ROLE OF PUBLIC FINANCIAL CONTROL (AUDIT) IN ECONOMIC MANAGEMENT

Abstract

In the conditions of the war, the need arose to transform agencies, institutions and reform the entire public administration system, so that every government body, ministry, agency would ensure high work efficiency and perform their functions effectually in line with existential challenges and public needs. Issues of corruption, inefficient use of financial resources, lack of proper accountability mechanisms and transparency in public administration system cause concern not only in Ukrainian society, but also among international partners who have been providing us with military, humanitarian, and financial assistance since the beginning of the war, including direct budget support to the government of Ukraine.

Attention is focused on two leading public financial control institutions — the State Audit Service of Ukraine, which conducts internal control and belongs to the executive branch of government, i.e. in organizational terms it is subordinate to the Cabinet of Ministers of Ukraine, and the Accounting Chamber, which carries out external control (audit) measures and acts on behalf of the legislative branch of government (the Verkhovna Rada of Ukraine). The existential challenges faced by them and the efforts they make to ensure the transformation of institutions in line with current needs are revealed. The effectiveness of control (audit) is determined by the efficiency and success of the functioning of the subjects of control, which are part of a single, integral system that functions in the country, its ability to influence the participants of the budget process, to timely detect budget violations, hidden signs of fraud, corruption, to fix gaps in legislation and prevent inefficient allocation and use of budget funds.

Scenarios for the development of the economy after the deoccupation of Ukrainian territories have been worked out. The foreign experience and trends in the development of public financial control (audit) are analyzed, taking into account existential challenges. The need to change the existing control (audit) paradigm is substantiated.