Respondent

Ivaskevich Khrystyna Ihorivna

Theme

Internal financial control of expenditures of budgetary institutions in Ukraine

Defence Date

28.05.2019

Annotation

The paper finds that the most popular in the economic literature was the position
regarding the consideration of financial control as a form of implementation of the
control function of finance. The systematization of existing views on financial control
has made it possible to conclude that, generally speaking, its definition lacks
complexity, specification of forms, tools and methods of implementation. All
definitions focus on methods, rules, and contradictions. This is rather a hypothesis,
and not his concept or definition of financial control. The attention is focused on the
visible: activity; content of activity – verification, tracking, detection; the purpose is
indicated.
It is substantiated that the definition of the essence of “internal financial control”
is given by the domestic authors from certain ideological positions and, by the
overwhelming majority, is not operational. They do not give a clear idea of the
system of basic principles, methods and tools that are necessary and sufficient for
realization of not only pragmatic, but also cognitive and educational activities on the
real world object in the perspective (one of the possible alternatives of the future
paradigm). New trends in the development of financial control are discovered in
Ukraine: 1) the scope of state financial control is narrowed with the simultaneous
expansion of non-state; 2) there is a shift from the next to the previous financial
control; 3) the object of financial control is gradually transformed. To change the
rules, norms, procedures and the size of the expenses comes the planned goals,
results, efficiency.
The definition of the essence of the concept of “internal financial control of
expenditures of budgetary institutions” is clarified, which means a set of actions and
operations carried out by state authorities and local self-government, as well as
specially created bodies for checking the activity of all subjects of financial relations
in order to ensure legality, expediency and the effectiveness of the formation,
distribution and use of public financial resources. It is proved that in today’s
conditions of development of the domestic economy it is necessary to give preference
to the financial component of the investigated concept, as well as to consider the
latter not only as a function of public administration, but above all as a form of
practical implementation of the control function of finance.
In the context of the research direction for the regional analysis of the
performance of the regional structural subdivisions of the DASU, statistical tools of
the multidimensional ranking are used. Taking into account this, it has been proved
that an important prerequisite for improving the work of the State Audit Office of
Ukraine is to ensure proper methodological and legal formulation of calculations of
financial control performance in the budget sphere of the country. First of all, it is
about the legislative consolidation of the provisions concerning the provision of
compulsory reporting by the monitoring services to assess the effectiveness of their
activities and the calculation of indicators of cost-effectiveness, efficiency and
effectiveness of appropriate measures in the context of individual structural units.
Аrgumentated that the analysis of the results of measures taken and
implemented by audited budgetary institutions, according to the recommendations of
the financial control body in the monitoring process, should be carried out according
to indicators of qualitative characteristics of processes or manifested in quantitative
indicators of increasing the efficiency of using public funds, namely, improving the
profitability, productivity and efficiency of use state funds, improvement of the
quality of work of state bodies, improvement of the state management system by the
state finance.
It is substantiated that in order to achieve optimum efficiency of internal
financial control, expenditures of budget institutions need to move simultaneously in
several directions, in particular, such as the formation of a legal framework for
control that is in line with the political structure and economic development of the
country; creation of a single field of financial control throughout the country in the
presence of a pronounced control vertical; formation of a stable skilled personnel
potential of financial control bodies.
Key words: control, internal control, internal financial control, internal audit,
budgetary institutions, budget allocations, own receipts of budgetary institutions,
expenditures of budgetary institutions.

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Autosummary File