Institutional control of the financial and business operations of state institutions: practical data in the area of public healthcare and trends in its development

Subject. The organisational and methodological aspects of the institutional control of financial and business operations and other types of institutional control carried out by executive authorities in relation to their subordinate institutions. Purpose. The study aims to determine the position of the institutional control of financial and business operations within the system of financial control of the Russian Federation, to study the existing organisational models of certain types of institutional control using the example of the public healthcare system of the Voronezh Region, to identify issues of concern, and to offer possible solutions. Method. The study used data from the consolidated budget of the Russian Federation and the budgets of state extra-budgetary funds of the Russian Federation for 2020, the consolidated budget of state medical organisations of the Voronezh Region, and other financial indicators of the healthcare system in the Voronezh Region for the same period. The methods of the investigation included analysis, observation, generalisation, comparison, grouping, classification, etc. Results. The organisational structure of control (supervision) in the field of healthcare and the financial control of the public healthcare sector was developed and the powers and functions of the executive authorities were investigated. The analysis of the main types of control revealed a relationship between external and internal control as elements of a unified system. The paper provides examples of typical violations identified as a result of the institutional control of state medical organisations in the Voronezh Region. Conclusions. The hypothesis was confirmed that it is necessary to implement institutional control of the financial and business operations as part of the system of state (municipal) management by using financial control tools with due consideration for industry specifics.

Issues related to the regulation of the content of the audit reports

Introduction. Currently, the procedure for providing audit services to public interest entities is being reformed. The main goal of these reforms is to provide more effective protection of legally protected values associated with the activities of such economic entities. The changes also apply to the content of audit reports on their financial statements. The process of revising the relevant regulatory document is still ongoing. Not all of the revised provisions are consistent with each other and the International Standards on Auditing. This will complicate their practical application by auditors and affect the informational value and public utility of audit reports. In addition, since 2017, when the modern format for audit reports was adopted, its application has revealed shortcomings in terms of its content and terminology. This explains the need to develop proposals to eliminate these “sticking points” when regulating the content of the auditor's report. Purpose. The development of recommendations to harmonise the provisions of laws and regulations governing the content of audit reports and federal state control (supervision) of the activities of audit organisations providing services to public interest entities with the International Auditing Standards in order to increase the information value of audit reports. Methods. The research results were obtained using analysis, synthesis, analogy, historical and logical approaches, classification, etc. Results. It was proposed to introduce changes to the text of the Federal Law “On Auditing Activities” of 30.12.2008 No. 307-FZ in order to eliminate contradictions in its provisions regarding the content of audit reports, to ensure their consistency with the International Standards on Auditing and laws and regulations in the field of controlling the activities of audit organisations that provide audit services to public interest entities. The content of the requirements of the International Standards on Auditing regarding the content of audit reports was clarified as well as their official translation into Russian to make the documents more informative and easy to use. Conclusions. The proposed clarifications can be taken into account when making changes to the texts of the Federal Law “On Auditing Activities”, the original version of the International Standards on Auditing and its official translation. They can also be further discussed by specialists.

Cooperation and accounting policies of economic entities as tools for the development of a green economy

Subject. Scientific and technological progress, mining disregarding environmental standards, throw-away economy, and other similar human activities have led to a new economic objective of environmental protection, waste disposal, and recycling. Any qualitative solution to an economic problem requires a quantitative measurement to calculate its scale and create political and organisational measures to eliminate it. State regulation and the support of a green economy means providing for and controlling the processes of enterprise cooperation aimed at waste optimisation and disposal as well as controlling waste recycling. Organisational measures include procedures aimed at the formation of cooperative ties. They also require procedures that form an accounting and analytic section, i.e. procedures for the acknowledgement, assessment, and disclosure of information about waste in financial statements. A realistic estimate and the control of waste as well as liquidation obligations related to its disposal will provide reliable information about the scale of environmental behaviour of each economic entity. Objectives. The study includes identifying tools for the development of a green economy. It proposes methods for environmental cooperation within the framework of waste-free and lean production, the development of conditions for the acknowledgement and correction of estimates of recyclable and non-recyclable waste, and methods for the efficient use of recyclable waste. Methods. The work involved the observation and generalisation of empirical data regarding the economic activities of economic entities and the study of scientific economic literature. It also used methods for the theoretical analysis of provisions of regulatory documents regarding the state control of activities in the field of environmental protection and waste management. Conclusions. The paper presents a study of different types of effective environmental behaviour of economic entities. Such behaviour requires comprehensive measures aimed at using cooperative relations between economic entities and improving the accounting policies of participants of economic relations to reduce waste and to meet liquidation obligations for waste disposal and the remediation of the environment. The proposed tools for the development of a green economy, ways of acknowledging environmental costs, their estimation, control, and saving the environment will make it possible to effectively use limited natural resources.

Involvement of major Russian corporations with the fulfilment of the UN's Sustainable Development Goals: assessment of current achievements and development opportunities

Subject. Every 8-10 years, the global economy faces financial crises that slow down and drive back its development. The UN's Sustainable Development Goals were announced as one of the ways to smooth the cycles. Most countries are actively involved in the fulfilment of this global project. An important precondition for the transition to a sustainable development path is the participation of the corporate sector. However, under capitalism, solving such a problem is not an easy task since many items within the UN's Sustainable Development Goals are not profitable for corporations and do not contribute directly to capitalisation. In this regard, the study and search for opportunities to introduce the UN's Sustainable Development Goals into corporate practices is a very important issue which corresponds to the modern global agenda of economic development. The purpose of the study is to analyse the involvement of major Russian corporations with the achievement of the UN's Sustainable Development Goals using open data based on corporate reports. The methods of the study included the analysis and synthesis of publicly reported data, grouping and expert assessment of published information related to the topic of the UN's SDGs in the annual reports of Russian corporations. Conclusions. The study revealed positive dynamics related to the involvement of companies with the achievement of the UN's SDGs. It is more pronounced in the areas where the UN's SDGs intersect the economic interests of corporations. It was shown that there is no uniform form for information disclosure, significant differences in the volume and quality of information presented in the companies’ reporting, and no common understanding of a number of goals by corporations. According to the results, most of the work aimed at fulfilling the UN's SDGs is carried out by Russian export companies with a predominance of private investors within the structure of business ownership. State-owned companies and companies focused on the domestic market are lagging behind in their development in this direction by all indications. As a recommendation, it was proposed to develop public reporting formats and better disclose the processes related to the fulfilment of the UN's SDGs.

Issues and ways of improving the certification of accounting and analytics staff in state-funded institutions

Subject. In recent years, there has been a powerful reinforcement of the requirements for the quality of accounting and the reliability of the data presented in the financial statements of institutions within the public sector. This led to more rigorous requirements for the competence of accounting and analytics staff. An analysis of the economic literature showed that the procedure for the certification of accounting employees and the assessment of their job functions in state-funded institutions have not been thoroughly studied. Purpose. The authors consider the certification of accounting employees in state-funded institutions as a tool to assess their job functions and the level of their professional competence. The article presents the results of testing methodological tools for the certification of accounting and analytics staff in a state-funded institution. Methods. The research objectives were solved using the methods of system analysis, content analysis, and sociological methods. The authors of the article summarised the results of previous studies and considered the regulations. The research involved the analysis of appeals to the State Labour Inspectorate regarding issues related to the certification of personnel. The authors identified the main reasons for such appeals and the types of violations of employees' rights during certifications. The work classifies the main methods for the certification of accounting and analytics staff and identifies their advantages and disadvantages. Results. The analysis of employees’ appeals to the State Labour Inspectorate showed that in many cases appeals related to the violation of employees' rights during the certification of personnel were caused by violations of the certification procedure. The research is a scientific novelty as it proposes methodological tools which are represented by a set of developed criteria and tests used to assess the job functions of those in accounting and analytics positions. The developed tools were tested in a state-funded institution in the Novosibirsk Region. Conclusions. The study confirmed the need for employee certification to assess their job functions and professional competence. Validation of the research results allowed making recommendations for upskilling employees and their professional retraining.

Development of the corporate social responsibility of industrial enterprises in the Voronezh Region: institutional and organisational aspects

Subject. The current decade has been recognised by the world community as “a decade of decisive actions” aimed at combating numerous social and environmental issues. Solving these problems is impossible without mobilising the efforts of the business community. In this regard, corporate social responsibility (CSR) becomes highly important as well as the issue of integrating its principles into business activities. Since the industrial sector is characterised by the most significant impact on the environment and the local community and involves substantial labour resources, the implementation of CSR by industrial enterprises is of particular interest. Purpose. An analysis and assessment of the prospects for the development of corporate social responsibility among industrial enterprises in the Voronezh Region. Methods. The study involved a quantitative strategy for collecting and analysing information. The empirical basis was data from a survey carried out at 30 industrial enterprises in the Voronezh Region. Results. The empirical study allowed shaping the big picture of how CSR is understood and implemented by industrial enterprises in the Voronezh Region in terms of: the composition of the main CSR programmes and addressees; international and national CSR standards used in the activities and the formation of internal institutions for the CSR development; the nature and forms of interaction between enterprises, the state, and non-profit organisations; and assessing the prospects and barriers to the development of CSR. Conclusions. The social responsibility of non-public regional industrial enterprises remains fragmentary. There is a gap between the actual CSR content, its understanding by the management personnel of enterprises, and the current implementation of social programmes in practice. All activities of industrial enterprises in the field of CSR continue their technical and technological processes or business processes. Enterprises pay little attention to non-production activities. Enterprises are not interested in disclosing information about their activities, reducing any adverse impact they have on the environment, contributing to the sustainability of the territories where they are located, and the formation of civil society. Businesses act as closed systems that exist outside society. In order to develop the CSR of regional industrial enterprises, a set of measures (financial and economic, organisational, informational, and educational) has been proposed, which ensures the relevance of the content of regional industrial policy.

Key aspects of the development of secondary vocational education: a case study of the Rostov Region

Introduction. Today, the effectiveness of the economic development of a region is determined by social and economic indicators, including an increase in the performance of works and the growth of employment, which in turn depend on the state of the education system in the region. Secondary vocational education is an important part of the education system, since it develops the key competences required in the region and provides the region’s economy with highly qualified human resources. Purpose. The purpose of our study was to determine and classify the indicators revealing the state of the secondary vocational education in the region by analysing the approaches to its formation within the IT environment of the region. The article substantiates the estimate of institutional and reproduction indicators of the secondary vocational education system in the Rostov Region. It also suggests a series of measures for providing the region’s economy with qualified professionals. Methodology. In our study, we used systems analysis and machine learning methods, and human capital theory. The database included statistical data regarding the social and economic performance of the Rostov Region in 2007-2017 published in a statistical digest “Regiony Rossii”, and the results of the Rosstat monitoring of the development of information society in the Russian Federation. Results. The article suggests a concept of a secondary vocational education system in the region taking into account the influence of the interrelated factors of the IT environment. The main development areas, including in the Rostov Region, are considered, and a classification of the indicators of the state of the secondary vocational education system in the region is suggested. The indicators are divided into two groups: institutional and reproduction indicators. Based on the statistical analysis and trend lines, we estimated these indicators for the Rostov Region and suggested a series of measures aimed at providing the region's economy with qualified human resources. Conclusions. The suggested development of the system of secondary vocational education should facilitate sustainable social and economic development of the region since it will help to provide the hi-tech industries of the region with an adequate number of qualified professionals.

Theoretical and methodological approaches to the design and introduction of net-centric information management systems at civil shipbuilding enterprises: terminology, principles, and implementation tools

Introduction: The long-term development of the Russian economy is intertwined with the formation of an effective industrial structure. This in turn involves the active development and introduction of technological innovations. In this regard, in order to enhance the competitive ability of the Russian civil shipbuilding industry in the domestic and international markets, it is necessary to introduce leading-edge technological innovations, including innovations concerning the accumulation and processing of data that ensure effective managerial decisions. Purpose. The purpose of our study was to develop methodological approaches to the design and introduction of a net-centric information management system at civil shipbuilding enterprises aimed at increasing the effectiveness of price formation. Methodology. The article considers the processes of the digital transformation of the Russian civil shipbuilding industry using the following scientific methods: analysis, synthesis, formalisation and finalizing, composition and decomposition, verification, and expert evaluation. Results. The study demonstrated that the digitalisation of the design, construction, and manufacturing processes is the key factor improving the performance of civil shipbuilding enterprises. It helps to ensure the required growth rate of production. Modern digital net-centric information management systems can significantly optimise the processes for the design, transfer, and approval of the cost calculations for a particular project between the customer, the project engineer, and the contractor. The article presents the key principles for the design of net-centric information management systems at civil shipbuilding enterprises (scalability, reliability, adaptability, and data unification). It also suggests the tools for their implementation, in particular a local module for the calculation of the production cost of a standard waterborne vessel. Conclusions. The digitalisation and automation of calculations based on net-centric information management systems allow for the orderly transmission of data flows, which, being processed and thoroughly analysed, serve as the basis for effective managerial decisions.

Methods for ensuring the reliable fulfilment of state defence orders

Introduction. The national security of the Russian Federation, both within the country and externally, is ensured by the development of its military-technical potential. The military-technical potential is viewed as an ability of the state to maintain the armed forces and to provide the army with modern and competitive military equipment. This is performed through state defence orders (SDOs). Taking into account both internal and external factors, it is impossible to fulfil SDOs without a reliable system of contract liabilities. To ensure proper fulfilment of SDOs, it is necessary to consider the following measures: 1) to retain all the liabilities of contracts for the duration of the contracts, i.e. the liabilities of the customer with regard to the financing of SDOs, and the liabilities of the contractor with regard to the production of the military equipment of high quality; 2) to prevent unauthorised use of the financing provided for the SDOs. Purpose. The purpose of our study was to analyse the factors preventing the fulfilment of SDOs and suggest measures for improving the system for managing SDOs and the economic security of defence industry enterprises. Methodology. In our study we used general scientific methods and specific economic analysis methods: systems analysis, time series analysis, modelling, and expert evaluation methods. The analysis was based on Russian and international sources, as well as the regulatory and legal framework concerning SDOs. Results. In our study, we listed and classified the factors preventing the fulfilment of SDOs, and suggested a SDO model in the form of a system of financial relations between entities. To ensure the fulfilment of SDOs, we suggest a series of measures to control the compliance of financial flows and the economic security of defence industry enterprises. Conclusions. The article presents a specific study of financial flows between the key participants of SDOs. The determined problems and suggested measures will help to reduce the risks and ensure the proper fulfilment of SDOs.

Common risk factors in the returns on digital assets: evidence from cryptocurrency market

Introduction. Digital financial assets are a relatively new phenomenon. More and more, they include virtual currencies, and in particular cryptocurrencies. Both regulators and financial market players are becoming increasingly interested in such assets. Cryptocurrencies have no intrinsic value, and this encourages scientific studies on the problem of price formation and risk management associated with cryptocurrency operations. Most papers on the problem lack a systematic ap-proach and do not provide solutions to a large number of fundamental issues. Purpose. The purpose of our study was to develop a method for the risk analysis of operations with digital financial assets, namely cryptocurrencies. Methodology. In our study, we used parametric methods of data analysis and ma-chine learning methods, description, analysis, synthesis, induction, deduction, comparison, and grouping method. The sample was accumulated between April 2013 and April 2021 and included cryptocurrencies with the market capitalization of over 1 million USD. Results. The study determined the common risk factors for the cryptocurrency market. The risk factors are presented as linear combinations of returns of subsets of cryptocurrencies with dynamically changing weight coefficients. The risk factors were formed based on the market information, which included the price of the cryptocurrency, the trading volume, and its market capitalization. Conclusions. The study demonstrated that the cryptocurrency market is suscepti-ble to market anomalies common to traditional financial asset markets. In addition to the risk factors based on the market capitalization of cryptocurrencies (the size) and their aggregate profitability (the momentum), the article presents statistically relevant risk factors which reflect the growth rate of the market capitalization and the level of illiquidity of cryptocurrencies. In order to explain the market anomalies and the arbitrary strategies based on them, the article presents several factor models of cryptocurrency price formation. These models can be used to develop an in-tegrated approach to the risks associated with operations with digital financial as-sets.