Social Accounting of the Faculty

Peter Friedrich, Diana Eerma

Seminar March 9, 2010

Structure of the presentation

• Social success

↓

• Type of social accounting→ Accounting→

• Charts → Evaluation measures→ Booking of Transactions →

• Results for the Faculty

How to measure success systematically?

• Goals as indicator of social success are expressed by an:

• - evaluation function (welfare function, goal function concerning firms, private

households, public administrative units)• - individual goals (Effectiveness-analysis)• - bundle of goals (Cost-effectiveness-

analysis, utility-analysis)• - one social indicator (Net-benefit-analysis)

What is the task of social accounting?

• For a single economic units one wants to identify social success due to the activities of that economic unit in a period of time

Social accounting vs commercial accounting

• Concerning with more than only economic events;

• Not being exclusively expressed in financial terms;

• Be accountable to a broader group of stakeholders;

• Broadening its purpose beyond reporting financial success.

I. Research Question• We suggest a chart of social accounting for the

Faculty of Economics and Business Administration of the University of Tartu.

• Which attempts have been made to develop such a bookkeeping system?

• What are the basic requirements and features of a chart for social accounting of public firms and administrative units?

• What should the chart look like and how should it be applied?

II. Attempts to Social Accounting• Several attempts to social accounting are only

project-oriented using a welfare function, utility analysis or benefit-cost analysis.

• Others concentrate on a statement of favorable and unfavorable social effects such as social audits.

• Some focus on special aspects of social life or factors of production such as human resource accounting.

• In corporate social accounting the contributions of a firm to social success are detected or shown by social indicator analysis. Specific attempts exist in environment, health and education accounting.

• On the basis of benefit-cost analysis evaluation techniques a social bookkeeping system was developed for homes of elderly people, for energy provision, for convention halls, tourist facilities, ecological banks, and for an institution to arise disabled people since 1980.

III. Basic Features of the Social Accounting chart

• We apply the willingness to pay approach to identify social values (benefit cost analysis, advantages, disadvantages) in Estonia in terms of the living generation

• We define flows and stocks of social benefits and social costs• Estonia is the region of reference as main effects are in Tartu,

Pärnu, Narva and other places in Estonia• The sequences of transactions and effects to be included are

those that are more directly linked to the faculty• grouped on the operations of the faculty, e.g. research,

teaching, conference meetings, scientific co-operation, Open University, vocational training, consulting services

• We develop deferral criteria to spin off social benefits and social costs not caused by the faculty .

• As an approximation it is assumed that the Faculty’s social net-benefit vanishes, if it does not exist.

IV. Basic Features of the Social Accounting Chart• Social Net Benefit (SNB) = consumer surplus + turnover + monetary

value of external effects • - producer surplus - costs - monetary value• of external effects• Social Net Benefit (SNB) = (consumer surplus - producer surplus) +• (external benefits - external costs) • (Additional social accounting)• + (turnover - costs)• (Commercial profit assessment)

• Social bookkeeping systems, which comprises:• (1) Social accounting = an additional social accounting + commercial

bookkeeping• (2) Current SNB = additional social success operating statement + commercial

profit (loss) account• (3) Total social balance = additive social balance + commercial balance

• We concentrate on additive social accounting (in (1)) and to total social balance (3) and use double entry booking

V. The Chart of Social Accounting and Bookkeeping Rules

• The University possesses an incomplete commercial bookkeeping system disaggregated to the faculty and college level.

• We add a social accounting system collecting corrections and additional social benefits and social costs

• We define flow, stocks and technical accounts, transactions that get identified, valued, split, deferred, and booked, additional social success statements , additional social balances, and a total social balance integrating the commercial and the additional social balance.

• The additional social stock accounts remainders are extended to the additional social balance, the social flow accounts remainders are extended to the social success statement where the current net social benefit becomes identified booked also to the total social balance.

Transactions

Additional social bookkeeping system

Commercial bookkeeping system

Expenses Revenues

Opening balance

Social assets

Social liabilities

Profit assessment

Final commercial balance

Additional commercial assets or

liabilities

Social assets

Opening stock

Decrease deferral

Remainder

Deferral account

Deferred assets

Deferred liabilities

Net benefit by other

economic units

Final social balance

Social assets

Social liabilities

Social net benefit

Social liabilities

Decrease deferral

Opening stock

Remainder Increase

Social benefits

DeferralSocial

benefitsRemainder

Deferral account

Deferral Social

account Deferred social

benefits

Net social benefit by

other economic

units

Social costs

DeferralSocial costs

Remainder

Social successOperating statement

Social costs Social

benefitsSocial net

benefit

Total balance

Equity capital profit

Social benefits

LiabilitiesSocial

liabilitiesTotal social net benefit

Increase

Identification of Accounts

• A matrix confronting possible social benefits and activities show:

• - possible stock accounts of social benefits• - possible success accounts of social benefits• A matrix confronting possible social costs and

activities show:• - possible stock accounts of social costs• - possible success accounts of social costs

Chart of accounts

Classification 0: material social assets, human social assets “ 1: social cash Assets

“ 2: social claims

“ 3: social equity, adjustments liabilities

“ 4: social liabilities and social net benefit social benefits “ 5: social benefits social costs “ 6: social material and staff costs

“ 7: opening social balance, final social balance

social success operating statement “ 8: deferral stocks

technical accounts

“ 9: deferral successes

Knowledge of master IIFA0211 IIFL1001 1.093 IIFT7301 1.093 1.093 1.093

Emissions, etc. IIFL4021 IIFT7301 0.710 IIFL1001 0.710 0.710 0.710 Social cash IIFL1001 IIFL others 2.805 IIFL4021 Emissions, etc. 0.710 IIFA1001 52.936 IIFT 7301 42.387

IIFA others 79.916 IIFA0211 master 1.093 IIFT9302 10.870 IIFL1001 6.959

98.838 98.838 Value adjustment to knowledge of master of faculty IIFV3211 IIFT7301 0.110 IIFsC6701 master 0.110 0.110 0.110 Value adjustment to emissions faculty IFW3021 IIFB5801 0.142 IIFT3701 emissions 0.142 0.142 0.142

Booking examples (stocks of benefits and costs)

Booking examples of current benefits and costs

Depreciation IIFsC6701 IIFV others 10.060 IIFT7101 others 10.060 IIFV3211 master 0.110 IIFT7101 master 0.110 10.170 10.170

Appreciation of faculty IIFB5801

IIFT7301 others 0.005 IIFW others 0.005 IIFT7301 emissions 0.142 IIFW3021 emissions 0.142 0.147 0.147 Open University IIFB5141 IIFT7301 11.775 IIFA1001 11.775 11.775 11.775

Writing proposals IIFsC6222

IIFL1001 0.522 IIFT7301 0.365 IIFT9302 0.157 0.522 0.940

0.522

Deferral of Faculty benefits and costs IIFT9302 IIFsC others 0.377 IIFsC6222 Writing proposals 0.157

IIFB others 11.404

IIFA1001 10.870 11.404 11.404

Social cash IIFA1001 IIFB5141 open Univer. 11.775 IIFB others 41.161

IIFA1001 52.936

52.936 52.936

Social cash IIFL1001 IIFA1001 6.959 IIFsC others 6.437

IIFsC6222 writing proposals 0.522 6.959 6.959

IIFT7101 Additional Operating Social Success Statement of the Faculty

Social Costs from Social Benefits from

Teaching (1)

sC6101 Baccalaureate studies 1.822 B5101 Baccalaureate studies 4.858

sC6111 Master studies 0.018 B5111 Master studies 2.418

sC6122 Doctorial studies 0.183 B5122

Doctorial studies 5.547

sC6132 Promotion of skills 0.324 B5132

Vocational training 0.513

sC6141 Open University 0.928 B5141 Open University 11.775

sC6152 Publ. teaching materials 0.048 B5152 Publ. teaching materials 0.924

Research (2) sC6202 Publ. research results 0.004 B5202 Publ. research results 0.008 sC6212 Rising funds 0.298 B5212 Rising funds 0.658 sC6222 Writing proposals 0.365 B5222 Writing proposals 0.609 sC6231 Writing, articles, books 0.496 B5231 Writing articles, books 1.548

sC6242 Organizing conferences 0.139 B5242 Organizing conferences 0.148

Consulting (3) sC6301 To firms 0.636 B5301 To firms 1.060 sC6311 To public institutions 0.541 B5311 To public institutions 1.351 sC6321 To parliament 0.030 B5321 To parliament 0.360 sC6331 To EU 0.019 B5331

2 To EU 0.060

sC5341 To scientific bodies 0.023 B5341 To scientific bodies 0.046

Management activities (4) sC6401 Monitoring 0.015 B5401 Monitoring, control 0.231 sC6411 Financial management 0.015 B5411

12 Financial management 0.219

sC6421 Staff management 0.024 B5421 Staff management 0.285 sC6431 Faculty decision making 0.043 B5431 Faculty decision making 0.642 sC6441 Management of labs 0.003 B5441 Management of labs 0.041

sC6452 Contacts to other faculties 0.002 B5452 Contacts other faculties 0.027 sC6461 Support of Colleges 0.076 B5461 Support of Colleges 0 sC6471 Representation 0.012 B5471 Representation 0.024

Other FACULTY activities (5) sC6501 Contact to schools 0.002 B5501 Contact to schools 0.003 sC6512 Attraction of visitors 0.154 B5512

412 Attraction of visitors 0.456

sC6522 Public relations 0.001 B5522 Public Relations 0.840 sC6532 Advertisement 0.004 B5532

34 Advertisement 0.108

sC5542 Fiscal social costs 0 B5542 Fiscal social benefits 6.773 sC6552 Other social costs 0.200 B5552 Other social benefits 0 sC6701 Depreciation others 10.170

B5801 Appreciation others 0.005 0.147 Depreciation master 0.110 B5801 Appreciation emissions 0.142

B4871 Add. social net benefit 25.084

41.679 41.679

Additional Operating Social SuccessStatement

IIFT7301 Additional Social Final Balance of Faculty

Additional Social Assets Additional Social Liabilities

IIFA0101 Value of buildings 0

IIFL4001 Stock of previous net benefits 0

IIFA0111 Value of assets not booked 36.328 IIFL4011 Accidents 0

IIFA0201 Knowledge of baccalaureate 3.238 IIFL4021 Emissions, spoiled environment 0.710

IIFA0211 Knowledge of master 1.093 IIFL4101 Future financial obligations 0

IIFA0222 Knowledge of doctor 0.544

IIFL4201 Closing down of consultancy institutions 0

IIFA0231 Knowledge Open University 6.615 IIFL4301 Loss of staff 0 IIFA0242 Knowledge vocational training 0.354 IIFL4401 Loss of resources by political act. 0.020

IIFA0251 Knowledge teaching staff 0.031 IIFL4501 Employment losses 0

IIFA0261 Knowledge of Scientists 0.030 IIFL4511 Reduced infrastructure 0

IIFA0301 Lasting research results 11.400 IIFL1001 Social cash (add. Social capital) 42.387

IIFA0312 Incr. intern. cooperation capacity 0.603 IIFV3101 Value adjustment to buildings 0

IIFA0321 Incr. research capacities: staff 1.426 IIFV3111 to current assets not booked 3.756

IIFA0331 Incr. research capacity: equipment 0.160 IIFIIFV3201

to knowledge of baccalaureate 0.648

IIFA0341 Incr. research capacities: buildings 0 IIFV3211 to knowledge of master 0.110

IIFA0351 Incr. research capacities: library 0.094 IIFV3222 to knowledge of doctor 0.054

IIFA0361 Contribution to research centres 0 IIFV3231 to knowledge open University 1.654

IIFA0401 Capacity to consult firms 1.060 IIFV3241 to knowledge vocational training 0.071

IIFA0411 Capacity to consult governments 0.901 IIFV3251 to knowledge teaching staff 0.003

IIFA0421 European funds 0.060 IIFV3261 to knowledge of Scientists 0.002

IIFA0501 Dev. Estonian language 1.915 IIFV3301 to lasting research results 1.140

IIFA0511 Increased Employment 2.724 IIFV3312 to incr. intern. cooperation capacity 0.121

IIFA0521 Increased infrastructure 3.500 IIFV3321 to incr. research capacities: staff 0.285

IIFA0601 Changes of profits of other firms 1.554 IIFV3331 to incr. research capacity: equipment 0.032

IIFA0612 Increase of tax receipts 4.594 IIFV3341 to incr. research capacities: buildings 0

IIFW3001 Value adjustment to previous net ben. 0 IIFV3351 to incr. research capacities: library 0.002

IIFW3011 to accidents 0 IIFV3361 to contribution to research centres 0

IIFW3021 to emissions 0.142 IIFV3401 to capacity to consult firms 0.353

IIFW3101 to future financial obligations 0 IIFV3411 to capacity to consult governments 0.300

IIFW3201 to closing down of consultancy instit. 0 IIFV3421 to European funds 0.020

IIFW3301 to loss of staff 0 IIFV3501 to dev. Estonian language 0.383

IIFW3401 to loss of resources by political act. 0.005 IIFV3511 to increased Employment 0.272

IIFW3501 to employment losses 0 IIFV3521 to increased infrastructure 0.350

IIFW3511 to reduced infrastructure 0 IIFV3602 to changes of profits other firms 0.155

IIFV3612 to increase of tax receipts 0.459

IIFB4871 Additional net benefit 25.084

78.371 78.371

Additional Social Final Balance Faculty

IFT711 Commercial Balance Faculty 1. Non-current assets 1. Net Assets IFA001 Building 64.320 IFL301 Capital 72.714 IFA011 Property land 0.302 IFL311 Statutory capital reserve 0 IFA021 Investment property 0 IFL321 Accumulated surpluses 0 IFA031 Vehicles 0 IFL331 Value adjustments 0 IFA041 Machinery, equipment 6.893 IFA051 Capitalised expenses

on leased assets 0

IFA061 Prepayment for property 0 IFA071 Other items of property,

equipment 0

2. Non-Current Assets – Financial Assets

IFA101 Investment in associates 0 IFA111 Long-term claims 0 IFA121 Credit granted 0 IFL341 Profits /loss 0 3. Circulating Capital –

Current Assets 2. Liabilities

IFA201 Inventories: Materials 0.511

IFL351 Allowances 0

IFA211 Work in progress 0 IFL361 Loans 0 IFA221 Manufactured goods 0 IFL371 Leasing 0 IFA231 Non-current assets for sale 0 IFL381 Tax liabilities 0.903 IFA241 Pre-payments for sale,

services, inventories 0 IFL391 Short term debts with

banks 2.120 IFA251 Customer and other

receivables 0

IFA261 Intangible assets 0.2 IFA271 Cheques and SEB funds 0 IFA281 Cash on hand, current

account, short-term deposits, overnight deposits 2.511

4. Accrued IFA291 Accrued income 1.0 75.737 75.737

Commercial Balance Faculty

The loss of 2.048 was balanced with the capital

IFT711 sets Commercial Assets IFT711 Commercial Liabilities

1. 1Non-NonNNon-current assets 71.515 1. Net assets, capital 72.714

2. Financial assets 0 2. Liabilities 3.023

3. Current assets 3.222

4. Accrued income 1.0

IIFT7301 Additional Social Assets IIFT7301 Additional Social Liabilities

IIFA0101 Value of buildings 0

IIFL4001 Stock of previous net benefits 0

IIFA0111 Value of assets not booked 36.328 IIFL4011 Accidents 0

IIFA0201 Knowledge of baccalaureate 3.238 IIFL4021 Emissions, spoiled environment 0.710

IIFA0211 Knowledge of master 1.093 IIFL4101 Future financial obligations 0

IIFA0222 Knowledge of doctor 0.544

IIFL4201 Closing down of consultancy institutions 0

IIFA0231 Knowledge Open University 6.615 IIFL4301 Loss of staff 0 IIFA0242 Knowledge vocational training 0.354 IIFL4401 Loss of resources by political act. 0.020

IIFA0251 Knowledge teaching staff 0.031 IIFL4501 Employment losses 0

IIFA0261 Knowledge of Scientists 0.030 IIFL4511 Reduced infrastructure 0

IIFA0301 Lasting research results 11.400 IIFL1001 Social cash (add. Social capital) 42.387

IIFA0312 Incr. intern. cooperation capacity 0.603 IIFV3101-3612

Value adjustment : 10.170

IIFA0321 Incr. research capacities: staff 1.426

IIFA0331 Incr. research capacity: equipment 0.160

IIFA0341 Incr. research capacities: buildings 0

IIFA0351 Incr. research capacities: library 0.094

IIFA0361 Contribution to research centres 0

IIFA0401 Capacity to consult firms 1.060

IIFA0411 Capacity to consult governments 0.901

IIFA0421 European funds 0.060

IIFA0501 Dev. Estonian language 1.915

IIFA0511 Increased Employment 2.724

IIFA0521 Increased infrastructure 3.500

IIFA0601 Changes of profits of other firms 1.554

IIFA0612 Increase of tax receipts 4.594

IIFW3001- 3511

Value adjustment: 0.147

IIFB4871 Additional net benefit 25.084

154.188 154.188

Total Social Balance Faculty

7101 Total Additional Operating Social Success Statement

Social Costs from . Social Benefits from Teaching (1)

B5101 Baccalaureate studies 1.681 sC6101 Baccalaureate studies 7.662

sC6111 Master studies 0.028 B5111 Master studies 2.858 sC6122 Doctorial studies 0.183 B5122

Doctorial studies 5.547

sC6132 Promotion of skills 0.706 B5132

Vocational training 5.109

sC6141 Open University 0.960 B5141 Open University 11.919 sC6152 Publicat. teaching materials 0.136 B5152 Publicat. teaching materials 1.632

Research (2) sC6202 Public. of research results 0.044 B5202 Publication of research results 0.088 sC6212 Rising funds 0.482 B5212 Rising funds 1.050 sC6222 Writing proposals 0.616 B5222 Writing proposals 1.029 sC6231 Writing, articles, books 0.592 B5231 Writing articles, books 1.848 sC6242 Organizing conferences 0.334 B5242 Organizing conferences 0.611

Consulting (3) sC6301 To firms 0.859 B5301 To firms 1.617 sC6311 To public institutions 1.018 B5311 To public institutions 2.544 sC6321 To parliament 0.030 B5321 To parliament 0.360 sC6231 To EU 0.093 B5331

2 To EU 0.134

sC5341 To scientific bodies 0.026 B5341 To scientific bodies 0.058

Management activities (4) sC6401 Monitoring 0.024 B5401 Monitoring, control 0.387 sC6411 Financial management 0.026 B5411

12 Financial management 0.387

sC6421 Staff management 0.032 B5421 Staff management 0.417

sC6431 Decision making 0.053 B5431 Faculty decision making 1.386

sC6441 Management of labs, etc. 0.005 B5441 Management of labs, etc. 0.065

sC6452 Contacts to other faculties 0.006 B5452 Contacts to other faculties 0.067 sC6461 Support of Colleges 0.076 B5461 Support of Colleges 0 sC6471 Representation 0.038 B5471 Representation 0.077

Other FACULTY activities (5) sC6501 Contact to schools 0.006 B5501 Contact to schools 0.010 sC6512 Attraction of visitors 0.375 B5512

412 Attraction of visitors 1.191

sC6522 Public relations 0.002 B5522 Public relations 2.057 sC6532 Advertisement 0.007 B5532

34 Advertisement 0.202

sC6542 Fiscal social costs 0 B5542 Fiscal social benefits 12.552 sC6552 Other social costs 0.360

0.360 B5552 Other social benefits 0

sC6701 Depreciation 16.031

B5801 Appreciation 0.209

B4871 Additional social net benefit 38.244

63.073 63.073

Total Additional Operating Social SuccessStatementFacultyGroup

IIST 7301 Additional Total Social Final Balance

Additional Social Assets Additional Social Liabilities

IISA01011 Value of buildings 37.862

IISL4001 Stock of previous net benefits 0.590

IISA0111 Value of assets not booked 54.823 IISL4011 Accidents 0

IISA0201 Knowledge of baccalaureate 4.075 IISA0111 Value of assets not booked 0.290 IISA0211 Knowledge of master 2.855

IISL4021 Emissions, spoiled environment 1.021

IISA0222 Knowledge of doctor 0.544

IISL4101 Future financial obligations 1.460

IISA0231 Knowledge Open University 6.615 IISL4201 Closing down of consultancy institute. 0

IISA0242 Knowledge vocational training 3.171 IISL4301 Loss of staff 0

IISA0251 Knowledge teaching staff 0.064 IISL4401 Loss of resources by political act. 0.020

IISA0261 Knowledge of Scientists 0.044 IISL4501 Employment losses 0

IISA0301 Lasting research results 13.650 IISL4511 Reduced infrastructure 0

IISA0312 Incr. internat. cooperation cap.1.338 IISL1001 Social cash (add. social capital) 96.477

IISA0321 Incr. res. capacities: staff 1.901 IISV3101 Value adjustment to buildings 0.947

IISA0331 Incr. res. capacities: equipment 0.233 IISV3111 to current assets not booked 5.875

IISA0341 Incr. res. capacities: buildings 0 IISV3201 to knowledge of baccalaureate 0.815

IISA0351 Incr. res. capacities: library 0.116 IISV3211 to knowledge of master 0.286

IISA0361 Contribution to research centres 0 IISV3222 to knowledge of doctor 0.054 IISA0401 Capacity to consult firms 1.431 IISV3231 to knowledge of Open University 1.654

IISA0411 Cap. to consult governments 1.696 IISV3241 to knowledge vocational training 0.637

IISA0421 European funds 0.134 IISV3251 to knowledge teaching staff 0.006

IISA0501 Dev.of Estonian language 2.681 IISV3261 to knowledge of Scientists 0.002

IISA0511 Increased Employment 5.046 IISV3301 to lasting research results 1.366

IISA0521 Increased infrastructure 4.750 IISV3312 to incr. internat. cooperation cap. 0.268

IISA06021 Changes of profits of firms 2.800 IISV3321 to incr. res. capacities: staff 0.380

IISA0612 Increase of tax receipts 8.113 IISV3331 to incr. res. equipment 0.047

IISW3001 Value adjustment to prev. n. ben. 0 IISV3341 to incr. res. capacities: buildings 0

IISW3011 to accidents 0 IISV3351 to incr. res. capacities: library 0.002

IISW3021 to emissions 0.204 IISV3361 to contribution to research centres 0

IISW3101 to future financial obligations 0 IISV3401 to capacity to consult firms 0.477

IISW3201 to closing down consultancy inst. 0 IISV3411 to capacity to consult governments 0.564

IISW3301 to loss of staff 0 IISV3421 to European funds 0.044

IISW3401 to resource loss by political act. 0.005 IISV3501 to dev. of Estonian language 0.536

IISW3501 to employment losses 0 IISV3511 to increased Employment 0.505

IISW3511 to reduced infrastructure 0 IISV3521 to increased infrastructure 0.475

IISV3602 to changes of profits of other firms 0.560

IISV3612 to incr.of tax receipts 0.811

IISB4871 Additional net benefit 38.244

154.133 154.133

Additional Total Social Final Balance Faculty Group

IIST 7301 Additional Total Social Final Balance

Additional Social Assets Additional Social Liabilities

IISA01011 Value of buildings 37.862

IISL4001 Stock of previous net benefits 0.590

IISA0111 Value of assets not booked 54.823

IISL4011 Accidents 0

IISA0201 Knowledge of baccalaureate 4.075 IISA0111 Value of assets not booked 0.290 IISA0211 Knowledge of master 2.855

IISL4021 Emissions, spoiled environment 1.021

IISA0222 Knowledge of doctor 0.544

IISL4101 Future financial obligations 1.460

IISA0231 Knowledge Open University 6.615 IISL4201 Closing down of consultancy institute. 0

IISA0242 Knowledge vocational training 3.181 IISL4301 Loss of staff 0

IISA0251 Knowledge teaching staff 0.064 IISL4401 Loss of resources by political act. 0.020

IISA0261 Knowledge of Scientists 0.044 IISL4501 Employment losses 0

IISA0301 Lasting research results 13.650 IISL4511 Reduced infrastructure 0

IISA0312 Incr. internat. cooperation cap.1.338 IISL1001 Social cash (add. social capital) 96.505

IISA0321 Incr. res. capacities: staff 1.901 IISV3101 Value adjustment to buildings 0.947

IISA0331 Incr. res. capacities: equipment 0.233 IISV3111 to current assets not booked 5.875

IISA0341 Incr. res. capacities: buildings 0 IISV3201 to knowledge of baccalaureate 0.815

IISA0351 Incr. res. capacities: library 0.116 IISV3211 to knowledge of master 0.286

IISA0361 Contribution to research centres 0 IISV3222 to knowledge of doctor 0.054 IISA0401 Capacity to consult firms 1.431 IISV3231 to knowledge of Open University 1.654

IISA0411 Cap. to consult governments 1.696 IISV3241 to knowledge vocational training 0.637

IISA0421 European funds 0.134 IISV3251 to knowledge teaching staff 0.006

IISA0501 Dev. of Estonian language 2.681 IISV3261 to knowledge of Scientists 0.002

IISA0511 Increased Employment 5.046 IISV3301 to lasting research results 1.366

IISA0521 Increased infrastructure 4.750 IISV3312 to incr. internat. cooperation cap. 0.268

IISA06021 Changes of profits of firms 2.800 IISV3321 to incr. res. capacities: staff 0.380

IISA0612 Increase of tax receipts 8.113 IISV3331 to incr. res. equipment 0.047

IISW3001 Value adjustment to prev. n. ben. 0 IISV3341 to incr. res. capacities: buildings 0

IISW3011 to accidents 0 IISV3351 to incr. res. capacities: library 0.002

IISW3021 to emissions 0.204 IISV3361 to contribution to research centres 0

IISW3101 to future financial obligations 0 IISV3401 to capacity to consult firms 0.477

IISW3201 to closing down consultancy inst. 0 IISV3411 to capacity to consult governments 0.564

IISW3301 to loss of staff 0 IISV3421 to European funds 0.044

IISW3401 to resource loss by political act. 0.005 IISV3501 to dev. of Estonian language 0.536

IISW3501 to employment losses 0 IISV3511 to increased Employment 0.505

IISW3511 to reduced infrastructure 0 IISV3521 to increased infrastructure 0.475

IISV3602 to changes of profits of other firms 0.280

IISV3612 to incr.of tax receipts 0.811

IISB4871 Additional net benefit 38.244

154.161

154.161

HST7401 Total Commercial Balance Faculty Group Com IST711

1. Non-current assets Com. 1. Net Assets

ISA001 Building 106.631 ISL301 Capital 122.013 ISA011 Property land 0.302 ISL311 Statutory capital reserve 0 ISA021 Investment property 0 ISL321 Accumulated surpluses 0 ISA031 Vehicles 0 ISL331 Value adjustments, restatements 0 ISA041 Machinery, equipment 12.016 ISA051 Capitalised expenses on leased

assets 0

ISA061 Prepayment for property 0 ISA071 Other items of property, equipment 0 2. Non-Current Assets – Financial

Assets

ISA101 Investment in associates 0 ISA111 Long-term claims 0 ISA121 Credit granted 0 ISL341 Profits/loss 0 3. Circulating Capital – Current

Assets 2. Liabilities

ISA201 Inventories: Materials 1.117 ISL351 Allowances 0 ISA211 Work in progress 0 ISL361 Loans 0 ISA221 Manufactured goods 0 ISL371 Leasing 0 ISA231 Non-current assets for sale 0 ISL381 Tax liabilities 1.954 ISA241 Pre-payments for, services,

Inventory 0 ISL391 Short term debts with banks 4.810

ISA251 Customer and other receivables 0 ISA261 Intangible assets 0.550 ISA271 Cheques and SEB funds 0 ISA281 Cash on hand, current account,

short-term deposits, overnight deposits 5.661

4. Accrued ISA291 Accrued income 1.5 127.777 127.777

The loss of 16.616 was balanced with the capital

Total Commercial Balance

Faculty

Group

IST711 Commercial assets ISt711 Commercial liabilities

1. Non-current assets 118.949 1. Net assets: Capital, reserves 122.013

2. Non-current –Financial assets 0

3. Current assets 7.328 2. Liabilities 6.764

4. Accured income 1.5

IIST7301 Additional Social Assets IIST7301 Additional Social Liabilities

IISA01011 Value of buildings 37.862

IISL4001 Stock of previous net benefits 0.590

IISA0111 Value of assets not booked 54.823.627

IISL4011 Accidents 0

IISA0201 Knowledge of baccalaureate 4.075 IISA0111 Value of assets not booked 0.290

IISA0211 Knowledge of master 2.855

IISL4021 Emissions, spoiled environment 1.021

IISA0222 Knowledge of doctor 0.544

IISL4101 Future financial obligations 1.460

IISA0231 Knowledge from Open University 6.615 IISL4201 Closing down of consultancy institutions 0

IISA0242 Knowledge vocational training 3.181 IISL4301 Loss of staff 0

IISA0251 Knowledge teaching staff 0.064 IISL4401 Loss of resources by political activities 0.020

IISA0261 Knowledge of Scientists 0.044 IISL4501 Employment losses 0

IISA0301 Lasting research results 13.650 IISL4511 Reduced infrastructure 0

IISA0312 Incr. internat. cooperat. Capacities 1.338 IISL1001 Social cash (additional social capital) 96.505

IISA0321 Increase of research capacities: staff 1.901 IISV3101-3612 Value adjustments 16.031

IISA0331 Incr. research capacities: equipment 0.233 3612

IISA0341 Incr. research capacities: buildings 0

IISA0351 Incr. research capacities: library 0.116

IISA0361 Contribution to research centres 0

IISA0401 Capacity to consult firms 1.431

IISA0411 Capacity to consult governments 1.696

IISA0421 European funds 0.134

IISA0501 Development of Estonian language 2.681

IISA0511 Increased Employment 5.046

IISA0521 Increased infrastructure 4.750

IISA06021 Changes of profits of other firms 2.800

IISA0612 Increase of tax 8.113

IISW3001- 3511

Value adjustment 0.209 IISB4871 Additional net benefit 38.244

281.938 281.938

TotalSocialBalanceof FacultyGroup

VI. Limits of Social Accounting for a Faculty• The basis of our social accounting is an individualistic welfare

theory• As FACULTY’ activities are accounted in financial dimensions net-

benefit analysis seems adequate although there are weaknesses of evaluation methods

• Additional corrections of commercial bookings have to be considered in the additional social accounting and the chart needs extensions for further faculties.

• Most existing education evaluations are department reports using indicators without reference to it’s social goals and to the contribution of other economic units to social success.

• Social bookkeeping of higher education causes costs.. Management avoids to present information about social costs to the public, to competitors and stakeholders.

• Public policy requires a social welfare oriented management and a social bookkeeping

• The commercial bookkeeping and the additional social accounting need further development and bookkeeping regulations. Only aggregated information on the net-social benefit and net-social capital should be published.

Limits of Social Accounting for FACULTY• Pros and cons for such refer to the accounting system suggested here or

generally to social accounting.• The basis of our social accounting is an individualistic welfare theory

that does not necessarily reflect true evaluation in a society. Severe assumptions concern the equity of a kroon of willingness to pay that may stem from a rich or poor individual. So-called compensation tests are controversially discussed.

• The exchange of social and economic goods is not only limited to markets in monetary terms (e.g. transfers of goods, money, commands, external effects). As FACULTY’ activities are accounted in financial dimensions net-benefit analysis seems adequate. The weaknesses of evaluation methods based on benefit cost analysis cannot be overcome as long as the social accounting system relies on evaluation in monetary terms.

• If the bookkeeping system should also be applied to several Faculties and the University itself and if isolated social net benefits of the group of clients should be demonstrated the chart and the conventions of deferral must be adapted Additional corrections of social benefits and costs that are booked in commercial bookkeeping, have to be considered in the additional social accounting.

• Social accounting on the basis of benefit cost analysis tries to integrate many evaluations. The goal structure of FACULTY requires such a broad approach combined with commercial bookkeeping.

Limits of Social Accounting for FACULTY• Most existing education evaluations are reports using indicators in

physical terms and costs without reference to the social goals of a department and to the contribution of other economic units to social success.

• More sophisticated systems of social higher education accounting are expensive. A faculty avoids to present information on it’s weaknesses to the public and to inform possible competitors and stakeholders. Existing reports are to convince the public that faculty achieves public goals. They show effects on stakeholders without spinning off the contributions of other economic units.

• Efforts are necessary to complete the commercial bookkeeping and to develop sophisticated criteria to split social benefits and costs and allocate them to the institutions causing the social net-benefit.

• EU declarations and national laws require a social welfare oriented management .Certain regulations are required. Only aggregated information on the net-social benefit and net-social capital should be published. and national laws demand of a faculty. An efficient social accounting system should reduce difficulties of information gathering and provide common evaluation standards to all institutions involved.

VII. Need for the Management Tool “Social Accounting”• The public enterprise University of Tartu is a legal

person of public law that depends financially on fees of students, attracted research finances, sold training and development services.

• The activities of the faculty of economics and business administration concern research-based higher education, and the provision of training, research and development, services to the society.

• The department is the core of a cluster that comprises the faculty, the Narva college, the Pärnu college and the Euro college.

• It has to achieve public goals but also financial ones similar to a private institution.

• The University uses a commercial bookkeeping system and needs a management tool to show its social success. A social bookkeeping system should be developed.

VIII. Weaknesses of Existing Approaches

• These approaches show weaknesses not considering sufficiently:

• The social success of the faculty within one year• A complete consideration of transactions• A set of techniques for the choice and evaluation of

transactions to be applied to all of them• Conventions dealing with an equal application to all

institutions involved• Deferral of social successes and failures to individual

institutions, e.g. enterprises• Conventions, where transactions have to be verified• A periodical specification of transactions• A unilateral dimensioning of advantages and disadvantages• A common and specified assignment and grouping system• A periodically specified financial bookkeeping of changes in

success and values of stocks,• A bookkeeping system, and efficient links to other

bookkeeping systems.