System Of State Financial Control Research Articles

Financial Policy and Stabilization: The Case of Russia

The article looks into the state financial policy and, in particular, its most important component at the modern stage, the budget policy. A brief review of the main problems and the Russian financial policy development prospects is presented in the article.Practical tasks of the Russian economy, anti-crisis stabilization and the transition process to the innovative models of the Russian Federation’s economic development are also analyzed in this article. It is impossible to implement the proposed priorities without a balanced and reasoned financial policy carried out at all levels of the administration without a budget regulation as a catalyzer of the required processes.The main tendencies to form income, expenditures and the Russian Federal budget balance management for the ongoing and perspective period are singled out. Consequently such a detailed factor analysis of the dynamics of the receipts from budget-forming taxes is necessary to be conducted.To increase the budget operational effectiveness it is necessary to widen the application of the treasury support of state contracts and to develop a state financial control system.

ПРІОРИТЕТНІ АСПЕКТИ РОЗВИТКУ СИСТЕМИ ДЕРЖАВНОГО ФІНАНСОВОГО КОНТРОЛЮ В УКРАЇНІ

Effective state financial control is the most important condition for the existence of a strong state and an important factor in state-building. Therefore, the creation of a clear system of public financial control, the determination of the place and role of the bodies of state financial control in its single system, the general principles and mechanisms of their organization and functioning should ensure the unification and consistency of control of public finances. Solving the complex issues of developing a system of public financial control requires the use of foreign experience, which takes into account the general approaches and principles of constructing such systems, developed and applied a systematic approach to the definition of their elements, formed standards for the implementation of control and analytical and expert measures, evaluation and presentation of their results. State financial control should envisage and ensure the fulfillment of the following tasks: • organization and implementation of control over timely execution of income and expense articles of the state and local budgets; • assessment of the reasonableness of revenue and expenditure items of the state budget and state trust funds; • assessment of the efficiency and expediency of spending public funds; ensuring compliance with the rules of transactions with currency and currency values; prevention of offenses in the financial sphere; • provision of financial security of the state; • control over the fulfillment of the international financial obligations of the state, the state debt; • control over observance of budget, tax, customs, currency legislation; • assessment of the effectiveness of the main spending units spending on the use of public funds; • analysis of detected deviations from the established indicators of the state budget and preparation of proposals aimed at their elimination; • financial expertise of draft laws that envisage spending of budget funds or influence the formation and use of these funds, etc. To develop a coherent system of financial control, it is necessary to determine the vectors of the development of the system of state financial control with clear principles of interaction between the bodies of external and internal control and identify the objects that would most fully cover financial and economic processes and should be under constant control and supervision of the state.

INTERNAL STATE (MUNICIPAL) FINANCIAL CONTROL IN THE CONTEXT OF THE FORMATION OF THE INSTITUTIONAL STRUCTURE

Аt present, the issues of the formation of the institutional structure of financial security are among the strategic priorities of state policy, which indicates the consensus achieved in the society on the significant role of Russia in the global financial system. One of the priority activities of the Russian state is to optimize the structure of public authorities in order to improve the efficiency and effectiveness of their activities. Particular attention in this process is given to the reform of the system of state financial control. In the modern economy there is a large range of problems and inaccuracies in the legislative regulation of financial control by public authorities. This situation leads to a significant reduction in the quality of the effectiveness of financial control by public authorities. In this regard, there is a need to study and clarify the role, function and place of bodies exercising state (municipal) control in the institutional structure, determine the importance of the participation of such bodies in the process of rational use of budgetary funds, in the formation and justification of methods and methodology for monitoring the effectiveness of planning and spending of budgetary funds, as well as measures to prevent violations of legislation in the budgetary sphere.

МОДЕРНІЗАЦІЯ СИСТЕМИ ПРАВОВОГО ЗАБЕЗПЕЧЕННЯ ДЕРЖАВНОГО ФІНАНСОВОГО КОНТРОЛЮ УКРАЇНИ В КОНТЕКСТІ ЄВРОПЕЙСЬКОГО ДОСВІДУ

The article considers the main problems of the development of state financial control in Ukraine, proposes strategic directions for modernizing the system of legal support for state financial control in accordance with European practice, as well as measures aimed at modernizing the system of state financial control in Ukraine taking into account the experience of the EU countries.

Financial Control as a Means of Cognition of the Financal Activities: Theoretical and Legal Aspects

The article deals with the actual issues of the financial control from the point of view not only as a type of activity, management function or institution of the financial law, but also as a means of knowledge of the financial activity. The result of such cognition is an establishment of the actual state of affairs in the sphere of the financial activity by comparing them (comparisons) and assessing their compliance with the normative model of financial activity, in terms of legality and efficiency, detecting deviations from this model (violations of the financial legislation) and other negative trends, and as well as developing and taking measures to bring actual financial activity to its normative model. The global experience of financial control organization confirms the need to reorganize the existing system of state financial control in Ukraine and determines the need to create an organizational structure for establishing a system of external and internal financial control at the appropriate methodological and regulatory basis. One of the prerequisites for improvement of financial legislation is the cognition not only the results of the financial activity, but also the conditions, factors and circumstances the presence of which contributes to a violation of financial legislation, the causes of these violations, etc. The results of control measures, despite the selectivity of controlled entities and the limited range of these entities, are part of that initial empirical material, which requires cognition, which can result in a generalized conclusion on the state of financial activity as a whole. The article proposes the author's vision of the directions of further improvement of financial legislation of Ukraine and the influence on the development of this branch of legislation of the results of financial control.

Investigation of efficiency audit in the system of state financial control in Ukraine

The object of research is efficiency audit in the system of state financial control. The need to introduce performance audit in the system of state financial control is conditioned by the control and evaluation of public expenditures. One of the most problematic areas is the lack of systematic research to improve the organizational, methodological, regulatory and information support of the audit of the effectiveness of the use of budget funds and property. In the course of research the following methods were used: analysis and synthesis, observations, comparative and analytical methods, methods of logical generalization, systematization, inductive and graphical presentation of results. The work analyzes the approaches of scientists to determine the essence of performance audit and found that performance audit is a separate type of audit activity. The place of performance audit in the system of state financial control is determined, the directions of application and the performance audit function are considered. The comparative characteristic of efficiency audit and financial audit is carried out. The study of the essence of performance audit allowed to determine the main purpose, to highlight the economic and social need for its implementation. It is established that performance audit is a type of state audit. The main directions of performance audit are determined depending on the needs of users. Groups of unresolved issues are identified that do not allow the introduction of performance audit in the system of state financial control of Ukraine. Based on the presented comparative characteristics of performance audit and financial audit, negative trends in the introduction of the activities of regulatory bodies into practice have been singled out. The dependence of losses of budgetary funds due to lack of norms of identification of inefficient and inexpedient use is established. The definition of these norms will reduce the violations and deficiencies in the use of budgetary funds and increase the level of efficiency of budget programs. Due to the highlighted problem issue, the direction of improving the system for organizing the implementation of performance audit, methodological and information support has been obtained. On the basis of experimental research, the effectiveness of the implementation of the audit of the use of resources from an information source has been established.

АНАЛІЗ ДОСВІДУ У СФЕРІ ДЕРЖАВНОГО ФІНАНСОВОГО КОНТРОЛЮ: ЄВРОПЕЙСЬКИЙ СОЮЗ ТА УКРАЇНА

У статті проаналізовано досвід функціонування системи державного фінансового контролю Європейського Союзу, проведено аналіз становлення фінансового контролю та здійснено оцінку сучасного стану системи державного фінансового контролю України, надано пропозиції щодо реформування цієї системи в контексті євроінтеграційних процесів.

ANALYSIS OF THE PUBLIC REGULATION ISSUES IN IMPLEMENTING MECHANISMS TO FIGHT MONEY LAUNDERING: INTERNATIONAL AND DOMESTIC EXPERIENCES

The article analyses the main stages of the state regulation formation processes that counteract the laundering of funds obtained by criminal means. In 1970, the United States of America (US) started the active fight against the laundering of “dirty” funds. It is proved that the US has the richest experience in counteracting the legalisation (laundering) of the proceeds of crime. In fact, state mechanisms to combat the legalisation of criminal incomes have been established long before the first Anti-Money Laundering (AML) legislations were adopted. The conducted analysis allowed this article to distinguish four key stages of money laundering: The emergence of activities related to laundering of criminal proceeds; Broad money laundering activities of organised crime; the emergence of the concept of “money laundering”; legislative regulation of this problem. The analysis of the legislation of foreign countries made it possible to identify problematic issues of a national character, that the effectiveness of counteraction to this dangerous phenomenon depends on their solution. In turn, it outlines a number of measures that should contribute to this: exchange of foreign currency should be carried out in accordance with clear rules; an electronic money transfer archive must be created; creation of mechanisms for monitoring compliance with international accounting standards; constant exchange of information between special units; continuous updating of information and carrying out of special researches on “money laundering”; adoption of international and national legal acts; creation and implementation of international anti-money laundering programs; introduction of obligations to transfer information to special bodies; strict adherence by individual countries of international standards in the area of combating money laundering; creation and expansion of training programs for the relevant banking professionals, law enforcement agencies, etc.; disclosure of information on the “black” list of countries that indulge in “laundering” of money in their territory. It was emphasized that the issue of control in executive bodies existed and exists in all countries, but has different ways of resolving it. This requires the formation of a new understanding of the system of state financial control, as well as a rethinking of the forms of its implementation, in modern conditions.

THEORETICAL PRINCIPLES OF THE FUNCTIONING OF THE STATE FINANCIAL CONTROL SYSTEM

Introduction. The article focuses on the achievements of domestic scholars who have been considering the theoretical foundations of the functioning of the system of state financial control in Ukraine. Purpose. The article aims to analyse and systematize the theoretical foundations of the functioning of the state financial control system. Method (methodology). To achieve the goal of the article, the following tasks have been identified: to investigate the categorical apparatus of the concept of "financial control" (to consider the essence of this category); to analyse the term "state financial control" on the basis of the views of domestic scientists; to investigate the functions of state financial control as an economic category. The object of the research is the functioning of the system of state financial control. The theoretical and practical approaches to the application of the system of state financial control in Ukraine are the subject of the study. Results. The strengthening of the financial position of the state, economic growth by monitoring the achievement of target benchmarks and verification of compliance with the limiting parameters of financial and economic development have been promoted in the research. It has been determined the essence of the state financial institution. Among the main points we can distinguish the establishment of the actual state of affairs and its comply with the requirements of the current legislation as the object of control over the lawfulness; financial discipline and rationality during the formation, distribution, ownership, use and alienation of the subject of control. It means that the assets belong to the state, as well as the use of funds remaining in the subject of financial relations in connection with the privileges granted for payments to the budgets, state off-budget funds and loans, which are received under state guarantees.

ACCOUNTING AND ANALYTICAL PROCUREMENT OF STATE FINANCIAL CONTROL AND DIRECTIONS OF ITS IMPLEMENTATION IN UKRAINE

The growth of the constructive role of public financial control in management is a logical consequence of the modernization of the established system of state financial control and necessitates an update of the ideology and paradigmatic principles of state financial control. A retrospective review of the theoretical and practical aspects of the methodology and organization in the state financial control of Ukraine suggests that in the scientific environment these issues are studied extensively. However, despite the scientific and practical value of these works, the question of the possible modernization of the modern system of state financial control in the conditions of Ukraine’s integration into the world economic system remains unresolved for the time being and is still the subject of lively discussions. The subject of the study is theoretical and methodological principles and methods for the implementation of state financial control, as well as the results of the activities of the State Audit Office of Ukraine for 2017. The purpose of the study is to substantiate the theoretical positions of the system of state financial control in Ukraine, to analyse the activity of the State Audit Service of Ukraine for 2017, and to suggest ways to improve it. To achieve the research goal, the following questions are addressed and solved: the analysis of the activity of the State Audit Service of Ukraine was carried out, based on the results of which the financial impropriety and state of its elimination for 2017 were described; the analysis revealed an increased attention to the organization of an effective system of financial control of budgetary institutions, the continuous improvement of mechanisms of management and control over budgetary funds. Method. To achieve the defined goal, a complex of general scientific and special methods was used: the method of system analysis and complex structures formalization; generalization and scientific abstraction; statistical method of data processing, grouping method. Results. However, despite the scientific and practical value of these works, the question of the possible modernization of the modern system of state financial control in the conditions of civilization and formation transformation of society through the establishment of paradigmatic principles of public audit, which are already typical of most highly developed countries of the world, remain in Ukraine today finally unresolved and still the subject of lively discussions. Conclusions. An important requirement for the construction of a modern system of state financial control at all levels of management is the implementation of control on the basis of ensuring a clear interaction and coordination of efforts of all participants in financial and budgetary relations to solve tasks of state financial control. The modern system of public financial control should be designed in such a way that it can be quickly and effectively adjusted to the solution of new challenges. Thus, only the complex realization of the measures specified in the study will provide the best effect from their introduction. In view of this, the need to improve the system of public financial control is particularly urgent and relevant. This contribution was supported by research work of the Department of Accounting and Taxing of the Zaporizhzhia National Technical University No. 0115U004682 “Transformation of accounting, analysis, and audit methods in the context of integration processes in Ukraine”.

INSTITUTIONAL FRAMEWORK OF STATE FINANCIAL CONTROL

Introduction. Institualization of state financial control system in the terms of market transformation requires punctual and effective reforms that can increase the efficiency of its functioning and improve public administration. Efficiency of public financial control depends on the level of development of formal and social restraints. To determine the impact of these regulations within the institutional foundations of the state financial control the consideration and control mechanism that ensures the functioning of the institution should be considered. Methods. The dialectical method, instruments of system analysis of financial and economic processes, methods of comparative analysis, abstraction, algebra and geometric methods, evaluation and generalization were used in the study. Results. Institutional line of modern economic science has the ability to overcome the problems of economic theory that are determined by the misbalance in the economy. The institutional system of the state financial control is based on the certain standards that are considered to be after-effects of previous traditions in society or adopted from other countries. The principles of state financial control are examined through the prism of law-makers, holders of rights and obligations and the mechanism of control. Is has been found that there is interdependence between formal and social restraints and a mechanism of control. The author of the article suggests that the institutional foundations of the system of state financial control in Ukraine have been created. The formulated rules of domestic law, social transformation and resource provision of control mechanism prove this statement. Discussion. In order to effectively reform the system of state financial control in Ukraine it necessary to simultaneously modernize the institutional foundations and to ensure the following the financial discipline. In this case, an important condition for the further development of state financial control in the context of its institualization and the establishment of public and private relationships is an inverse business reaction (a signal of necessary changes in formal with the help of informal norms and ensure the strengthening of the national economy).

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.

Система государственного финансового контроля: основные меры по совершенствованию

Система государственного финансового контроля: основные меры по совершенствованию

AN EVALUATION OF THE DOMESTIC FINANCIAL SUPERVISORY AUTHORITIES IN LAND RELATIONS IN UKRAINE

The purpose of the article is to study the efficiency and quality of the state financial control of land relations in Ukraine and to identify problems. Methodological basis of the research is general scientific and special methods of knowledge of phenomena and processes in the system of state financial control. The method of expert estimations was used during the identification problems of functioning of the state financial control system in the field of land relations. System and structural-functional approaches are used to analyse the possibilities of organization and functioning of the state financial control system in Ukraine. Results The article analyses the level of economic crime in enterprises, institutions, organizations working in the land relations field. The main tasks of the state financial control over the land use and protection and the characteristic schemes of committing crimes in the field of land relations are determined. Government Financial Control (GFC) problems in the field of land relations are consolidated and underscored on the basis of research on the crime indicators and the losses incurred by the state. The practical value of the research is the possibility of using its results in improving the activities of the state financial control bodies in Ukraine at the state and local levels, as well as in teaching relevant professional disciplines.

GENESIS OF INSTITUTIONAL SUPPLY OF CUSTOMS CONTROL IN UKRAINE

Introduction. The article focuses on the process of formation of the organizational structure of the customs authorities of Ukraine. Purpose. The article aims to analyse and systematize the main stages of the formation of the system of customs institutions in Ukraine that implement customs control. Method (methodology). To achieve this goal, the following tasks are defined: to characterize the legal and regulatory aspects of the formation of the customs authorities in Ukraine; to analyse the organizational provision of customs control during 1991-2016; to determine the fiscal effects of the formation of the customs authorities of Ukraine. The functioning of the system of state financial control in the customs sphere has become the object of the research. The organizational and applied aspects of the formation of institutions that carry out customs control in Ukraine have become the subject of the study. Results. The administrative and organizational structure of the customs authorities of Ukraine does not remain stable. It is in constant dynamics under the influence of political, economic and social changes, increase of subjects of foreign economic activity and their activity in foreign markets, growth of indicators of cargo and livestock flows through the customs border the state and in general the development of the Ukrainian economy and its integration into the world economy. The results of the survey will be useful to the state authorities in developing management decisions on optimizing the bodies that carry out customs control in Ukraine.

Necessity and directions of improvement of the system of state financial control in Ukraine as the requirement of present

It is investigated the necessity to improve the state financial control as an important factor of realization of financially and budgetary politics of Ukraine and its economic development and identified key shortcomings of its operation. Ways of improving of state financial control in Ukraine are offered on the basis of it and, taking into account the modern state of financially and budgetary relations at state and local levels (decentralization of power and reform of local government)

DIRECTIONS FOR IMPROVEMENT OF STATE FINANCIAL CONTROL IN UKRAINE

The purpose of the paper is to offer the ways of development of the system of state financial control in Ukraine. The object of this research is the process of state financial control. Methodology. The research methods are systematic approach, groupings and tabular method, structural-functional method. In order to determine the types and elements of financial control it was used systematic approach. To characterize the distribution of financial control for the Lima Declaration; types end elements of state financial control; types of Supreme bodies of state financial control – groupings and tabular method. For disclosure the mechanism of the public financial control system the structural-functional method is used. Results of the survey shows, first of all, that recent steps of the government will improve the mechanism of control for the use of public fund. On the other hand, international experience includes the important features of the state financial control, which could be implemented in Ukraine. Furthermore, in Ukraine certain steps in standardization are taken to implement the international standards of control: first of all, Strategy modernization of the accounting system in the public sector in 2007-2015 was approved. Moreover, in 2013 in Ukraine the working meeting with the expert on the Twinning Fiche Projects took place, where the further direction of collaboration aimed at completion of development of the project documentation was presented. Nevertheless a lot of questions of the state financial control system standardization remain open. Unsystematized standards have negatively affects on their usage, results in an ambiguous interpretation of separate situations which arise during control activity. Practical implications. The first thing that needs to be said is that types of state financial control according to the allocation of authorities between the different bodies were considered. Another important thing is that directions for improvement of state financial control in Ukraine were suggested. In addition to previous practical implications, the important role of standardization in improving of state financial control in Ukraine was highlighted, because it has a lot of positive effects on a state financial control: it helps to achieve common aims of transparency and reporting; to plan and conduct audits, and their usage provides for the professionalism and high quality of control results. Value/originality. Longitudinal analyze of foreign experience helped to provide directions for improvement of state financial control in Ukraine. The main areas which should be focused on are: providing by Accounting Chamber of Ukraine to represent the State in legal proceedings; introducing a mechanism to hold officials’ responsible for violations of financial discipline. Besides it, standardization is the way in improving of state financial control, because nowadays a correct interpretation of indicators such as state debt and state deficit are important in terms of assistance from international organizations.

Actual problems of reforming the system of public financial control in Ukraine

The article considers the current system of state financial control in Ukraine, summarizes the key drawbacks of such a system is considered modern directions of reforming the current system and built the future system of state financial control with regard to the field of public internal financial control in such a system.

Innovation informatization for state financial control bodies

The lack of a unified system of innovative information support of the activity of state bodies and at the same time the need for quick, qualified, and motivated decisions determine the role of informatization for bodies of state financial control (SFC). The article considers the basic features of information supply to SFC bodies and the requirements imposed on information in the financial sphere; the basic objectives and problems of information supply; risks and problems in the process of informatization in the SFC system; and the ways to deal with the existing problems within the Unified Information Space to be formed in accordance with the Electronic State and the Efficiency of State Governance program (by 2015).

The Formation of the United System of State Financial Control

Alternative variants of the united state financial control conception are analysed in the article. The authors consider the whole system of such control, interaction of its basic elements, its functions and mechanisms. Directions of accounting and realization of fiscal federalism of the Chamber of Accounts activity are argued. Mechanisms of its cooperation with law enforcement organs are indicated.