INSTITUTIONAL DESIGN OF THE FINANCIAL CONTROL MODEL: COMPARATIVE ANALYSIS OF IDEAL AND REALITY
Abstract
The article is devoted to the attitude to INTOSAI as the leader of the control function of finance in the world, and to the INTOSAI recommendations, grouped into the IFPP, as an example of a control model: with a properly constructed structure and filled with meaningful disclosure on the implementation of control measures. This view of the INTOSAI experience enables us to propose our own institutional design for the INTOSAI classifications. The result of the institutional design is essentially a reflection of the reference (ideal) model of the external financial control model, i.e. the EGA Model, in terms of its structure. EGA Model has the INTOSAI institutional structure (Institutional Framework) and the INTOSAI auditing framework (Auditing Framework): to the institutional structure we have included not only fundamental and basic principles, but also several standards that, in our opinion, are also related not only to the control methodology , as far as the formation of the control model; to the audit structure, we include not only standards that methodologically ensure the principles of auditing, but also standards that are a methodology for the implementation of various types of audits, with guidance on their application.
Having obtained the classification of the INTOSAI experience in the background, we can conduct a study of the existing practice of state financial control in Ukraine and its compliance with the specified standard with the help of methods of institutional analysis, by comparing the formal norms of INTOSAI with the formal norms forming the national practice of state financial control. The data of the comparative analysis are grouped into the appropriate tables: at the level of the structure of the established control practice; at the level of methodology of functioning control subjects.
The result of the conducted comparative analysis, which consisted in testing the practice of state financial control in Ukraine for compliance with the standard (ideal) model, was the establishment of non-compliance of the researched practice with the developed standard - a quasi-model of the institute of financial control was built in Ukraine.
Downloads
References
Verkhovna Rada of Ukraine. (2010, July). Budget Code of Ukraine. Retrieved from http://zakon1.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=2456-17&p=128284739430993. (in Ukrainian)
Accounting Chamber. (2022). Report of the Accounting Chamber for 2021. Retrieved from https://rp.gov.ua/Activity/Reports/?id=1359. (in Ukrainian)
Verkhovna Rada of Ukraine. (1996, June). Constitution of Ukraine. Retrieved from https://zakon.rada.gov.ua/laws/show/254%D0%BA/96-%D0%B2%D1%80#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2016, February). Regulations on the State Audit Service of Ukraine. Retrieved from https://zakon.rada.gov.ua/laws/show/43-2016-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2019, March). The procedure for conducting a state financial audit of business entities by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/252-2019-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2018, December). The procedure for conducting a state financial audit of the Pension Fund of Ukraine and mandatory state social insurance funds by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/1147-2018-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2019, May). The procedure for conducting a state financial audit of the use of information technologies by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/517-2019-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2018, August). The procedure for conducting state financial audits of state (regional) target programs by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/692-2018-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2007, May). The procedure for conducting state financial audits of local budgets by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/698-2007-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2018, September). The procedure for conducting the state financial audit of investment projects by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/740-2018-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2004, August). The procedure for conducting a state financial audit of the implementation of budget programs by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/1017-2004-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2006, April). Procedure for inspection by the State Audit Service and its interregional territorial offices. Retrieved from https://zakon.rada.gov.ua/laws/show/550-2006-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2013, August). The procedure for conducting procurement audits by the State Audit Service and its interregional territorial bodies. Retrieved from https://zakon.rada.gov.ua/laws/show/631-2013-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2002, September). On the procedure for the participation of central executive bodies in the activities of international organizations of which Ukraine is a member. Retrieved from https://zakon.rada.gov.ua/laws/show/1371-2002-%D0%BF#Text. (in Ukrainian)
Cabinet of Ministers of Ukraine. (2019, November). On making changes to some resolutions of the Cabinet of Ministers of Ukraine. Retrieved from https://zakon.rada.gov.ua/laws/show/922-2019-%D0%BF#Text. (in Ukrainian)
Ministry of Finance. (2020, September). The procedure for filling out the conclusion form on the results of monitoring the procurement procedure. Retrieved from https://zakon.rada.gov.ua/laws/show/z0958-20#Text. (in Ukrainian)
Ministry of Finance. (2020, October). Methods of determining automatic risk indicators. Retrieved from https://zakon.rada.gov.ua/laws/show/z1284-20#Text. (in Ukrainian)
Verkhovna Rada of Ukraine. (1993, January). Pro osnovni zasady zdiisnennia derzhavnoho finansovoho kontroliu v Ukraini. Retrieved from http://zakon1.rada.gov.ua/laws/show/2939-12. (in Ukrainian)
Verkhovna Rada of Ukraine. (2015, December). About public procurement. Retrieved from https://zakon.rada.gov.ua/laws/show/922-19#Text. (in Ukrainian)
Accounting Chamber. (2015, November). Rules of professional ethics of officials of the Accounting Chamber. Retrieved from https://rp.gov.ua/upload-files/About/RegulatoryDoc/arp_4.pdf. (in Ukrainian)
Accounting Chamber. (2015, November). Recommendations on the management and quality control of control activities carried out by the Accounting Chamber. Retrieved from https://rp.gov.ua/upload-files/About/RegulatoryDoc/arp_5.pdf. (in Ukrainian)
Accounting Chamber. (2015, September). Methodological recommendations for conducting a financial audit by the Accounting Chamber. Retrieved from https://rp.gov.ua/upload-files/About/RegulatoryDoc/arp_6.pdf. (in Ukrainian)
Verkhovna Rada of Ukraine. (2015, July). About the Accounting Chamber. Retrieved from http://zakon4.rada.gov.ua/laws/show/576-19. (in Ukrainian)
Accounting Chamber. (2022). Cooperation of the Accounting Chamber with INTOSAI. Retrieved from https://rp.gov.ua/INTOS/INTOSAI/?id=129. (in Ukrainian)
Khmelkov, A. (2012). Formation of a holistic system of state financial control in Ukraine. KhNU named after V.N. Karazin. (in Ukrainian)
Khmelkov, A. (2019). Reference model of the control institution agent: a product of the INTOSAI experience. Social economics, 58, 44-51. (in Ukrainian)
Khmelkov, A. (2017). Subject-object sphere of the institute of control. Financial and credit activity: problems of theory and practice, 1(22), 351-361. doi: https://doi.org/10.18371/fcaptp.v1i22.110072. (in Ukrainian)
Khmelkov, A. (2018). Public finance: scope and content. Financial and credit activity: problems of theory and practice, 4(27), 428-434. doi: https://doi.org/10.18371/fcaptp.v4i27.154174. (in Ukrainian)
Khmelkov, A. (2021). Financial institutions and financial control. Economic theory, 2, 47-64. doi: https://doi.org/10.15407/etet2021.02.047. (in Ukrainian)
Khmelkov, A. (2019). Volume of public finances as a subject of control. Financial and credit activity: problems of theory and practice, 4(31), 311-318. doi: https://doi.org/10.18371/fcaptp.v4i31.190921.
International Organization of Supreme Audit Institutions. (n.d.). A Supreme Audit Institution (SAI). Retrieved from https://www.intosai.org/about-us/overview.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI’s motto. Retrieved from https://www.intosai.org/documents/open-access.
International Organization of Supreme Audit Institutions. (n.d.). Full Members. Retrieved from https://www.intosai.org/about-us/members/full-members.
International Organization of Supreme Audit Institutions. (n.d.). The INTOSAI Framework of Professional Pronouncements. Retrieved from https://www.issai.org/professional-pronouncements/.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI-P1. Retrieved from https://www.intosai.org/ /fileadmin/downloads/documents/open_access/INTOSAI_P_1_INTOSAI_P_10/INTOSAI-P-1_en.pdf.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI-P10. Retrieved from https://www.issai.org/pronouncements/intosai-p-10-mexico-declaration-on-sai-independence/.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI-P12. Retrieved from https://www.intosai.org/fileadmin/downloads/documents/open_access/INTOSAI_P_11__INTOSAI_P_99/INTOSAI_P_12/INTOSAI-P-12_en.pdf.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI-P – 20. Retrieved from https://www.issai.org/pronouncements/intosai-p-20-principles-of-transparency-and-accountability/.
International Organization of Supreme Audit Institutions. (n.d.). INTOSAI-P – 50. Retrieved from https://www.issai.org/pronouncements/intosai-p-50-principles-of-jurisdictional-activities-of-sais/.
International Organization of Supreme Audit Institutions. (n.d.).ISSAI-130. Retrieved from https://www.issai.org/pronouncements/issai-130-code-of-ethics/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-140. Retrieved from https://www.issai.org/pronouncements/issai-140-quality-control-for-sais/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-150. Retrieved from https://www.issai.org/pronouncements/auditor-competence/.
International Organization of Supreme Audit Institutions. (n.d.). The Magna Carta of external government audit. Retrieved from https://www.intosai.org/documents/open-access.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-100. Retrieved from https://www.issai.org/pronouncements/issai-100-fundamental-principles-of-public-sector-auditing/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-200. Retrieved from https://www.issai.org/pronouncements/financial-audit-principles/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-2000. Retrieved from https://www.issai.org/pronouncements/application-of-the-financial-audit-standards/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-2200-2899. Retrieved from https://www.issai.org/pronouncements/financial-audit-standards/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-300. Retrieved from https://www.issai.org/pronouncements/issai-300-performance-audit-principles/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-3000. Retrieved from https://www.issai.org/pronouncements/issai-3000-performance-audit-standard/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-400. Retrieved from https://www.issai.org/pronouncements/issai-400-compliance-audit-principles/.
International Organization of Supreme Audit Institutions. (n.d.). ISSAI-4000. Retrieved from https://www.issai.org/pronouncements/issai-4000-compliance-audit-standard/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 1900. Retrieved from https://www.issai.org/pronouncements/guid-1900-peer-review-guidelines/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 1950. Retrieved from https://www.issai.org/pronouncements/guidance-on-the-development-of-competency-frameworks-for-auditors/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 1951. Retrieved from https://www.issai.org/pronouncements/guidance-on-the-development-of-pathways-for-professional-development-of-auditors/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 2900. Retrieved from https://www.issai.org/pronouncements/guidance-to-the-financial-auditing-standards/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 3910. Retrieved from https://www.issai.org/pronouncements/guid-3910-central-concepts-for-performance-auditing/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 3920. Retrieved from https://www.issai.org/pronouncements/guid-3920-the-performance-auditing-process/.
International Organization of Supreme Audit Institutions. (n.d.). GUID 4900. Retrieved from https://www.issai.org/pronouncements/guidance-on-authorities-and-criteria-to-be-considered-while-examining-the-regularity-and-propriety-aspects-in-compliance-audit/.
Weimer, D. L. (1995). Institutional Design. Kluwer Academic Publishers.
Goodin, R. E. (Ed.). (1996). The Theory of Institutional Design. Cambridge: University of Cambridge Press.
Colomer, J. M. (2008). Institutional Design // Prepared for: Handbook of Comparative Politics Todd Landmann and Neil Robinson eds. Sage. Pp. 246-262.
Klijn, E. H., & Koppenjan, J. F. M. (2006). Institutional design changing institutional features of networks. Public Management Review, 8(1), 141-160.
Mayka, L. (2019). The Origins of Strong Institutional Design. Comparative Politics, 51(2), 275-294.
