Efficiency of internal control of state institutions of Ukraine

Abstract

Introduction. The introduction of a modern model of state internal financial control is aimed at strengthening the responsibility of managers for the management and development of institutions as a whole (managerial responsibility and accountability). Therefore, the implementation and operation of the internal control system is aimed at the economical and efficient use of resources provided by taxpayers for the development and sustenance of Ukraine. The purpose of this paper is to analyse the level of effectiveness and efficiency of internal control of state institutions of Ukraine. Results. The paper provides a legally established concept of internal control. It describes the significance of internal control as a tool of the institution management system. A number of problems of an organizational and legal nature in the field of state financial control are indicated. The division of internal control measures was also carried out depending on the objects of the study: operations control measures; process control measures; document control measures that involve the use of sanctions (permits) for the implementation of an economic transaction which is a mandatory requisite of any primary document; resource control measures aimed at consolidating responsibility for the safety and use of resources, which reduces the risk of their loss or misuse. The paper also lists the activities that may include monitoring of control measures. The concepts of state internal financial control, financial management and control are provided. Typical violations in the system of accounting and internal control of state institutions are indicated, that should be considered when developing proposals and recommendations. Conclusions. Solving problematic issues related to the functioning of the internal control system in state authorities is only possible by introducing new modern approaches to its organization, reconsideration of control not as means of preserving the resources of a budgetary institution, but as a tool for managing these resources, reducing various risks of illegal, inefficient and ineffective use of them. At the same time, efficient changes in the internal system cannot be achieved only through legal norms, regulatory documents and instructions.