Improving the Internal Financial Control of Expenditures of the Budgetary Institutions under the Influence of the Crisis Caused by COVID-19

Larysa Ivanchenkova,Olesia Holynska,Kateryna Stasiukova,Halyna Tkachuk,Larysa Skliar,Yuliia Tomchuk

doi:10.13189/ujaf.2021.090517

Abstract

The purpose of this article is to analyze the control of local budget expenditures in Ukraine under the influence of the crisis caused by COVID-19 and to find ways to improve the internal financial control of expenditures of budgetary organizations. The relevance of the study is due to the need to create a system of separation of powers and responsibilities in the public sector on the basis of ensuring economical, efficient, effective and legal use of budget resources to achieve the goals set by the organization. The study was conducted on the basis of data from Ukraine. Expenditures of budgetary institutions as an object of internal financial control are considered. The analysis of control of expenses of local budgets is carried out. It is established that Ukraine needs further reform of the state financial control of expenditures of budgetary institutions - in the direction of decentralized control. It is proved that the creation of a modern information and analytical resource optimizes the accounting and control system, which will lead to the introduction of more effective mechanisms for administration, de-shadowing of the economy and increasing control over budget expenditures. Thanks to digital technologies, the economic activity of budgetary institutions will become more transparent, risk assessment will be optimized and the capabilities and effectiveness of the system of internal financial control of expenditures will increase.

Highlights

Aligning the organization of financial management and control with the best international practices and requirements of the EU to public internal financial control has been considered a difficult task in many countries undergoing reform
Improving the Internal Financial Control of Expenditures of the Budgetary Institutions under the Influence of the Crisis Caused by COVID-19 and efficiently achieve the goals set for the institution [1]
The purpose of this article is to analyze the control of local budget expenditures in Ukraine under the influence of the crisis caused by COVID-19 and to find ways to improve the internal financial control of expenditures of budgetary organizations

Summary

Introduction

Aligning the organization of financial management and control with the best international practices and requirements of the EU to public internal financial control has been considered a difficult task in many countries undergoing reform. An important task of the financial policy of the state is the formation of an effective system of internal financial control of budgetary institutions. Such a system promotes better decision-making and more efficient use of resources. Process financial management and control is continuous, applied to managers at all levels and employees of the institution In public institutions, such a process should be organized and implemented in such a way that management (senior, middle, operational levels) is responsible for achieving certain goals, in accordance with the allocated budget and available resources.

Objectives

Results

Conclusion