General information about the specifics of accounting for charitable aid can be found here.
Learn more about the pressing issue of accounting for grant funds in foreign currency here.
If a budgetary institution receives charitable aid as tangible assets for the implementation of targeted measures unrelated to its maintenance or core activities (such inflows are reflected in the estimate under revenue code 25020200), and these assets are transferred to other administrators or beneficiaries of budget funds, they are recognised in the accounts as inventories — assets for distribution, transfer or sale (Clause 5 of Section II of NP(S)BODS 123 “Inventories” approved by Order of the Ministry of Finance No. 1202 dated 12 October 2010) and recorded in sub-account 1815 “Assets for distribution, transfer, sale”.
In this case, the following accounting entries should be made:
|
No. |
Description of the transaction |
Correspondence of accounts |
|
|
Debit |
Credit |
||
|
3.9 |
Recording inventory received as humanitarian (charitable) aid, donation, non-refundable aid |
1815 “Assets for distribution, transfer, sale”, |
2117 “Other current accounts receivable”, 6211 “Settlements with suppliers and contractors”, 6415 “Settlements with other creditors” |
The write-off of inventories transferred to other institutions/enterprises should be reflected in the accounting records by making the following accounting entries:
|
No. |
Description of the transaction |
Correspondence of accounts |
|
|
Debit |
Credit |
||
|
3.16 |
Disposal of inventories in cases provided for by law (except for those received through intra-departmental transfer of inventories) |
8511 “Expenses for non-exchange transactions”, |
1815 “Assets for distribution, transfer, sale”, |
If a budgetary institution receives fixed assets as charitable aid in kind for further transfer, it must submit a Certificate of Receipt in Kind to the State Treasury Service by the end of the reporting month (for local budgets, the form is approved by Order of the Ministry of Finance No. 938 dated 23 August 2012, Annex 25 to Order No. 938). Amendments also need to be made to the budget in relation to the special fund.
