Title: Internal Evaluation Of The State Subsidies Usage Effectiveness
Abstract: This paper considers the efficiency of state subsidies from the point of view of the recipient organization. An analysis of scientific and practical literature on this topic reflects multiple challenging aspects that complicate the attraction of subsidies by an agricultural organization. We have found a number of opinions how subsidies influence the results of activity of economic entities. The issues of subsidies efficiency become especially relevant in the situation when subsidies have little impact on the company’s economy. An in-house assessment is an issue of particular interest, as such an assessment enables the recipient organization to determine the real efficiency of its operations. In-house assessment of state subsidies approach suggested in this paper is based on structuring the subsidy’s funds. Structuring is made in terms of costs and losses which are under control or beyond control of the economic entity. The approach suggested is mainly recommended for an assessment of subsidies which are not output-based. This type of subsidies is poorly related to any specific performance indicators which increases the risk of inefficient use of the subsidy. This paper offers indicators that enable assessing the efficiency of using budget funds by an agricultural organization. For informational support of such assessment, this paper offers implementation of specific organizational and methodological activities that deal with accounting and administration of the company. The provisions of this paper are focused on the development of scientific and practical issues of control and efficiency of state subsidies.