Abstract
Audit of budget programs in EU countries requires a detailed study of the audit procedure in order to minimize possible deviations and errors in the implementation of programs. The principal result of the audit of budget programs' indicators financed from EU funds is to verify the cost-effectiveness, efficiency and effectiveness of the use of budget resources. The purpose of the academic paper is to study the results of the audit of budget programs in EU countries in order to identify the causes and factors that influenced the violations and errors in the use of budget funds. The research methods are as follows: system and logical analysis; information synthesis method; systematization and generalization; comparison method; statistical analysis. Study contributes relevant information and processed data regarding to internal and external audit standards and mechanisms to improving their efficiency. Limitations of the study are possible unknown violations of the budget programs that result in inaccurate data analysis. Results. Conducting audit of the budget programs in the EU in accordance with international auditing standards complies with the generally accepted procedure for audit of using budget funds by beneficiaries. In 2019, as a result of the audit of budget programs by European Commission, it was found that 51 out of 130 transactions (39%) contained violations and errors. A significant number of errors have been found in programs that direct budget funds to research and innovation. It has been revealed that most of the errors were found in the budget program Horizon 2020, in connection with which the European Court of Auditors calls in question the eligibility of all costs declared by the beneficiary for the audit period. The main errors in reporting in other budget programs were reimbursements of travel expenses not related to the implemented EU budget program; the erroneous exchange rate used in the programs was not that provided by the rules of the program. The level of error in conducting audit of budget programs in 2019 has been 4.0%, which is a significant reserve for improving the efficiency and effectiveness of the audit.
Highlights
In the context of the world economy, globalization of the society, acceleration of transformation processes, budget programs play an important role in supporting social-economic transformations in many countries
The Multiannual Financial Framework is adopted for a period of at least five years and sets maximum limits on the annual amounts that European Union (EU) can spend on different categories of expenditure over a given period
The lion’s share of EU budget is spent on regional development, natural resources and the fight against climate change; 6% of EU budget expenditures are used for administrative costs (Figure 1)
Summary
In the context of the world economy, globalization of the society, acceleration of transformation processes, budget programs play an important role in supporting social-economic transformations in many countries. Budget programs are a specific tool that affects the state of integration processes in the world economy, ensure the sustainable development of national economies of European Union (EU) member states and the implementation of projects that governments are unable to finance independently [1]. The formation of an effective system for managing budget funds as the basis for the development of all areas of the state policy implementation requires relevant and operational control, which would guarantee openness, transparency and accountability of state bodies to the society. With the integration of countries into international economic relations, the entities implementing budget programs are faced with the goal of providing reliable and objective information on the use of budget funds to the relevant Supreme Audit Institutions. The importance of the practical use of the research results lies in the further adoption of measures in order to eliminate errors in the reporting documentation during the implementation of budget programs that will reflect the effectiveness of the use of EU budget funds by beneficiaries
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