Internal State Financial Control Research Articles

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.

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

Цифровизация внутреннего государственного финансового контроля как инструмент эффективного реформирования системы финансового контроля

The article is devoted to the consideration of theoretical and practical aspects of internal state financial control, namely digitalization, as the most effective tool of the financial control reform carried out by the state. “Digitali-zation” is defined as the process of introducing new digital technologies into all spheres of human life. The main goal of the digitalization of state financial control is the effective use of technologies to ensure transpar-ency, efficiency and responsibility in the management of public finances. Digital tools allow automating and simplifying the processes of collecting, analyzing and controlling financial data, as well as improving the accu-racy and reliability of information. Digitalization has become an engine, a driver of global development, ensur-ing an increase in the efficiency of the economy, also increases the effectiveness of state control and improv-ing the quality of life. The elements of the system of reforming the state financial control are highlighted. It also presents the analysis of current trends in the development of digitalization of state control in Russia. One of the main advantages of digitalization of internal state financial control is the increase of efficiency and accuracy of this process. An important aspect of the article is the consideration of the application of digital technologies in the process of organization of internal state financial control, improvement of its elements.

PROBLEMS OF STATE FINANCIAL AND ECONOMIC CONTROL AND FUNCTIONING OF THE PUBLIC SECTOR IN GEORGIA

The construction of a democratic state is unthinkable without proper and effective management and state financial and economic control. "Governance" and "good governance" can be introduced through effective, coordinated and consistent decision-making that ensures transparency, accountability, cooperation and professionalism in the state. This is impossible without the presence of the state internal financial control mechanism. In order to ensure the financial and economic control of the state, the need for the existence of an internal audit structure, the stages of formation and development at the legislative level, the types of internal audit, the purpose and tasks at the initial stage of the introduction of state internal financial control, because the proper functioning of the internal audit system is an urgent challenge for our country, is discussed in the paper. In the part of fulfilling the obligations with the European Union, but also as a tool that ensures the development of the democratic state and the effective activity of the public sector.

INTRODUCTION AND IMPLEMENTATION OF INTERNAL FINANCIAL CONTROL IN GEORGIA

Aleksandre Mzhvanadze 
 Email:aleksandremzhavanadze@gmail.com
 PhD Student, Batumi Shota Rustaveli State University 
 Batumi, Georgia
 https://orcid.org/0009-0003-4079-8416
 
 Abstract. Reason of research. Raising awareness about financial management and control and timely response to existing challenges.
 Methodology/approach. The methodological basis of the paper is the fundamental research of economic science. Georgian and foreign scientific articles, works and studies are used in the work, the material used in the research is based on the data of the Ministry of Finance of Georgia, the Ministry of Economy and Sustainable Development, and the National Statistics Service. Qualitative and statistical methods, data from international organizations are used in the research, this research is mainly based on information collection, comparison, study and analysis.
 Research tasks. The main tasks and hypotheses of the research can be formulated as follows: the need to introduce the reform was determined not only by Georgia's obligations to the European Union, but also by the potential benefits obtained as a result of its introduction, because the state's internal financial control system ensures the proper functioning of public services and the legal and transparent use of state funds. , economical, efficient and productive disposal.
 Practical value/consequences. The results and conclusions of the research can be used in higher education as a guide material. In addition, it will significantly help the government institutions in the development of the country's economic development course, its adjustment and implementation of specific issues.

Efficiency of internal control of state institutions of Ukraine

Introduction. The introduction of a modern model of state internal financial control is aimed at strengthening the responsibility of managers for the management and development of institutions as a whole (managerial responsibility and accountability). Therefore, the implementation and operation of the internal control system is aimed at the economical and efficient use of resources provided by taxpayers for the development and sustenance of Ukraine. The purpose of this paper is to analyse the level of effectiveness and efficiency of internal control of state institutions of Ukraine. Results. The paper provides a legally established concept of internal control. It describes the significance of internal control as a tool of the institution management system. A number of problems of an organizational and legal nature in the field of state financial control are indicated. The division of internal control measures was also carried out depending on the objects of the study: operations control measures; process control measures; document control measures that involve the use of sanctions (permits) for the implementation of an economic transaction which is a mandatory requisite of any primary document; resource control measures aimed at consolidating responsibility for the safety and use of resources, which reduces the risk of their loss or misuse. The paper also lists the activities that may include monitoring of control measures. The concepts of state internal financial control, financial management and control are provided. Typical violations in the system of accounting and internal control of state institutions are indicated, that should be considered when developing proposals and recommendations. Conclusions. Solving problematic issues related to the functioning of the internal control system in state authorities is only possible by introducing new modern approaches to its organization, reconsideration of control not as means of preserving the resources of a budgetary institution, but as a tool for managing these resources, reducing various risks of illegal, inefficient and ineffective use of them. At the same time, efficient changes in the internal system cannot be achieved only through legal norms, regulatory documents and instructions.

НОВЫЕ НАПРАВЛЕНИЯ РАЗВИТИЯ АВТОМАТИЗИРОВАННОГО ИНСТРУМЕНТАРИЯ В СИСТЕМЕ ВНУТРЕННЕГО ГОСУДАРСТВЕННОГО ФИНАНСОВОГО КОНТРОЛЯ

The article is devoted to the development of methods of internal state financial control based on transactional monitoring of operations of participants in the treasury payment system. In 2021, the transition to treasury servicing of the budgets of the budget system of the Russian Federation and the introduction of a treasury payments system were implemented, which led to a modification of the functionality of the Federal Treasury. The status of the Federal Treasury as the chief cashier of budgetary funds was supplemented by the status of a quasi-bank of the budget of the Russian Federation, as a result of which the activities of the Federal Treasury in many respects became similar to those of credit institutions. In this regard, the digital data of the treasury payment system can be used in the system of internal state financial control based on the relevant experience of the banking sector. Automated transactional monitoring of Clients’ operations for the banking sector is a relatively new direction in the internal control system of commercial banks and helps to quickly identify Clients’ operations that bear reputational, credit and other risks for the bank. Automated transactional monitoring of Clients’ operations belongs to anti-fraud class systems. Automated transactional monitoring of operations of participants in the treasury payment system as part of the system of internal state financial control can help to effectively identify the risks of misuse and/or misuse of budgetary funds by controlled departments and organizations. The digitalization of data in relation to public finance inevitably entails the transformation of the methodology and tools of the budget process. Automated monitoring of transaction activity based on data from the treasury payment system can become an effective tool for organizing internal state financial control aimed at identifying possible violations of controlled entities.

ЭФФЕКТИВНОСТЬ ФИНАНСОВОГО КОНТРОЛЯ КАК ФАКТОР СТАБИЛЬНОСТИ РЕГИОНАЛЬНОЙ ЭКОНОМИКИ

The article examines the existing approaches to the implementation of internal state financial control in the Russian Federation, interdepartmental interaction in ensuring the legality of budget spending, problems and imperfections of current legal regulation. The authors give a number of proposals to improve the effectiveness of forms and methods of control in particular, the mechanism of “traceability” in the organization and conduct of verification activities within the framework of the implementation of national projects in the regions of the Russian Federation and state programs in the North Arctic territory - the Arkhangelsk region.

МЕТОДИ ОЦІНКИ ФІНАНСОВИХ РИЗИКІВ В СИСТЕМІ ПУБЛІЧНОГО УПРАВЛІННЯ

The article notes the importance of state internal financial control as a public administration tool, explores the essence of financial risk in the public administration system. In general, risk management can be viewed as a specific management process consisting of several stages, namely: stage 1 - risk identification (for implementation, it is necessary to have a wide range of practical and theoretical knowledge in this area, qualitative and quantitative approaches); Stage 2 - making a decision regarding the risk assessment method, risk assessment (there are three groups of assessment methods: economic-statistical, expert, analog); Stage 3 - making a decision on methods of influencing the risk (method of managing or avoiding risks, or preventing damage, or redistributing risk, or taking on the risk in accordance with the financial capabilities of the enterprise and the total amount of potential losses); Stage 4 - implementation of the selected methods of influencing the risk and adjusting the risk management system at the enterprise after monitoring the management results. It was found that the second stage has the main influence on the decision-making results, provided that the risk assessment methods and their main techniques (tasks) are correctly compared. As a result of the analysis of existing methods and models for assessing financial risks, it was found that expert methods dominate in practice. In general, it was noted that an effective financial risk management process is an important condition for improving the public administration mechanisms existing in Ukraine. It has been determined that premature monitoring of the effectiveness of all stages of the financial risk management process, taking into account “weak points” forms the basis for timely adaptation to them. The lack of this ability can be the main cause of emerging crisis situations in public administration.

Accounting reporting of institutions as a source of evidence in the process of departmental control of financial and economic activities

Subject. This article discusses the issues related to the development of requirements for the accounting statements of institutions as a source of evidence in the process of departmental control of financial and economic activities. Objectives. The article aims to develop requirements for the accounting statements of institutions used as evidence of the results of departmental control of financial and economic activities. Methods. For the study, I used the methods of grouping, comparison, and generalization. Results. Based on the analysis, the article substantiates the original position on the need to comply with the identity of the requirements for accounting (financial) reporting and other evidence of the conclusions and results of departmental control of financial and economic activities, internal State financial control and external government auditing, which can be used to develop the methodological provisions of the type of control under study. Conclusions. Analysis of research works of domestic and foreign authors and a number of regulations helped determine the basic requirements for evidence used in the process of departmental control of financial and economic activities and identify groups of such evidence depending on the purpose of implementation of the control measures carried out. This may contribute to the development of the concept of the type of control under study.

Совершенствование внутреннего финансового контроля и аудита как механизмов повышения эффективности использования бюджетных средств

The article deals with the organization and implementation of internal financial control and internal financial audit in the public administration sector. This issue is of particular relevance due to regularly taken decisions to restrict (moratorium) the activities of internal state financial control bodies. At the same time, the current socio-economic situation in the country requires an increase in the amount of budget funds allocated to address important state objectives. Under such conditions, the importance of internal control mechanisms, allowing for targeted and effective use of budget funds, increases. At the same time, the results of analytical activities carried out by the Federal Treasury indicate a significant number of shortcomings and difficulties on the part of the chief administrators of budgetary funds in the organization and implementation of audit. In this regard, the author, using methods of analysis of results, analysis of statistical data and analysis of official documents, conducted a study of the current system of internal financial control and internal financial audit. The empirical base of the study was formed by the results of analytical activities of the Federal Treasury, the results of monitoring the quality of financial management carried out by the chief administrators of federal budget funds, as well as regulatory legal acts of the Russian Federation and departmental legal acts of federal executive bodies regulating internal financial control and audit. According to the results of the study, proposals were developed to improve the efficiency of the internal financial control system and internal financial audit in the public administration sector.

Modernization of the system of state financial control in Ukraine

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.

Государственный финансовый контроль в социальной сфере: теория и практика правоприменения

State financial control of the social sphere is an important policy direction of any welfare state. The author points out the existence of external and internal state financial control of the social sphere, noting the peculiarities of its regulation and implementation. Conclusions are drawn that financial control of the social sphere is carried out not only over the use of budgetary funds, but also over the formation and expenditure of state extra-budgetary funds.

Internal state financial control as a factor of ensuring economic security

Internal state financial control as a factor of ensuring economic security

Деякі питання вдосконалення ефективності державної антикорупційної політики в Україні в контексті реалізації засад верховенства права

The problematic issues of ensuring on state anti-corruption policy in Ukraine are researched in the article. The current areas of anti-corruption are justified. This scientific task is solved on the basis of a comprehensive analysis of the results of theoretical research and national legislation concerning corruption prevention. In particular, uncertainties and contradictions caused by corruption factors that pose a threat to the national security of Ukraine and exacerbate the systemic crisis of modern social development are clarified. The institutional support is analyzed in the sphere of anti-corruption, which is characterized by the adoption of a new legal framework and the range of entities that care for the prevention and combating corruption in the state. The conditions for ensuring the construction of an effective system for combating corruption at the state level are detailed. Today it is proved that the real result of anti-corruption policy is much lower than it was expected, as it is indicated by existing of a set of systemic problems. In order to implement the state anti-corruption policy effectively, directions for its improvement are proposed. Specifically they are the following: the introduction of a legal institution in order to prevent political corruption; the need to ratify the Organization for Economic Cooperation and Development Convention on Combating Bribery of Foreign Public Officials in International Business Transactions; improving the list of corruption crimes and establishing the adequacy of punishment for such crimes in accordance with their severity; introduction of effective mechanisms of external and internal state financial control and audit over the spending of budget funds. Key words: anti-corruption legislation, state anti-corruption policy, prevention and combating corruption, corruption, political corruption.

PRACTICE OF APPLICATION OF CONCESSION AGREEMENTS IN RUSSIA: VIOLATIONS IN THE FINANCIAL AND BUDGETARY SPHERE AND THE METHODOLOGY OF FINANCIAL CONTROL

The purpose of this article is to research and study the practice of directing budget funds in Russia using public-private partnerships, monitoring their spending and identifying violations in the financial and budgetary sphere. Using the empirical method, methods of induction and deduction, the author collected, analyzed and systematized information on the practice of detecting violations by internal state financial control bodies and prosecutor’s offices when budget funds were the source of expenses and a form of public-private partnership with the conclusion of concession agreements was used. The result of the study is the identification of problematic issues and the development of proposals for the introduction of a public-private partnership mechanism in Russia in order to reduce the burden on the budget and increase investment attractiveness. The author came to the conclusion that in Russia it is necessary to expand the practice of applying concession agreements, and therefore it is necessary to minimize the risks of possible adverse events and the likelihood of deviation of the final results from the originally planned when signing and executing the agreement.

СОВРЕМЕННЫЕ ИНСТРУМЕНТЫ ОСУЩЕСТВЛЕНИЯ КАЗНАЧЕЙСКОГО КОНТРОЛЯ В РАМКАХ ГОСУДАРСТВЕННОГО УПРАВЛЕНИЯ

This article lists and characterizes modern tools for organizing and implementing treasury control. Treasury control is considered within the framework of the activities of the Federal Treasury, including treasury survicing and treasury support, budget monitoring, internal state financial control and procurement control. The key control procedures for each of the listed instruments of treasury control are identified.

НОВАЦИИ В ОРГАНИЗАЦИИ ВНУТРЕННЕГО ГОСУДАРСТВЕННОГО ФИНАНСОВОГО КОНТРОЛЯ В РОССИЙСКОЙ ФЕДЕРАЦИИ

This article highlights the transition of internal state financial control to the path of standardization. The main regulatory legal acts are analyzed, in accordance with which the modern organization and implementation of the activities of internal state financial control bodies is built, including the principles of control activities enshrined by them, the rights and obligations of officials of the object and subject of control, the procedure for conducting the appropriate method of control and other issues of organization control activity. Problematic issues that require timely elaboration are identified.

ОБЗОР ПРАКТИКИ ОСУЩЕСТВЛЕНИЯ ВНУТРЕННЕГО ГОСУДАРСТВЕННОГО ФИНАНСОВОГО КОНТРОЛЯ ФЕДЕРАЛЬНЫМ КАЗНАЧЕЙСТВОМ И МЕТОДИКА ОЦЕНКИ ЕГО РЕЗУЛЬТАТИВНОСТИ

The article reveals the fundamental issues of the implementation by the Federal Treasury of control measures in the financial and budgetary sphere. The procedural aspect of the stages of the control activities of the Treasury of Russia is determined. An analysis of control measures for 2018-2020 was carried out. The main problems of the implementation of internal state financial control (hereinafter — the internal GFC) for the specified period are identified. The necessity and ways to increase the effectiveness of the Federal Treasury as an internal GFC body are determined. The need for the development of analytical support that regulates the assessment of the effectiveness of control activities is substantiated. It has been established that the unfavorable epidemiological situation has affected the reduction in the number of control measures, including field ones, which affects both the reduction of control objects and the development of digitalization of budgetary powers. The category of evaluation of the effectiveness of control activities is disclosed as a comprehensive dynamic analytical process for monitoring control activities in order to result in information about the current state and procedures for the functioning of the internal GFC system. A methodology for assessing the effectiveness of control activities is proposed, according to which the analytical support for assessing the effectiveness of the control activities of the Treasury of Russia are indicators that can be used to assess the state of planning, conducting, formalizing and implementing the results of control activities, considering complaints against control bodies and preparation of annual reports on control activities. The ways of further development of the internal GFC are substantiated, including the problematic aspects of analytical support and strengthening its role in the management of public finances.

On the differences in the fundamentals of legal regulation of external and internal state financial control

This article analyzes the differences in the fundamentals of legal regulation of internal and external state financial control, as well as the legal status of branches exercising internal and external state control in the financial and budgetary sphere. The goal of this article consists in the comprehensive analysis of their legal regulation to answer the question on the possibility of unification of the norms of financial control in a single normative legal act, as well as on the need for systematization of the theoretical framework in this sphere within the framework of any policy document. Analysis is conducted on the specific aspects characteristic to legal regulation of external and internal state financial control, as well as on the peculiarities of the history of their development. The article examines the role of international institutions in creation of legal regulation in the indicated sphere of public relations. The scientific novelty consists in consideration of the key features of internal and external state financial control, as well as the corresponding conceptual apparatus for the purpose of systematization of their legal regulation. The conclusion is made on the possibility of systematization of financial control; however, due to the complex nature of financial law and substantial differences in different spheres of financial relations and exercising of different types of financial control, such systematization should take place not within the framework of law, but rather within the framework of policy document. The author believes that namely the creation of the concept for the development of financial control is the preferential way for unification of the  conceptual framework, as well as the main methods of regulation and organization of financial control.