Budgetary Accounting for the Public Sector

The course will be taught in theoretical-practical classes, where the theoretical presentations (expository method) will always be accompanied by the illustration and resolution of practical exercises, questions and real-life examples of the application of the concepts, principles and other precepts of public budgetary accounting. In this way, expository-participatory teaching and learning methodologies will foster the relationship between teachers and students, encouraging the latter to participate in the discussion and identification of examples illustrating the theoretical content (participatory method). In addition, to make the lectures more appealing, a variety of audiovisual media will be used and students will be encouraged, individually or in groups, to carry out small pieces of research / consolidate knowledge during classes and/or outside of them (active method). To summarise, the teaching methodologies used are:

M1. Lectures – Concepts

M2. Participative – Discussion of cases and examples;

M3. Active – Cases solved by the students;

M4. Self-study – Preparation of individual assessment.

The main objective of this CU is to understand, apprehend and apply the Budgetary Accounting (BAC) system of public administrations.

Specific objectives:

– To provide solid training in public accounting (PA), particularly with regard to BAC;

– Identify the accounting standardisation process being pursued in the Portuguese public sector;

– To study and analyse NCP 26 – Accounting and Budgetary Reporting;

– Learn about the budget execution process, especially the revenue and expenditure budget execution phases.

In terms of skills and knowledge acquired, students should be able to:

– Understand the general concepts and specific accounting designations of the BAC;

– Interpret and apply the SNC-AP, particularly with regard to BAC;

– Carry out the accounting recording of budgetary operations, both revenue and expenditure.

I – Fundamental notions in the sphere of the State Budget

Budgetary concepts

The budget cycle

Public revenue and expenditure

Budget Classifiers

The importance of budget policy

LEO (Lei de Enquadramento Orçamental)

II – Standardization of Public Accounting in Portugal

Reform of the State’s Financial Administration (RAFE)

POCP and Sectorial Plans

The SNC-AP

III – International Public Sector Accounting Standards

IV – Budgetary Accounting

Framework of NCP 26 (Norma de Contabilidade e Relato Orçamental)

Recognition of the initial budget (revenue and expenditure)

Budgetary changes and modifications (revenue and expenditure)

Budgetary execution of expenditure

Budgetary execution of revenue

Operations with a bearing on future periods

Treasury operations

Restitutions

V – LCPA (Lei dos Compromissos e dos Pagamentos em Atraso)

VI – The end of the budget cycle

NAO