Public internal financial control reforming in Ukraine: Conceptual foundations and practices

Abstract

Introduction. In the conditions of crises, the availability of effective public financial control is a primary need for the state. The purpose of the research is theoretical justification of conceptual principles of public internal financial control and development of guidelines for the implantation of public internal financial control in the modern system of public financial control in Ukraine. Results. The authors of the article have examined basic elements of the present public financial control and presented a critical analysis of the relevant issues. The article determines the place of internal control in the public financial control system and proves the necessity of public internal financial control via using official statistics data of public internal financial control. According to the official data for the last 9 years, a rapid decline in the total number of audits in Ukraine from 17,563 in 2007 to 2,668 in 2016 is observed. In this regard, the year 2014 stands out. A sharp increase in the number of audits up to 24,000 marked that year, which was primarily due to a large number of audit controls of public procurement, which were probably initiated because of the aggravation of the political situation, connected with the changes in the government. This explains why the figures of 2014 should be considered as not a tipical one. The conducted research covers the main approaches to public internal financial control. The basic problems of reforming the current public financial control system are formulated. Conclusions. The authors of the article have developed proposals related to the development of the internal financial control system in the public financial control in Ukraine, namely the guidelines concerning the implantation of public internal financial control in the modern public financial control system in Ukraine, as well as successive stages of reforming public internal financial control at three independent levels.