomes from financial activities or related businesses, then the Statement of Profit and Loss (income statement) can be considered ready. But sometimes the listed factors take place, and in addition to this, the sale of fixed assets may be planned.

So, we have the Profit and Loss Statement ready. Now we make a "turn back" according to our scheme and at the ninth step we return to the income forecast, turning it into a revenue forecast (block 12), i.e. real receipts of "real money".

At the tenth step, we come to an extremely interesting procedure - forecasting the balance (block 13). This document - the balance sheet - seems almost mystical to many non-financiers. Sometimes even financiers have difficulty predicting it. In fact, it is quite simple, you just need to initially distinguish between those balance sheet items that are objectively determined and adjusted just like that, but can - let's call them "objective", and items that can be changed depending on various circumstances. It is logical to call these articles "regulatory".

Of course, for forecasting, the balance can be folded up and use its simplified form. It turns out that the overwhelming majority of balance sheet items are objective.

The sorting order of groups in both parts of the balance sheet can be different, for example, both in descending and ascending order of liquidity. For those readers who are familiar with the accounting of socialist times, a balance sheet scheme, in which assets are arranged from top to bottom in order of increasing liquidity, can be associated with the Soviet past, when non-current assets go first in importance, and then everything else: in those days, no one not interested in liquidity, and money was considered after fixed assets. The location of the various sources of capital in liabilities was similar. In accordance with the Western methodology, the structure of the balance sheet reflects from top to bottom the decrease in liquidity and is based on the assumption that the analyst (user of financial statements) the figure in the top line seems to be more significant than in the subsequent ones. And so there, at the top, are the values ​​of working capital in assets and current liabilities in liabilities - values ​​that are significantly more important for financial management!

Nevertheless, if non-current assets are extremely important for your company, it is a capital-intensive business, or if there are questions on the agenda financial sustainability, or simply you are used to seeing the current values ​​at the bottom of the balance - the choice is yours. The essence is not in the form as such, but in the correctness of the composition and ease of use.

But as far as correctness is concerned, until the level of regulatory clauses is calculated, assets and liabilities will not be equal, this is clear. If liabilities are more than assets, then there is only one regulatory article: cash, and it is very easy to calculate the value for it. If the assets are more than liabilities, then the difference should be covered by passive regulatory articles - loans from the bank and suppliers. On the one hand, they are somewhat equivalent, on the other hand, when distributing loans between them, one must be guided by agreements and the nature of relations with one and the other:

If there are restrictions on a bank loan, and relations with suppliers are established, then we fix the maximum possible amount of a bank loan, the rest is attributed to the suppliers;

If the supply agreement is "not very" in terms of payment, but there is a bank credit line of sufficient volume, then we calculate the debt to suppliers according to the turnover formula, laying in it an acceptable payment term. The rest is attributed to a bank loan;

If your company has neither a line of credit, nor a significant delay in payment for deliveries, and assets do not converge with liabilities, you should think about the prospects for your business. This is a clear signal of emerging trouble.

Based on the obtained balance sheet forecast, it will be possible to calculate future indicators of financial stability and liquidity and compare them with the current ones; this will show you how your firm's status will change in the future. We will discuss the principles of such an assessment later in the section on financial analysis. And now - money!

At the eleventh step, it is time to draw up an investment budget (block 14). At this stage, it is drawn up, well, not so much as God puts it on his soul, but rather arbitrarily - it is quite possible to insert the costs of all the projects that you dream about. It is also advisable to include here the dividends to be paid.

The twelfth step is the cash flow budget (BDDS, block 15). When compiling BDDS, the bank loan amount "floats" for the second time - the first time it appeared in the balance sheet forecast. First, these amounts, taken on the same date (the date of the balance forecast), must be compared with each other. Of course, they will differ somehow. It is necessary to figure out how great the difference is and why it arose, and then adjust either the balance or the BDDS. In practice, usually the credit in the balance sheet is less due to fluctuations in inventories and payment of their own bills. But in some specific case, it may be different.

Secondly, on the basis of the received loan amount, you can calculate the interest payments and insert them into the income statement, which will then be truly completed.

And finally, thirdly, BDDS can show that the planned investments of the company are overwhelming. In this case, they must be cut, leaving the most important ones, and the final version of the investment project must be developed. Sometimes it takes several iterations to get the final version of an investment project, and many more. So do not be upset or disappointed in your qualifications, if it did not work out the first or second time - this is normal. Another thing is that planning difficulties almost certainly mean subsequent difficulties in the implementation process and push towards stricter control.

Feedbacks.

Despite the fact that we have reached the end of the main budget and seemed to have "drawn up" it, I would like to once again go through the feedbacks that arise between its blocks. The organization of feedback is a separate, especially important task of setting the control cycle. Interestingly, feedbacks are formed to a noticeable extent and can be tracked already at the stage of budgeting, and not only during the analysis of its implementation. First of all, these cyclical links are manifested at the level of the main budgets, but now we can give examples of deeper interaction. So:

The production budget and the inventory budget affect each other, and they must be consistently coordinated in order to prevent overstocking or downtime due to lack of raw materials.

The budget of incomes and expenses (BDR, it is also in aggregate form - OPU) has a two-way relationship with the cash flow budget (BDDS); data on expenditures for the period "from BDDS to OH U are received from the OPU to BDDS" - the results of calculating interest payments.

The balance forecast and the BDDS "check" each other in terms of the correctness of the calculation borrowed money, stock balance, accounts receivable, etc.

BDDS influences the investment project, "limiting it in funds" or, conversely, giving additional ones. Changes in the investment project are reflected in the balance sheet.

There are also feedbacks, as a result of the emergence and mandatory accounting of which, budgeting turns into a multi-step, rather scrupulous and time-consuming procedure. Do not be upset! Firstly, each time it will be easier for you to agree on all the subtleties, and secondly, mastering the budget with its loops and returns will allow you to understand and take into account the "powerful power ties" that govern your business. And now, not they, but you will be in charge of the course of events!

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The origin and principles of banks. Banking operations and services of a commercial bank. The organizational structure of a commercial bank and interdependence with the Central Bank of the Russian Federation at the regional level. Analysis of existing planning and management systems.

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Recently, the word "budgeting" has become very often used in the Russian business environment. Many companies have emerged that claim to be actively using budgeting technology in their management system.

Nevertheless, many Russian enterprises, including commercial banks, lack budgeting as such. More precisely, it does not work or is far from working at full capacity, and even then in the short term, and less often in the medium term. Yes, there are some elements of budgeting, but few companies can boast of an integrated budgeting system, including commercial banks.

For the purpose of defining the key concepts of the system and the budgeting process itself, the preparation of this cycle of articles is directed. The topic seems to be even more interesting against the background of an unstable financial situation, when cutting costs and finding alternative sources of income is more relevant than ever.

In modern economics, it is customary to talk about three standard financial budgets, which
contain summary information on the financial and economic condition of the company: the budget of income and expenses (BDR), the budget of cash flows (BDDS) and the budget on the balance sheet (BBL). It must be said right away that these terms are not generally accepted. For example, some companies call the BDR the profit and loss budget, the profit budget, etc. BDDS can be called the cash budget, the Cash Flow budget, etc. BBL can call the forecast balance, the budget of assets and liabilities, etc.

In fact, of course, it doesn't matter what you call these three financial budgets. At the same time, it is important to note the fact that the budgeting system and the budgeting process itself in a commercial bank are somewhat different from the budget planning systems at a commercial (non-bank) enterprise. A certain role is played by the fact that the key importance in commercial banks, as a rule, is given not to accounting, but to management reporting forms, most of which are developed taking into account the specifics of the functioning of a particular bank and the wishes of the management of the credit institution. It is worth treating budget planning in banks accordingly, while the following budget forms typical for banks can be distinguished:
1) budgets of income and expenses (budgets of the AHR, ID and KV);
2) balance sheet budget (assets and liabilities budget).

At the same time, as noted above, the key role is assigned to management, not accounting. It should also be noted that in Russia the topic of budgeting as a management tool financial activities enterprises are not widely studied and poorly covered as in educational literature on the theory of finance, and in works placed on the pages of magazines and newspapers, in other media. The most interesting works can be found only in a narrow circle of translated publications and at specialized seminars. In general, the economic analysis of banking in terms of maintaining fiscal discipline is one of the most interesting issues in the preparation of management and financial reporting in banks. It is also important that temporarily excluding from the scope of discussion the technical features of conducting fiscal discipline in credit institutions, we will rely on the technical and economic (non-accounting) component of "maintaining and controlling budgets" and its analysis. This is due, in particular, to the fact that the concept of “budget”, which is practically used in modern Russian banks (and not only), is narrower. Most managers operate with this concept in relation to a document that forms, in quantitative terms, a plan of income and expenses for calendar year... Thus, summarizing the opinions of Russian and Western experts, in this work we will use the following definition of the concept of "budget" - this is a formalized expression of the costs and effect of the set of approved planning decisions for the company as a whole and in the context of individual divisions and segments of activity. The budget cannot exist outside the plan, just as the form cannot exist outside the content. On the other hand, planning in an enterprise can be carried out without drawing up a consolidated budget as the development of target indicators for individual departments and for individual segments of the production and economic cycle, without "end-to-end" coverage of the business. Thus, from a practical point of view, the budget is a document with numbers, including, to varying degrees of aggregation, income, expenses, and, accordingly, projected profit. "Budgeting" in this case can be defined as a bank management system through the construction and execution of interrelated budgets, reflecting in quantitative and value terms the controlled aspects of the activities of a separate division or the entire bank as a whole. Budgeting is an integral part of the financial planning process, since the latter includes, in addition to budgeting, specific activities aimed at achieving the current or strategic goals and a wider range of indicators needed to analyze and control the activities of a bank or a separate unit. So, in addition to income and expenses, the financial plan usually includes volumetric and quantitative indicators, for example, the volume of loans issued, the number of attracted deposits, the size and composition of the issue. bank cards etc.

Summarizing as much as possible the main models of budgeting, we highlight the following:
“Top-down” - key data on the planned level of costs of the entire organization are formed at the level of managers top echelon taking into account tactical and strategic goals; “Bottom-up” - key cost data are formed in the context of each structural unit at the level of lower-level managers and are transferred to the parent organization in a summary; "Combined" - based on the key features of the above models.

Operating Expenditure Budget (ACR)- This internal document, setting the maximum allowable amount of current expenses for the planning period.

Investment budget Is an internal document that establishes the maximum allowable amount of the bank's expenses for the sale investment projects as part of one or more planning periods.

Capital budget- This is an internal document that sets the maximum allowable amount of capital investment for the planning period.

Opening budget- This is an internal document that establishes the maximum allowable amounts both for the capital budget and for the budget of current expenditures, planned at the initial stage of creating an enterprise or a new structural unit. The opening budget should ensure the full introduction of the new structural unit into the work of the entire organization and be minimum sufficient for the functioning of the newly created unit. As a rule, it is used in the development of the financial part of the feasibility study for the opening of new branches, additional offices, etc. It can be understood in the same way as the innovation budget.

Saving money- a positive balance of funds for a specific item of expenditure based on the results of budget execution in previous reporting periods. It can be used to cover unforeseen expenses in the current period if no alternative source of fundraising is found.

Financial Accounting Center(CFU) is a unit of accounting for a financial structure with a personally responsible manager. DSC is also called the Responsibility Center (LOC). CFIs are classified in terms of their relationship to the revenue and expenditure side of the bank's budget. The most common classification is the division of the CFI into profit centers and cost centers.

Profit center(CP) - a structural division of a bank (or a set of parts of divisions or a group of divisions), the main task of which is to generate income from third parties or to attract resources.

Cost center(CP) - a structural division of a bank (or a set of parts of divisions or a group of divisions), which, as a rule, provide support, management and maintenance of the functioning of profit centers and do not directly generate income.

Business direction- grouping of profit centers and cost centers according to the principle of full belonging to some internal self-supporting business. Each business area is assigned a curator from among the top managers of the bank.

Infrastructure Center- a grouping of cost centers performing the same type of functions, for example, providing or management.

Further, in order to get the most general idea about the formation of expenditure budgets in a commercial bank and taking into account the high efficiency of illustrative materials, I propose to step by step consider the procedure for agreeing and forming budgets of branches in the form of a graphical diagram (Fig. 1) using the example of a large bank ("combined" model).

1. So, the initial formation of budgets for current expenses and capital investments begins at the level of the bank branch: each structural unit based on the data of the last year (and especially the 4th quarter), as well as taking into account information on existing contracts and targets received from the head organization and the top - bank management, submits for approval to the chief accountant and director (deputy director, acting director) of the branch a draft budget, each in its own part. The executive officer, the chief accountant and the director of the branch bring together the obtained data on the forms of budgets approved by the internal regulations of the bank, after which they make an initial assessment of the rationality and "adequacy" of budgeting.

2. After the management of the branch has prepared the primary draft cost budgets, it, together with the attached feasibility study, including a detailed breakdown of the composition of costs, information on the preliminary results of the execution of the budgets of current expenses and capital investments for the year preceding the planned one, indicating the reasons that led to the failure to fulfill the planned volumes appropriations, sends it to the supervising regional directorate. Responsible employees of the regional directorate, in turn, analyze the submitted draft budgets and, if necessary, make the necessary clarifications and adjustments, notifying the subordinate branches about them. After bringing the budgets of branches in regional directorates, draft budgets with a package of necessary documents and attached economic justifications are sent directly to the budget and financial department of the bank (BFD).

3. This stage is key in the process of reviewing and agreeing on the draft budgets of the branches and the bank's Civil Code, since it is at this stage that the BFD assesses the adequacy of the budget plans, the effectiveness of the work of the bank's structural divisions, if necessary, redistribution of expense / income items by cost centers is carried out places of pricing), the data of the sent draft budgets are compared with the base of business contracts, on the basis of which most of the items of expenditure are directly planned. In practice, a situation is possible when this function for some branches is performed directly by the supervising regional directorate, albeit with the approval of the BFD.

4. This stage flows smoothly from the third and flows into the fifth. The essence of this stage is to agree on draft budgets with the heads of functional (read - business) directions (hereinafter - BN), with each in the corresponding direction of expenditures. The BN managers assess the rationality of the submitted draft budgets in their areas and, if necessary, make adjustments with the mandatory notification of the BFD. After the completion of this check, the heads of the BN, in agreement with the head of the BN "Regional Directorates and Branches" (Executive Vice President), sign projects and send these packages to the Vice President, who is directly in charge of the budget process and BFD.

6. Finally, the sixth stage is the final one. Not later than five days (1) before the start of the planning period, the draft budgets of expenses and capital investments of branches with visas of the BFD director and the financial head of the BN “Regional Directorates and Branches” are sent for approval to the Vice President in charge of the budget process. The Vice President then submits the agreed draft budgets for approval by the president of the bank no later than the fifth working day of the first month of the planning period.

(1) It is important to understand that the timing set here as an example may differ depending on the size of the company and the nature of fiscal discipline.

7. In the case when the president of the bank for some reason did not sign the versions of the submitted draft budgets, the cycle repeats depending on the further instructions of the head of the credit institution.

Typical levels of aggregation (read - budgets) in any budget systems (1) are:
1) by type (consolidated functional - by areas of spending);
2) item-by-item (functional);
3) by sub-items (specific expenses are directly indicated).

As a rule, the essence of budget levels remains typical for all commercial banks, only the principle of compiling a budget classifier changes. Designation of specific budget levels in various organizations happens in different ways: somewhere digital coding, somewhere alphabetic, less often - mixed. Moreover, the codification format can be extremely complex and economically irrational both for use and for understanding (2).

Ultimately, regardless of the level at which expenditures are agreed (as a rule, these are reallocations necessary to cover expenditure items), the decision on the use of budgetary funds is made by the Finance Directorate, headed by CFO authorized by the head of the organization (bank president, chairman of the board, director, manager, etc.) to resolve any financial issues credit institution with the right of first signature and ultimately responsible for financial results jar. It is important that, in theory, no action on the movement of budgetary funds can be taken without the adoption of a final positive decision by the aforementioned persons. If specific expenses (or incomes) are not agreed by the CFO, they simply do not and will not be.

Typical reasons for non-fulfillment of budget plans for current expenses or for capital investments are:
- unplanned price increases;
- the need for additional purchases;
- unforeseen changes in tax rates;
- Elementary non-compliance with the budgetary and financial discipline of the organization by the responsible persons of the organization (human factor);
- unforeseen changes in conditions under existing business contracts and in-house regulatory documents;
- extraordinary expenses, kickbacks;
- forced unscheduled costs associated with changes in legislation;
- other factors (unstable financial and political situation in the country, region).

Taking into account the above, we can state that a well-built financial structure the bank allows you to effectively manage internal self-supporting "businesses" using the following technology:
1) through the system of budgets of responsibility centers for each business

(1) An analogy can be drawn even with the state budget system (two-tier / three-tier).
(2) On the principles of forming a budget classifier, read the third article from the cycle "Fundamentals of budgeting in a commercial bank."

2) directions are determined by the planned indicators of their activities;
3) after the end of the planning period and accounting for the actual execution of budgets, the results of the work of each AC and its contribution to the development of "business" are analyzed;
4) a comparative assessment of the profitability of "businesses" is carried out;
5) a decision is made to develop the most profitable business areas.

As a summary on the issue under consideration, I propose to highlight the main advantages of the implemented budgeting system at the enterprise:

1. The most important, in our opinion, the advantage of the budgeting system is the complete subordination of all financial flows of the organization to a single system of monitoring and control of spending budget funds. This significantly affects the risk reduction of the organization.
2. Competently constructed and so-called "scheduled" budgets allow you to monitor and analyze the work of the company's structural divisions in terms of maintaining budgetary and financial discipline, thereby identifying more effective ones.
3. Indirectly related to the Bank, but at the same time a rather interesting advantage of running a budgeting system at an enterprise is that the very existence of a "scheduled" budget is an effective means of combating so-called "kickbacks" (1), the very existence of which, however, is rather controversial ... Procurement budgets are usually drawn up for a year, broken down into shorter tactical intervals - months, quarters, less often half a year. Accordingly, no deal can go past the treasury, over budget or without approval. And to make adjustments to the budgets of operating expenses in addition to emergency circumstances is considered bad practice and speaks first of all about the weak planning and analytical department of the company with all the ensuing consequences.
4. When using automated software package (automated system budgeting, for example, from EGAR or Sun Systems) maintaining, monitoring and analyzing the execution of budgets, even for a large multi-branch enterprise, can be carried out by a small number of specialists, which allows you to reduce the cost of wages and equipment of additional jobs to a minimum, without weakening the level and the quality of monitoring the organization's financial flows.

Literature
1. Amiridi Y. Budgeting and efficiency management of banking business: three examples from practice // Banks and Technologies. - 2004. - No. 4.
2. Diskin I. Management accounting and budgeting in a bank is an expensive toy or an urgent need: [Electronic version]. - Access mode: bankir.ru.

(1) Rollback is a special client attraction technique. In essence, it is a form of bonus remuneration for key individuals in the field of procurement activities when achieving or potentially achieving mutually beneficial results. In common parlance, it is a bribe.

See also on this topic.