Evaluation of the effectiveness of decentralized internal financial control of expenditures of budgetary organizations

Abstract

The article considers the main aspects of assessing the effectiveness of decentralized internal financial control of expenditures of budgetary organizations. The study was conducted on the basis of data from Ukraine. Internal control is a set of measures applied by the head to ensure compliance with the legality and efficiency of budget funds, achieving results in accordance with the established purpose, objectives, plans and requirements for the activities of the budgetary institution and its subordinate institutions. The basic principle of public internal financial control is a clear distinction between internal control and internal audit. Internal audit should determine how internal control is performed, including methods of ex-ante control. The theoretical platform of performance audit is formed by these three categories: economy, efficiency and effectiveness. Expenditures of budgetary institutions as an object of internal financial control are considered. The analysis of control of expenses of local budgets is carried out. To analyze the effectiveness of financial control of budgetary institutions in the context of decentralization, the result of the analysis of the financial aspect of the functioning of the united territorial communities - in 2019. It is proved that Ukraine needs further reform of the state financial control of expenditures of budgetary institutions - in the direction of decentralized control.