Transfer of property within the public sector: accounting options
Current regulatory legal acts do not establish a detailed procedure for organizing accounting when accepting and transferring non-financial assets between public sector organizations. Therefore, in practice, such operations raise many questions and problems.
Let's consider the options for decisions that an institution can make based on the conditions under which the property is transferred.
Free admission
The procedure for reflecting in the accounting records of budgetary (autonomous) institutions transactions on the gratuitous receipt of non-financial assets from various public sector organizations depends solely on the category of incoming property.
The value of non-financial assets that institutions do not have the right to dispose of independently (real estate and especially valuable movable property) is credited to account 4,210,06,000 “Settlements with the founder.” When other property is received, its value is taken into account as an increase in the financial result on the credit of account 4(2) 401 10 180 “Other income”. If depreciation was accrued on incoming objects, the corresponding amounts should be reflected in the debit of accounts 4 210 06 000, 4(2) 401 10 180.
The applied accounting methodology assumes that movable property upon its receipt should immediately be classified as either particularly valuable or otherwise.
Current legislation does not contain restrictions for classifying movable property acquired with funds from income-generating activities as particularly valuable (letter of the Ministry of Finance of Russia dated November 18, 2011 No. 02-03-10/5026).
Lists of especially valuable movable property of institutions are determined by their founders (clause 12 of article 9.2 of the Federal Law of January 12, 1996 No. 7-FZ “On Non-Profit Organizations”, hereinafter referred to as Law No. 7-FZ; part 3.1 of Article 3 of the Federal Law of 03.11 .2006 No. 174-FZ “On Autonomous Institutions”, hereinafter referred to as Law No. 174-FZ).
Thus, until movable property is included in the appropriate list in the prescribed manner, the institution has no formal grounds for recording received objects in analytical group 20 “Especially valuable movable property of the institution.”
Accordingly, if on the day the right of operational management to the received movable property arises, the institution does not have the founder’s decision to include it in the composition of especially valuable property, the accounting reflects the receipt of other movable property and the transferred amounts of depreciation accrued on it in correspondence with account 4(2) 401 10 180.
After receipt of documents confirming the inclusion by the founder of certain objects in the composition of especially valuable movable property, the change in the category of property is reflected in the debit and credit of account 100 00 “Non-financial assets” in the context of the corresponding analytical accounts:
- transfer of fixed assets at book value
Debit 410120 310
Credit 410130 310;
- transfer of accrued depreciation amount
Debit 4,104 30,410
Credit 4,104 20,410.
At the same time, the residual value of the property can be recorded as the debit of account 4,401 10,180 and the credit of account 4,210,06,000.
For correspondence of accounts in relation to property received as part of activities to fulfill state (municipal) tasks, as well as within the framework of income-generating activities, see the full version of the article.
Free transfer
When transferring property to any public sector organization, a budgetary (autonomous) institution must:
- obtain from the founder documents confirming the approval of the property transfer operation (if real estate and especially valuable movable property are being transferred);
- agree with the receiving party on the very possibility of the transfer, as well as its timing.
Property can be transferred by an institution not on its own initiative, but in accordance with the plan (order) of the authorized government body exercising the rights of the owner to allocate property to public sector organizations.
The procedure for reflecting in the accounting records of a budgetary (autonomous) institution transactions on the gratuitous transfer of non-financial assets to various public sector organizations also depends only on the category of the transferred property.
The final decision on the procedure for recording transactions related to the gratuitous receipt (transfer) of non-financial assets between the institution and other public sector organizations is made by the founder.
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What it is?
The right to operational management of real estate is a limited right for institutions and state-owned enterprises to dispose of the property assigned to them in accordance with the law or with the consent of the owner.
That is, if an organization is assigned a building, land, equipment or a car, it does not have the right to dispose of them at its own discretion.
The institution uses the assigned real estate free of charge . This scheme most often works:
- schools;
- kindergartens;
- palaces of culture;
- hospitals;
- housing and communal services enterprises, etc.
Agreement for the right to operational property management
Agreement for the right to operational property management No.
g.
"" g.
in a person acting on the basis, hereinafter referred to as the “
Administration
”, on the one hand, and in a person acting on the basis, hereinafter referred to as the “
Institution
”, on the other hand, hereinafter referred to as the “
Parties
”, have concluded this agreement, hereinafter "Agreement" as follows:
SUBJECT OF THE AGREEMENT
1.1. Based on certificate No. dated "" of the year, the Administration transfers and the Institution accepts under this Agreement property (non-residential premises, building, structure) with a total area of sq.m., located at the address: under the right of operational management. For use under: . The characteristics of the premises are indicated in the extract from the technical passport of the BTI No. dated "" year, which is an integral part of this Agreement.
DURATION OF THE CONTRACT
2.1. The validity period of the Agreement for the right of operational management is established from "" year to "" year.
2.2. This Agreement comes into force from the moment of its registration in the manner prescribed by law.
PROCEDURE FOR TRANSFER OF PROPERTY
3.1. The transfer of property to operational management is carried out according to the Acceptance and Transfer Certificate. The act of transfer of premises is drawn up in accordance with current regulatory documents, registered in the manner prescribed by law, certified by the parties and stored in the file for execution of the Agreement.
3.2. This non-residential premises is taken into account on the balance sheet of the Institution.
RIGHTS AND OBLIGATIONS OF THE PARTIES
4.1. Rights and obligations of the Administration.
4.1.1. The administration has the right to: control the intended use and safety of the property transferred to the operational management of the Institution.
4.1.2. The administration has the right to seize excess unused or improperly used property and dispose of it at its own discretion.
4.1.3. In the event of an unreasonable refusal by the owner of city property (or the previous balance holder) to transfer non-residential premises to the balance sheet of the new owner, the Administration takes measures to implement it in accordance with current legislation.
4.2. Rights and obligations of the Institution.
4.2.1. The institution has the right:
- own, manage and use the property provided to him within the limits outlined by the requirements of the law, the goals of his activities, the tasks of the owner and the purpose of the property;
- contact GorBTI to prepare a technical passport.
4.2.2. The institution is obliged:
- maintain non-residential premises in accordance with the rules and regulations of technical operation;
- carry out major and current repairs, re-equipment of premises related to the activities of the Institution, at his own expense, within the time frame established by the territorial administration or municipal district (but not more than 2 years) in accordance with the documentation developed in a specialized design organization;
- not to make any redevelopment or re-equipment of the premises related to the activities of the Institution, without the written permission of the Administration;
- ensure unimpeded access to non-residential premises for representatives of executive authorities and administrative bodies for the purpose of checking documentation and monitoring the use of premises;
- not to take actions that impede the inventory of non-residential premises transferred under this Agreement;
An institution does not have the right to alienate or otherwise dispose of the property assigned to it, or to:
- sale, gratuitous transfer to another person, lease;
- make a contribution to the authorized (share) capital of business companies and partnerships;
- pledge property;
- carry out other actions that may entail the alienation of state property;
4.2.3. The institution does not have the right to transfer operational management rights to other legal entities and (or) individuals.
EARLY TERMINATION OF THE AGREEMENT
5. The contract may be terminated:
- by agreement of the parties;
- upon liquidation or reorganization of the parties in accordance with current legislation;
Non-residential premises may be seized from the user in accordance with the established procedure in case of violations of the conditions of operation and use, untimely payments or untimely development (repairs, in accordance with warranty obligations).
OTHER CONDITIONS
6.1. This Agreement is concluded in two copies (appropriately bound, numbered and certified by the Administration), one is kept by the Institution, the second by the Administration.
6.2. If the details change, the parties are required to notify each other in writing by registered mail.
6.3. The placement of advertising on the outside of premises under operational management must be approved in accordance with the established procedure.
6.4. The inclusion of any other additional property requirements in the Agreement, in addition to those included in the administrative documents, is not permitted.
6.5. Disputes arising under the Agreement are considered in accordance with current legislation.
6.6. From the moment this Agreement comes into force, previous documents on the right of ownership of property and the conditions for their conclusion are considered invalid. Other changes to the Agreement are made only by an additional agreement signed by the parties to the Agreement.
LEGAL ADDRESSES AND BANK DETAILS OF THE PARTIES
Administration
- Legal address:
- Mailing address:
- Phone fax:
- INN/KPP:
- Checking account:
- Bank:
- Correspondent account:
- BIC:
- Signature:
Establishment
- Legal address:
- Mailing address:
- Phone fax:
- INN/KPP:
- Checking account:
- Bank:
- Correspondent account:
- BIC:
- Signature:
The role of property management authorities in the return procedure.
Such bodies are the Federal Agency for State Property Management, an authorized body for managing state property of a constituent entity of the Russian Federation (for example, a regional property management department), a local government body vested with powers in the field of municipal property management (for example, a city district property management committee).
In particular, according to clause 5.22 of Regulation No. 432[3], the Federal Property Management Agency is vested with the authority to seize, in the prescribed manner, excess, unused or misused property assigned to federal institutions with the right of operational management. It is this department that usually acts as a party in disputes about the return of property to the treasury. By virtue of clause 4 of Regulation No. 432, the agency carries out its activities directly and through its territorial bodies and subordinate organizations.
Based on the powers delegated to them, the Federal Property Management Agency and other property management bodies have special legal capacity, their activities are aimed at achieving the goals and objectives established by law, in particular at ensuring effective management of state property. In this regard, the right granted by law to seize property not used by the institution is at the same time the responsibility of the property management body (Resolution of the Fourteenth Arbitration Court of Appeal dated March 3, 2017 in case No. A13-12753/2016).
An analysis of court cases indicates that the Federal Property Management Agency, as well as regional property management bodies, are avoiding accepting property into the treasury. In particular, this is due to the tasks assigned to this department in the state program of the Russian Federation “Federal Property Management”[4]. In pursuance of this, the Federal Property Management Agency is working to minimize the objects that make up the state treasury of the Russian Federation. As stated in the passport of the state program, the urgent task remains to optimize the composition of the property of the state treasury of the Russian Federation, which should be used exclusively to ensure state functions. Reducing the number of objects that make up the state treasury (federal property is located in it temporarily) is one of the key tasks of subprogram 1 of the named state program.
Registration
The legal ability to use real estate for an enterprise or institution arises only after appropriate state registration.
To go through this procedure, you need to draw up an appropriate agreement and collect a package of documents.
Agreement
In order to transfer state or municipal real estate to the operational management of the relevant body, you need to obtain the appropriate permission and order from the head of the municipality or government agency. After which you can conclude an agreement.
A written agreement on the basis of which one party transfers property for management to the other party is concluded by government institutions (or enterprises) and the owner of the property (state, municipality or private individual).
The right holder, the legal representative of the owner of the premises, a notary or a legal entity that has received the right of operational management has the right to conclude an agreement.
Real estate becomes on the balance sheet of a legal entity, taxes and other fees must be paid for it. The document must indicate:
- subject of the contract;
- duration of the contract;
- procedure for transfer of property;
- data of both parties;
- information about property;
- conditions for making changes and additions to the contract;
- conditions for early termination of the contract;
- details and signatures of the parties, sealed.
We do not recommend completing the documents yourself. Save time - contact our lawyers by phone:
8 (800) 302-76-94
If the cadastral value of the property has not been determined, it is necessary to conduct a real estate appraisal.
Sample contracts can be found freely available on the Internet and you can draw it up yourself or seek help from qualified lawyers.
What documents should be attached to the contract?
Along with the agreement, the following package of documents must be submitted to the Unified State Register of Real Estate Rights Registration.
- application for registration;
- extract from the Unified State Register of Legal Entities;
- constituent documents of the organization (certificates of registration, assignment of statistics codes to the institution, etc.);
- passports of representatives of the parties;
- deed of transfer;
- cadastral and technical passports;
- a document confirming the assignment of the allocated facility to a specific enterprise;
- a certified copy of the order authorizing the transfer of property to operational management;
- a certificate stating that the property is no longer on the balance sheet of the municipality or owner.
Cost and terms of service provision
The registration service is free . The period for making a decision on granting rights is 7 working days.
Real estate management is the implementation of a set of operations related to the operation of buildings and structures. Read our articles about managing apartment buildings, as well as who to transfer real estate to trust management and how to do it, what are the distinctive features of managing residential real estate at the operational stage and legislative norms.
