ORGANIZATION OF EFFECTIVE STATE FINANCIAL CONTROL IN UKRAINE

Abstract

The organization of public financial control is an important prerequisite for effective public administration both in Ukraine and around the world. At present, Ukraine does not have an integrated control system in which state bodies, local self-government bodies and the public are involved. The aim of the study is to identify the main problems of the organization of the domestic system of effective public financial control in terms of their solution. In the study, public financial control was considered as a set of forms and methods of control of public authorities over the legality, efficiency, appropriateness of the distribution and use of budget funds to identify, eliminate and prevent violations. The article considers the concept of public financial control, its organization in Ukraine in terms of defining the purpose, objectives, subjects, objects, functions, methods, control bodies in accordance with the law «On the basic principles of state financial control». The study identified the following main organizational, legal and methodological problems of effective domestic public financial control: duplication of functions of control bodies, legislative inconsistency, low level of information support, ineffective response to identified violations, high complexity of inspections, lack of a single methodological basis for financial control. The foreign experience of the organization of the state financial control in Great Britain, Austria, the USA, Sweden is considered. The list of domestic normative documents on the organization of state financial control in Ukraine is given. Analysis of the current state of control in Ukraine and foreign experience has suggested ways to address them – the creation of a comprehensive control system of state and municipal bodies with broad involvement of NGOs, as well as the development of control methodology based on IT audit. In consequence of the proposed ways to solve the problems of domestic public financial control, it is possible to ensure transparency of the budget process, efficient allocation and use of budget funds. Research of the effectiveness of management decisions at the level of domestic budget institutions will be the direction of further research.