Accounting Chamber Of Ukraine Research Articles

НАПРЯМИ МОДЕРНІЗАЦІЇ СИСТЕМИ ДЕРЖАВНОГО ФІНАНСОВОГО АУДИТУ УКРАЇНИ В СУЧАСНИХ УМОВАХ

In 2021, economists and practitioners gave positive forecasts for the development of Ukraine's economy, calculated GDP growth rates and opportunities for repayment of accumulated public debts. However, February 2022 completely changed all expectations and divided the history of our country into before and after. The beginning of the war in Ukraine significantly increased the state's need for financial resources, especially in the direction of strengthening its defense capabilities and maintaining the pre-war level of social payments to the population. Such a situation requires strengthening control measures over the processes of formation, distribution and use of budget funds and increasing the effectiveness of the national state audit system. The article examines the key forms of state control in the field of finance (parliamentary and government), identifies and describes shortcomings in the field of organization of state financial audit (hereinafter – SFA), emphasizes the negative features of the subsystems of the functioning of the national SFA system (external and internal SFA), highlights the problems in in the field of organization of SFA methodology. The reasons for the lack of highly qualified employees and high staff turnover in the control bodies authorized to implement SFA are described, the specific consequences that lead to numerous shortcomings in the field of state control are determined, and the main conditions for the formation of an effective national SFA system are determined. Attention is focused on the expediency of adapting the mechanism of SFA to the conditions of martial law and the recovery period. The need to modernize the activities of the main subjects of the SFA – the Accounting Chamber of Ukraine (hereinafter – ACU) and the State Audit Service (hereinafter – SAS) was revealed. The essence of the ACU development strategy for 2019–2024 has been revealed. The structure of violations of budget legislation detected by the ACU and SAS in 2020–2021 is depicted and described. The main reasons and structure of ineffective management of public finances and property in 2021 are revealed. A set of measures has been formed, which will be reflected in the state financial policy. The key changes are highlighted and directions for improving the organization of the SFA in the national economy are outlined.

CURRENT REALITIES AND PROSPECTS OF AUDITING ACTIVITIES IN THE CONDITIONS OF EUROPEAN INTEGRATION PROCESSES

In modern conditions the issue of forming reliable and qualitative information about financial and economic activities of business entities acquires particular importance. Constant changes in the system of bookkeeping and tax accounting lead to significant errors, which in turn increases the place and role of the guarantor of the reliability of financial reporting indicators – audit. This is one of the most important types of services, which is becoming more and more relevant. In the article the authors analyzed the situation in the market of audit services in the dynamics for 2016-2020. It has been proved that the current state of the market of audit services is, first of all, expansion of the range of services; growth of professional competence and practical skills of auditors. It was substantiated that the market of audit services in general is significantly affected by significant changes taking place in Ukraine. The demand for audit services is dictated by the conditions of the business environment: macroeconomic processes (related, for example, to the integration of the country into the world market), government actions and legislation, the intentions of owners, consumer behavior. A set of measures to improve auditing activities in the country is proposed. The path of European integration chosen by the country requires harmonization of domestic legislation in the field of auditing activities with the conceptual framework of international standards. According to the authors, firstly, it is advisable to create public control over the work of audit firms that conduct audits of enterprises of public interest. Secondly, it is necessary to create an advisory body of public control and to separate its functions from the Accounting Chamber of Ukraine. Audit activity in Ukraine in the context of European integration processes certainly needs further discussions and comparisons, which, as a result, will certainly accelerate the harmonization of auditors' activities with European norms and standards. For the foreseeable future, it is necessary to look for appropriate ways and activities that would facilitate a flawless audit of financial statements.

Legal Status of the Accounting Chamber of Ukraine: Current State and Perspectives of Development

The bases of the legal status of the Accounting Chamber have been studied: rights, duties, responsibilities, principles, purpose, functions, place of the Accounting Chamber among other state agencies and their interaction. It has been emphasized that the Accounting Chamber should be assigned the status of the Supreme Audit Institution in order to harmonize the legal definition of the legal status of the Accounting Chamber with international standards, namely the Lima Declaration of Control Guidelines, which should assist in expanding the powers of the state agency and should facilitate the effective realization of control functions. The authors have studied the problem of compliance of the Accounting Chamber with the principle of independence contained in the Constitution of Ukraine and in the Law of Ukraine “On the Accounting Chamber”.
 The emphasis has been placed on the fact that the legislator identifies the legal categories of “state financial audit” and “state external financial control (audit)” in the Law of Ukraine “On the Accounting Chamber”, by using the phrase “state external financial control (audit)”. It is the basis for authors to emphasize the importance of adopting a regulatory act, which will be designed to distinguish between basic categories (concepts) in the field of public financial control (audit). The need to consolidate the functions of the Accounting Chamber at the legislative level and their delimitation with the powers of a state agency has been substantiated. The need to supplement the title of the Law of Ukraine “On the Accounting Chamber” with the word Ukraine has been emphasized.
 The shortcomings of the legal regulation of the institution of responsibility of officials of the Accounting Chamber have been highlighted. The emphasis has been placed on the fact that the mechanism for bringing officials of the Accounting Chamber to disciplinary responsibility is not regulated at a high level. The authors have emphasized on the improvement of normative and legal regulation of the special procedure for bringing guilty persons to administrative liability by authorized persons of the Accounting Chamber for violation of the law. Based on the analyzed experience of the Accounting Chamber of France, the authors have suggested the ways to improve the legal status of the Accounting Chamber of Ukraine.

PRELIMINARY STATE AUDIT OF THE ACCOUNTING CHAMBER AS A TOOL FOR PREVENTION OF ECONOMIC CRIMINALITY IN THE GENERAL GOVERNMENT SECTOR

Reforming the general government sector in Ukraine requires a focus on preventive measures for combating economic crimes in the field of public funds and other property. In this context, the effective state audit, carried out by the Accounting Chamber of Ukraine as the highest audit body in the country, is an effective tool to prevent crimes. Elaboration of the current regulatory framework and international documents on the preliminary state audit allowed justifying the separation of such subtypes as: preliminary audit of the draft main financial and planning document of the country - the State Budget; preliminary audit of actual transactions in public funds and other state-owned property. To build the theoretical basis of the mechanism of preliminary state audit, such terminological components with their subsequent interpretations as: budget debt, budget financial debt, future illegitimate debt, actual illegitimate debt are formed. In order to optimize the work on the preliminary audit of actual transactions, the following areas are proposed to identify: preliminary audit of the public funds use within the execution of the State budget (expenditures of the State budget); preliminary audit of the public funds use within the framework of budget estimates and plans for the use of budget funds (expenditures of funds managers and recipients of budget funds); preliminary audit of other state-owned and the procedure for conducting such audit. Keywords: preliminary state audit, Accounting Chamber, economic crimes, public funds, budget.

ДЕРЖАВНИЙ АУДИТ ЯК СУЧАСНИЙ ІНСТРУМЕНТ ПОПЕРЕДЖЕННЯ КОРУПЦІЇ

Анотація. Корупція завдає шкоди в усіх сферах суспільства і підриває управління. Саме тому антикорупційна реформа була визнана одним із векторів пріоритетів безпеки у Стратегії сталого розвитку «Україна-2020» і передбачає впровадження ефективних антикорупційних механізмів. Визначено, що аналіз впровадження кращого досвіду зарубіжних країн, які змогли суттєво знизити рівень і масштаби корупції, є важливим кроком для забезпечення ефективності антикорупційної реформи. Обґрунтовано, що в українському антикорупційному законодавстві проігноровано роль Рахункової у створенні превентивних умов для запобігання корупції. Проаналізовано вимоги міжнародного стандарту державного аудиту ISSAI5700 «Керівництво з аудиту попередження корупції», що був ухвалений 2016 року. Акцентовано, що прозорість і підзвітність управління зменшує необмежену (монопольну) владу, посилену наявністю дискреційних повноважень, які є основою корупції. Визначено, що описані в ISSAI 5700 такі корупційні порушення, як непотизм (кумівство), кронізм, хабарництво і вимагання, також поширені в Україні. Обґрунтовано доцільність проведення державного аудиту як інноваційного інструменту в боротьбі з корупцією. Усунення передумов поширення корупції та чинників мотивування корупційних дій є ефективними запобіжниками в антикорупційній боротьбі. Проведення періодичних державних аудитів антикорупційної політики забезпечуватиме поінформованість суспільства щодо ефективності та результативності антикорупційної політики в цілому і дотримання політики доброчесності окремими суб’єктами державного сектору. Розроблено алгоритм державного аудиту антикорупційної політики. Запропоновано перелік заходів, реалізація яких дозволить забезпечити системний підхід, що позитивно позначиться на результативності та ефективності боротьби з корупцією в Україні. Ключові слова: державний аудит, корупція, доброчесне управління, антикорупційна стратегія, корупційні ризики. Формул: 1; рис.: 1; табл.: 1; бібл.: 22.

CURRENT STATUS OF STATE FINANCIAL CONTROL OF UKRAINE AND WAYS OF ITS IMPROVEMENT

The urgency of the research is conditioned by the crisis of state financial control in Ukraine, in particular by the artificial lowering of the role of the state financial control for public administration in terms of determining the problems and prospects of the socio-economic development of the country. The study is evaluating the results of control measures conducted by the State Audit Service of Ukraine and the Accounting Chamber of Ukraine, development of recommendations for their improvement and phrasing. The methodological framework of the research is a comparative analysis of the series of dynamics of the established financial violations, systematic analysis of the quantitative and qualitative composition of the revealed violations, cause-and-effect analysis of the dynamics of the revealed financial violations, abstract-logical method, synthesis and generalization to substantiate the basic theoretical provisions, formulation of conclusions. The scientific results. Based on the performance evaluation of state financial control the article proves the failure of contemporary inquiries to support the interests of the state and civil society, defines the main reasons of such inconsistency. It is also determined that the significant improvement of the situation can be achieved through: awareness of the importance of the parliament and government of state control as an exclusive functionality tool of information source for nationwide scale management decisions centers about the actual situation in the national economy; accomplishment of the concept of preventive controls to facilitate optimization controls, saving budget funds for their implementation and state control servicing, establishment of the necessary evidence for further damages compensation to the state and reduction of the number and volume of financial misconducts in the future; centralization of state financial control, which will consolidate efforts to control completeness of formation, legitimacy, appropriateness and distribution efficiency, redistribution and use of financial resources of the state, eliminate duplication of control tools, create a single database of control tools and their results, optimize servicing costs of state financial control bodies. The practical significance of the research is to develop first-priority recommendations for improving the organizational foundations of state financial control and methods of conducting control measures. Significance/originality. The results obtained form an integrated view of the consequences of functioning of the state financial control bodies, the level of legal consciousness, professional competence and responsibility of officials of state authorities, local self-government, and other entities of economic relations for the consequences of managing state financial resources.

ІМПЛЕМЕНТАЦІЯ МІЖНАРОДНИХ СТАНДАРТІВ ВИЩИХ ОРГАНІВ АУДИТУ У ФІНАНСОВІ АУДИТИ РАХУНКОВОЇ ПАЛАТИ УКРАЇНИ

The peculiarities of financial audits conducted by the Accounting Chamber of Ukraine according to a methodology that meets the requirements of ISSAI are explored. The Financial Audit Manual with detailed instructions, audit procedures, and templates of audit documentation, elaborated by the Accounting Chamber and international partners in 2019, is considered. The analysis of the experience of 31 European SAIs showed that most of SAIs do not publish audit manuals, in particular, only SAI of Albania, Georgia, Lithuania, Moldova, and Romania provided free access to financial audit manuals. The methodological recommendations for conducting the financial audit by the Accounting Chamber of Ukraine, adopted and published in 2015, cover all the issues that are outlined in such manuals of SAIs from those countries..Besides, the risks of providing open access to the Financial Audit Manual, elaborated by the Accounting Chamber of Ukraine were detected. They are the risks of fraud by officials of audited entities, not detecting a material risks by auditors, the use of intellectual property of the Accounting Chamber for commercial purposes by other entities and reputational risks due to breach of agreements with international partners involved in the development of the manual. The Financial Audit Manual was tested on six financial audits conducted by the Accounting Chamber in 2019 and main results are analyzed in the paper. Significant deficiencies of internal control, fraud risks and risks associated with accounting, budgeting and financial reporting software, and the need of improvement in accounting policies, internal control and workflow in all audit entities were identified. Additionally,, the audit results are presented in a user-friendly format tailored to the needs of decision- makers, with an emphasis on issues that require rapid response. Based on the conducted analysis, the conclusions about the low quality of financial and budgetary reporting of public sector entities and the systematic nature of identified problems and risks were made. Thus, the importance of financial audits was emphasized and the proposals for further improvement of this type of audit of the Accounting Chamber were elaborated. In particular, updating of the legislation and internal documents, usage of modern information technologies and software for audits, translation of ISSAI, training for staff, changes in personnel policy, improvement of the quality control system.

ЕФЕКТИВНІСТЬ УПРАВЛІНСЬКИХ ДІЙ ТА РІШЕНЬ ПІД ЧАС ПРОВЕДЕННЯ ДЕРЖАВНОГО ФІНАНСОВОГО АУДИТУ МІСЦЕВИХ БЮДЖЕТІВ

The article is devoted to the study of the effectiveness of managerial actions and decisions during the state financial audit of local budgets. The author notes that a promising driving mechanism for eliminating violations in the management of budget funds and state assets is the introduction of effective procedures for the system of public financial audit. Public financial audit should be understood as verification and analysis by the state financial control body of the actual state of affairs regarding the legal and effective use of state or communal funds and property, other state assets, correctness of accounting and reliability of financial statements, internal control system. It is generalized that the state financial audit of the local budget is aimed at conducting and analyzing the legality and efficiency of the formation and implementation of local budgets. The articles highlights the correctness of accounting conducted by audited entities; reliability of financial and budgetary reporting of audit objects; functioning of the internal control system and the state of internal audit; the state of use of property, funds, land, natural resources that are in the communal ownership of territorial communities, villages, settlements, cities, districts, and objects of their common property, which are managed by district and regional councils. It is investigated that the distribution of control powers in the Ukrainian realities is as follows: the State Treasury Service of Ukraine carries out preliminary and current control in treasury servicing of local budgets, and the Accounting Chamber of Ukraine and the State Audit Office of Ukraine - subsequent (retrospective) control during external audits. Taking into account the norms of legislation in the field of control at the local level, the mechanisms of external state financial control (audit) at the local level include: audit carried out by the Accounting Chamber of Ukraine (financial audit and performance audit); state financial audit, which is carried out by the State Audit Office of Ukraine. In turn, budget managers represented by their heads conduct internal control and internal audit at the local level.

IMPROVING THE PRACTICE OF EFFICIENCY AUDIT OF THE AGENT OF THE INSTITUTE OF CONTROL BY THE LEGISLATIVE BRANCH OF GOVERNMENT

The article is devoted to the study of the efficiency and effectiveness of the Accounting Chamber of Ukraine's audit of efficiency as a type of external public financial control. In the course of the research is given the normative-legal base which regulates the activity of the ACU, the principles of conducting the performance audit guided by the agent are analyzed, and the principles of ISSAI 300 are given as an example of international experience. An analysis of the annual report of the Accounting Chamber for 2019 is made, identified the results of control, the structure of inefficient management of budget funds and statistical indicators of implementation of the recommendations been provided. Two performance audits conducted in the ministries were analyzed (Audit of the efficiency of the use of state budget funds allocated to the Ministry of Health of Ukraine for training of medical and pharmaceutical personnel by higher educational institutions, and Audit of the effectiveness of the Ministry of Education and Science of Ukraine), which became the basis for consideration of negative factors in the conduct of AU, which reduce the effectiveness of control. The main indicators of the ACU's activity for three years (2017-2019) were also considered, the indicators of TSCPF (volume of the subject of control) and SA (volume of actually checked state funds) were demonstrated. The results of the study have shown the main shortcomings in the performance audit of this agent of the Institute of Control, where the focus is the lack of scientific and methodological approaches, which causes uncertainty in the implementation of this type of audit; also non-compliance of the liability which was covered by the audited public funds has been shown; the need to increase the number of ACU employees was identified, the problem of reimbursement of expenses and losses caused by public finances, which are currently carried out due to the lack of coercion, was outlined. Proposals have been developed to improve the effectiveness and efficiency of performance audits, which are to introduce a methodology for conducting performance audits, staff of ACUs being expanded and the recommendations provided after the control being revised. It will be appropriate to introduce international practice of organizing this type of public external financial control, supported by the positive experience of high-performance control over the use of public finances.

Transparency of public procurement as a result of efficiency of electronic auctions

The present article deals with the history and reasons for the formation of the Public Procurement Institute, the mechanism of legal regulation of the designated institute, and the features of the functioning of electronic auctions and the ProZorro e-procurement system. Three leading principles of public procurement on the Internet are identified, which are to combine state control with commercial activity of electronic platforms, accessibility to the procurement process and the unique partnership between the authorities, business and the public. The public procurement procedure was considered. There are four stages of the tender: 1) publication in the electronic system of the announcement of the procurement procedure; 2) the auction process; 3) determining the winner of the auction; 4) signing of the contract with the winner and its subsequent uploading to the electronic procurement system. The advantages and disadvantages of e‐procurement are investigated, the main achievements of the ProZorro electronic system are identified. Limits of authority in the activities of the competent authorities, such as the Antimonopoly Committee of Ukraine, the State Treasury Service of Ukraine, the Accounting Chamber of Ukraine and the State Audit Service of Ukraine, in the sphere of control of public procurement was analyzed. Particular attention was paid to the monitoring platform “DoZorro”, which allows to detect violations in the procurement procedures, evaluate a specific procurement and submit a complaint or comment on it, as well as to analyze auctions conducted by a specific customer. Special attention is paid to existing public procurement violations and the procedure for their detection and counteraction through the authorities of justice and control. The problematic issues, which are the primary tasks of the legislator in the field of public procurement, were highlighted. A proposal was made to improve the work of the control authorities by establishing the accountability of officials in the absence of a proper response to identified violations and directing legislative changes to simplify the procurement process.

DISPROPORTATIONS OF INSTITUTE OF CONTROL OF UKRAINE

The article examines the essence of the concept of state financial control by considering the concepts of “institute of control” – “agent of institute of control” – “subject / quasi-subject of state financial control”, the functioning of agents of institute of control - the Accounting Chamber of Ukraine and the State Audit Service of Ukraine, and the results of their activities on the use of public finance in the framework of official information. The reports of the agents of institute of control were analyzed and conclusions about the continuation of the negative dynamics of illegal and inappropriate use of public resources were made, the spread of budget and financial violations. disproportions that exist in the system of state financial control are identified and ways to eliminate them are defined. The necessity of improvement of functioning of the bodies and the legal mechanism in the management of state financial control in Ukraine is justified, as well as the need to ensure the creation of a unified system of state financial control that is able to resist abuse and prevent possible loss of budget funds by adopting the Code of state financial control of Ukraine, clearly delimiting the powers of internal and external control that could solve such problems as: legal support of control activities and unification of functions and powers of financial control in the executive branch. It is necessary to expand the contents of the basic principles of control in the Budget Code of Ukraine, clearly defining the object and the subject of control, its principles and types, principles of conducting, which will contribute to the expansion of terminology and basic issues of state financial control.

ТРАНСФОРМАЦІЯ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ В УКРАЇНІ

One of the mechanisms to ensure the public and state needs in goods, works and services is procurement, the principles of which are based on openness, transparency and efficiency. In various periods, rules of procurement in public sector of the economy were changed by regulatory and legal acts. Performance indicators of procurement (such as level of competition, share of competitive purchases and share of canceled bids) were being changed as well. Low performance indicators of procurement have caused negative consequences for the development of the national economy. Continued application of competitive methods of implementation remains unchanged in the evolution of procurement. The latest trend in procurement processes is their automation, which greatly increases the level of openness, but does not solve the problems of timely and high-quality satisfaction of needs in public and the state procurement. Development of procurement in public sector of the economy, depending on state of procurement legal regulation in 2000-2017, is studied. Structure of public procurement, dynamics of canceled trades and structure of the value of concluded contracts by sources of financing and methods of procurement are analyzed. Comparative characteristic of Ukrainian legislation on procurement by various criteria is carried out in the scientific literature. Assessment of the current system of electronic public procurement is controversial in scientific circles. The stages of formation and development of procurement of goods, works and services are determined on the basis of evolution of procurement legal regulations. Dynamics of the main indicators of procurement is analyzed as well. The author used the method of retrospective analysis and statistical analysis methods based on data published by the State Statistics Service of Ukraine, the analytic module of the Prozorro electronic system, reports of international organizations and the Accounting Chamber of Ukraine.

СТАН І ПЕРСПЕКТИВИ ДЕРЖАВНОГО ФІНАНСОВОГО КОНТРОЛЮ В УКРАЇНІ

The article considers the state and prospects of development of the state financial control in Ukraine, investigates theoretical developments and practical experience concerning the state of the state financial control in Ukraine. The structure of violations identified by the Accounting Chamber of Ukraine in 2019 is highlighted. The structure of violations of budget legislation by types of violations is analyzed. The reports of the Accounting Chamber and the volume of violations and shortcomings identified by this control body were processed. The effectiveness of control and verification work of controlling bodies is investigated. The structure of revenues of the State Budget of Ukraine is considered and the results of the audit of the efficiency of the State Fiscal Service of Ukraine, the State Tax Service of Ukraine and the State Customs Service of Ukraine are analyzed. The results of the State Audit Service and the Accounting Chamber of Ukraine in 2018-2020 were analyzed. It was substantiated that the merger of customs and tax authorities into a single controlling body negatively affected the effectiveness of customs control over the movement of goods across the border and combating fraudulent transactions. The interaction of the State Audit Service with law enforcement agencies based on the results of its activities (audits, inspections, audits) during 2018-2020 is analyzed and it is determined that the State Audit Office constantly participates in joint activities with law enforcement agencies to identify and stop abuses and violations in the financial, economic and budgetary spheres. The most problematic reasons that affect the effectiveness of public financial control are highlighted. The study of the results of the effectiveness of the functioning of control bodies indicated numerous problems that persist in this area. Therefore, the main factors for improving the mechanism of efficiency of public financial control in Ukraine are indicated.

Factors influencing the exercise of supervisory powers of the accounting chamber of Ukraine

The article attempts to investigate the constitutional obligation on the budget control by the supreme body of financial control in Ukraine. The author draws attention to the legal, economic and political factors that influence the activity of the Accounting Chamber of Ukraine at its current stage of the development. The research is based on the analysis of legislative acts of Ukraine and the standardized activity of the International Organization of Supreme Audit Institutions. The study revealed a lack of legal regulations that would allow the Accounting Chamber to develop and plan the budget in its establishment phase. Also, the attention is drawn to the functioning of the Accounting Chamber as a member of the international organization INTOSAI, and to a political factor through which the forms and methods of control of the supreme state body are improved. The compliance of the functions and performance of the Accounting Chamber with the documents of the international organization is determined. The article proposes to extend the authority of the Accounting Chamber not only as a legislative body, but also as a judiciary one, which will effectively influence the results of the audit. The author argues that the description of shortcomings by political, legal and economic factors allows solving the problems of the Accounting Chamber at different levels of government and with different approaches to improving constitutional duties on budget control. This particular way of presenting the material will facilitate a better understanding of the activities of the supreme bodies of financial control and their inapplicability to today’s new realities which are subject to various changes in the budgetary process. Foreign and domestic experience of using international standards that would allow revealing the shortcomings of the national formation of the state apparatus of supreme audit institutions in a comparative perspective is analyzed. The Federal Accounting Chamber of Germany has been chosen as an example of a supreme audit institution with the most advanced status and functions enshrined in the law, and effective in practice. The chamber has a status that allows it to be an instrument for budgeting between the legislative and executive branches of the government.

Polarization of state financial control on the basis of the subject matter of the subjects control

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.

ДОСЛІДЖЕННЯ ДИНАМІКИ ФІНАНСУВАННЯ ПРОГРАМ ІМУНОПРОФІЛАКТИКИ В УКРАЇНІ

<p><strong>Introduction.</strong> World Health Organization is worried about poor children vaccination inUkraine. After the signing of the coalition agreement between the main political parties, which were held into the Ukrainian Parliament of VII convocation, representatives of WHO and UNICEF welcomed «the inclusion of conditions of vaccines procurement together with international partners and organizations in the coalition agreement, and reaffirmed their willingness to purchase and contribute in response to corresponding request of the Ministry of Health care of Ukraine». However, coordinated decisions were not accepted. And the overall condition of financing the health care system and the Program of immunization as its component does not comply with the WHO’s requirements.</p><p><strong>Methods of research:</strong> bibliographical, analytical, systematic and logical.</p><p><strong>Results and discussion.</strong> According to the immunization Schedule in Ukraine, 10 infectious diseases, such as diphtheria, pertussis, rubeola, rubella, epidemic parotitis, polio, tetanus, tuberculosis, hemophilic infection, hepatitis B are subordinated to prevention by vaccination. Vaccines against these diseases in accordance with the law of Ukraine № 1645-14 «On protection of population against infectious diseases» are centrally purchased on a single state tender held by the Ministry of Health care of Ukraine. Nowadays, it is currently completing the implementation of current National program of immunization and population protection against infectious diseases for 2009-2015, which was adopted by the Law of Ukraine № 1658-VI, dated on 21<sup>st</sup> October, 2009.</p><p>The problem of infectious diseases immunization must be strategic in any socio-political circumstances of country’s life. However, according to analysis of the state funding of the health care system ofUkraineas in general and as its component – system of immunization inUkrainetraditionally faced a shortage of funds, along with the low cost effectiveness. This tendency has occurred not only in the current military conflict, but also has become a disappointing practice. So, the percentage of financing costs on the health care system from the State budget has traditionally been at the level of 3,7% of GDP and covers about 57% of the total population needs. However, the analysis of audits materials of the Accounting chamber of Ukraine shows that projected amount of funding from the State budget of the Program on immunization during 2009-2015 variances with the real allocations in 2011-2013 inaverage of 45,3%. Along with this, the conclusions of the Accounting chamber for 2007-2013, Ministry of health care traditionally does not provide efficient use of available funds of the State budget. This led to the fact that it was failed to reduce the level of infections, against which is held by means of immunization. This is demonstrated by the vaccination coverage of the population in 2014 at a level from 15 to 49% depending on infectious disease by the WHO recommendations – 95 %.</p><p><strong>Conclusions:</strong> reform of the Program of immunization financing must firstly focus on improving the efficiency of spending, particularly through the reform of sector procurement that is offered like in many countries to conduct through the mediation of WHO and UNICEF through the «framework» (directly long-term) agreements with suppliers of vaccines. And it already needs not declarative, but real political freedom.</p>