1 THEORETICAL PART

1.1 Characteristics of Municipality Ratíškovice

Picture No. 1: Municipality emblem

Source: [16]

The full name is Municipality Ratíškovice, with domicile at U Radnice 1300, Postal Code 696 02 Ratíškovice, ID number 00285242, tax ID number CZ00285242. Establishment
of the village dates from 24. 11. 1990, territorial autonomous entity with legal personality. [16]

The village is a legal entity, posture on their own name in legal relations and also bears the responsibility of those relationships. The village has its own assets, own financial sources and manages with them under the conditions laid down by law.

Village Ratíškovice is situated in southern Moravia, only 8 km far from the town Hodonín and 50 km far from the city Brno. Legal form is a territorial autonomous entity, municipality. Activity of the village is set in the Law No. 128/2000 Coll. On municipalities.

Ratíškovice village land acreage is 1265 ha and 4100 inhabitants (status at 30. 9. 2009). Ratíškovice is one of the most numerous municipalities in the Czech Republic. [16]

Picture No. 2: Map of Czech Republic with demarcated location

Source: [17]

Civic amenities

Many are often surprised that the community Ratíškovice is not the city, not just because of the large population, but also because of the wide cultural and sports activities. Even today, local residents are trying to keep the preservation of folk customs, which maintain in particular folk, singing, dance and music groups. Local citizens are very proud of their classic folk costume into which they dress at various folk events such as feast or religious holiday of Cyril and Method.

Ratíškovice are best known as a sports center. Football plays here each infant. The football club represented municipality several times in the higher league matches. Sports tradition is reflected in sports facilities. It is a sports complex with three football playgrounds, clay courts, bowling and mainly a swimming pool. Sports enjoyment here is intended not only for children but also for adults.

Ratíškovice village is located in Dolnomoravský úval, which offers good conditions for growing grapes. On the outskirts of the village are planted extensive vineyards and built wine cellars. The wine cellars were built by local people around the year 1966. At present we can on "Slavín", as a locality name, find almost 100 of them.

There is built more than 1300 houses in the village. A civic amenity is on very high level. To the distribution of gasification was added wastewater treatment plant and sewer system in the nineties. Local roads are gradually improving the quality. Great benefit to local citizens was building of a shared telephone and cable networks. Currently there is the possibility to connect wireless internet in the whole territory of village.

That Ratíškovice has very good civic amenities, demonstrate to us the health center for children and adults, dental clinic, a pharmacy in the village center, a library with wheelchair access and also free internet access, two renovated kindergarten, primary school with new school dining room, art school, local post office, a church with a cemetery and funeral hall, petrol stations, big number of shops and restaurants. For senior citizens was built in 2002 a nursing home with twenty apartments, this house operating provides Charita Hodonín.

In 2008, the municipality Ratíškovice organized a project Czech POINT - Czech Posting Verifying Informative National Terminal. This service simplifies for the citizens the relationship a citizen and public administration. In 2009, the project Czech POINT was extended and now provides the following services:

· certificates of incorporations

· trade register print-out

· criminal record print-out

· real estate register print-out

· certificates of incorporations – for corporations

· certificates of incorporations – for individuals

· list of qualified suppliers print-out (Information system for public contracts)

· point evaluation of person print-out (Central register of drivers)

· register of operation of autograph modules ISOH (Information system of waste management) participants print-out

Picture. No. 3: Czech POINT logo

Source: [16]

Educational facilities

The village offers two nursery schools for the youngest citizens. They were considering closing of one building as far back as several years. But contemporary increasing numbers births evoked that the both kindergartens are fully used. In 2008, the municipality leagued together education of primary school pupils into one building. Using new canteen extension and the total insulation of the building offers education also for pupils from surrounding villages.

Students usually attend high schools and training colleges in Hodonín or Kyjov. Students may, thanks to good and primarily regular bus connections derive benefit from home comfort throughout their studies and thus do not have to find boardinghouses and similar facilities.

Infrastructure

Village Ratíškovice has the great advantage that is located on the transport corridor Kyjov - Hodonín, Hodonín - Bzenec and Dubňany - Rohatec. Thanks to this position is ensured the regular bus service even several times per hour. Local residents commute daily to the attraction cities Hodonín and Kyjova. Inhabitants most frequently travel for work, shopping and various services. Regular bus service is very much used.

Businesses

Among the biggest companies of municipality Ratíškovice belongs Strojírny Tomáš Ratíškovice. This company is located in the local area called Baťovka. Furthermore, there is the seat of T-Machinery a.s Both companies produce among others mining facilities.

Other important businesses in town are: Agropodnik, a.s., Zera, a.s. a TENTE a.s. Local citizens are finding application also in smaller companies, which are still expanding.

Due to financial crisis, more and more citizens are taking a self-employed.

1.2 Municipal Office

By building of the new Municipal Office in 1993 was created a new center in the middle
of the village and thus a new dominating factor.

Picture No. 4: Town hall

Source: [16]

Organization manual of the village Ratíškovice regulates the organizational structure
of municipal bodies, their division of labor, interrelationship and the status of municipal
to authorities operating in the village. The municipal bodies are municipal board, municipal council and municipal office.

1.2.1 Municipal board

Municipal board of Ratíškovice is the supreme autonomous municipal body, its status and powers are enshrined in law No. 128/2000 Coll., On municipalities. The village Ratíškovice has 15 members of municipal board which was elected in municipal elections for four years. Member of municipal board acquires their rights and duties by the council election. Duties of a member of municipal board are a public function. [6, p. 1748]

Jurisdiction of the municipal board is concerned primarily to independent activity of the municipality Ratíškovice. To municipal board is reserved:

to approve the community development program
to approve the budget of municipality and municipality closing account
to establish a permanent and temporary funds of municipality
to establish and abolish contributory organizations, departments of the municipality, approve their incorporation documents
to decide on the establishment and abolition of legal entities
to delegate a municipal representative to the corporations, in which it has capital participation
to issue generally binding regulations of the village
to decide on a local referendum
to propose changes in the boundaries of the village
to establish and abolish committees of community
to choose the mayor, mayor deputy and other members of the municipal board from among the representatives
to establish and abolish the municipal police
to give and refuse the freedom of the municipality
to decide on the acquisition and transfer of immovable property
to decide on the granting of donations amounting to over 20 000 CZK
to individuals or corporations
to decide on the granting of subsidies amounting to over 50 000 CZK to civic associations and other organizations
to decide on the monetary and non-monetary contributions to corporate
to decide on the abnegate a right and forgive an asset more than 20 000 CZK
to decide on the making a contract and granting a credit, loans, subsidies
to decide on the pledging of immovable property
to decide on release of municipal bonds.

The municipal board shall meet as necessary but at least every 3 months. Municipal board of Ratíškovice established two contributory organizations: Primary School and Kindergarten Ratíškovice and Educational discussion Ratíškovice.

Financial and Audit Committees were established to help in dealing with municipal affairs. The Audit Committee has 5 members, the committee chairman is Paed.Dr. Zdeněk Šebesta. The Financial Committee has 7 members and the chairman of the committee is Ing. Vladimíra Motlová. Both chairmen are members of the municipal board in order to keep the municipal board informed of their activities and give to them report regularly.

Ratíškovice village is a big municipality and hence can not do without municipal police, who ensure order in the village and is in close cooperation with the Police Dubňany.

Organizational departments of community Ratíškovice are local library and volunteer fire brigade Ratíškovice.

1.2.2 Municipal council

The municipal council is the executive body of the village community within the autonomous scope of their activities and is answering to municipal board. In the field of delegated powers belongs to the municipal council decision, only if it is determined by law. [6, p. 1753] The village council members are elected from among members of community board. Ratíškovice municipal council has 5 members; the number must always be odd. Municipal council is composed of the mayor, mayor deputy and three other councilors. Municipal council shall meet as necessary, the meetings are private.

To the municipal council is reserved to:

prepare proposals for negotiation of municipal board and ensures their implementation
ensure financial management of municipality in accordance with the approved budget
make municipality regulations
determinate allocation of powers at the municipal office, establish and abolish unions
nominate or remove a head of union of municipal office
establish and abolish the village council committee as needed
control the performance of tasks by municipal office and commissions
determine the total number of employees of the village
impose fines in cases covered by a separate activities of community
decide on the conclusion of a lease and loan agreements
lay down rules for accepting and processing petitions and complaints
approve the organizational rules of the municipal office.

Municipal council established a building committee, socio-medical committee and the committee for discussion offenses.

1.2.3 Mayor

Mayor of Ratíškovice village is Ing. Josef Uhlík, who is released to perform his duties. The mayor represents the municipality outwards. Mayor and Mayor Deputy must be a citizen of the Czech Republic. To execution of its functions corresponds to municipal board
[6, 1754].

Mayor:

is responsible for the timely ordering of the review of management of the village for the past calendar year
carries out the duties of employer
is responsible for informing the public about the activities of the municipality
ensures the implementation of delegated powers
decide on matters of independent powers entrusted to him by the village council
convenes and chairs meetings of municipal board and council.

Mayor deputy of the village Ratíškovice is PhDr. Radim Šťastný; he is also available for performing of his duties.

1.2.4 Municipal office

The local authority is composed of the Mayor, Mayor Deputy and employees of municipality embedded in the municipal office. The municipal office is headed by mayor [6, s. 1755].

Municipal office

a) in the scope of autonomous power

1. perform tasks that the municipal office had been instructed by the municipality road or municipality council

2. assists committees and commissions in their work

b) perform delegated powers [1, p. 87]

The municipal office has established an official board and established a web site that serves to better informedness of citizens. The web site also includes e-mail room. In this year, services of web site were expanded by cable television. The municipality is obliged to procure at least one copy of the Collection of Laws, which shall make available for inspection at the municipal office during office hours. Similarly must have access to the Bulletin of the laws.

Ratíškovice village is emitting the local newspaper "Ratíškovický Zvon" for several years, which comes out every two months. It is informing citizens about the events in the community. By these newspapers the citizens are informed of municipal council and board meetings.

2 Financial management of municipalitY

2.1 Budget process

Auxiliary tool for the municipality is the financial outlook. It is making up pursuant to the existing contractual arrangements and commitments entered for two to five consecutive years. Budget forecast includes basic data about income and expenditures, especially
long-term liabilities and receivables, financial resources and long-term investment plans.

Budget of municipality Ratíškovice is actually a financial plan, which follows the financial activities of the municipality. Financial year is the same as calendar year. Municipality comes from financial perspective when creation a budget. Budget is set together as balanced. It may be approved as a surplus, if any incomes of the year are intended for use in subsequent years or if they are determined to repay the principal of loans from previous years. [7, p. 3557]

The budget may be approved as a deficit only in the event that the shortfall will be met from funds from previous years or contractually secured loans, credits or refundable financial assistance.

The positive balance of funds for the current year is transferred for use in the next year's budget to cover expenses, or is transferred to money market funds.
Management deficit is paid up by the funds from previous years or is covered of recoverable resources, due in the coming years. [7, p. 3558]

Budget preparation is undertaken by the financial committee. Town council proposes the municipality's investment plans for the appropriate year. The budget proposal must be at least 15 days before the discussion of the Municipal published in a suitable manner. The budget prepared in sorting based on budget compositions is approved by the council.

If the budget will not be approved before January lst of budget year, municipality economy follow the rules of the budget, which have to be approved by the council of the village also before January 1st of budget year, before approval of the budget. [7, p. 3560]

Specification of the budget under the valid budget classification is carried out after approval of the budget by the village council. [7, p. 3560]

Throughout the year the municipality carries out its financial management in accordance with the approved budget. Municipality executes verification of its husbandry throughout the financial year. Management control is carried out even in its contributory organizations and also with their established legal organizations.

The budget of the municipality may be changed for several reasons. If occur organizational changes, price changes or changes objectively applied to the budget. These changes are carried out by the budgetary precautions, which are reported according to chronology. The budgetary precautions are implemented mandatory in the case of changes in financial relationships with other budget changes on the binding characteristics, or if there is a risk of budget deficit.

Council approves the annual financial management of municipality and closing account for the calendar year, including a report of the independent auditor's review of the financial community. Proposal of final account must be at least 15 days before to its consideration
in council published in a suitable manner and at a suitable range on the notice board and
in electronic form. Part of the final account is also a statement of financial links to the state budget, budgets of counties, municipalities and other budgets.

By summarizing of the budgetary process, we find that it takes a longer period and has several stages. The village first compile the financial outlook for the period of 2-5 years, if it does not manage to approve the budget by the village council before January 1st, must be approved also the provisional arrangement of the village budget. Council approve the budget for the entire year, but throughout this year are implemented the changes according to actual income and expenditure of municipality.

An important stage in the budgetary process is a control of budget observance, which may be preliminary, interim or follow-up. The result of such controls is a proposal to improve management of budget funds.

2.1.1 Recapitulation of the budgetary process

What the community met to ensure proper budgetary process in accordance with law
No. 250/2000 Coll. about budgeting rules of territory budget:

Compile and approve the council budget outlook (§ 3, law No. 250/2000 Coll.)

Compile budget provisional arrangement, if the budget is not approved before January lst of the current year, or eventually approve a provisional budget rules by council
(§ 13, law No. 250/2000 Coll.)

Budget:

· prepare and discuss with third parties

· discuss with the Financial Committee

· publish the budget proposal for 15 days

· approve the budget by council

· make a detailed specification of budget

· carry out monitoring of budget implementation in accordance with the law
No. 320/2001 Coll., about financial control

· to take budgetary measures and numbering them.

Final Account

· prepare the Final Account, which must include:

· data about observance of budget revenue and expenditure in its full division of budget composition

· creation and use of funds

· management of subsidized organizations

· management of established companies, cooperatives, Ltd. - decisive and substantial influence

· statement of financial relations with other budgets

· statement of financial relationship with public aid recipients from the community

· a report about the outcome of the review of management of the village

· publish the accounts for 15 days

· approve by the council to 30 June next year. [5, p. 191]

Document to the budget	Date
Financial Perspective	anytime during the year
Budget provisional arrangement	November, December of the last year
Budget
setting, discussion	October to December of the last year
Consideration of the Financial Committee	December, January of the following year
posting and approval	February-March current year
Budget measures	e.g. quarter, at minimal September and December of the current year, January of the following year
Final Account	later before June 30 of the next year

Table No. 1. Timetable

Source: [5, p. 160]

2.2 Revenue and expenditure of budget

The budget consists of revenue and expenditure of municipality and other cash transactions, creating and using the money funds. Outside the budget are made only cash transactions of foreign funds and associated funds. [7, p. 3558]

Revenues of village Ratíškovice are particularly

revenue from its own assets and property rights
revenues from the outcome of own activities
revenues from the state administration (administrative fees, fines)
income from local taxes
revenues from taxes or shares to them under the special law
subsidies from the state budget and from state funds
grants from the regional budget
received cash donations and contributions
other incomes of community.

2.2.1 Generic classification of income

Tax revenue of community:

· taxes on personal income

· taxes on corporate income

· general taxes on goods and services inland

· special taxes on goods within the country

· fees and charges for environmental

· local charges on selected activities and services

· other charges on selected activities and services

· administrative fees

· property taxes

Non-tax revenue of the village:

· revenue from own activities

· payments from surpluses of organizations with direct relationship

· income from rental of property

· received penalty payments

· income from interest

· received refunds of transfers and other incomes from financial settlements from previous years

· revenue from sales of short-term and small property

· ether non-tax revenue

· loan repayment funds from businesses

· repayment of borrowed funds from charitable organizations

· repayment of borrowed funds from the inhabitants

Capital income of municipality:

· income from sale of fixed assets and other capital receipts

· revenues from the sale of shares and property shares

Municipalities received grants:

· non-investment subsidies from public budgets

· transfers of own funds

· investment subsidies from public budgets

· investment subsidies received from abroad

Expenditures may be classified differently. Binding are classified by budget structure.

From the municipal budget of Ratíškovice is paid in particular

· liabilities resulting to the community of observance of duties imposed on it by law

· expenditure on own activities in the municipality covered by its separate activity

· expenses associated with caring for their own property

· costs associated with the performance of public administration

· liabilities arising from the contractual relations

· commitments made in cooperation with other municipalities or other entities

· payment of interest on borrowings and loans

· expenditures to entities performing community works

· other expenses of the village

· payment of loans received, borrowings and returnable subsidies

2.2.2 Generic classification of expenditures

Current expenditures of the village

· expenditure on salaries, other payments for work and insurance

· purchases of material

· interests and other financial expenses

· purchase of water, fuel and energy

· purchase of services

· other purchases

· deposit provided

· costs associated with non-capital purchases, contributions and in-kind donations

· non-investment subsidies to undertakers

· investment subsidies to nonprofits

· non-capital transfers to public budgets

· non-capital transfers to subsidized organizations

· transfers of own funds

· non-capital loans to businesses

· non-capital loans to nonprofits

· non-investment loans to households

· other non-investment expenditures

Capital expenditures of the municipality:

· acquisitions of tangible non-investment goods

· acquisitions of tangible investment goods

· soil and ground

· costs associated with investment purchases

· purchase of stocks and shares

· investment subsidies to enterprises

· investment grants to non-profit organizations

· investment transfers to government

· investment grants to subsidized organizations

· investment loans to businesses

· investment loans to nonprofits

· investment loans to government

· other capital expenditure

2.2.3 Generic sorting of municipality financing

· short-term funding from domestic

· long-term funding from domestic

· short-term funding from abroad

· long-term funding from abroad

Acceptance and repayment of interest-free repayable financial aid, loans or credit belongs to the financing operation. Furthermore, this group includes all financing transactions on current account (involvement of remainder of current account in the budget).

Municipality management is monitored for primarily in terms of creating its budget Sources. In 2008, the tax is still a crucial part of the village revenue. Income taxes are allocated to critical parts by size category. Structure of the village expenditure shows for what is the community focused.

3 ANALYSIS OF REVENUE AND EXPENDITURE

3.1 Analysis of Income in 2008

For the month of January and February 2008, municipality Ratíškovice implement budget on the basis of the provisional budget and observed defined rules.

The budget was approved by the village council at 27. 2. 2008. The budget proposal was duly posted on the bulletin board from 8. 2. 2008 and removed at the 26. 2. 2008. The budget measure was approved in accordance with law and internal regulations of the village.

	Budget approved at 27. 2. 2008	Budget to 31. 12. 2008	Implementation of the budget to 31. 12. 2008
Revenues
Tax revenues	31 812 000	32 102 600	32 043 410
Non-tax revenues	3 832 000	4 095 800	4 110 787
Capital revenues	89 000	157 000	158 136
Subsidies received	3 034 500	10 252 000	10 243 660
Total revenues	38 767 500	46 607 400	46 555 993
Expenses
Current expenditures	22 881 500	28 481 300	27 695 631
Capital expenditures	20 137 000	28 412 500	27 760 511
Total expenditures	43 018 500	56 893 800	55 456 142
Balance of incomes and expenditures	-4 251 000	-10 286 400	-8 900 149

Table No. 2: Approved budget and budget after changes as per 31. 12. 2008 (in CZK)

Source: [13, p. 1-19]

Municipality management in 2008 closed up with a budget deficit of CZK 8,900,149; originally approved budget deficit was of CZK 4 251 000.

It is apparent from the table above, that the biggest difference between the budget approved and the budget implemented as per 31. 12. 2008 is for item received transfers. Since subsidies may be published in the budget only after their approval, recording of contract or assignment by the provider.

Chart No. 1: Approved and actual budget for 2008

Source: [13, p. 1-19]

Today the village knows that it is up to the village itself, how it will be clever and how much subsidy will procure for the development of the community. Some municipalities cooperate with external organizations, which are specialized for making applications for subsidies. Other municipalities solve this issue by employing workers only in searching for financial subsidies. Village Ratíškovice uses primarily external services.

At a time when the municipality prepared approving of the budget for 2008, has already know about many renowned endowment titles, eventually applied for it, but yet they could not take it into account and include it into the budget.

If I can judge applications for grants, I just say that although it became apparent that the economic crisis begins, endowment titles were announced, and also satisfied. The year 2008 can be classified as one of the very good years to get grants.

In 2008, the village applied again for an investment subsidy for construction of
a multipurpose hall in the complex Baník Ratíškovice, which would solve also the cultural background for local inhabitants. Because one of the biggest problem of the community is missing house of culture. Unfortunately, application was not granted again. Village Ratíškovice should focus on using local cinema for cultural events during the economic crisis. Municipality would get house of culture by modernization of this building and also solved the increasing operating costs without the full use of the aforementioned building.

For 2008, the village gets in total CZK 8,958,095 investment and non-investment subsidies.

Non-investment subsidies
No.	Given by	amount	purpose
1.	South Moravian Region, Brno	40 000 CZK	Music festival of Slovácko Ratíškovice
2.	South Moravian Region, Brno	40 000 CZK	Folk costume ball Ratíškovice
3.	Ministry of Culture	35 000 CZK	Software for library
4.	South Moravian Region, Brno	20 000 CZK	Equipment of cultural facility
5.	South Moravian Region, Brno	50 000 CZK	Speed reduction in the community
6.	Ministry of Culture	60 000 CZK	Music festival of Slovácko Ratíškovice
7.	South Moravian Region, Brno	70 000 CZK	Equipment for firemen
8.	Ministry of Agriculture	48 000 CZK	Forest outplanting
9.	Ministry of Finance	60 000 CZK	Elections
10.	INTERREG III. A	28 867 CZK	Cultural activities in the community
11.	South Moravian Region, Brno	35 318 CZK	Unit of volunteer firemen
12.	South Moravian Region, Brno	50 000 CZK	Unit of volunteer firemen
Investment subsidies
13.	State Agricultural Intervention Fund	1 279 471 CZK	Forest road
14.	South Moravian Region, Brno	60 000 CZK	Speed meter
15.	State Environmental Fund	4 081 939 CZK	Insulation of Kindergarten I, Kindergarten II and Folk Art School
16.	Ministry of Finance	2 000 000 CZK	Reconstruction of primary school
17.	South Moravian Region, Brno	549 500 CZK	Equipment of collecting yard
18.	South Moravian Region, Brno	350 000 CZK	Sewerage in street Ulička
19.	South Moravian Region, Brno	100 000 CZK	Playground
Total		8 958 095 CZK

Table No. 3: Summary of received subsidies in 2008

Source: [13, p. 1-5]

This table shows that year 2008 was a successful year for subsidies received. The total volume of nearly 9 million is for community Ratíškovice good condition. If we focus on the origin of funding, the highest subsidies are from the State Environmental Fund, the Ministry of Finance, the State Agricultural Intervention Fund, but the largest number of lower volume is from South Moravia Region, Brno. It is good that the community Ratíškovice still draws resources from the State Environmental Fund, because the requirements of the village are well satisfied. Endowment funds in 2008 composed 17,43% of the total income of the village.

Income area of the budget	Reality at 31. 12. 2008	Share of total revenue
Total tax revenues	32 043 411	54,53 %
Tax revenues	28 581 235	48,64 %
Real estate tax	977 769	1,66 %
Income tax for the municipality	345 600	0,59 %
Local taxes	1 678 218	2,85 %
Administrative fees	460 590	0,79 %
Total non-tax revenues	4 110 787	7,00 %
Revenue from services	1 292 051	2,20 %
Revenue from land lease	221 782	0,38 %
Revenue from rental property	1 062 016	1,80 %
Income from interest	237 537	0,40 %
Other compensation	582 068	1,00 %
Loan repayments	715 335	1,22 %
Total capital revenues	158 136	0,27 %
Sale of land	158 136	0,27 %
Total Subsidies	10 243 659	17,43 %
Operating subsidies	1 285 564	2,18 %
Investment subsidies	8 420 910	14,33 %
Non-investment subsidies	537 185	0,92 %
Current account	-1 848 305	-3,13 %
Credit provided	14 046 553	23,90 %
Total revenues	58 754 241	100,00 %

Table No. 4: Income structure of the village in 2008

Source: [13, p. 1-19]

3.1.1 Tax revenues

Tax revenues are the most important item in the municipal budget. It constitutes more than half of total income of the village in 2008. Tax revenues have the advantage of being relatively stable and the community can take it into account for every year. Physical person income tax, legal entity income tax, VAT, property tax, local taxes and administrative fees belong to tax revenues.

By this incomes municipality may affect real estate tax, for which the municipality can reduce or increase the rate. By setting the public notice of the village about local charges the municipality decides which local taxes will be collecting and in what amount. Their amount is restricted by law of local fees, in which are set maximum rates or their range.

Village Ratíškovice collects these local taxes:

fee for disposal of municipal waste
fee for use of public spaces
fee for dogs
fee for entry
fee for gaming machines

The most important local fee for disposal of municipal waste is since 2009 increased from the amount of 360 CZK/year/person to 480 CZK/year/person. The fee increment since
1. 1. 2009 was clearly approved by the municipality council, because expenses for collection of municipal waste from the citizens are much higher.

Fee for gaming machines brought into the municipal budget in 2008, a total amount
of 588 000 CZK.

3.1.2 Non-tax revenues

Non-tax revenue shows the economic activity of the village, especially its management with the property. It constitutes only 7% of the total municipal budget, but it is over
4 100 000 CZK.

These include in particular library services, separation of waste for the citizens, funeral services, radio and cable TV. Municipality provides collection of communal waste for business. Furthermore, the municipality operates museums in the wagon. Among the largest non-tax revenue includes rental of public housing for people in homes
No. 938, 101 1334 and1335. Municipality rents the house for the elderly. Another important non-tax revenue is lease of municipal land and lease of movables. This includes the lease of forest land and leases the sports complex.

The village Ratíškovice has two incomes of interests. One of income are interest on loans from the fund for public housing, by which the municipality get 97 896 CZK. Interest on the housing fund continues to be income of fund and will be applied to its creating. The second income is interest on the accounts of municipalities in financial institutions. Interest depends on the balance on the accounts. In 2008, interest on the accounts amounted to almost 140 000 CZK.

There are two kinds of loan repayments. One kind are loan repayments from inhabitants provided from the fund provided housing, which were repaid in the amount 663 335 CZK. Another payment of loans are from businesses - Baník Ratíškovice, s.r.o., which is 100% owned by the municipality Ratíškovice. The loan was granted for the reconstruction of hostel facilities in the sports area. Payments in 2008 was of 52 000 CZK according to the timetable for repayment.

Capital revenues of 158 136 CZK are only a small proportion of budget revenue, it is only 0,27 % of the total budget. The major capital revenues are revenues from the sale of land and property sales and revenue from the sale of other tangible fixed assets. This type of income is very unstable.

3.1.3 Transfers received

The village gets received transfers for operation, capital expenditures or for
non-investment expenditures. Operating transfers are intended for public services, the operation of schools, wage subsidies and the operation of local library. In 2008, the municipality received a 1 285 564 CZK of subsidies for operation.

Capital transfers are used for finance of investment projects of the village. They are obtained from the state budget, the budget of the region, but also from the EU budget. In 2008, the village has a total amount of 8 420 910 CZK of investment grants, which represents 14,33 % of total budget revenues of the municipality. It is a great benefit to the community budget. These capital transfers the most influence the development community.

The village received a grant for insulation of the three school buildings: Kindergarten I, Kindergarten II and School of Folk Art from the State Environmental Fund in the total amount of 4 081 939 CZK. Completion of this investment will have a positive impact on the community budget for next year. Operating expenses on these buildings will be lower. This is the best way to affect the operating expenses of the village.

Another significant subsidies in 2008 were in the education sector - it was a renewal of primary school - "Reconstruction of the roof of the school building" in the amount of
2 000 000 CZK from the Ministry of Finance. Investment projects will reduce operating expenses for the next period.

State Agricultural Intervention Fund donated Ratíškovice community to build forest roads by amount of 1 279 471 CZK, which improved tourism for visitors to our region. Forest road is used for forestry and for cycling. In this way, the village supports its small businesses.

In 2008, the village is still improving its waste collection and completing the equipment of collecting court by press line using investment subsidy in the amount 549 500 CZK from South Moravia Region, Brno. This investment reduces costs of municipality in future years. Again, the correct way of dealing with investments.

The last section, where has not yet been built sewers in the village, was completed in 2008 with grants in amount of 350 000 CZK from South Moravian Region, Brno.

The village also took chance of drawing subsidy in the amount 100 000 CZK from South Moravia Region, Brno to build a playground for the youngest in the school.

Non-capital transfers to municipalities received in 2008 an in total amount of 537 185 CZK represent 0,92 % of total revenue. Community effort was to success in all applications for grants.

The village again received a grant for the Festival of Moravian Slovakia brass bands, costume balls and equipment of cultural facilities. Ministry of Finance provided a grant for elections and the Ministry of Culture provided grant for the software to the local library. South Moravian Region, Brno donated Unit of the volunteer fire brigade in fire fighting equipment. Ministry of Agriculture helped to municipality in forest planting.

Chart No. 2: Ratíškovice village revenues in 2008

Source: [13, p. 1-5]

3.2 Analysis of expenditures in 2008

Expenditures of municipality Ratíškovice in 2008 are divided according to budget composition into the branches classification. We will focus on expenditures in light of its share of total expenditure. Expenditures are divided into investment and non-investment expenditures.

Budget expenditures	Reality at 31. 12. 2008	Share of total revenues
Forestry	123 787	0,22 %
Other management in agriculture	623 791	1,12 %
Roads	2 991 246	5,39 %
Other roads	4 343 183	7,83 %
Sewerage	8 220	0,01 %
Primary School	19 291 796	34,78 %
Cultural facilities	143 340	0,25 %
Library Activities	676 784	1,22 %
Museums activities	54 069	0,09 %
Publishing activity	173 639	0,31 %
Other matters of culture	31 541	0,05 %
Church Activities	55 000	0,09 %
Radio and TV	493 935	0,22 %
Other media	123 749	0,22 %
Leisure activities in culture	811 890	1,46 %
Other fitness activities	6 431 955	11,59 %
Usage of leisure time	82 000	0,14 %
Other leisure activities	38 000	0,06 %
Support of Housing	800 000	1,44 %
Housing	69 528	0,12 %
Other development and housing	4 448 308	8,02 %
Street lighting	970 684	1,75 %
Undertaker	176 844	0,31 %
Construction of utility projects	2 500	0,00 %
Other issues in housing	123 211	0,23 %
Collection of hazardous waste	30 892	0,05 %
Municipal waste collection	1 861 386	3,35 %
Other waste management	1 258 825	3,10 %
Rehabilitation of land	16 705	0,03 %
Village appearance maintenance	400 224	0,72 %
Other Social Care	56 660	0,10 %
Day care	706 480	1,27 %
Security and public order	870 964	1,57 %
Other security	171 218	0,30 %
Fire Protection	496 650	0,89 %
Community assembly	1 938 352	3,50 %
Elections	119 210	0,22 %
Local government	2 691 493	4,85 %
Expenses from financial operations	963 362	1,73 %
Other financial transactions	491 935	0,88 %
Other activities	292 786	0,52 %
Total expenditures	55 456 142	100,00 %

Table No. 5: The budget expenditures

Source: [13, p. 5-19]

Primary school - its operations and investment expenditure belong to the highest village costs in 2008; the share of the total expenditure amounts to 34,78 %. This affected mainly investment expenditures, which were invested in the amount of 15 319 684 CZK. These expenses are for the community Ratíškovice very high, but the village managed to cover part of it by the subsidies received. The municipality managed to merge education to only one school building by investment construction in 2008, which significantly reducing operating expenses in the coming years.

Other fitness activities - belong to the second highest expenditure of the village in 2008; the share of total expenditure was 11,59 %. If we look at the structure of expenditure in this section, we find that for investment has been used 106 300 CZK, for repairs
2 455 652 CZK and for subsidies almost 3 777 000 CZK. The municipality contributes to the operation of the sports complex, whose operating expenses are very costly. I would recommend focusing on the savings in operating expenses in the sports area by insulation of the local swimming pool.

Other development and housing - are also among the biggest expenses of the village in 2008; the share of total expenditure amounted 8,02 %. The village is focused on the use of unnecessary municipal building - a former school eating hall - for the construction
of flat-building with fourteen accommodation units. Investment expenditure amounted to
4 373 692 CZK. The village behaved very operationally and rebuilt unused municipal buildings into social housing with the help of subsidies from the state budget. For the community is very important that the construction reduced operating subsidies of municipal budget.

Other communication - specification of this section is the construction of in the village. Capital expenditures in 2008 were used for investment repayable financial assistance in the construction of cycle paths in the village by microregion Nový Dvůr Milotice.

Roads - in this section are expenses associated with the management, maintenance, repairs, maintenance and renewal construction of municipal roads and pavements in the village. The share of total expenditure accounted was 5,39 %. Investment expenditures for the construction of local roads and pavements were 1 688 420 CZK. The largest item of operating expenses is labor resources of local crews, which ensures the maintenance of roads and greenery throughout the year. Wages and salaries are paid partly from state funds and European funds.

Local government activity - in this section are administrative expenses for own community activities. These are mainly operating expenses, which were 4,85 % of the total expenditure of the village. The largest share of expenses is labor resources, which are due on a contract basis. Other expenditures are determinate for operating of municipal office building, the social fund for employees of municipality and other expenses to ensure activity of community.

Municipal councils - this section is monitoring of spending on activity of municipality representative bodies, including their remuneration, activity of committees and councils. Non-investment expenditures were 1 938 352 CZK, which was 3,50 % of total expenditure of the village.

Waste collection and transport - includes both municipal and industrial wastes, which also includes hazardous waste. Hazardous waste means waste that has one or more hazardous characteristics. Municipal waste refers to all waste generated within the municipality by the activity of individuals, the cleaning of public roads and spaces, and the maintenance of public green spaces. Other waste means waste recycling such as plastics, paper and glass. Other waste management monitors the operation, maintenance and upgrading of collecting yard. Waste management is non-profit for a community, it is up nearly 6,50 % of total expenditure of the village. The village is still upgrading operating of collecting yard to reduce its operating costs and costs for waste disposal. Expenditure on upgrading of collection yard in 2008 were 262 262 CZK.

Street lighting - this section includes both electricity costs and maintenance of public lighting, and capital expenditure for lighting in the village. In 2008, operating expenses were 852 095 CZK. Investment expenditures for the purchase of street lighting controllers were 118 586 CZK. Purchasing of these regulators will reduce power consumption in public lighting. I think still that the community should be focusing on reducing of operating expenses, as it is done in this case.

Expenses on financial operations - it is their own interest rates on loans and services of financial institutions for the calendar year 2008. Expenses from financial operations can not be influenced because they are contractually bound. It constitutes 1,73 % of total expenditure of the village.

Safety and public order - represents costs of setting up municipal police in the village. Expenditures include labor costs for two police officers and fighting power of the police. Share of total expenditure in 2008 was of 1,57 %.

Support for housing - in this section are monitored loans to households for reconstruction of houses in the village from the housing fund, which was established by a community Ratíškovice in 2000. The financial resources are worthwhile. The village has extended its services to the population and contributes to improving the appearance of the village. Expenditure was 1,44 % of total expenditure of the village.

Leisure activities in culture - here are grouped together expenditures for Educational discussion Ratíškovice, which is a community sponsored organization. Expenditure was
1,46 % of total expenditure.

Day care - in this section is classified community operating expenses for day care house and a contribution to ensuring staff of day care house to Hodonín charity. Expenditure amounted to 706 480 CZK, which was 1.27% of total expenditure of the village. In this case I recommend an increase in rent in a house with a day care, which has not changed since 2002.

Library activities - in this section are monitored spending for the local library, especially wage costs, operating expenses, software and purchase of the book collection. In 2008, the village has reduced costs throughout the building insulation and replacement of windows. It is good that the municipal building is used for short-term rentals, thereby contributing to its operation.

Other management in agriculture - constituted the largest part of capital expenditure for the purchase of land in the village in a total amount of 489 507 CZK. Share in total expenditure was 1,12 %.

Fire protection - community monitors in this section expenditure of volunteer fire brigade and also the contribution for associations of volunteer firemen. The largest expenditures were operating of firehouse, additional equipment for volunteer fire brigade and capital expenditure for the reconstruction of the armory. These expenditures was 0,89 % of total expenditure of the village.

Radio and TV - includes expenditures on local radio and cable television. In 2008, capital expenditure accounted for 459 337 CZK to the extension of cable television.

Other Financial Transactions - this section contains all municipal property insurance, payment of all taxes and charges for community services and external services of auditors. Expenses are contractually fixed.

Care for appearance of community - includes costs associated with maintenance of public spaces and planting gardens. Operating expenses in the amount 400 224 CZK accounted for 0,72 % of total expenditure.

Other expenditure by sector classification, which I did not introduce more closely, has not such a significant importance. Some of them do not appear in subsequent years, such as other safety issues.

3.2.1 Current and capital expenditures in 2008

I will mention briefly about spending of villages in 2008 in terms of distribution of current and capital expenditures.

Type of expenditure	Year 2008
Current expenditure	27 695 631 CZK
Capital expenditure	27 760 511 CZK
Total expenditure	55 456 142 CZK

Table No. 6: Types of expenditure

Source: [13, p. 5-19]

The year 2008 was a very remarkable year, when more than 50% of municipalities were capital expenditures. These capital expenditures were covered by the loan, balance on current account, investment subsidies, surplus of last years and other incomes.

Chart No. 4: Expenditure of community Ratíškovice in 2008

Source: [13, p. 5-19]

Table below shows us clearly covering of capital expenditures Ratíškovice village in 2008.

Type of income	CZK
Loan	14 046 553
Account balance	1 848 305
Investment grants	1 285 564
Capital revenue	158 136
Current revenue	10 421 953
In total	27 760 511

Table No. 7: Types of income

Source: [13, p. 1-19]

3.2.2 Optimizing of the management of the village in 2008

The basic rule of financial management of municipality is that the total operating budget expenditures were the same or lower than the total operating income of the village in calendar year. This has Ratíškovice village reached in 2008. From the total revenues amounting to 58 754 241 CZK were used 27 760 511 CZK for capital expenditures, the remaining balance amounting to 30 993 730 CZK were used to cover current expenses of the village in 2008.

4 ANALYSIS OF INCOME IN TERMS OF VALUE ADDED TAX

The amendment to the Law on Value Added Tax No. 235/2004 Coll. in force since 2009 provides for local autonomous units change of the determination of turnover for compulsory registration for VAT.

„The taxable person is an individual or corporation who is making business independently, unless this Act provides otherwise in § 5a. Taxable person is also the legal entity which has not been established for the purposes of business, where economic activity takes place.“ [10, p. 4948]

„Municipalities and legal entities, established by special legislation or a special law, are not considered taxable persons when executing competence in the field of public administration, even when, they execute these powers for payment.“ [10, p. 4948]

„A taxable person who has his registered place or place of business inland, is exempt from the application of the tax, if its turnover does not exceed 1 000 000 CZK for up to 12 immediately preceding consecutive calendar months, unless this Act provides otherwise.“ [10, p. 4949]

Turnover means the sum consideration without tax, if the consideration is for:

· taxable fulfillment

· tax free fulfillment with pretension for tax deduction, mostly the export of goods, services to third countries

· tax free fulfillment according to § 54 to 56, if it is not additional action undertaken occasionally

Turnover does not include the consideration from the sale of fixed assets and the performance of public regional authority. [10, p. 4949]

For the analysis of income, which are subject to value added tax was used sheet Fin 2-12 for the period January to July 2009.

Revenue - factual content	Performance of public administration	Economic activity is calculated on the turnover	Economic activity exempt is calculated on the turnover	Economic activity exempt is not calculated on the turnover
Item 1111-4222 Non-tax revenue	25 561 710,50
1069 Sale of land				1 248 546,00
1069 Land lease			122 735,00
2119 Mining areas	88 273,00
2212 Services for Citizens		32 236,00
3113 Rental PO			24 000,00
3113 Return PO	350 000,00
3314 Energy return premium	5 324,00
3314 Rental			5 322,00
3315 Museum Admission			63 050,00
3315 Energy return premium	3 915,00
3341 Establishment of Cable TV		107 053,68
3349 Bell Sales			42 241,00
3419 Interests				256,00
3419 Energy return premium	8 462,00
3611 Interest on loans				52 842,00
3612 Rental			71 643,00
3612 Energy return premium	4 062,71
3612 Cable TV	2 432,00
3613 Energy return premium	51 149,40
3613 Rental			339 439,41
3619 Rental			165 651,50
3619 Energy return premium	3 621,00
3631 Energy return premium	15 610,00
3632 Funeral Services	91 338,00
3722 Waste Services		157 720,00
3723 Sorted waste	191 157,10
3729 Donation year 2008				54 599,00
3745 Sale of wood		4 435,00
4351 Rental			157 422,90
4351 Advances in services				130 185,10
5512 Rental			1 500,00
5512 Energy return premium	13 003,00
6171 Management Services		27 020,00
6171 Return premium year 2008				50 720,00
6310 Interest				51 706,12
6402 Subsidies in 2008	53 374,00
In total	26 443 431,71	328 464,68	993 004,81	1 588 854,22

Table No. 8: Analysis of income according to factual content to 31. 7. 2009

Source: [14, p. 1-17]

Turnover of the village in 2009, does not contain operation of action in the field of public administration. Performance of public administration is for example:

· collection of the administrative or local taxes under a special regulation, such as under the Law No. 185/2001 Coll., On waste and amendment of some other Acts, as amended

· waste management of community, such as organizing the collection, transportation, sorting, recovery and disposal of urban waste, for which the municipality collects from the natural or legal persons fee

· organization of transport, in which are defined local roads or sections of road for parking motor vehicles for a limited time at a price agreed in accordance with price regulations by community - for example, here is the definition of paid parking zones

· operating a public cemetery of the village, which includes rental of grave place and services associated with the lease, including the excavation of grave place and services associated with the lease, including the excavation of the grave and buried into the grave, urn or scatter of incinerated human remains at a price agreed in accordance with pricing rules

· operating a shelter for abandoned animals, station for capture of animals, ensuring fire protection, ensuring local greenery, public lighting

· publishing and unpaid providing of informational materials, magazines, postcards, brochures, with the exception of the provision of space, which is devoted to advertising

The above analysis shows that the municipality had a turnover in excess of
1 000 000 CZK, thus 1 321 469,49 CZK. After discovering this, the municipality carried out a registration as a payer of value added tax in month of August 2009.

Chart No. 3: Revenue in the view of factual fulfillment

Source: [14, p. 1-4]

4.1 Registration of a municipality to value added tax

The municipality Ratíškovice became a person liable for VAT since October 1st 2009.

„A person liable to pay tax who becomes taxpayer under § 94 paragraph l, whose turnover has exceeded the amount of 1 000 000 CZK is required to exhibit the application for registration within 15 days after the end of the calendar month in which he exceeded the limit.“[10, p. 4949]

„The tax period is a calendar quarter if the payers turnover for the preceding calendar year did not reached 10 000 000 CZK.“ [10, p. 4998]

Ratíškovice community revenue began to be recorded:

· recording item 601 - revenue from economic activity, the basic rate

· recording item 602 - revenue from economic activity, the reduced rate

· recording item 650 - revenue from economic activity, exempt

Ratíškovice community expenditure began to be recorded:

· recording item 640 – expenditure from economic activity

4.2 Advantages of VAT at the village

The village can control their expenditure of the investment expenditure in advance. When investment the village may enforce full right of tax deduction, if it use such investment for making taxable fulfillment of which they are levied on value added tax. For example, water and sanitation will be carried out as rental, of which will be levied on value added tax.

Payer has the right for deduction of tax in the full amount by received taxable fulfillment, which is used wholly for the implementation of fulfillment in the scope of its economic activity.

4.3 Disadvantages of value added tax for municipality

Bookkeeping services with value added tax is demanding, they must pay attention for the correct accounting and involving to the financial statements of the community. Higher demands are placed on the workforce otherwise it will be pertinent necessary to receive any additional manpower. When issuing tax documents they must ensure proper resolution of tax documents on the entry. In case of using factual fulfillment on tax document partly for the performance of public administration, exempt fulfillment and executed fulfillment is the need to use:

ratio coefficient
abbreviating coefficient

It is difficult to determine the ratio coefficient and prove it at tax administrator. Petty services for local citizens are raised for the tax rate, thereby are more expensive.

4.4 VAT return

Municipal council of Ratíškovice approved prices for the service to tax liability since
1st October 2009. Employees of the village were made acquainted with these prices and it was their liability to comply with these prices.

From that date the documents are handled as tax documents, in accordance with the law. According to the way of payment is applied the output tax in the cash day book, the invoices out, the daily log of incoming invoices and internal documents.

Duty to declare of tax is monitored at the account 343 25. Right to deduction of tax in full range is accounted to the account 343 35 and right to deduction of tax shortened by coefficient was not used.

Account Number	Balance of account to 31. 12. 2009
343 25 – output tax	-47 076,42 CZK
343 35 – input tax	152 245,82 CZK
343 36 – input tax reduced	0 CZK
343 99 – rounding of tax	0,60 CZK
Excess deduction to 31.12.2009	105 170 CZK

Table No. 9: Overview of balances of VAT accounts to 31. 12. 2009

Source: [15, p. 2]

The table shows that the municipality is requisitioning excess deduction in the amount of 105 170 CZK when transmition of VAT return at 2010-05-12. At this point it is also likely that the local tax office will made investigation before paying excessive deduction. At the local tax office investigation municipality will submit:

registrating obligation
accounts of value added tax, which are shown in the village book of accounts

Registrating obligation is in GORDIC software and has two account systems, called "Tax Cogency" and "Check of Tax Cogency" in IV. quarter of 2009.

4.4.1 Output tax

The duty to declare a tax on the realized taxable fulfillment in the fourth quarter of 2009 with the place of performance inland had village particularly:

· rental of sport facility to company Baník Ratíškovice, s.r.o.

· real burden from the land to company IMMORENT

· services for citizens and businesses (reporting, copying, advertising)

Census of economic activity is clearly indicated in the report "Monitoring of tax cogency" to be submitted to the tax office in carrying out local investigations.

4.4.2 Input tax

Right to deduction from fulfillment for taken taxable fulfillment with the place of performance inland in the fourth quarter of 2009, the village has charged only the costs for repair, maintenance and upgrading of the sports complex, which lease out to the company Baník Ratíškovice s.r.o.

The village did not use neither abbreviating nor ratio coefficient and did not enforce pretension for deduction for other expenses.

4.4.3 Exempt fulfillment without the right to deduction

Village showed also exempt fulfillment without any right of deduction in the amount
647 056 CZK to 31. 12. 2009. The largest portion of these fulfillment consisted mainly of public housing rents, rents of non-residential premises, rent of municipal property, income from library activities and income from operations of the local museum.

4.5 Evaluation of optimization of the municipality management

From the first VAT return are clearly visible effects of VAT by investment spending in the economic activity. If the municipality did not realize expenditure on the investment with the possibility to right to deduction, it would always has own tax liability.

The village enforce VAT in the major operations, thereby may enforce investment expenditure in these activities:

· construction and reconstruction of sewer (must be an agreement of lease of equipment with a VAT payer)

· construction and reconstruction of water supply (must be an agreement of lease of equipment with a VAT payer)

· maintenance, reconstruction and investment construction in the area Baník Ratíškovice for taxable fulfillment for VAT

· renovation of the swimming pool for the taxable fulfillment VAT

· reconstruction cinema building (must be an agreement of lease of equipment with a VAT payer)

Village Ratíškovice has decided in August 2009, whether to establish collateral economic activity, or to transfer economic activities to its existing organization, which is already liable to VAT.

Collateral economic activity - the advantage is the separation of economic activities and better provability of pretension for a tax deduction. Its disadvantage is more complicated bookkeeping and establishing of a leading economic activity.

Baník Ratíškovice s.r.o. is established by municipality Ratíškovice. It is subject of VAT. The advantage is already established bookkeeping, department of economic activities and better provability of pretension for a tax deduction. The disadvantage is the admission of new employee, change of employer for municipal work crews, rental of movable property from the municipality and implementation of services for the village, which is not VAT payer.

Reform of accounting for local autonomous units since 1st January 2010 changes accounting system, financial statements and performing other duties for the accounting entity. Fundamental change will be the accounting of income and expenses. Previously, the costs (expenses) and income (revenue) were shown in assets and liabilities, it means in the balance sheet of the village by regulation. The village will prepare Profit and loss account. Major and collateral activity of the village will be only analytically differentiated in this statement.

From the perspective of the village Ratíškovice leadership was elected most effective way - they introduced accounting for the VAT to the principal activity.

Efficiency is that collateral economic activity may not be conducted, not to be kept separate bank account, more complicated accounting and the establishment of leading of economic activity.

5 rATÍŠKOVICE MUNICIPALITY DIRECTIVE TO VAT

Accounting entity: Municipality Ratíškovice

Domicile: U Radnice 1300, 696 02 Ratíškovice

ID Number: 285242

Tax ID Number: CZ00285242

Directive developed by: Netíková Květoslava

Force of directive: 16. March 2010

Approved by the council of the municipality: 16. March 2010

Follow-up:

Law No. 235/2004 Coll., on VAT, as amended

Law No. 563/1991 Coll., on accounting, as amended

Public notice No. 500 (504,505)/2002 Coll., as amended (Public notice)

5.1 The village is subject to VAT

Village Ratíškovice became liable to VAT as it exceeded its turnover more than
1 000 000 CZK in the previous 12 consecutive calendar months. Subsequently the village registered at the Tax Office Hodonín and is a quarterly payer of value added tax since
1 October 2009.

This Directive, which is complementary internal regulation to the existing directive
"On Accounting", is solving the procedures in the application of VAT of Ratíškovice community in relation to law No. 235/2004 Coll., On Value Added Tax, as amended.

The main aim of this directive is to capture the changes to determine the extent of recording responsibilities, way of the circulation and disposal of tax documents, including the designation for the purpose of carrying out the VAT recording responsibility and methodology of procedure for applying VAT statement.

The adjustment relates to community workers who provide financial control when controlling, authorization and accounting of accounting documents in accordance with the internal regulation of the "Guidelines for financial control".

Ratíškovice municipality may enforce tax deduction at the business property acquired since 1. 10. 2008 (i.e. the last 12 months) and used by the taxable economic activities; in municipality Ratíškovice it is area of Baník Ratíškovice. The municipality is obliged to keep records of not only executed taxable fulfillment, as well as records of exempt executed fluffiest, are not subject to tax under § 100 of the Act.

Municipality handles with the relevant documents as tax documents, in accordance with the law, as of 1st October 2009. Accounting for VAT is further in conformity with the Czech accounting standard No. 516. Accounted to account 343 - Value Added Tax and correlative accounts is structured by analysis as described below, so that the community show:

· liability to declare the tax

· the right to deduction from tax of fulfillment

· executed fulfillment, tax free

· other responsibilities of VAT payer

5.2 Fulfillment executed and tax liability

Here the municipality accounts on the sale of products, services and goods inland. There is accounted liability to declare tax by inscription 311 315 / 343 to the credit of account. According to the method of payment is applied to the output VAT even in daily cash, and in the book bank.

Executed taxable fulfillment are declared at the standard rate of 20% to account 343 25, item 601 and recording at a reduced rate of 10% to account 343 25 answering item 602 for 2010. Tax rates on taxable fulfillment are introduced in § 47 of the VAT Act.

When providing services is taxable fulfillment realized at the day of providing this service, or at day of drawing a tax document. The municipality is required to draw a tax document within 15 days from the date of delivery or receipt of payment.

There are recorded separately executed taxable fulfillments inland, which are not included in the calculation of the coefficient abbreviating:

· work of crew of community, i.e. services using tractor, lorry, vibrating plate, assembly works, auxiliary brickwork, working with hand tools, work with loader and other

· adds in municipality cable TV

· message by local broadcast

· advertisements in local newspapers Ratíškovický zvon

· work provided by community workers, i.e. copying, searching of enactment, the sale of medals, postcards, printing of document on printers and other

· export of mixed municipal waste for businesses

· rental of sport complex

· easements

Executed fulfillment with the place of performance inland, exempt from tax, without the right of deduction (§ 51)

All executed fulfillment exempt from tax are filed in the accounting of community, when there is indicated storage item 650 on accounts 311 and 315. They are also included in the VAT return.

These are mainly the following activities:

· registration fees from local library

· entrance fees to museum and trolley

· rent of municipal flats

· rent of municipal land and non-residential premises

In most cases, the rents are related to non-payer of VAT. A municipality may decide to apply tax at the rents of land, buildings, flats and office space to other taxpayers for the purpose of conducting their economic activities.

Fulfillment in the sphere of providing cultural services by municipality Ratíškovice, as well as the supply of goods closely related thereto, as the village was not founded for the purpose of business, are exempt from tax.

Fulfillment executed, which are not subject to tax and is not introduced in the tax return

Ratíškovice municipality as a legal entity established by a special legal enactment is not considered a taxable person in the execution of competency in the field of public administration, even when it do not receives a reward. Revenue from the public administration is not subject to tax.

These are mainly the following income:

· administrative fees

· local fees

· compensation for sorted waste

· penalties

· income from funeral services (management of the cemetery is managed by a Churchyard Regulations)

· delivery of surpluses of subsidized organizations

· income from interest and dividends

· donations

· receipts from payments of mining areas

· income from sale of tangible and intangible assets and other income

The provision of other services:

In addition to the above-mentioned services are provided various services by municipality Ratíškovice, by which is deemed significant number of exceptions. These exceptions can not presently be accurately determined. In such a case the method will be individual. The VAT is declared and levied and accounted to accounts 311 and 315 MD, 343 25 D in the cases defined by law.

5.3 Curtailment of the right to deduction, the coefficient

The village Ratíškovice provides except taxable and exempt fulfillments without any right of deduction under § 51 Value Added Tax Base is required during the year to diminish the right to deduction for "reduced fulfillment" in the form of advance coefficient calculated according to § 76 paragraph 6 Value Added Tax Base. For the last tax period of the year is then carried out the settlement of statement - calculation of the settlement rate for the entire period-settled.

Municipality thus, in the view of the possible deduction of input VAT, discriminates, using accounting software GORDIC, documents to:

· fulfillment received by the § 75 Value Added Tax Base prohibited the deduction of VAT, this means that the right for deduction can not be applied at all especially at fulfillment received - inputs for an activity, which is not an economic activity within the meaning of § 5, paragraph 2 Value Added Tax Base and fulfillment exempt from tax without the right to deduction, according to § 51 Value Added Tax Base. Right to the deduction is not applied also at received fulfillment used to implement activities under § 5, paragraph 3 Value Added Tax Base, when execute competence in sphere of public administration, when the municipality is not considered a taxable person (even when it is receiving fee for providing this competences), when deciding about the impossibility of applying a deduction on the receipt of contributions from the EU, community uses information from MF 15. 12. 2005 "Application of VAT on financial contributions from EU funds" with regard to current legislation.

· received taxable fulfillment according to § 72 paragraph 5 Value Added Tax Base used for the implementation of both their economic activity and even for purposes unrelated to it. Pretension to a deduction is thus placed in the tax return only in appropriate corresponding range of use of the received fulfillment for economic activity.

· received taxable fulfillment in accordance with § 72 paragraph 4 Value Added Tax Base, which are used in the accounting entity of the village as a fulfillment under § 72 paragraph 2, the Value Added Tax Base, by them there is right to a deduction for such fulfillment, by them there is not right to a deduction, in conditions of municipality it is especially various overhead costs - such as energy, labor costs, maintenance and costs for operation of motor vehicles and other. For cutbacks of deduction is used a coefficient pursuant to § 76. Currently, the municipality will not be applying a deduction by coefficient.

· received taxable fulfillment with full pretension for deduction, pursuant to § 72 paragraph 2, the Value Added Tax Base. These fulfillment on the input are used in the full range for implementation of the fulfillment, which are introduced in
§ 72 paragraph 2, the Value Added Tax Base within the sphere of municipality business, the VAT is subtracted from the documents received in full range.

5.4 Applying the right to deduction in the proper tax return

In accordance with § 73 paragraph 11 Value Added Tax Base, community is claiming the pretension for VAT deduction, which is subject to reduction, to which came into existence pretension during the tax year, at latest in the last tax return in the calendar year.

In the case of fulfillment, where is full pretension to deduction, the Value Added Tax Base allows to claim the deduction even in ordinary return at a later stage. Pretension to
a deduction can not by applied after 3 years from the end of the tax period in which the pretension could be applied sooner. After this period, the taxpayer is competent to apply for deduction from taxable fulfillment received, for which he was obliged to declare a tax on output, as output tax on these fulfillment was declared.

5.5 Tax refunds

If the municipality provide the fulfillment to individuals from third countries, in accordance with § 84 of the Act and then refund the taxes to mentioned persons, is this fact accounted by entries 31x/60x, 343 - sale of goods. Repayment of goods to individual is accounted 343/231.

On the following accounts analytic leads our village even accounting of fulfillment exempt without the right to deduction.

Tax documents alleging the right to deduction and the tax returns are based on numerical range within a given month and the day-book of tax documents. Inventory of accounting records of the day-book (such as suppliers, customers, banks, cash registers) contains all the correlations of documents from which it is charged the right to a deduction, tax returns, the execution of the exempt fulfillment, with the right to deduction, without the right to deduction and others. That day-book is the settled account within monthly book closing in a number of internal accounting documents. For the executing of monthly book closing are printed analytic of account 343 and on the basis of these data are compiled the tax return, which are given to the Tax Office by 25th of the first month of following quarter.

Payment of VAT is charged as 343/231. Excessive statement (tax repayment from the Tax Office) is charged to 231/343.

5.6 Final provisions

Village keep copies of VAT returns for each quarter, including statements of accounts, based on which the tax return is assembled, including a written procedure for calculating of the coefficient for determination of tax liability or possibly excessive statement. Archiving takes place according to the Guidelines for archiving.

The correctness of the calculation (completion) of VAT returns is the responsible the general accountant; to sign is authorized the mayor.

CONCLUSION

The aim of this Bachelor Thesis was to optimize the management of municipality Ratíškovice in the view of VAT. I introduced the village Ratíškovice, the structure of municipal office and its activities in the theoretical part.

I performed an analysis of income and expenditure of the village in 2008. I concretized actual revenue and actual expenditure for the given year and suggested the possible improvements. After a detailed familiarization with the income and expenditure of the village Ratíškovice I draw up the budget for year 2009, which is attached to my Bachelor Thesis.

The basic objective of this Bachelor Thesis was, based on practical experience, to analyze the revenue of village Ratíškovice in terms of value added tax.

This Bachelor Thesis was elaborated in the period from July 2009 until the end of January 2010. At first I divided revenues of the village in 2009 by factual fulfillment with the help of tax advisor. Based on this division, I monitored the turnover of economic activity. After overrunning of turnover of 1 000 000 CZK, I implemented the registration for VAT.

I have prepared a price list of services for the tax liability, which was approved by the municipal council. I have conducted training for employees of the municipality and ensured software update of accounting.

I gave first tax return to value added tax to the Tax Office at 25th January 2010. Village requested excessive statement of 105 170 CZK. Local Tax Office conducted local investigation before paying the excessive statement. When the local investigation has been submitted to the Tax Office:

· prices of services for tax liability

· direction of municipality Ratíškovice to value added tax

· VAT return

· recording obligation

· Bachelor Thesis

I put elaborated Bachelor Thesis into effect in this local inquiry. From my own experience I know that there is very little literature in issue of community and the VAT.

I put prepared "Guidelines for Value Added Tax" forward to the municipality Ratíškovice council for approval in March 2010. Evaluation of guideline is attached to Bachelor Thesis.

assessment

ABSTRACT

NETÍKOVÁ, K. Economy Optimization of the Ratíškovice Municipality Kunovice 2010. Bachelor Thesis. European Polytechnic Institute, Ltd.

Supervisor: Ing. Vladimíra Motlová

Keywords: Budget, budget structure, budget system, grant, municipality, management of the municipality, receipts, expenditures, value-added tax

Bachelor Thesis analyzes intakes of municipality Ratíškovice in terms of Value Added Tax (VAT). The first part of the Bachelor Thesis is focused on theoretical knowledge, information about the village and municipal office of Ratíškovice, the second part represents the budget of the village by type classification, the third part analyzes the revenues and expenditures in 2008, the fourth part poses intakes of municipality in terms of Value Added Tax and overall evaluation. The last part contains the municipality Ratíškovice VAT guideline.

Bibliography

Literature

[1] PEKOVÁ. J.: Hospodaření a finance územní samosprávy. 1. edition. Praha: Management Press, Praha 2004. 375 p. ISBN 80-7261-086-4.

[2] PEKOVÁ, J.: Veřejné finance, úvod do problematiky. 3. arranged edition. Praha: ASPI, 2005. 527 p. ISBN 80-7357-049-1.

[3] MARKOVÁ, H.: Finance obcí, měst a krajů. 1. edition. Praha: Orac, 2000. 190 p. ISBN 80-86199-23-1.

[4] ŠELEŠOVSKÝ, J. a kol. Slovník veřejných financí. 1. edition. Brno: Masarykova univerzita, 2004. 67 p. ISBN 80-210-3614-1.

[5] SCHNEIDEROVÁ, I.: Rozpočtová skladba v roce 2009. 1. edition. Revos-L, 2009. 262 p. ISBN 978-80-903160-8-9.

Laws

[6] Czech Republic. Law No. 128 as per 15. 5. 2000 on Municipalities (Municipal Government), as amended. In Collection of Laws of the Czech Republic. 2000,
sum 38, p. 1737-1764. Also available on WWW: <http://aplikace.mvcr.cz/archiv2008/sbirka/2000/zakon_05.html#castka_38>. ISSN 1211-1244.

[7] Czech Republic. Law No. 250 as per 9. 8. 2000 on budgetary rules of the local budgets. In Collection of Laws of the Czech Republic. 2000, sum 73, p. 3557-3567. Also available on WWW: <http://aplikace.mvcr.cz/archiv2008/sbirka/2000/sb073-00.pdf>. ISSN 1211-1244.

[8] Czech Republic. Law No. 243 as per 9. 8. 2000 on budgetary allocation of certain tax revenues to local government units and certain state funds (Act on Budgetary Allocation of Taxes). In Collection of Laws of the Czech Republic. 2000, sum 73, p. 3513-3515. Also available on WWW: <http://aplikace.mvcr.cz/archiv2008/sbirka/2000/sb073-00.pdf>. ISSN 1211-1244.

[9] Czech Republic. Law No. 235 as per 23. 4. 2004 on Value Added Tax. In Collection of Laws of the Czech Republic. 2004, sum 78, p. 4946-5010. Also available on WWW: <http://aplikace.mvcr.cz/archiv2008/sbirka/2004/sb078-04.pdf.>. ISSN 1211-1244.

Foreign language (foreign) literature

[10] BOVEÉ, C.L., THILL, J.V., DOVEL, G. Marketing. London: McGraw-Hill. Inc. 1992.198 p. ISBN 0-471-53253-3.

[11] PETERSON, W.C., ESTENSON, P. S. Income, Employment, Economic, Growth. London: W.W. Norton Company, 1992. 277 p. ISBN 0-256-10784-x.

[12] COLANDER, D.C. Economics. Boston: IRWIN, 1993. 211 p. SBN 0-256-10784-x.

Materials of municipality

[13] NETÍKOVÁ, K., Statement FIN 2 – 12 M - statement to evaluate implementation of the budget of local autonomous units and voluntary associations of municipalities. Ratíškovice, 2008. 19 p. Municipality Ratíškovice.

[14] NETÍKOVÁ, K., Statement FIN 2 – 12 M - statement to evaluate implementation of the budget of local autonomous units and voluntary associations of municipalities, compiled to 31. 7. 2009. Ratíškovice, 2009. 17 p. Municipality Ratíškovice.

[15] NETÍKOVÁ, K., VAT return for tax period IV. 2009. Ratíškovice, 2009. 2 p. Municipality Ratíškovice.

Internet Sources

[16] Obec Ratíškovice [online]. 2006-2010 [cit. 2009-12-14]. Available from WWW: <http://www.ratiskovice.com/index.php>

[17] Ratíškovický INFOKANÁL živě - obec Ratíškovice [online].2010 [cit.2009-12-14] Available from WWW: <http://www.ratiskovice.com/modules.php?name=Content&pa=showpage&pid=139>

LIST OF TABLES AND CHARTs

Tables

Table No. 1: Timetable

Table No. 2: Approved budget and budget after changes as per 31. 12. 2008 (in CZK)

Table No. 3: Summary of received subsidies in 2008

Table No. 4: Income structure of the village in 2008

Table No. 5: The budget expenditures

Table No. 6: Types of expenditure

Table No. 7: Types of income

Table No. 8: Analysis of income according to factual content to 31. 7. 2009

Table No. 9: Overview of balances of VAT accounts to 31. 12. 2009

Charts

Chart No. 1: Approved and actual budget for 2008

Chart No. 2: Ratíškovice village revenues in 2008

Chart No. 3: Revenue in the view of factual fulfillment in 2008

Chart No. 4: Expenditure of community Ratíškovice in 2008

lIST OF ABBREVIATIONS

PSČ zip code

IČ Identification number

DIČ Tax Identification Number

Sb. Collection of laws

DPH Value Added Tax

ZDPH Value Added Tax Base

ZoÚ Law on accounting

PO Subsidized organizations

Pol. Item

Par. Paragraph

LIST OF ANNEXES

Annex No. 1 Ratíškovice municipality budget for 2008

Annex No. 2 Price list of services to tax liability from 1st October 2009

Annex No. 3 Revenue from public administration

Annex No. 4 Revenue exempt from tax liability

Annex No. 5 VAT return

Annex 1. Ratíškovice municipality budget for 2008

Ratíškovice municipality budget for 2008
		(in thousands CZK)

Revenues:			Approved 27.2.2008
No. r.		Title and contents
	item
1.	1xxx	Shared taxable revenues	28820,0
2.	1122	Income tax for the municipality	0,0
3.	1341	The fee for dogs	47,0
4.	1343	The fee for the use of public space	70,0
5.	1337	Local fee for household waste	1380,0
6.	1361	Administrative fees	240,0
7.	1511	Real Estate Tax	925,0
8.	1351	Dissipation of the proceeds from the operation of VHA	130,0
9.	1344	MP - entrance fee	0,0
10.	1334	Levies taxes on agricultural land	0,0
11.	1347	MP - slot machines	200,0
		Total tax revenues	31812,0

12.	2111-19	Revenue from services	700,0
13.	2111	Revenue from services - waste separation	240,0
14.	2111	Revenue from services - DPS	220,0
15.	2131	Revenue from land lease	300,0
16.	2132-33	Revenue from rental property - buildings (Primary school, Baník)	144,0
17.	2132	Revenue from rental of buildings (flats, DPS)	637,0
18.	2139	Other rental income (roof, land, offices)	204,0
19.	2141	Income from interest	120,0
20.	2142	Revenue from dividends	50,0
21.	2210	Received sanction payments	0,0
22.	2229	Other transfers received refund	0,0
23.	2324	Compensation received - waste collection	300,0
24.	2324	Compensation received	0,0
25.	2343	Revenue from payments from the mining areas	50,0
26.	2412	Repayments of loans from Baník, s.r.o.	52,0
27.	2329	Other taxes incomes - unused deposit account in 2007	0,0
28.	2328	Financial award
29.	2460	Loan of citizens - Housing Fund	815,0
		Total non-tax revenue	3832,0
30.
31.	3111	Revenue from sales of property	89,0
32.	3112	Proceeds from sale of buildings / apartments	0,0
33.	3113	Proceeds from sale of other assets	0,0
		Capital revenue	89,0

		Total own revenue	35733,0

34.	4122	Subsidies from JMK Brno - Road Safety	0,0
	4113	Subsidies for insulation
35.	4112	Non-investment subsidies from the SR for state administration and student	821,5
36.	4116	Subsidies from UP	125,0
37.	4213	Subsidies form SZIF Brno - forest road	0,0
38.	4121	Non-investment subsidies from municipalities	88,0
39.	4122	Grants for educational discussion	0,0
40.	4116	Subsidy from the Ministry of Culture - Library	0,0
41.	4134	Transfers between accounts	0,0
42.	4211	INV grants from the SR (school, housing)	2000,0
43.	4111	Subsidies for the election
44.	4222	Subsidies for sanitation
45.	4222	Subsidies for collecting court
46.	4216	Subsidies for insulation	0,0
		Total subsidies	3034,5

		T o t a l R e v e n u e s	38767,5
47.	8115	Involvement of current account balance
48.	8115	Involvement of the social fund balance	29,0
49.	8115	Involvement of the fund reserves balance	460,0
50.	8115	Increase in fund of housing balance	-450,0
51.	8123	Credit	7629,0
		Financing	7668,0
REVENUE + FINANCING IN TOTAL			46435,5

Expenditure:
	Branches	Title and contents
	sort., §
1.	1039	Forestry	235,0
2.	1069	Agriculture	50,0
3.	2212	Roads - repairs, operation, team	1180,0
3/1.	2212	Repair of street Družstevní	150,0
4.	3111-3141	Primary and nursery school	3450,0
5.	3313	Cinema - operating, repairs	150,0
6.	3314	Art School, Library (energy, maintenance)	400,0
7.	3315	Museum	20,0
8.	3316	Publishing activity
9.	3319	Chronicle	30,0
10.	3341	Cable TV + Radio	33,0
11.	3349	Ratíškovský zvon	110,0
12.	3392	Edifying discussion (see Annex No. l)	650,0
13.	3419	Physical training - repairs in the area	150,0
14.	3419	Physical training - Baník, s.r.o. see Annex No.1	2700,0
15.	3419	Physical training - bowling
16.	3419	Physical training FK + SK see Annex No. l	680,0
17.	3419	Physical training - Orel Ratíškovice - project+futsal	8,0
18.	3421	Junák Ratíškovice	72,0
19.	3429	Non-investment subsidies to special interest groups	36,0
20.	3429	Non-investment loans to charitable organizations	0,0
21.	3612	Operation of street apartment building Polní No. 938	30,0
22.	3611	Loans to citizens for housing	450,0
23.	3619	Operation of flats No. 101
24.	3631	Street lighting - operation	650,0
25.	3631	Street lighting - repairs	200,0
26.	3632	Undertaker	160,0
27.	3699	Flats No. 1334,1335	70,0
28.	3721	Hazardous waste	35,0
29.	3722	Waste (garbage cans disposal)	2100,0
30.	3723	Sorted waste	530,0
31.	3729	Operation of collecting yard (wages, energy, repairs)	400,0
32.	3745	Greenery (wages, services)	400,0
33.	3743	Maintenance reclaimed dumping places	40,0
34.	4349	Social assistance - citizens	60,0
35.	4351	Day care - operation	400,0
36.	4351	Charity (see Annex No. l)	291,6
37.	5311	Municipal Police	860,0
38.	5512	Fire Safety + Youth	290,0
39.	6112	Municipal board	1880,0
40.	6115	Elections to regional councils
41.	6171	Municipal Office - wages, electricity, tangible investment goods	2992,0
42.	6310	Fees, interest on loan	500,0
43.	6399	Other financial transactions	150,0
44.	6330	Transfers between accounts	0,0
45.	6399	Membership - Association of Towns and Villages	7,0
46.	6409	Other non-investment subsidies Microregion ND+Hodonínsko	281,9
		Total recurrent expenditure	22881,5

	Branches	Title and contents
47.	1069	Purchase of land - investment	350,0
48.	2212	Infrastructure - investments	2000,0
49.	5399	Security service - non-investment expenditures	0,0
50.	2321	Drainage and sanitation investments	1000,0
51.	3113	Elementary School - investment	8000,0
52.	3341	Cable TV - Baťovka	400,0
53.	3341	Cable TV - radio	100,0
54.	3419	Physical training - restaurant Sport	1000,0
55.	3419	Physical training - investments-irrigation system	132,0
56.	3619	Other investment projects	500,0
57.	3113	Insulation of school buildings	2000,0
58.	5512	Firehouse - energy audit	0,0
59.	3699	Technical infrastructure by Jezérko investment	100,0
60.	3729	Collecting Court - investment	0,0
61.	3330	Investment subsidies - a farm building in Rectory	55,0
62.	3619	Residential building - social housing	4500,0
63.	3631	Regulators VO
64.	3632-3	Funeral Hall
65.	2219	Cycle paths
		Total capital expenditure	20137,0

		TOTAL EXPENDITURE	43018,5

66.	8124	Installment of loan SFŽP	1317,0
67.	8124	Installment of loan 30 mil.CZK	2000,0
68.	8124	Installment of loans from the Housing Fund	100,0
		Financing	3417,0


TOTAL COSTS AND FINANCING			46435,5
		Ing. Josef Uhlík, mayor

Annex 2. Price list of services to tax liability since 1. October 2009

Municipality Ratíškovice

Price list of services to tax liability since 1. October 2009

Approved by the municipality council at 22.9.2009

Ratíškovice municipality work - work crew

Tractor

base/hour

360 CZK including VAT

rate/km

26 CZK including VAT

Tractor siding - Hire

base/day

120 CZK including VAT

Lorry

base/hour

240 CZK including VAT

rate/km

18 CZK including VAT

Loader

1 hour

780 CZK including VAT

Cart

day

880 CZK including VAT

Vibrating plate

base/hour + service

300 CZK including VAT

Driver’s machines are accounted for in the price of machines.

Assembly - work:

Auxiliary jobs - masonry, etc.

base/hour

178 CZK including VAT

Price of work with hand tools (lawn mowers, etc.)

base/hour

238 CZK including VAT

Advertising on cable TV of municipality Ratíškovice

Advertising

1. day

75 CZK including VAT

and each other day

25 CZK including VAT

Notification by local radio of municipality Ratíškovice

Notification - individuals and corporations

rate/day

85 CZK including VAT

Special notification

rate/day

150 CZK including VAT

Municipal newspapers Ratíškovický zvon

Ad price list

whole page A4

2380 CZK including VAT

1/2 page A4

1190 CZK including VAT

1/4 page A4

600 CZK including VAT

1/8 page A4

300 CZK including VAT

Insertion price list

less than 40 words

50 CZK including VAT

congratulation

50 CZK including VAT

Labor provided by workers of municipality Ratíškovice

Copying

one-sided A4

3 CZK including VAT

two-sided A4

4 CZK including VAT

one-sided A3

5 CZK including VAT

two-sided A3

7 CZK including VAT

For every new quarter of an hour of work - normal processing

50 CZK including VAT

Print of document on a laser printer

1 page A4

6 CZK including VAT

Print of document on a color printer

1 page A4

20 CZK including VAT

Provision of text data on a diskette or CD

40 CZK including VAT

Searching out EU legislation in the Czech language on the Internet

50 CZK including VAT

Bronze Medals

1 piece

360 CZK including VAT

postcard of municipality

1 piece

5 CZK including VAT

Exports of waste for legal persons

dustbins

volume 110 to 150 liters

2300/year including VAT

dustbins

volume over 160 liters

4600/year including VAT

container

16100/year including VAT

Rental of sports complex Baník Ratíškovice, s.r.o.

rental of land and buildings (see contract)

year

142 800 CZK including VAT

In Ratíškovice at 22.9.2009

Ing. Josef Uhlík

mayor

Revenue from public administration

1. Administrative fees

look-in to registers		20 CZK
notification of change of residence		50 CZK
edition of extract from the documents		50 CZK
edition of extract from the documents brought on the floppy disk		40 CZK
edition of extract from the documents brought on a CD or ZIP		80 CZK
edition of copy of birth / marriage or death certificate		100 CZK
edition of a certified extract from the public administration information system		100 CZK
- and for each additional page		10 CZK
verification of duplicate or copy		30 CZK/ for each page
implementation of authorized conversion of documents into electronic form		30 CZK/ for each page
implementation of authorized conversion of documents into paper form		30 CZK/for each page
re-edition of access data to a data mailbox		200 CZK
verification of the signature or stamp		30 CZK
edition of citizenship certificates		100 CZK
receipt of the edition statement from the Criminal Register		50 CZK
edition of permission to change the surname of defamatory or previous surname		100 CZK
edition of permit a change of surname in other cases		1 000 CZK
marriage - do not have a permanent residence in the CR		3 000 CZK
marriage - only one has a permanent residence in the CR		2 000 CZK
edition of permission to marry beside the prescribed time, the room		1 000 CZK
edition of permission for entry into a registered partnership		1 000 CZK
edition of certificate of legal capacity to marriage		500 CZK
edition of new ID card for the damaged one		100 CZK
edition of permission to operate slot machines		10 000 CZK/3 months
edition of permission to operate slot machines		16 000 CZK/6 months
edition of permission to operate slot machines		30 000 CZK/l year
edition of permit to operate a gambling game per year 10 %		at least 1500 CZK
change of permission to change the permanent location of slot machine		2 000 CZK
decision - the establishment of slip road to the neighboring property		500 CZK
decision - to allow the special use of roads		from 100 - 500 CZK

2. Local fees

fee for dog		100 CZK/year

fee for use of public spaces	long-term	1,5 CZK/m2/day
fee for use of public spaces	short-term	20 CZK/m2/day

reserving a permanent parking space	personal motor car	1080 CZK/year
reserving a permanent parking space	transporters	2160 CZK/year
reserving a permanent parking space	tractors	2880 CZK/year
reserving a permanent parking space	trucks, machinery	15 840 CZK/year

use public space for attractions	for young children	30 CZK/day/attraction
use public space for attractions	others	80 CZK/day/attraction
use public space for attractions	shooting range	80 CZK/day/attraction
use public space for attractions	caravans	10 CZK/day/attraction
use public space for attractions	circus equipment	150 CZK/day/attraction

use of public space in the building permit		1 CZK/m2/day
use of public space in other cases		2 CZK/m2/day

local charge for ticket	discos	200 CZK/action
local charge for ticket	balls, dances	100 CZK/action

fee for operating the winning play equipment		5000 CZK/3 months

fee for municipal waste collection	year	480 CZK/payer

3. Compensation for separated waste submitted by quantity

4. Penalties
block penalty		by relevance
penalties of commission for dealing with offences		by relevance


5. Undertaker of municipality Ratíškovice

Ensuring the funeral ceremony in the hall		1 200 CZK
Speaker mourning hall		400 CZK
Speaker - Church		250 CZK
Hire of Funeral Hall		200 CZK
Lease of refrigeration equipment		100 CZK/day
Digging the grave		1 900 CZK
Made of concrete curbs of tomb		4 750 CZK
Made of concrete curbs of casket tomb		2 300 CZK

6. Transfer of surpluses of subsidized organizations

7. Revenue from interest and dividends

8. Donations

9. Revenue from mining areas payments

10. Revenue from sale of fixed asset

11. Sale of local newspaper - Ratíškovický zvon

Revenue exempt for the tax liability


1.	List on the library section of the village Ratíškovice

	registration fees	adults	50 CZK/year
	registration fees	children, seniors, students	30 CZK/year

	penalty fees	1. reminder	20 CZK
	penalty fees	2. reminder	30 CZK
	penalty fees	3. reminder	40 CZK
	penalty fees	4. reminding letter	50 CZK
	loss of book		50 CZK
	loss of reader card		10 CZK



2.	Entrance fee museum in wagon and trolley

	museum in wagon	children's ticket	5 CZK
	museum in wagon	ticket for adult	10 CZK

	trolley	entrance fee	150 CZK

3.	Rents and rebilling of energy for municipal housing
	flats street Polní No. 938
	flats street Ulička No. 101
	flat by Hájenka No. 1334 and 1335

4.	Rents and rebilling of energy in the House of Peaceful Old Age
	allowance for		20 CZK/1 bath

5.	Rents and easements (except Baník Ratíškovice s.r.o.)

INTRODUCTION

1 THEORETICAL PART

1.2.1 Municipal board

1.2.2 Municipal council

1.2.3 Mayor

1.2.4 Municipal office

2 Financial management of municipalitY

2.1.1 Recapitulation of the budgetary process

2.2.1 Generic classification of income

2.2.2 Generic classification of expenditures

2.2.3 Generic sorting of municipality financing

3 ANALYSIS OF REVENUE AND EXPENDITURE

3.1.1 Tax revenues

3.1.2 Non-tax revenues

3.1.3 Transfers received

3.2.1 Current and capital expenditures in 2008

3.2.2 Optimizing of the management of the village in 2008

4 ANALYSIS OF INCOME IN TERMS OF VALUE ADDED TAX

4.4.1 Output tax

4.4.2 Input tax

4.4.3 Exempt fulfillment without the right to deduction

4.5 Evaluation of optimization of the municipality management

5 rATÍŠKOVICE MUNICIPALITY DIRECTIVE TO VAT

CONCLUSION

assessment

ABSTRACT

Bibliography

LIST OF TABLES AND CHARTs

lIST OF ABBREVIATIONS

LIST OF ANNEXES