Financial Analysis in Budgetary Institutions

Abstract

The article illustrates the relevance of developing new directions in the analysis and performance evaluation techniques aimed at results-based management optimizing the use of budgetary institutions’ resources. It is noted that among the existing funds, a set of measures of public administration and improving the efficiency of the use of Finance has been developed. The paper considers and analyzes the problems that hinder the construction of an effective system of analysis. The aim of the study was to find innovative approaches to the formation of a system to improve the efficiency of the use of public financial and material resources. The assessment of a state institution’s financial condition, its financial results, and risks is implemented by analysing the financial and economic activities of the budgetary institution. The article addresses the problem of determining the proper objectives of financial analysis in an institution, along with the sources of information. The authors also assess the priority methods. The article also analyzes the risks of the budget institution and assesses them in terms of inefficiency of budget execution on the basis of both accounting (financial) statements and non-accounting information. In General, the mechanism of financial analysis, which allows to increase the effectiveness of state control, is proposed.