Funds related to donations in the budget are considered in multiple VATs, each of them bringing partial clarity to a certain case, which was sometimes considered in previous regulations, and with this VAT, partial amendments are made to the previous one. All this, accumulated over a span of fifteen years, in many cases leads to greater confusion than to clarification of the issue, because anyone who starts to follow the topic is faced with the invariable text in every single VAT “Everything that does not contradict the current VAT is in force”. In this material, we will try to make a comprehensive overview of the topic and put together the individual pieces of the puzzle, and we sincerely hope that our attempt will be crowned with success.
The chronology of the topic under consideration is as follows:
We will look at the subject in a chronology of VAT and cases up to date as of 01.01.2023.
| Budget | SES |
| DT s-ka 4659/KT s-ka 7598 with the amount of personal insurance contributions
§89-03 (-) §69-08 (+) |
DT s-ki gr. 604/Kt s-ka 421 accrual of remuneration;
DT s-ka 421/KT 7591, 7595, 7596, 7597 withholding of personal insurance contributions § 01-00,02-00 §69-00 |
| DT s-ka 7598/KT s-ka 4659
§69-08(-) §89-03(+) |
|
| DT s-ka 4659/KT s-ka 7598 with the amount of insurance contributions for an employer
§89-03 (-) §69-08 (+) |
DT s-ki gr. 605/KT 7595, 7596, 7597
charging employer insurance contributions; §05-00 §69-00 |
| DT s-ka 7598/KT s-ka 4659
§69-08(-) §89-03(+) |
The applicable national accounting standards for budget organizations are NSS, adopted with PMS 37/2002. VAT 20/2004 provides methodological guidelines and defines the scope of application of each standard in budget organizations, as well as in certain cases their non-application. This is also the case of NSS 20. Item 20 of VAT 20/2004 states that the provisions of NSS 20 are not applied by budget enterprises. Accordingly, in items 20.1 to 20.6.10 of VAT 20/2004, the basic principles for accounting for income from donations and benefits and other gratuitously received amounts are determined. These basic principles have been partially amended and supplemented by VAT 14/2013. In this point, we will examine these provisions as they are currently in force, and we will try to give examples to clarify the various cases.
In budget enterprises, income from donations, aid and other gratuitously received sums are reported as income at the time of their receipt. When it is necessary to refund these amounts, due to the non-absorption or non-compliance with the clauses for donations, the return of these amounts is counted as a reduction of income (including for donations and other amounts received free of charge from previous years) (VAT 20/2004, p. .20.1). Group 74 Aids and donations from the country and abroad is provided for the reporting of such funds in the SBO.
Looking at the subgroups, it is clear that they are structured according to the source of donation.
Example 1: In 2022, Bulgaria concludes a contract with the EC to receive funds in connection with the development of human resources for 20 million euros, which it must absorb on the basis of approved projects in the next 4 years. Bulgaria fulfills the clauses of this contract by means of budget organization XXX, which receives the funds from the EC, carries out the tenders for the projects and supervises their implementation. In 2022, the funds were received on the foreign currency account of this organization. In 2026, it will be established what part of these funds has been used and what part has not. Let’s assume that at the end of the period in 2026, 2 million Euros will not be absorbed.
Accounting operation in 2022 upon receipt of the funds, reported in business area BUDGET:
D T 5014/KT 7481 20000000 (euros converted at the BNB exchange rate into BGN);
Accounting operation in 2026 for recovery of unspent funds reported in business area BUDGET:
DT 7481/KT 5014 2000000 (euros converted at the BNB exchange rate into leva…………………………………………. )
In VAT 20/2004, items 20.2 to 20.6.10 deal with the various cases of donations in budgetary organizations and the subsequent distribution of these donations to other organizations – budgetary and non-budgetary. The cases considered are as follows:
A) donations in kind
– the budgetary enterprise acts as an intermediary in the distribution and it is known in advance for which persons the donation is intended – the received DMA and/or MH is reported off-balance sheet in the budgetary organization as foreign assets until the moment of their distribution;
– the budgetary enterprise receives DMA and MH intended for other organizations, but when distributing it makes a significant judgment about their allocation – upon receipt, the budgetary organization reports income through the accounts from group 74, when distributing it reports an expense through the accounts from group 64, if the counterpart organization is not budgetary or transfer, through the accounts of group 76, if the counterpart organization is a budget;
B) received and spent funds from aid and donations are reported as income, expenses and transfers, except in cases where specific persons (beneficiaries) are explicitly indicated
In case of free transfer of assets and liabilities between budgetary organizations, accounts from group 76 are used. It is important to note that the amounts of the transferor and the recipient must be equal. For this purpose, the transferor must notify the transferee of the value of the transferred assets/liabilities.
Transferred off-balance sheet assets/liabilities are written off by the transferor using the accounts of subgroup 998. In cases where the transfer is of assets that were recognized on the balance sheet and subsequently written off as an expense and entered in account 9909, but the recipient of these assets has taken to account for them on the balance sheet, he should bring them to his balance sheet, by using the accounts of subgroup 799 Increase in net assets from other events, and not through group 76. The reverse example of this is when the recipient of the assets in adopted these assets to write them as an expense, and not to bring them to the balance sheet. In this case, he must enter them on receipt as assets using group 76 and then write them off as an expense through the accounts of subgroup 699X, entering them off-balance sheet if necessary in account 9909.
The provisions for recognition and allocation of funds thus written of aid and donations are supplemented by VAT 14/2013, items 21-29. , which submit accounting procedures at the end of the year for accrual of adjustments for receivables and liabilities under these items and their reversal at the beginning of the following year.
In this direction, let us further develop Example 1 , assuming that at the end of 2022 the Organization found that it had absorbed 4 million euros and 16 million euros remained unspent. For the unspent funds, the Organization must take the following accounting transaction at the end of the year:
DT s/ki from city 740 Adjustment of income from aid and donations/ CT 4989 Adjustment for unspent aid and donations EUR 16 million (respectively at the exchange rate of the BNB ) At the beginning of the next year ,
this operation must be reversed accordingly with a “red reversal”.
In such cases, the organization performs an assessment of the funds spent on the acquisition of assets and expenses incurred and with the estimated amount takes the following accounting entry:
DT 4980 Adjustment for receivables for aid and donations/KT s/ki 740 Adjustment of income from aid and donations
At the beginning of next year, this operation must be canceled accordingly with a “red cancellation”
Example 2 In 2022, the budgetary organization prepares a project for the construction of a new bus station in the settlement, with which it plans to apply for financing from European funds. For the preparation of the project, the budgetary organization spent: BGN 10,000 for the architectural project, BGN 17,000 for the construction project, BGN 3,000 for the “B and K” project, BGN 15,000 for consulting and attorney’s fees, and BGN 7,000 for the preparation of the project itself. application. According to the rules of the Operational Program, under which they will apply with this project, the budgetary organization expects that the sums for the architect: 10,000, for the constructor 17,000 BGN and 3,000 BGN for “V and K” will be reimbursed in the event that the project is approved for performance.
In this regard, at the end of 2022, the budgetary organization takes the record:
DT 4980/KT 740X BGN 30,000
At the beginning of 2023
DT 4980/KT 740X (30000) red reverse
Attention: accounts 498 and 740 are kept with clean turnovers. Accounts 498 and 740 do not apply when accruing receivables and obligations for reimbursement of funds from aids and donations and related penal interest. In these cases, the accounts from subgroups 438 and 439 are used;
The provisions for charging an adjustment for utilization at the end of the year and its reversal do not apply in the following cases:
A) funds received by the beneficiary budget organizations from aid and donations through transfer from other budget organizations
Let’s go back to Example 1. In it, the budget organization received 20 million Euros, subject to distribution to other organizations. At the end of the year, it had not absorbed 16 million
Euros. 4 million euros have been used. These 4 million are distributed on the basis of projects of budgetary and non-budgetary organizations. The budgetary organizations receiving the allocated amounts do not have the obligation to report an adjustment at the end of the year, since they received these amounts through a transfer from another budgetary organization.
B) funds received by the budget organizations through the Paying Agency of the DF “Agriculture” from direct payments or amounts according to market measures, which are reported as income from the budget organization – beneficiary according to VAT 6/2008 item 65 and VAT 7/2008 item 57
According to item 65 of VAT 6/2008 and item 57 of VAT 7/2008, when the budget enterprise receives as a beneficiary from RA funds from direct payments or sums under market measures, they should be reflected as income from EU aid. (Depending on the nature of the funds, paragraph 46-10 or 46-20 of the EBC and account 7481 or 7482 are used in the reporting of extrabudgetary funds, not as a transfer. On a cash basis, the reporting of these funds is carried out on a functional basis.
C) for the aid and donations that are provided unconditionally.
D) for the reported amounts on account 7450 Funds received through non-budgetary enterprises from the CFP under international programs. The reported income on account 7450 and paragraph 47-00 of the EBC for 2014 represent a refund of an initially incurred cash expense from the CFP.
D) in other cases determined by the Ministry of Finance.
Until 01.01.2014, the unspent amounts of donations and benefits were reported behind the balance sheet. After 01.01.2014, the corrective approach is applied, as described above, and off-balance sheet reporting is discontinued.
| VAT 6/2008; VAT 8/2014 Transfer to the bank budget account of the beneficiary of a transfer from the NF |
|||
| Budget | SES | ||
| DT 5001(5013) | /KT 4682 | DT 4682 / | 747, 748, 7532 |
| §§95-07,96-07(-) | (+)§88-03 | §88-03(-) | §63-01(+) |
| DT 4970/ KT 4523 | |||
| Accumulation by the beneficiary of amounts for supplies of services/assets and liabilities to suppliers/counterparts | |||
| Budget | SES | ||
| No accounting transactions are taken | DT s-ki 2,3,6,4511 / KT s-ki 4010, etc. | ||
| Payment through the bank budget account of the beneficiary of the obligation or transfer of advances | |||
| Budget | SES | ||
| DT 4682 /KT 5001 (5013) | DT 4010, 4020 /KT 4682 | ||
| §88-03(-) §§95-07,96-07(+) | §§ expenses §88-03(+) | ||
| DT 4523/KT 4970 for the absorbed costs | |||
| Payment by the beneficiary through SEBRA | |||
| Budget | SES | ||
| DT 4682 /KT 7500 | DT 4010, 4020 /KT 4682 | ||
| §88-03(-) §§66-02(+) | §§ expenses §88-03(+) | ||
| DT 4523/KT 4970 for the absorbed costs | |||
| Transfer of the acquired assets to SES for use in the budget | |||
| Budget | SES | ||
| DT with sections 2,3/ KT 7601 | DT s/ka 7601/KT with sections 2,3 | ||
| Transfer of acquired assets to SES for use in other budgetary organizations (not municipalities) | |||
| Enterprise budget 2 | SES enterprise 1 | ||
| DT with sections 2,3/ KT 7601 | DT s/ka 7601/KT with sections 2,3 | ||
| Transfer of the acquired assets to SES for the use of municipalities | |||
| Municipality budget | SES enterprise 1 | ||
| DT with sections 2,3/ KT 764 | DT s/ka 764 /KT s-ki sections 2,3 | ||
| Transfer of the acquired assets to SES for use by a non-budgetary organization | |||
| SES enterprise budget | |||
| DT with group 64 / CT with sections 2,3 | |||
| Reimbursed amounts from counterparties to the beneficiary’s budget bank account | |||
| Budget | SES | ||
| DT 5001(5013)/KT 4682 | DT 4682/KT 4010, 4020 | ||
| §§95-07, 96-07 88-03(+) | DT 4010/KT 3, 2,6 | ||
| Accrual of amounts to be recovered from the advance or due to unrecognized expenses | |||
| DT 4682/KT 5013 | DT4523/KT 4393 | ||
| §88-03/ §95-07 | DT 4393/KT 4970 | ||
Subgroups 438 and 439 are included in the SBO, which are intended for reporting the receivables/obligations of budget organizations for received/provided/distributed donor funds and the related national co-financing (including in their capacity as administrators of these funds). Accounts from subgroup 438 Receipts for reimbursement of funds under donor programs and related interest are applied by budget organizations in their capacity as administrators of funds under donor programs. All receivables (including against budgetary organizations) relating to the recovery of funds under donor programs (including national co-financing) from the relevant final beneficiaries or other intermediate administrators of such funds are charged to these accounts.
The cases in which an administrator of granted/allocated funds under donor programs will charge a claim for reimbursement of funds under donor programs are as follows:
A) funds were provided to a beneficiary to carry out a certain project activity and at the end of the project the beneficiary did not use the funds. Example: the project is for BGN 300,000, BGN 300,000 has been provided, the project report for all incurred costs at the end of the project is for BGN 250,000. BGN 50,000 is subject to reimbursement;
B) funds were provided to a beneficiary to carry out a certain project activity and at the end of the project the beneficiary used the funds, but part of the costs were inadmissible and were not approved. Example: the project is for BGN 300,000, BGN 300,000 was provided, the project report for all incurred costs at the end of the project is for BGN 300,000. During the review of the costs, it was found that BGN 50,000 were ineligible costs for this project. BGN 50,000 are subject to reimbursement;
The amount of BGN 50,000 must be charged by the administrator of these funds as a claim from the beneficiary. The accrual will be made to the relevant accounts from subgroup 438 depending on the beneficiary’s belonging to a certain group of beneficiaries, as follows:
– Account 4381 and account 4382 Receivables from enterprises and individuals for reimbursement of funds under donor programs;
DT 4831/KT 64 (recovery of the principal)
/KT 7274, 7275 for the interest on these receivables
Account 4381 is an income-expenditure item
Account 4382 is a financing item
– Account 4383 Receivables from budgetary organizations from the “Central Government” sub-sector for reimbursement of funds under donor programs
DT 4383/KT 4960 (for the principal claim)
DT 4383/KT 7270 and DT 7298/KT 4960 for the interest claim;
After the claim is paid, the following two operations are taken:
DT 4960/KT4383 and DT 5001, 5013/75 for the transfer of the amount
– Account 4384 Receivables of municipalities for reimbursement of funds under donor programs.
DT 4384/KT 4960 (for principal refund)
DT 4384/KT 7270 and DT 7298/KT 4960 for the interest claim
After the payment of the claim, the following two operations are taken:
DT 4960/KT4384 and DT 5001, 5013/KT 75 for the transfer of the amount
– Account 4385 Receivables from social insurance funds for reimbursement of funds under donor programs
DT 4385/KT 4960 (for principal refund)
DT 4385/KT 7270 and DT 7298/KT 4960 for the claim for interest
After the payment of the claim, the following two operations are taken:
DT 4960/KT4385 and DT 5001, 5013/KT 75 for the transfer of the amount
Accounts 4383, 4384, 4385 are revenue and expense items.
The presented method of reporting is given in VAT 14/2013. With VAT 08/2014, this reporting for the administrator is supplemented with the requirement that the amounts granted to the beneficiaries be recorded simultaneously as a transfer to the beneficiary, a claim and a correction of the claim, as subsequently an entry is made for the incurred recognized expenses and for the unrecognized expenses, which essentially does not change the above entries, except that it creates an accounting precedent for the same transaction to be recorded simultaneously as an expense transfer to the beneficiary and at the same time be recorded as an asset and a liability in the balance in order to subsequently track the utilization of the amounts. Entries are:
DT s/ka 753 (752)/KT 5001, 5013 (7500) for the transferred amount;
DT 4522,4547,4567/KT 4960 to reflect the allocated funds (advance);
DT 4960/KT 4522, 4547, 4567 – accounting of utilization in the amount of recognized expenses;
DT 4383, 4384, 4385/KT 4522, 4547, 4567 – reporting of unrecognized expenses, such as claims for refunds from donor programs;
DT 5001,5013/KT 753 (752) for recovery of unutilized part; p-f 63-02/62-02/62-01 (+)
The sum of BGN 50,000 must be charged by the beneficiary of these funds as an obligation for reimbursement. The accrual will be made to the relevant accounts from subgroup 439, depending on the donor’s affiliation to a certain group, as follows:
– Account 4393 Liabilities to budget organizations for reimbursement of funds under donor programs;
DT 4970/KT 4393 for charging the principal DT 6270/KT 4393 for charging interest
DT 4970/KT 6298 for charging an interest adjustment When repaying the obligation
DT 4393/KT 4970 and DT 75/KT 5001, 5013,7500
– Account 4397 Obligations to non-budgetary organizations for reimbursement of funds under donor programs
DT 74, 6274, 6275/KT 4397
– Account 4398 Obligations to foreign persons for reimbursement of funds under donor programs
DT 74, 6274,6275/KT 4398
Accounts 4393,4397,4398 are revenue and expense items.
These entries are applicable in the event that the amounts provided as an advance to the beneficiary are not immediately reflected except as a transfer and as a liability and liability adjustment in the balance sheet. In practice, both for the administrators and for the beneficiaries, VAT 8/2014 introduces parallel recording of the received advance simultaneously as a transfer, a liability and a correction of the liability. The sequence of entries upon receipt and utilization of an advance, up to the time of reimbursement of unrecognized expenses or unutilized funds, is shown in item III
This is the case where we have an approved project, but we do not have a transfer from the donor program, and the implementation of the project begins at the expense of the own budget.
The reporting in this case is according to VAT 1/2015.
As of January 1, 2015, the method of accounting for advance financing at the expense of the beneficiary’s budget has been changed – the relevant managers with a budget of payments for projects reported in the SES. The new way of reporting is:
– For all projects subject to reporting in the SES, regardless of how the payments for them are made/financed , all accrued amounts of expenses and acquisition of assets and related accruals for liabilities, receivables and income are fully reflected in the SES.
– Any advance financing from the budget of the budgetary organization to cover payments under the project (regardless of the form of provision – transfer from the budget to a separate account or direct payment from the budget of the relevant supplier/contractor is counted as a transfer from the budget for SES. ( Note: when the beneficiaries are municipalities and advance financing is provided from the municipality’s budget or from another account for EU funds in accordance with Article 104 para.1 items 4 and 5 of the ZPF, it is reported by them as a temporary interest-free loan)
ZPF: Art. 104. (1) For advance financing of payments for projects financed with funds from the European Union and from other international programs and contracts, except in accordance with Art. 142, para. 1, temporary interest-free loans may be granted:
1. from the central budget under the budgets of the municipalities and other first-level budget managers whose budgets are not part of the state budget under conditions and according to the procedure determined by an act of the Council of Ministers;
2. from the accounts for funds from the European Union under Art. 144, para. 1 – by act of the Council of Ministers;
3. from other accounts for funds from the European Union, excluding those of municipalities – with the permission of the Minister of Finance on the proposal of the relevant managers of accounts for funds from the European Union;
4. from the accounts for funds from the European Union of Municipalities – with a decision of the relevant municipal council; in the event that payments cannot be made from accounts for funds from the European Union, from which interest-free loans have been granted, the amounts due are paid from the relevant municipal budget;
5. from the municipal budget – with a decision of the relevant municipal council.
– Regardless of the subsequent events related to the approval of a certain payment by the OP (confirmation or not), when it is made, it is reported in the SES according to its nature and nature.
– Off-balance sheet reporting regarding: new expenditure obligations (9860), commitments (9200 and 980), expenditure financing statistics are reported entirely in SES;
The transfer of commitments from the SES to the budget is carried out only if the financing under the relevant donor program is finally stopped for these available commitments and the budget takes over their implementation.
These provisions apply only in cases where the project has been approved. All payments made under a project, before it is approved, continue to apply the previous method of accounting in the budget, taking into account:
1. In the event that the project is not approved for financing – the costs remain at the expense of the budget and no additional operations are taken;
2. In the event that the project is approved and the costs are permissible, they are reclassified in the Budget as a transfer according to p-f 62-02 and mirrored in SES according to 62-01
VAT 1 coincides with VAT 6
Accumulation by the beneficiary of amounts for supplies of services/assets and liabilities to suppliers/counterparts
| Entries are taken for costs and assets on APPROVED projects, regardless of how the supply amounts are financed | |
| Budget | SES |
| No accounting transactions are taken | DT s-ki 2,3,6,4511 / KT s-ki 4010, etc. |
| Making payments on behalf of the budget directly from a bank budget account | |
| Budget | SES |
| DT 7532 DT 7534 DT 7535 KT 5001, 5013, 7500 §62-02 (-) §95-07, 96-07, 66-00(+) |
DT s-ki gr. 40 etc./KT 7522, 7524,7525 §§ expenses §62-01 (+) In the final article 104 §76-00,77-00 |
| In the cases under Art. 104 para. 1 t4 of the ZPF, account 4624 is applied instead of 7534 and §76-00 for the budgets of the municipalities |
In the cases under Art. 104 para. 1 item 4 of the ZPF for the budgets of the municipalities, account 4614 for item 4 and 4624 for item 5 is applied instead of account 7524; |
| Reimbursement of advance funding when provided in the form of payments directly from the budget to the relevant suppliers | |
| Budget | SES |
| DT 5001(5013) /KT 7532, 7534, 7535 up to the amount of advance payments from the budget /KT 4682, 4684, 4685 for the amount above the financed amount from the budget, if the transfer is greater §95-07, 96-07(- ) §88-03(+) 62-02(+) |
DT 7522, 7524, 7525 for the amount advanced from the budget DT 4682, 684, 4685 for the amount above the financed amount from the budget /KT 747, 748, 7532 for the reduced amount §88-03(-), 62-01 §63-01 ( +) |
| Budget | SES |
| NO BUDGET ENTRIES TAKEN | DT 9800/KT 9200 incurred commitment for costs |
| DT 9801/KT 9803 incurred commitment for expenses with immediate implementation | |
| DT 9804/KT 9200, DT 9200/KT 9804 when transferring commitments within the framework of the first-level assignee | |
| 9805 similar to 9804 is used when transferring to other budgetary organizations; | |
| 9806,9808 analogous to 9804 accounting operations | |
| 9809 – cancellation of commitments as a result of termination of the commitment | |
| When issuing an invoice or debit note from a supplier, the operation is taken: | |
| DT 9989/ KT 9860 | |
| When issuing a credit note, the operation: DT 9860/KT 9989 is taken | |
| Off-balance sheet reporting to reflect national and other co-financing | |
| Budget | SES |
| ACCOUNTING TRANSACTIONS ARE NOT ACCEPTED | DT 9989/KT gr. 994 with the corresponding amount of financing in the total amount of expenses, regardless of how the payments have been financed to date |
| 9940 ineligible expenses on account of the beneficiary | |
| 9941 national co-financing | |
| 9944 EU account financing | |
| 9945 financing at the expense of international organizations…… | |
| 9949 financing of expenses at the expense of the beneficiary, which appears outside or in addition to the national co-financing. | |
| Project costs before the project is approved | |
| Budget | SES |
| They are reported in the BUDGET on a general basis as budget expenses on an accrued and cash basis on a general basis: balance sheet and off-balance sheet reporting. | No recording |
| Entries under group 994 for disapproved | |
| projects are not made; | |
| After the approval of the project, the expenses incurred for the project, which are ALLOWABLE, are transferred to the SES. The transfer takes place both on the balance sheet and behind the balance sheet entries | |
Until 2016, enterprises from the budget sector did not charge depreciation. With VAT 5/2016, the charging of depreciation was introduced in the budget sector. I am attaching a sample from VAT 5/2016
T.15 The basis for separate reporting in three reporting groups (business areas) also applies to the calculation of depreciation, i.e. the depreciation expense is charged in the reporting group (business area) where the asset is positioned on the date of starting the depreciation charge.
T.16 Depreciation is not charged in reporting group (business area) “Accounts for funds from the European Union” (EU).
SES is a financial and legal form of public finances, which covers only the financing and implementation of projects under European Union programs, as well as under other international treaties and programs to which the provision of Art. 8, para. 4 of the ZPF. Therefore, in the SES, the reporting of non-financial fixed assets, the object of the respective projects, is limited to the processes of their acquisition, temporary storage and distribution/transfer. Their permanent registration (after completion of the acquisition process) and the accrual of depreciation (as an accounting expression of the consumption of these assets) are reflected only in the BUDGET and Other accounts and activities (DSD).
T.17 For the purposes of implementing this instruction, the transfer in the system of the first-level disposer/TVU/BAN from SES to BUDGET and DSD of assets acquired through SES can be carried out (through accounts 7601 and 7603) after the process of acquiring the assets in question has been completed through any of the following approaches (different approaches may be applied for different assets and projects as justified in the particular circumstances):
a) upon acquisition of each individual asset;
b) periodically – monthly or quarterly – for all assets acquired for this period through SES;
c) on the basis of another approach (for example, at the completion of a project or a relatively separate stage of the project), provided that the accrual of depreciation for the asset begins no later than three months from the month/quarter in which the accrual of depreciation would start , if the asset was directly acquired in BUDGET or DSD.
8. Letter 91-00-21 of 24.01.2020 – Additional instructions on the application of Art. 159-161 of the ZPF in the reporting for the SES of the National Insurance Institute and the National Health Insurance Fund and the reflection in the reporting of the NRA for the accounts for foreign funds of operations on the accrual and transfer from the National Insurance Institute, the National Insurance Fund and the central budget of contributions to the National Health Insurance Fund
From the title of the letter, it is clear that it it does not apply to all budgetary organizations. The letter is on the website of the Ministry of Finance: https://www.minfin.bg/bg/1039
9. Reporting of SES through “Budget reporting model” built on the basis of Scepter-I
In the budget model for SES reporting, all the requirements of the MoF for this type of reporting are taken into account. Each of the areas is identified in a separate turnover sheet, as well as each of the projects. Since accountability requires parallel operations, automated transfers from one area to the other are provided in the model. The budget model of Scepter-I built by IT specialists and methodologists of Adasoft OOD is intended for each of the projects to have both an independent turnover sheet and a cash report for the entire reporting period, as well as complete traceability of transactions for the entire project period. The individual reports of the projects are part of the general reports of SES and are part of the summary report of the whole organization.
https://www.ada-soft.bg/bg/mproducts/forbudget/budgetaccounting2
The material was prepared by: Eleonora Bilbileva, eng.
