Management of finance is the process of influence

Management of finance is the process of influence on financial and adjacent economic and social systems with the purpose of their perfection and development. Thus the methods of purposeful influence on object for achievement of necessary result are used. In a financial system the management is carried out through the financial mechanism with the help of its methods, levers, stimulus and sanctions. Distinguish strategic and operative management of finance.

Principles of management of finance In a basis of management of finance the following principles lay: democratism in management; the political approach to financial questions; an optimal combination of economic and administrative methods in management; scientific character of management; centralized coordination , branch and territorial management; the responsibility in management; continuity of the economic decisions

Strategic management of finance is assigned by the Constitution of Republic of Kazakhstan to the supreme bodies of state authority and managements: Parlament, Apparat of the President, Government, The Ministry of Finance, The Ministry of Economic Development and Trade. Public finance are managed by the state authorized body – The Ministry of Finance •

The Ministry of Finance • The Ministry of Finance of Republic of Kazakhstan is the central executive body of Republic of Kazakhstan carrying out a management and interbranch coordination in sphere of forecasting indicators of the state budget forming for the medium-term period and the project of the republican budget for corresponding fiscal year; of execution and control of execution of the state budget, management, account and control of use of a state ownership, control of realization of procedures of bankruptcy and non judicial procedure of liquidation of the insolvent debtor, regulation of system of book keeping and audit of financial reporting.

CONTENS OF MF The central office of the Ministry of Finance include: Minister, Executive Secretary of the Ministry, Vice. Minister, Adviser to the Minister. Committees: exchequers, tax, financial control and state purchases; the customs control; on job with insolvent debtors; state property and privatization, financial monitoring. Departments The departments and committees consist of managements, and last – from departments

The local financial bodies include regional, urban, regional financial managements and departments. They perform a job on operative management of finance, that is borrow by forecasting, planning, drawing up and execution of the local budgets, revealing of insideeconomic reserves and research of economy of resources in all parts of an economic complex and welfare sphere, carry out financing and supervise financial activity of economic bodies, financial bodies are in submission of local administration

Tax service The major functions on mobilization of incomes of the state are carried out by a tax service. The tax service consists of Tax committee of Republic of Kazakhstan and tax departments (committees) of areas, cities, areas.

Tax committee of the MF The Tax committee of the MF of R is department authorized to provide the tax control of execution of tax obligations to the state and also which is carrying out according to the legislation RK management and interbranch coordination in sphere of maintenance of receipts of taxes and other obligatory payments in the budget, completeness and timeliness of transfer of obligatory pension payments. Tax committees regions, cities, districts are subdivided with similar functions or coadministration of an apropriate level.

Committee of customs control The committee of customs control, carries out functions on protection of economic interests of Republic of Kazakhstan, in foreign trade activities, realization of customs policy, through bodies of customs service organizes collection of customs duties and payments making a significant share of financial resources of the state. Composition of the customs authorities include regional customs offices, customs offices

Management of finance enterprises and organizations The management of finance of branches of a national economy is carried out by financial managements and departments of the ministries, departments, companies, joint stock companies, financial departments and financial services of firms enterprises and organizations. Finance of public organizations is operated by financial departments or group of these organizations.

Financial planning • The content of financial planning is represented as beforehand determined opportunity of mаneuvring by economic processes of formation, distribution both redistribution and accumulation of money incomes by the economic subjects and on this basis, formation and use centralized and decentralizated of finance resources.

Object and purpose of financial planning Direct object of financial planning is forma-tion and distribution of incomes and accumulation, formation and use of centralized and decentralized funds of money resources. The purpose of financial planning is the achievement of proportionality and equation of development of economic subjects, systems on the basis of optimal conformity mobilized and used financial resources to financial material elements of reproduction.

Tasks of financial planning 1) definition of sources of formation of financial resources and their general size; 2) establishment of optimal proportions of distribution of means between centralized and decentralized structures, branches of a national economy and by administrativeterritorial units; 3) definition of a concrete direction of use of resources and creation of necessary reserves.

Forecast and Planning • The forecast is a probable judgement about a condition of any phenomenon in the future on the basis of special scientific research • The plan is a system of interconnected, directed on achievement of the uniform purpose of the tasks determining the order, terms and sequence of realization of actions or measures. Planning is the process of covering actual development of the plan, organization of its performance, that is recommendatory planning

Principles and methods of financial planning Major principles of financial planning: a combination of centralized and decentralized approaches, unity, continuity. Methods : 1. The settlement-analytical method. 2. The method of expert estimations. 3. The normative method. 4. The balance method. 5. Programme-target method. 6. Economic-mathematical methods

The system of financial plans • Primary financial plans • consolidated financial plans • annual, intermediate term (three, five years) and perspective financial plans • strategic, current, operative financial plans • sectoral (departmental) financial plans

Current planning of business entities • plan of revenues and earnings • deductions and spending plan • a plan of interaction organization with a budget (with a higher authorities) • the credit plan • individual plans of financing (for the organizations and establishments of noncommercial kinds of activity Budgeting - is the process of drawing up, making the company's budget and subsequent control over its execution

Financial parameters – scheduled, accounting or settlement given, describing various parties of activity connected with formation and use of money incomes and accumulation of enterprises and organizations, branches and national economy as a whole. Expressed in absolute and relative (norms) sizes

Financial right The financial right is a set of legal norms regulating the financial relations, which arise during formation, distribution and use of financial resources necessary for realization of tasks of the state and other economic subjects at the appropriate stage of development of a society: the budget right, tax right, economic right, the currency and insurance legislation, bank right, legal regulation of the state credit, money circulation

Financial-legal norms • Initial primary elements of the right, that is accepted by the establishing body and supplied by measures of state compulsion the strictly certain rules of behaviour in the financial relations

Methods of financial-legal regulation Imperative method: imperious instruction to one participants of financial relations on the part of others, the method of compulsion, indisputable penalty, financial sanctions. Dispositive method (between the enterprises and organizations) Methods of financial activity of the state: methods of obligatory and voluntary payments financing, crediting, noncash and cash accounts by money resources

Financial control • Financial control represents specific activity directed on check validity of cost distribution of a total public product on the appropriate funds of money resources and their expenditures on definite purposes; it is carried out in the money form. Object is the process of formation of incomes and accumulation, creation and use of financial resources

The classification of financial control • kinds (depending on the subjects (bodies or organizations which carry out control) – Nationwide (State, Departmental), Public • forms (depending on time of realization the financial control)- preliminary, current and subsequent ; • methods (depending on the techniques or methods conducting)- revisions, check, inspections, consideration of financial plans, applications, reports

State financial control • State financial control is subdivided into: • 1) internal and external depending on a body, which conducts it; • 2) held on a republican and local level of state management depending on the appropriate level of the budget.

The types and kinds of State financial control Types: 1) control on conformity 2) control of the financial reporting 3) control of efficiency Kinds: 1) complex control 2) thematic 3) the counter control 4) joint control 5) the concurrency

Bodies of control The bodies which are carrying out the nation-wide control: the Ministry of Finance, Ministry Economic development, National bank The bodies of the state control: 1) Accounting Committee on Control of Execution of the Republican Budget; 2) Inspection commissions of regions, cities of republican status, capital; 3) Committee on financial control and state purchases of the Ministry of finance; 4) service of the internal control of the central state bodies; 5) service of the internal control of local executive bodies of area, city of republican meaning, capital.

The departmental financial control is carried out with the ministries and department of republic concerning the enterprises, subordinated by it, organizations and establishments The inside- departmental control is carried out by structural divisions of ente-rprises and organizations

The auditing control The check of a condition of financial-economic activity on the basis of the contracts concluded by independent auditing firm, independent owner of the enterprise, company, bank, insurance company The classification of auditing control: external internal