Current Status of State Financial Control of Ukraine and Ways of Its Improvement

Abstract

The urgency of the research is conditioned by the crisis of state financial control in Ukraine, in particular by the artificial lowering of the role of the state financial control for public administration in terms of determining the problems and prospects of the socio-economic development of the country. The study is evaluating the results of control measures conducted by the State Audit Service of Ukraine and the Accounting Chamber of Ukraine, development of recommendations for their improvement and phrasing. The methodological framework of the research is a comparative analysis of the series of dynamics of the established financial violations, systematic analysis of the quantitative and qualitative composition of the revealed violations, cause-and-effect analysis of the dynamics of the revealed financial violations, abstract-logical method, synthesis and generalization to substantiate the basic theoretical provisions, formulation of conclusions. The scientific results. Based on the performance evaluation of state financial control the article proves the failure of contemporary inquiries to support the interests of the state and civil society, defines the main reasons of such inconsistency. It is also determined that the significant improvement of the situation can be achieved through: awareness of the importance of the parliament and government of state control as an exclusive functionality tool of information source for nationwide scale management decisions centers about the actual situation in the national economy; accomplishment of the concept of preventive controls to facilitate optimization controls, saving budget funds for their implementation and state control servicing, establishment of the necessary evidence for further damages compensation to the state and reduction of the number and volume of financial misconducts in the future; centralization of state financial control, which will consolidate efforts to control completeness of formation, legitimacy, appropriateness and distribution efficiency, redistribution and use of financial resources of the state, eliminate duplication of control tools, create a single database of control tools and their results, optimize servicing costs of state financial control bodies. The practical significance of the research is to develop first-priority recommendations for improving the organizational foundations of state financial control and methods of conducting control measures. Significance/originality. The results obtained form an integrated view of the consequences of functioning of the state financial control bodies, the level of legal consciousness, professional competence and responsibility of officials of state authorities, local self-government, and other entities of economic relations for the consequences of managing state financial resources.

Audit of public finances: methodological issues and the case of Ukraine

“…Current research in different countries confirm the relationship between the performance of the SAIs and the maintenance of good governance (Meiss et al, 2017;Milojević et al, 2018;Nevidomyi & Kanonishena-Kovalenko, 2019;Lentner et al, 2020;Bardash & Osadcha, 2020;Çeku, 2021;Bostan et al, 2021).…”

“…Khorunzhak with her co-authors (2020) conducted a study of the current audit quality According to Bardash and Osadcha (2020), the public finance control system also plays an important role in maintaining the state's competitive position in foreign markets, since the rational use of financial resources, the formation of prudent public policy on public property management and public resources affects the overall state of the economy.…”

Substantiation of Theoretical Fundamentals of Social Control in the Sphere of Economic Management

“…Thus, in 2010 alone, the Accounting Chamber of Ukraine and the State Audit Office of Ukraine jointly identified financial violations amounting to 87.1 billion UAH. These and other violations, the volume of which remains large today, indicate a certain discrepancy between the economic interests of individuals endowed with state power and the vast majority of Ukrainian citizens who have chosen the pro-European choice of the country's development (Bardash, Osadcha, 2020).…”

Information Support of Social Audit

“…An improved procedure (2) of the formation of information support for social audit in accordance with the levels of management is proposed (Fig. 2): the first is the global level; the second is the macro level; the third is the meso-level; the forth is the micro level, which consists of strategic, tactical and operational sublevels to optimize the formation of information flows in the enterprise [25][26][27][28][29][30][31][32][33][34][35][36][37][38].…”