Modernization of the system of state financial control in Ukraine

Abstract

Introduction. State financial control contributes to the development of the state's economy, ensures a fair distribution of its national income, financial stability and national security, which is achieved through effective and rational management of state finances. Existing problems and contradictions in the field of state financial control have a negative impact on its effectiveness and significantly restrain the development of the state's financial system in general. The purpose of the paper is to study the problematic issues of the state financial control system in Ukraine and to find directions for its improvement and strengthening in modern conditions. Results. Among the main shortcomings of the functioning of state financial control, it is possible to highlight the lack of a single regulation for the implementation of internal and external state financial control at the levels of the budget system, excessive formalization of internal control procedures, the lack of connection between the results of the assessment of the quality of financial management and internal state financial control, the difficulty of ensuring functional independence and organization of internal audit work in conditions of personnel and financial restrictions, weak orientation to systemic work aimed at reducing budgetary risks. Successful functioning of the state financial control system is possible if the principle of risk-orientation is observed. A risk-oriented approach in the state financial control system should be aimed at: establishing strategic goals in risk management; use of own and external quality data when making management decisions; the relevance of indicators of the effectiveness of control activities within the framework of state financial control, which can be achieved by balancing quantitative and qualitative indicators. Conclusion. The proposed measures to improve state financial control will allow for the formation of a unified approach to its planning and implementation, which will ensure a more effective and in-depth implementation of control measures, which will allow to focus the attention of authorized control bodies on the subjects of control, which are the most problematic. It is obvious that improving the effectiveness of state financial control can be achieved with the help of audit and analytical measures aimed at coordination and systematic information exchange between financial and control bodies regarding the implementation of budgets at different levels.