State Financial Control Research Articles

The concept of state financial control and the legal status of the subjects of its provision

The article is devoted to the study of the concept of state financial control and the legal status of the subjects of its provision. It is noted that, in practice, the system of state financial control bodies is extremely extensive and includes a large number of bodies that do not interact properly. It is proposed to understand state financial control as the activity of state authorities and local self-government regulated by financial and legal norms, based on the principles of legality, independence, objectivity, efficiency and aimed at protecting the financial interests of the state, business entities and citizens. It is emphasized that the Law of Ukraine «On the basic principles of state financial control in Ukraine» does not operate with the concept of «subject of state financial control», but only generally indicates the rights of the state financial control body, and the duties and responsibilities of its officials. It is indicated that the President of Ukraine, being the head of state and possessing a special legal status, supervises financial activities. Control powers in the field of financial resources management can be exercised by the President of Ukraine by adopting decrees, the effect of which is aimed at regulating financial relations. It is noted that the Verkhovna Rada of Ukraine is assigned to the state body of general financial competence, but it determines the main guidelines for the development of the entire financial system of the country by adopting and approving laws. The specific results of the activities of bodies of special competence depend on its actions. It has been established that the Accounting Chamber occupies a separate place in the system of state financial control bodies, it is the highest body of state financial control of Ukraine, it is formed by the Verkhovna Rada of Ukraine, subordinate to and accountable to it. The Accounting Chamber, in accordance with Article 98 of the Constitution of Ukraine, on behalf of the Verkhovna Rada of Ukraine, controls the receipt of funds from the State Budget of Ukraine and their use.

Treasury monitoring as a method of state financial control

The article identifies the elements of the control system, on the basis of which the organizational and functional structure of control monitoring as a method of internal state financial control is disclosed. The definition of the budgetary procedure is given and, based on the powers of the internal state financial control body, the budgetary procedures within which control monitoring is carried out are specified. The subject of control monitoring has been defined, which is to ensure that the object of control complies with the rules of accounting, preparation and provision of accounting (financial) statements, fulfillment of the terms of contracts (agreements) for the provision of budgetary funds, provision of reports on the implementation of state programs and government assignments, etc. The implementation of the powers to conduct control monitoring is carried out through operational and proactive interaction between the objects of control and the Federal Treasury through automated (information) systems, which allows you to receive real-time data on the use of financial resources and form a motivational opinion on the need to adjust the financial and economic activities of the object of control.

Efficiency of state financial control: approaches to evaluation and conditions of increase

Unresolved problems of the development of state financial control slows down the positive impact of the socio-economic development of the country. In the conditions of martial law and a shortage of financial resources, impeccable state financial control acquires the characteristics of one of the main guarantors of the effective and transparent use of international financial aid. The efficiency of the DFC becomes the main indicator of effective management of public finances. The article examines approaches to the assessment of the effectiveness of DFC. It was established that the reduction of the volume of financial violations depends on a group of factors: the effectiveness of the control measure, the effectiveness of the state financial control body; the quality of the evidence base, which should be a factor of irreversible action in matters of compensation for material damage caused to the state; completeness of implementation of recommendations on elimination of established violations and prevention of their occurrence in the future; the level of professional competence of managers of public sector entities in the implementation of control powers. It was determined that the desired efficiency of the DFC depends on the quality of its legal, methodological and praxeological support. Achieving a significant impact on the indicators of the state sector of the national economy can also take place thanks to the improvement of the qualifications of managers of state sector entities.

From state financial control to modern audit: evolutionary development in Russia and other countries

The article is devoted to the study of the evolution of state financial control and audit. The historical facts of their origin in the Great Roman Empire, China, India, Great Britain, the USA and Russia are given. Four stages of audit development in modern Russia are identified and a fairly detailed description of each stage is given. The necessity of modernizing the process of self-regulation of the auditing profession is substantiated, taking into account the recommendations of the International Forum of Independent Regulators of Auditing, the development and effective implementation of a new Concept and a new Strategy of Russian audit, the implementation of which will create conditions for the consolidation of the audit professional community, contributing to the development and functioning of mechanisms for involving the audit community in the processes of solving strategic tasks aimed at improving the efficiency of functioning modern models of state financial control and audit, the development of the national economy and ensuring the economic security of the country. Special attention is paid to taking measures to increase the level of demand and value of the audit.

On Violations in the Financial And Budgetary Sphere Revealed in the Course of Carrying Out Internal State Financial Control Activities

On Violations in the Financial And Budgetary Sphere Revealed in the Course of Carrying Out Internal State Financial Control Activities

INTERNATIONAL EXPERIENCE IN USING INNOVATIVE TOOLS OF STATE FINANCIAL CONTROL OVER ILLEGAL FINANCIAL FLOWS

Effective financial control often requires cooperation between countries and international organizations. The study of international experience contributes to the development of mechanisms of international cooperation and information exchange to combat illegal financial flows. The article examines the international experience of using innovative tools of state financial control to combat illegal financial flows. Emphasis is placed on the analysis of modern practices in countries with developed systems of financial control, such as the USA, Great Britain, Germany, France, and Japan. The main tools used to detect and prevent illegal financial flows are described, including automated transaction monitoring systems, analytical platforms based on artificial intelligence, as well as methods of a risk-based approach to auditing. Special attention is paid to the role of international cooperation and information exchange between financial institutions of different countries, which allows more effective detection and termination of activities related to money laundering and terrorist financing. The article also analyzes the legal acts that regulate the use of innovative financial control tools in different countries and their compliance with international standards, such as FATF recommendations. The challenges and risks associated with the introduction of the latest technologies into the financial control system, including issues of data confidentiality and protection of human rights, were studied. The analysis of indicators and methods of assessment of illegal financial flows was carried out, the formation of illegal financial flows in modern globalized conditions was analyzed, the experience of other countries with regard to state financial control and its effectiveness was studied, innovative approaches and technologies that could be used to improve the financial control system and the possibility of their implementation of financial control in Ukraine. In addition, the evaluation of the effectiveness of the proposed innovative tools in the fight against illegal financial flows was carried out and the need for the development of such an assessment methodology, which would allow measuring the real impact of new technologies on reducing the volume of illegal financial flows, was substantiated.

Updating the principles of state financial control in the sphere of budget funds circulation in Ukraine

Updating the principles of state financial control in the sphere of budget funds circulation in Ukraine

Organizational and methodological aspects of state financial control over the implementation of national projects

Organizational and methodological aspects of state financial control over the implementation of national projects

Directions for organizing internal audit and measures of state financial control in the public sector

Directions for organizing internal audit and measures of state financial control in the public sector

Methodological and practical aspects of the application of artificial intelligence technologies in the system of state financial control

The article analyzes the use of artificial intelligence technologies in the system of state financial control. The authors present the main directions for the development of artificial intelligence, in particular its application in the system of government control. Also, the possibilities of expanding the areas of application of artificial intelligence in state financial control are being considered in order to increase the efficiency of the country’s economic security. The authors believe that the use of artificial intelligence will speed up inspections, and in the future there will be an intensification of the activities of state financial control bodies. The scientific novelty of the article lies in the fact that it examines the need to use artificial intelligence technology in the system of state financial control, and also analyzes the trend in the development of artificial intelligence in order to effectively ensure the economic security of the Russian Federation through state control bodies.

Management of budget flows under martial law

Managing budget flows under martial law is important to ensure the security and financial stability of the state, helping to mobilize the necessary resources and concentrate them on financing key needs. This paper aims to identify and outline possible measures to balance the movement of budget flows in order to harmonize them with the goals of state policy in the field of national security. The movement of budget flows of income and expenses was assessed, and trends and changes were identified using economic and statistical methods. The assessment results confirmed the need for reasonable planning of budget flows in the context of the impact of unforeseen military events on the process of budget execution in terms of revenues and expenditures, which leads to failure to meet expenditure indicators, causes a lack of financial resources and an increase in the budget deficit. One of these measures is the improvement of budget planning, which is based on the analysis, detection, and assessment of the probability of occurrence and countering the risks related to the state’s financial system. Correlation-regression analysis confirmed the growing dependence of revenues on official transfers from the EU, foreign governments, international organizations, donor institutions, and government bodies. The results obtained are basic for developing measures to balance incoming and outgoing budget flows under martial law. They provide for the obligation to create a financial support system (including international financial aid) while strengthening state financial control measures for the timely, targeted, effective direction of budget flows, including for the security and defense of the state.

STATE FINANCIAL CONTROL: CONCEPTS AND CLASSIFICATION

The article emphasises that the conditions of the market economy and the development of Ukrainian society require a new conceptual approach to the creation and functioning of the system of state financial control. Additionally, the significant growth of financial abuses and violations necessitates a fundamental theoretical study and the determination of ways to build a new, better system of state financial control that can solve the problem of inefficient management in the public sector of the economy. The article contains a study of a significant range of approaches of modern scientists to interpreting the concept of ‘control’ to find a clear and understandable definition not only of control but also of financial and state financial controls. The authors analysed the definition of financial control that revealed the advantages and disadvantages of the definitions provided by modern scientists. We concluded that the scientists mainly limit this concept to state control while subjects refer to state bodies. We also proposed a proper definition, taking into account the indicated shortcomings. Therefore, financial control is interpreted as an activity carried out by state and local self-government bodies, business entities, and citizens of Ukraine to ensure legality, financial discipline, and reasonableness in mobilising, distributing, and using funds and related material assets. At the same time, we aim to assess the economic efficiency of economic activity, avert and avoid obstacles that prevent the legal and rational use of property and funds, the expanded reproduction of production, satisfaction of state, collective, and private interests, and needs for economic management. In addition, we defined the purpose and tasks of financial control. In general, state financial control aims to prevent and detect financial offenses, bring the guilty to justice, ensure compensation for damages, and take measures to stop similar crimes from happening in the future. Its task is to ensure legality, efficiency, fiscal discipline, and optimality in the formation, distribution, possession, use, and disposal of assets as state property. Keywords: control, financial control, state financial control, management, classification, efficiency, responsibility, legality.

Перспективные подходы к оценке эффективности деятельности органов государственного финансового контроля

The article discusses the existing scientific approaches to evaluating the efficiency of the activities of state financial control bodies. The content of the efficiency concept is disclosed, scientific views on the formation of the system of performance measurement indicators are examined. The lack of uniformity of approaches to the development of criteria and indicators for assessing the efficiency of the state financial control bodies’ activities is also revealed. The purpose of the study is to formulate unified, universal approaches to such an assessment. The author proposes original ways of evaluation using complex indicators. In the course of the study the methods of systematization, comparative, logical and statistical analysis were used. The results can be used by the bodies of state financial control for the development of efficiency assessment methodology.

Проблемы организации государственного регулирования финансового контроля в сфере строительства

The article discusses issues related to the specifics of the implementation of state financial control in the field of construction. It is emphasized that this type of activity undergoes transformation in modern conditions due to the active inclusion of innovative elements in the organization of regulatory and inspection procedures, as well as due to the total digitalization of the Russian society. Above all, the complexity of the implementation of state financial control in the construction sector due to the multitude of stakeholders and the need to apply universal and at the same time differentiated methods of work to them is highlighted. The author identifies the following problems of financial control regulation in the construction sector: the lack of a full-fledged and well-established legislative framework; inconsistency of regulatory guidelines in different branches of law; vague-ness of the division of powers of subjects; the need to comply with the processes of modernization and digitali-zation of the financial structure in order to obtain more massive information data. Conclusion dwells upon the fact that the progressive development of society determines changes in the procedure of state financial control in the field of construction, the search for new regulatory and evaluating forms of work, the creation of innova-tive integrated programs of control of construction facilities.

Концепция финансового контроля деятельности профессиональных участников рынка ценных бумаг в современных экономических условиях

The article provides an overview of the institutional aspects of regulating the securities market professional participants’ activities, allowing to identify key shortcomings in their functioning and reveal the insufficient effectiveness of control measures. The aim is to develop a concept of financial control taking into account the identified problematic factors and ensure the possibility of improving the financial control system in the context of professional participants representing the subjective side of the financial market. The methodological novelty of the author’s approach lies in the research algorithm. It includes creating the state financial control concept for the securities market professional participants’ activities based on the analysis of scientific literature, the definition of characteristic problems in the state financial control, the disclosure of the structure of its improvement concept by creating indicators for monitoring and formulating proposals for implementing the recommended measures. The financial control procedure ensures the activities’ legality, the implementation of the current regulatory framework for conducting transactions of financial resources, the openness and accessibility of financial transaction mechanisms. Currently, there are organizational and regulatory gaps that directly affect the financial control procedure, caused by, among other things, digital solutions, the introduction of the digital ruble and a number of other transformations. The result of the research is the author’s concept aimed at improving the financial control system of securities market professional participants’ activities.

Formation of a System for Evaluating the Effectiveness of State Financial Control and Budget Monitoring in Russian Federation

Formation of a System for Evaluating the Effectiveness of State Financial Control and Budget Monitoring in Russian Federation

Налоговые льготы научным и образовательным организациям как косвенные бюджетные субсидии

The article attempts to compare the mechanisms of state financial support for scientific and educational organizations through direct budget subsidies and indirectly through the provision of tax benefits. The author tries to evaluate these measures in terms of their economic efficiency, relevance, transparency and the possibility of state financial control and seeks to opt the most appropriate ones. The work uses Russian scientific literature, law enforcement practice and budget and tax statistics.

Ways to implement risk management in the fight against organised crime

The aggravation of the state of operations under martial law poses a threat to a wide range of rights, interests of individuals and society. To prevent further deterioration of the crime situation, it is necessary to find progressive mechanisms to combat organised crime. The purpose of this study was to formulate scientifically sound proposals for the development of mechanisms for combating organised crime and counteracting the establishment of corrupt ties by criminals in institutions, organisations, and enter- prises, especially those belonging to the national security system. According to the purpose and specifics of the subject under study, the historical approach, comparative legal, and systemic-structural methods were employed. The study outlined the content of the processes of organising the management of subsystems involved in ensuring national security. The need to ensure its effective implementation is evidenced by statistical data on the complication of the operational situation in certain regions, the general socio-po- litical situation and threatening trends in the criminalisation of society. The state of stagnation does not correspond to the course of the most secure development of society, and therefore the main task of the state is to actively protect citizens from dangerous anti-social, criminal, and violent manifestations. It was sub- stantiated that the success of counteracting these negative phenomena depends primarily on the unification of certain mechanisms at both the international and domestic levels, including standards. It was proved that legal forms of combating organised crime should be improved towards the betterment of standards in the risk management system, specifically, ensuring information security, and stimulating the protection of information flows. It was argued that the introduction of the term “compliance audit” into certain laws of Ukraine defining the basic principles of implementation of the state financial control, audit of financial statements, and organisation of audit activities will provide a positive effect in combating these negative phenomena. The findings of this study can serve as the basis for the preparation of forecast and programme documents by supreme audit institutions, anti-corruption bodies, and the business community to counteract manifestations of organised crime, identify and eliminate corrupt ties with criminals

Implementation of External Budgetary Control over Business Partnerships and Entities with Regional Participation in Constituent Entities of the Russian Federation

The paper analyzes the reasons for external state financial control over the activities of business partnerships and business entities with participation of the constituent entities of the Russian Federation, as well as the specifics of inspections of such business entities performed by regional control and accounting authorities. Based on the study of federal and regional regulatory legal acts, acts of the control and accounting bodies of the constituent entities of the Russian Federation, the practice of courts and the activities of control and accounting bodies, the author defines the problems of such control and analyzes the arguments of the audited entities used to protect their rights during control and the assessment of these arguments by the courts. The author concludes that it is necessary to include a list of objects controlled by sub-federal control and accounting bodies in Federal Law No. 6‑FZ dated 07.02.2011 «On General Principles of Organization and Activities of Control and Accounting Bodies of Constituent Entities of the Russian Federation, Federal Territories and Municipalities» in order to unify the approach to external budget control. The paper substantiates that finances, property and activities of these legal entities are subject to control exercised by regional bodies of external budget control due to the importance of these resources in the process of generating budget revenues of the relevant public legal entities, and the inspectors act primarily as representatives not of the shareholder or participant, but of public legal entities protecting public interest. It also gives them the opportunity to suggest ways to improve the regulatory framework of the region and the management processes of individual legal entities.

The Current State and Prospects of State financial Control Bodies Digitalization in the Russian Federation

Digitalization of state (municipal) financial control is a permanent process caused by the digital transformation of public administration. Choosing the approaches to solve this problem optimally and comprehensively is extremely important owing to the significant number of financial control bodies. The subject of the study is the activities of external and internal state (municipal) financial control bodies in terms of digitalization. The study’s goal is to develop the most effective approaches and recommendations for implementing the activities of digitalization of state (municipal) financial control bodies. The conditions and features of state (municipal) financial control bodies’ digitalization are determined. The author revealed the essence of the digitalization concept. The paper analyzed the approaches to digitalization used by the Federal Treasury and the Accounts Chamber of the Russian Federation. The analysis reveals that the Federal Treasury and the Accounts Chamber of the Russian Federation have used approaches to digitalization that are based on the use of vertically centralized and integrated approaches as well as providing of services.