Academic journal article Economics, Management and Financial Markets

The Role of Accounting in Exercising the State Treasury Functions

Academic journal article Economics, Management and Financial Markets

The Role of Accounting in Exercising the State Treasury Functions

Article excerpt


The accounting of the State Treasury, having a special section both in the Accounting Law and in the current regulations regarding the organization and management of public institutions, as well as the special regulations governing the accounting organization in the Treasury became a basic component of the general accounting and of the public sector, in particular (Belean et al., 2007).

The accounting of the State Treasury is that part of general accounting that ensures highlighting the collections and payment operations related to public funds, assesses the obligations of taxpayers, reflects the differences in outstanding obligations as well as the responsibility of authorizing officers on the disbursement of public funds, being mandatory for all public bodies, territorial communities, public national and local institutions. For public accounting Vincent Raude and Claude Pagat retain a few definitions: a common one, a technical one and an administrative one. Thus, the usual definition is formulated as "the set of rules applicable to the management of government revenue," the technical one "regulations for the presentation of public accounts" and the administrative one considers the public tasks and it is defined as "The regulations of public accounting are both: regulations for the presentation of the accounts and regulations for organizing the public accountants' services."

The shortcomings of these definitions would be that the usual definition concerns only the state revenue and has no legal foundation, the technical one is too limited and the administrative one does not refer to authorizing expenditures. Finally, the authors to whom we have referred propose, for public accounting, the following definition that would express most accurately its functions, namely: "The regulations of public accounting have the task to determine the obligations and responsibilities of the authorizing public expenditures, of the authorizing officers for public revenue and of the public accountants" (Belean et al., 2007: 214). This definition gives the public accounting regulations a legal and technical outline, and therein includes the duties and responsibilities, both for the public accountants and for the authorizing officers.

2.The Accounting of the State Treasury - Part of the Public Accounting

The accounting of the State Treasury circumscribes to public accounting, and compared to the accounting of public institutions, which highlights the management and strict movement of the assets of the unit concerned, the Treasury accounting, by scope, synthesis, concentration and centralization of information it produces, creates a coherent and comprehensive image, at county and national level, over the movement of public funds. The Ministry of Finance is authorized to organize the accounting of the public finances Treasury regarding the cash execution of the state budget, local budgets, the budget of the state social insurance and the use of extra budgetary means and special funds, the management of domestic and external debt, as well as other financial operations carried out according to law. The Treasury Accounting also provides records of all deposits placed, state loans, their utilization and reimbursement, related interest as well as the investments made, and of any other financial operations.

The information resulting from the Treasury accounting is used for analysis, comparisons and decisions of macro and micro economic levels in order to stimulate or inhibit the behavior of economic subjects.

Although the accounting of the public sector and of the Treasury in particular, is organized based on plans for separate accounts with features both in the terms of accounts structure and their functioning, at the basis of the State Treasury there are accounting rules and norms, common to those of general accounting, namely (Raude and Pagat, 1991):

-by using models of accounting records and common forms concerning the financial and accounting activities;

-the models of balance sheets, as well as the general chart of accounts for public institutions, are determined by the same body, namely the Ministry of Finance. …

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