MONITORING OF CASES OF INEFFICIENT (IRRATIONAL, NON-TARGETED) USE OF FUNDS BY THE COMMUNITIES OF THE LUGHAN REGION DURING WAR IN 2022-2023

Abstract

The article discusses the methodological principles for monitoring the effec-tiveness (rationality, expediency) of fund utilization by communities. This is based on analyzing the expenditure of budget funds by these communities, con-sidering factors such as the amount spent, alignment with the community's objec-tives (expediency of use), price competitiveness, contractor suitability, and alignment with the scale of community activities, among others. Criteria for inefficiency (ineffectiveness, inappropriate use) of funds by communities were identified. These include dubiousness of the tender, lack of ur-gent need for procurement during the war, lack of justified need for purchase, in-consistency of the quantitative and financial procurement parameters of the scale of the community's activities, inflated price, non-market prices, failure to take into account analogues of goods and services, a critical number of participants in state tenders, presence of discriminatory requirements in the tender, anti-competitive actions of customers and contractors, lack of feasibility of purchase, price non-competitiveness, non-competitiveness of the performer, non-critical costs. The article presents the results of monitoring 31 cases of inefficient (irra-tional, inappropriate) fund use by communities in the Luhansk region during the war in 2022-2023. The total amount of procurement by the communities of the Luhansk region during the war in 2022 amounted to UAH 42,625,830, in 2023 – UAH 5,764,926. The main procurements that are recognized as inefficient, inexpedient and irrational are significant purchases of heavy construction equipment, computer equipment, significant costs for office equipment and supplies, and other pur-chases that require justification of their expediency. Monitoring the effectiveness (rationality, expediency) of fund utilization by communities during wartime is crucial for effective budget management. It en-hances transparency, ensures an optimal balance between costs and outcomes, and provides recommendations for the future use of community funds.