ANOMALY IN THE SPHERE OF STATE FINANCIAL CONTROL

The article attempts to outline and organize the existing influence of the powers of control over public finances, as part of the subject of control, in the functioning subjects of state financial control of Ukraine. The study was conducted on the basis of the data obtained, collected in various directions, which became the basis for both the analysis and the overall final result. The first direction for obtaining data was - calculating the cost expression of public finances. It was taken into account that the cost expression of public finances covers budgets of all levels and the consolidated insurance contribution. The obtained data was grouped into Table 1 and Table 2, which allow us to present not only the volume of public funds, which is characterized as annual, but also the volume of funds that are the subject of control. The next direction for obtaining data was - conducting a regulatory and legal analysis of the powers of subjects of state financial control in relation to the selected subject of control. The results are grouped into Table 3, with specific indicators and indicators. The last direction of data collection was - indicators of the practice of state financial control. The results obtained are summarized in Table 4. The data make it possible to analyze the application of the influence of control powers available to controlling institutions on a specific subject of control. Based on the specified data, it was possible, using comparative analysis, to draw conclusions from the study, namely: comparing the scope of the subject of control (tables 1, 2) and the existing powers of the control subjects (table 3), we obtain a negative result. Which consists in the fact that the existing powers do not cover all components of the country’s public finances, namely  the Single Contribution is outside the control of the subjects of state financial control. comparing the obtained result of the application of the existing influence of powers by the controlling subjects of the country (table 4) on a specific subject of control (tables 1, 2), which was studied in their practical activities for the selected period, we obtain a negative result again. Which consists in the fact that the control covered only 2493.8 billion UAH. (or 29.33%), out of the total volume of the subject of control of 8501.4 billion UAH. The scientific result of the study was the substantiation of the Author’s statement that the subjects of state financial control operating in the country have both excessive powers of influence on the subject of control - due to duplication of control over the use of financial resources, and insufficient powers - due to the lack of control over the Single Contribution.

Стаття присвячена визначенню поняття «державний фінансовий контроль». Зауважено, що теоретичний складник дослідження питань у сфері адміністративно-правового регулювання державного фінансового контролю вимагає детального аналізу, а тому передбачає визначення певної системи основних категорій. На підставі довідникової, енциклопедичної, словникової літератури досліджено сутність і зміст понять «контроль», «державний контроль», «фінансовий контроль», «державний фінансовий контроль». Поняття «контроль» охарактеризовано як одну із функцій управління, яка представляє собою систему спостереження та перевірки за діями керованого об’єкта для оцінки ефективності прийняття управлінських рішень. Доведено, що правова природа державного контролю полягає в тому, що він здійснюється конкретними державними органами та їх посадовими особами у чітко визначених рамках закону і призводить до певних юридичних наслідків.
 Підтримано позицію тих науковців, якими запропоноване співвідношення зазначених понять, що дає змогу встановити чіткий розподіл повноважень на кожному рівні управління, зрозуміти організацію раціональної взаємодії між суб’єктами контролю та межі відповідальності. Обґрунтовано, що часто державний фінансовий контроль розглядають: як одну з найважливіших функцій управління суспільними фінансовими ресурсами; як систематичну діяльність органів державної влади і управління. Доведено, що державний фінансовий контроль є складовою части-ною фінансового контролю і одним з видів державного контролю, тому його варто розглядати як одну із форм управлінської діяльності, як самостійну функцію управління, яка має цільову спрямованість, певний зміст і способи його здійснення. Запропоновано авторську дефініцію поняття «державний фінансовий контроль».

This article aims to analyze the current state and the fundamental role of financial control within public entities in Romania. Through a methodology based on comparative analysis, the study focuses on financial control legislation and practices, highlighting significant developments and changes in recent years. The analysis is enriched by assessing the impact of these changes on the efficiency and transparency of the management of public funds. In particular, the article identifies progress made within the financial control system, highlighting legislative and administrative improvements as well as persistent challenges. Special attention is paid to the impact of the reforms on the transparency of public spending and the accountability of government institutions.The results of the analysis emphasize a gradual tendency to improve financial control practices, but also highlight the continuous need for reform and adaptation to European and international standards. Through this analysis, the article contributes to the existing literature on this topic, providing an updated perspective on the state of financial control in Romania and emphasizing its importance for efficient and responsible governance.In conclusion, the study reveals the vital importance of continuing reforms in the field of financial control, not only to improve administrative efficiency, but also to strengthen public confidence in the way state resources are administered.

This article considers mechanism of financial control over public resources of Ukraine based on agents of the institute of control: the Accounting Chamber of Ukraine, the State Audit Service of Ukraine, the State Treasure Service of Ukraine and structural units of internal audit. The notions: “agent of institute of control”, “supreme financial control” and “supreme financial control body”, have been considered. Also there are considered the structure of public resources and control over its structural parts, is determined the notion “the subject of control”. Competencies of agents of the institute of control who control public resources and actions have been determined. The analysis of the effectiveness of subjects of control over public resources has been done. The need to optimize the competencies of agents of institute of control and their interactions has been determined. It has been pointed that in Ukraine there is no separation of types of control: internal, external and supreme. The need in supreme financial control body in the system of state financial control of Ukraine has been determined. Also there is considered hierarchy of types of control, and there has been stated the author’s vision of their polarization, that will change the system of state financial control of the state. The formulated system is based on international standards ISSAI, which define how the supreme financial control body and its competencies should function. This polarization of types of control optimize the mechanism of financial control, which ensures the development of society, the accumulation and saving public finances, the provision of public goods and social and economic growth of the state.

This article substantiates the need for unification of the state financial control system, where unification according to the author is the standardization of the principles and mechanisms of state financial control, which is applicable for any state, regardless of its historical and cultural development. The basic structural elements of the state financial control system were determined to achieve the aim of the research. It was determined that internal audit is important not only for the public sector, as an instrument of control over the use, formation and saving of public finances, but also for the private sector of the economy. In foreign practice, the information base of internal audit is used in risk management to reduce company risks and increase financial stability. The results of the study is the author’s suggestion of the unification of the system of subjects of the state financial control based on the type of control they perform. The proposed system is based on the classification of foreign systems of the state financial control, which has developed historically, and international ISSAI standards. The proposed system considers not only the economic aspect of the institution of the state financial control, but also social and global. Based on the social aspect, the importance of public financial control was proved, because in democratic countries, formed social institutions have an important role in the socio-economic processes of the state. In the system formulated by the author, the significance of creating an appropriate supreme body of the financial control, its impact on the lives of citizens, and the importance of cooperation of subjects of the state financial control with public financial control was substantiated. Thus only with this cooperation is it possible to form an effective unified system of the state financial control, which will provide the socio-economic development of the country. According to a global point of view, the need to improve the importance of the international financial control institution INTOSAI, and the formation of a supranational type of control, which should be included in the state financial control system of each country was substantiated.

This paper presents an overview of foreign and domestic research, on issues and modernization of the system of state financial control. The need to develop a conceptual categorical base of the state financial control of Ukraine in accordance with the international standard, have been identified. Since, «state financial control» synthesizes a number of complementary concepts such as «control», «financial control» and general idea of public functions; the given concepts have been classified. «Financial control» and «state financial control» are classified by common categories: function, system and institution. The main goals and principles of state financial control are indicated. The system of public financial control bodies is schematically depicted. It is proved that the concept of «public financial control» is narrower in meaning than the concept of «financial control». We have identified public financial control as a separate type of control. This article is a kind of theoretical contribution to the formation of a single conceptual and categorical apparatus of public financial control. The main problem in Ukraine has been identified, and the problem of creating an integrated system of state financial control remains unresolved in the country. It is noted that the functions and powers of state bodies are duplicated. Public financial control is the final stage of the public administration process. The main purpose of public financial control is manifested in the practical satisfaction of the purpose of public life. That is, public financial control is a necessary condition for a democratic society and is a legitimate activity of public authorities and management, which permeates all financial and economic activities. As for the legal framework of state financial control, it is not yet fully formed, the current laws are valid for a particular control service separately, there is no unification.

The article is devoted to the attitude to INTOSAI as the leader of the control function of finance in the world, and to the INTOSAI recommendations, grouped into the IFPP, as an example of a control model: with a properly constructed structure and filled with meaningful disclosure on the implementation of control measures. This view of the INTOSAI experience enables us to propose our own institutional design for the INTOSAI classifications. The result of the institutional design is essentially a reflection of the reference (ideal) model of the external financial control model, i.e. the EGA Model, in terms of its structure. EGA Model has the INTOSAI institutional structure (Institutional Framework) and the INTOSAI auditing framework (Auditing Framework): to the institutional structure we have included not only fundamental and basic principles, but also several standards that, in our opinion, are also related not only to the control methodology , as far as the formation of the control model; to the audit structure, we include not only standards that methodologically ensure the principles of auditing, but also standards that are a methodology for the implementation of various types of audits, with guidance on their application. Having obtained the classification of the INTOSAI experience in the background, we can conduct a study of the existing practice of state financial control in Ukraine and its compliance with the specified standard with the help of methods of institutional analysis, by comparing the formal norms of INTOSAI with the formal norms forming the national practice of state financial control. The data of the comparative analysis are grouped into the appropriate tables: at the level of the structure of the established control practice; at the level of methodology of functioning control subjects. The result of the conducted comparative analysis, which consisted in testing the practice of state financial control in Ukraine for compliance with the standard (ideal) model, was the establishment of non-compliance of the researched practice with the developed standard - a quasi-model of the institute of financial control was built in Ukraine.

The period of reform of the system of public financial control in Ukraine is becoming permanent. Another change in the name of the subject of state financial control instead of the State Audit Office of Ukraine now has another name, namely the Department of Financial Control. The current system of state financial control provides that previous and current financial control over the filling of the budget is carried out by the Ministry of Finance of Ukraine, state tax authorities, customs authorities, and budget expenditures are controlled by the Accounting Chamber of the Verkhovna Rada, the State Treasury and Financial Control. Therefore, further development and reform of the system of public financial control in the context of filling the budget of Ukraine is unresolved. It is these aspects that determined the relevance of the research topic and determined its purpose. The main purpose of this work is a theoretical justification and practical recommendations for further development of public financial control in the context of filling the budget of Ukraine. The article considers topical issues related to the development of public financial control in the context of filling the budget of Ukraine. The theoretical bases of the concept of "development" are considered, the geographical development of the state financial control in the world is defined. Given these characteristics of development, the authors consider it appropriate to outline the socio-economic processes that preceded the emergence of public financial control in Ukraine, presenting the stages of formation and development of public financial control in Ukraine. It is determined that the second and third periods became a significant period of development of state financial control in Ukraine. A detailed overview of the evolution of control is presented in the study. The authors also find that the transformation of the tasks of the Financial Control Department as a body of state financial control indicates a change in priorities in control activities and a change in the ideology of control. The authors emphasize in the study that in modern conditions the role of internal public financial control as a tool to improve the system of internal control of an institution or organization in accordance with the needs arising in the process of their operation is growing. However, the issues of improving the conceptual apparatus of public financial control, substantiation of target characteristics, mechanism, methods of assessing the level and quality of its development in the context of filling the budget of Ukraine remain insufficiently resolved.

The article is devoted to the study of the state of public financial control in Ukraine based on the experience of developed countries to increase its efficiency. The state and problems of the state financial control of Ukraine for today were analyzed, its features and content were determined. The activity of the state financial control bodies in January-June 2021 and the dynamics of the volume of violations that led to the loss of financial resources, which were identified by the State Audit Office during January-June 2019-2021, are studied. The main financial violations that led to the loss of resources are described. After analyzing the experience of developed countries in the field of public financial control, namely the United States, Germany, Japan, Great Britain, the bodies of financial control of these countries, the peculiarities of their functioning and the principles by which they operate. To date, control activities in Ukraine are assessed by experts, including international ones, as ineffective. First of all, this is due to the significant level of offenses committed in the field of public finances, ineffective warnings, the prompt detection of which is possible due to the coordination of actions of bodies endowed with control powers. Of course, these indicators are influenced by the actual state of war in which Ukraine finds itself, but no less important factor is the political component, capacity and efficiency of governance. Today, the system of public financial control is the engine of qualitative change in the economy as a whole contributes to the security of public financial resources, non-current and other assets, the correctness of determining the needs of budget funds and liabilities, efficient use of funds and property. At the same time, in the current conditions of Ukraine's economic development, the tasks of the financial control system should be determined taking into account the needs of the country's socio-economic development. Accordingly, in modern conditions, the task of financial control becomes the identification of internal reserves of the state, which can participate in resolving crisis issues in the economy and social sphere. State statistics show that regulatory authorities are working to address this issue. The whole situation indicates the need for coordination of financial control, which involves coordination of functions of all controlling entities and concentration of their efforts on priority areas of control, implementation of best domestic and foreign experience, rapid exchange of information between them. The current course of the state in the system of public administration is associated with the need to increase the role of public financial control. However, there are a number of obstacles. One of them is the lack of appropriate legal and methodological framework for public financial control.

Objective. Research of theoretical bases of problem questions and perspective directions of improvement of the state financial control. Methods. To achieve this goal, the authors performed the following tasks, explored the essence of public financial control, analyzed the main problems of the supervisory authorities, suggested possible ways to improve the system of public financial control in Ukraine Results. It is revealed that the efficiency of public financial control systems is affected by the smallest transformations that occur in the field of control. It is established that such transformations lead to changes in the mechanism of public financial control, importance. Scientific novelty. It is determined that now the state needs to focus on such areas of public financial control as development of control standards, improvement of the legal framework, which should correspond to the current situation and a common methodology of state control, as well as efforts to develop information technologies. information space of control activity. Practical significance. The expediency to focus on solving a number of problematic issues that hinder the development of the financial control system in the country or have a negative impact on it is substantiated. In particular, it is first of all necessary to monitor the real possibility of ensuring effective control over the management and use of state (local) resources at the central, regional and local levels by relevant state bodies exercising such control and identifying legislative and administrative problems. Key words: budget process, budget legislation, control, financial control, state financial control, state financial control, internal financial control, system of state financial control bodies.

Most countries in the world are building a state system of financial control and control over international finances, taking into account the fundamental principles laid down in international legal sources and on the basis of world experience. The realization of the task of ensuring sustainable economic, social and political development of Ukraine requires further investigation of the problems of establishing effective control over international finances and initiating the reform process in this field, which can become a key element in the complex systemic transformations in the financial sphere and the construction of a new financial system of the state. We believe that Ukraine should look for the most important challenges of today, drawing on international experience in this field, with a view to its further use. The importance and importance of using foreign experience is also closely linked to the process of state integration into the world community and the implementation of international practice of financial control. Therefore, it is crucial for Ukraine to study foreign experience of financial control and to borrow appropriate experience in this field in order to improve the efficiency and effectiveness of the domestic financial control system. It should be noted that the global practice in the field of financial control is extremely voluminous and multifaceted, it has different approaches to the organization and implementation of control measures, most of which have been validated over time. N. Lazareva and GV Dmitrenko point out that the choice of a particular model is based on the relevant factors: the state of democratic development of society and the level of construction of civil society, the specifics of the distribution of powers between branches of government, the normalized form of government, historically accepted in the state form of government, historically the way of development of statehood and development of institute of financial control [2, p. 68; 3, p. 22]. Most countries in the world have gone a long way in finding ways to develop and build financial control. The highest financial control authorities in most countries of the world have endured a long period of searching for their effective functioning and implementation of really effective control measures. For example, the National Audit Office of Great Britain was formed in 1120, the Regular Audit Organization of Belgium - 1386, the General Chamber of Prussia - 1714, the Main Accountancy Chamber of the Principality of Warsaw - 1808, etc. [4, p. 127]. Such bodies were far from the current vision of public authorities in the area of financial control. However, they have become the prototype of the current institutions, with a defined range of tasks, functions, powers and goals for their implementation. Given the challenges and needs of today, the powers of such institutions and bodies have been expanded to control the cash provided or received in the form of international financial assistance. Unfortunately, historically Ukraine has been deprived of the possibility of gradually building state institutions in this area. Gaining independence in 1991 put the country in a position to address key challenges to economic development and the effective functioning of public authorities and government. Considering this fact, we consider that foreign experience in any sphere for Ukraine is the most valuable source of solving urgent problems, including the borrowing of the world practice of organization of financial control, control in the sphere of international finances and proper regulatory fixing of such mechanism. Keywords: international finance, international financial assistance, control over international finance in Ukraine.

In order to improve the control system in the public sector in line with international standards and best practices in the European Union, the European Commission created the concept of public internal control in 2002. This model is globally recognized as a best practice that provides the foundation for preventing fraud and corruption. A successfully established and implemented financial management and control system ensures compliance with positive legal regulations, which is reflected in the responsible spending of entrusted pub lic funds, contributing to efficient and effective financial reporting. The obligations to establish internal financial control systems in all West ern Balkan countries were undertaken by signing the Stabilization and Association Agreement with the European Union. Bosnia and Herzegovina, thus, committed to cooperation in the field of audit and financial control, which is defined by Article 90 of the Stabilization and Association Agreement. This cooperation is achieved through the establishment of a financial management and control system, independent internal auditing, as well as the creation and strengthening of Central Harmonization Units and independent external audit systems. Finan cial management and control (FMC) is one of the three pillars of inter nal financial control in the public sector and is based on the principles of modern public administration and managerial accountability.

This article investigates the conditions for increasing the capacity of public financial control through gradual analysis. The author covers the concept of finance as an economic category. The article also defines the functions of finance and substantiates the establishment of a hierarchy of the function of control over the function of distribution. The essence of control is determined, as well as the nature of public financial control and its social significance. The main characteristics have identified the main subjects of public financial control in Ukraine. Such bodies are: The Accounting Chamber of Ukraine, which on behalf of the Verkhovna Rada of Ukraine controls the receipt of funds to the State Budget of Ukraine and their use, and the State Audit Office of Ukraine, which is the central body of executive power, whose activities are directed and coordinated by the Cabinet of Ministers of Ukraine. According to the current legislation, the powers of state financial control entities have been characterized and grouped. On the basis of the annual reports of 2018, the main subjects of the state financial control carried out a comparative analysis of their organizational structures and staffing. The results of the work of state financial control entities were also analyzed. The magnitude of the budget offenses was estimated by determining the level of correlation between the amount of detected violations and shortcomings in the monetary dimension in the amount covered by the control of funds. Despite the fact that less than fifty percent of the detected financial irregularities are returned to the state budget, it is possible to speak of at least about the break-even activity of the state financial control bodies, since these funds are half the time they cover the expenses for their support from the state budget. The conditions for increasing the capacity of public financial control and the factors that hinder its full disclosure have been identified.

With the rapid development of China’s Internet finance industry and the continuous growth of transaction amount in recent years, a variety of financial risks have increased, especially credit risk in the financial industry. Also, the credit risk evaluation is usually made by using the application card scoring model, which has the shortcomings of strict data assumption and inability to process complex data. In order to overcome the limitations of the credit card scoring model and evaluate credit risk better, this paper proposes a credit evaluation model based on extreme gradient boosting tree (XGBoost) machine learning (ML) algorithm to construct a credit risk assessment model for Internet financial institutions. At the same time, an Internet lending company in China is taken as a case study to compare the performance of the traditional credit card scoring model and the proposed machine learning (ML) algorithm model. The results show that ML algorithm has a very significant advantage in the field of Internet financial risk control, it has more accurate prediction results and has no particularly strict assumptions and restrictions on data, and the process of processing data is more convenient and reliable. We should increase the application of ML in the field of financial risk control. The value of this paper lies in enriching the related research of financial technology and providing a new reference for the practice of financial risk control.

In the conditions of the constant increase of global challenges and socio-economic instability, the problem of the effectiveness of state financial control is one of the central ones for modern Ukraine. The purpose of the research was to identify key problems of government financial control and to assess the implementation of local budgets. The main methods for the study of the subject matter were theoretical approaches (analysis of Ukrainian and international theoretical positions), analysis and synthesis, statistical analysis, systematic analysis, terminological analysis, method of graphical representation of statistical data, and analysis of legislative and programme documents. As a result, it was confirmed that necessity to develop the state financial control system and to create a basis for improving the effectiveness of local budget execution had increased. The statistical data for the last three years (in some cases for 10 years) were analysed, which made it possible to describe the current situation in the field of public financial control and execution of local budgets in Ukraine. Shortcomings, problems, obstacles, limitations, and perspectives for public financial control development and the execution of local budgets are identified. The results obtained have theoretical and practical significance. The application of theoretical approaches in the study complements the theoretical provisions financial control of government. The results are of practical importance, especially in the implementation of national policy in the field of state financial control in the context of the crisis caused by the pandemic and its socio-economic consequences