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IMPROVING INVENTORY ACCOUNTING AND INTERNAL
AUDIT IN BUDGET ORGANIZATIONS
Turmankulov Norpolat Sadullaevich
Tashkent City Department of the Ministry of Higher Education,
Science and Innovations of the Republic of Uzbekistan,
TDIU independent researcher
https://doi.org/10.5281/zenodo.16965083
ARTICLE INFO
ABSTRACT
Received: 11
th
August 2025
Accepted: 12
th
August 2025
Published: 27
th
August 2025
In the article, the main issues of documenting the
movement of goods and material reserves in budget
organizations were considered, the list of initial
accounting documents, accounting registers were
determined. Methodological aspects of documenting the
movement of goods and material reserves in budget
organizations are revealed. The practical aspects of
documenting the movement of goods and materials are
considered based on legal documents.
KEYWORDS
initial
accounting
documents,
accounting,
accounting registers, budget,
budget organization, inventory,
inventory, documentation.
Commodity and material reserves are an important factor in ensuring the activities of budget
organizations, requiring prompt, complete information about their existence and movement
in order to determine real needs. Since accounting involves documenting all economic
processes of the organization's economic activity, the issues of documenting such an asset
element as commodity and material reserves are very relevant. In budget organizations, each
economic transaction carried out with commodity and material reserves is documented. That
is, this can be exemplified by the cases of receipt and expenditure of commodity and material
reserves in organizations, their transfer from one place to another, and the change of
materially responsible persons. The purpose of documenting the movement of commodity
and material reserves in budget organizations is to ensure the correct reflection of commodity
and material reserves in the organization in the forms of internal control and financial
reporting [7].
Since the accuracy and reliability of accounting and financial reporting data is confirmed by a
mandatory inventory of assets and liabilities, it is also necessary to fully document the
movement of inventory in budget organizations. Because during the inventory process, along
with inventory, their documents are also fully checked. Therefore, the employees of the
accounting service of budget organizations and financially responsible persons must fully and
correctly reflect the movement of inventory in accounting documents, both from a legal and
methodological point of view. This also determines the relevance of the selected research
topic.
LITERATURE ANALYSIS AND METHODOLOGY
Within the framework of the research topic, the scientific works of domestic and foreign
economists were studied. The practical aspects of the research conducted by scientists were
also analyzed.
In the works of foreign economists I.P. Vorobyeva, A.L. Spesivtseva and G.A. Barysheva,
material reserves are defined as “part of the non-financial assets of a state institution
necessary for the performance of its social, managerial and other functions in accordance with
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its charter.” Scientists have classified material reserves and scientifically and
methodologically substantiated that the most important task of accounting policy in
budgetary organizations is to ensure the preservation and targeted use of material reserves.
Also, the primary documents and registers that serve as the basis for accounting for material
reserves are reflected in a table [4].
The procedure for recognizing material reserves, the methodology for their classification,
valuation, and documentation of business transactions on their movement were reflected in
the scientific research of OE Kachkova, TI Kryshtaleva, and MF Ovsiychuk.
The methods of receiving and writing off material reserves in budget organizations, their
composition, classification by groups and types of accounts, and the formation of their actual
cost according to the purchase method have also been covered in detail by scholars [5].
Among the economists of our country, M. Astanakulov studied the scientific and practical
aspects of accounting for material reserves in budget organizations. The composition of
material reserves, their reflection in accounting sub-accounts, analytical and synthetic
accounting and documentation are briefly described.
The issues of organizing inventory accounting in budget organizations, its purpose and
features, accounting for income and their assessment, write-offs, organizing analytical and
synthetic accounting for inventory, and using information systems in inventory accounting
were considered in the studies of A.J. Tuychiev, A.A. Ostonokulov, K.Sh. Ibragimov, and A.S.
Tursunov. The indicators established to determine the established norm of inventory are also
scientifically and methodologically substantiated by scientists, illustrated with practical
examples.
When we familiarized ourselves with the research conducted by the above economists within
the framework of this topic, we found that their works mainly covered the accounting of
commodity and material reserves in budget organizations, and partially indicated the
accounting documents used in accounting for commodity and material reserves. However, no
separate research was conducted on the issues of documenting the movement of commodity
and material reserves in budget organizations. For this reason, we consider it necessary to
conduct research within the framework of this topic.
Systematic analysis, analysis, synthesis, comparison and other similar research methods were
used in budgetary organizations to improve the methodological aspects of documenting the
movement of goods and materials, taking into account the rules of budget accounting.
In addition, in accordance with the approved work plan of the Internal Audit Service
Department for 2024, 62 audit objects were selected for 12 audit activities, of which 6 audit
activities were conducted in 33 audit objects in the first half of the year. Based on the
circumstances identified during the audit activities, suggestions and recommendations were
given to the heads of audit objects to eliminate errors and shortcomings in the appropriate
manner.
The internal audit service department is constantly providing proposals and
recommendations and practical assistance to employees in the system on the correct
management of the indicators of salaries and equivalent payments, public procurement,
debtor and creditor debts, inventory accounting, financial reports.
The list of control objects that can be selected by citizens is being included in the "State Audit"
program by the first day of the first month of each quarter for the implementation of audit
activities with the participation of citizens. For the 3rd quarter, audit activities will be carried
out at 2 audit facilities selected by citizens. Official reports on the results of audit activities
conducted by the internal audit service are included in the "State Audit" program.
DISCUSSION AND RESULTS
Inventories include assets with a useful life of no more than one year or used within one
operating cycle. Inventories include goods and other assets purchased by budget
organizations or intended for resale.
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The above figure shows the types of commodity and material reserves, and each commodity
and material reserve is recorded in accounting based on primary accounting documents. In
budget organizations, the receipt, transfer, change of materially responsible persons and
write-off of commodity and material reserves are fully documented with primary accounting
documents. We can also see this in the documentation process by types of commodity and
material reserve movements in budget organizations (Table 1)
Primary accounting documents for recording types of movements of inventory
Table 1
Document name
Goods - types of
material
reserves
Who formalizes
Comments
Waybill
All goods -
material
reserves
Goods suppliers
Includes: goods - transport
waybill and transport waybill
Invoice
The consignment note and
invoice are also included
Certificate
Materially
responsible person
and representative
of the goods supplier
(with the
participation of the
commission formed
by the organization)
Documents are drawn up in
the following cases: in cases
of inconsistency between the
actual existence of
documents and their
information, during the
liquidation of fixed assets,
during the inspection and
acceptance of the quality of
goods and material reserves.
Application - bill of
lading (Bill of
lading
(Application))
Goods are
material
resources,
recorded at their
actual cost
formed during
their purchase,
production, and
conversion into
finished
products.
The material
responsible person
of the unit that
transfers material
valuables
The form of the document
and its application are
approved by the Instruction
"On Accounting in Budgetary
Institutions" (December 22,
2010, No. 2169).
Accounting
certificate
All goods -
material
reserves
Accounting
The form of the document
and its application are
approved by the Instruction
"On Accounting in Budgetary
Institutions" (December 22,
2010, No. 2169).
Moving inventory from place to place
(or change of financially responsible persons)
Waybill (Request)
All goods -
material
reserves
The material
responsible person
of the unit that
supplies material
The form of documents and
their application are
approved by the Instruction
"On Accounting in Budgetary
Menu-Request for
Food products
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valuables
Accounting
Organizations" (December
22, 2010, No. 2169).
serving food
products
Record of feed and
fodder supplied
Feed and fodder
for livestock and
other animals
List of materials
provided for the
needs of the
organization
All goods -
material
reserves
Fence map
All goods -
material
reserves
Certificate
All goods -
material
reserves
Permanent
inventory
commission
operating in the
organization
The act is drawn up when the
financially responsible
persons in the organization
change.
The data in the table above shows that in budget organizations, each primary accounting
document that records the types of movements of goods and material reserves is necessarily
drawn up by materially responsible persons or accounting service employees in accordance
with current regulatory legal acts [6].
If the budget organization independently develops the forms of primary accounting
documents, their list should be approved by the organization's accounting policy or by order
of the head. This is an acceptable solution for accounting for business processes for which
standard forms are not provided.
Inventory in budget organizations is divided into the following types (Fig. 1).
Figure 1. Types of inventory in budget organizations.
Types of inventory in budget
organizations
Finished product
Spare parts of machines and equipment
Building materials
Food products
Medicines
Inventory and farm equipment
Fuel, fuel-lubricating products
Other inventories
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In accounting, the synthetic account of operations on goods - material reserves is reflected
based on the information of the relevant memorial orders, the organization's General Journal
Book (form No. 308) and financial reporting forms.
Nowadays, since the accounting of budget organizations is completely conducted
electronically in the “UzASBO” software package, accounting work has become much easier,
and the documentation of the movements of commodity and material reserves and their
control have become somewhat faster [7].
At the same time, budget organizations must adhere to the requirements and norms of
current regulatory legal acts when documenting the movement of goods and material
resources.
CONCLUSION
It should be noted that the movement of commodity and material reserves in budget
organizations should be regulated by the “Organizational Document Circulation Schedule”,
which allows for the optimization of documentation work and control. This schedule fully
indicates the name of the documents, the time of preparation, verification, processing and
submission of the document to the archive, and the responsible person. Also, the deadlines for
submitting reports on commodity and material reserves and materially responsible persons
are indicated in the section of departments and divisions of the budget organization. This
allows for the timely receipt of information on commodity and material reserves.
The “Organizational Document Flow Chart” is included as an appendix to the organization's
accounting policy or can be approved by a separate management order. A properly developed
“Organizational Document Flow Chart” ensures the quality of the accounting service's work
with the organization's departments and divisions, the timely submission of reports by
accountants and responsible persons, and the implementation of internal control. This has a
positive effect on the financial and economic activities of budget organizations.
REFERENCES:
1. Instruction "On Accounting in Budgetary Organizations" (December 22, 2010, No. 2169).
2. Standard of budget accounting of the Republic of Uzbekistan "Inventories" (No. 7 BHS,
January 14, 2019, No. 3120).
3. Regulation "On documents and document circulation in accounting" (January 14, 2004, No.
1297).
4. Vorobeva I.P., Spesivtseva A.L., Barysheva G.A. Bukhgalterskiy uchet v budgetnyx
uchrejdeniyax:Uchebnoe posobie. – Tomsk: Izd-vo TPU, 2012. -252 p.
5. Kachkova O.E., Krishtaleva T.I., Ovsiychuk M.F. Bukhgalterskiy uchet v budgetnykh
uchrejdeniyax: uchebnik. -Moscow: KNORUS, 2022. -376 p.
6. Shonazarovich KA REGULATORY AND LEGAL REGULATION OF ACCOUNTING IN
BUDGETARY INSTITUTIONS //EPRA International Journal of Economics, Business and
Management Studies (EBMS). - 2023. - T. 10. – no. 6. - S. 82-86.
7. Ostonakulov M. Accounting in budget organizations. Textbook. –Tashkent, “Economy -
Finance”, 2009, ‒428 p. 11. Tuychiyev AJ, Ostonokulov AA, Ibragimov K.Sh., Tursunov AS
Budget accounting in budget organizations. Textbook – T.: “Economy-Finance” 2019. –329 p.
