Directions of development of external state financial control system in the conditions of decentralization reform

Abstract

The article is devoted to the definition of the main tendencies of the development of the external state financial control system in the conditions of the spread of decentralization processes in Ukraine. In the conditions of decentralization reform, the dependence of local self-government bodies from central government decreases, new powers are not always accompanied by clear legislative regulations for their implementation, local self-government bodies lack the qualified personnel capable of confronting new challenges. The above risks present new requirements to the system of state financial control, which must meet the requirements of time and minimize the threats. The concept of "audit", "inspection", "audit", and their role in the modern system of state financial control by local budgets is researched. The results of the activity of the State Audit Office of Ukraine in the sphere of state financial control over the use of funds of local budgets have been analyzed. The most widespread violations of the fiscal and budgetary discipline, which were detected by the State Service during inspections of local self-government bodies, were systematized. The mechanism of financial audit of local budgets is investigated and the most common examples of hypotheses of audits are analyzed. The necessity of reforming the system of state financial control in the direction of wider application of financial audits of local budgets, which are means of preventive influence on budget violations and abuses, is proved. The audit of local budgets is an important form of public financial control that ensures the timely and accurate determination of the efficiency and rationality of using local budget resources aimed at implementing local programs and projects, identifying the reasons that prevent it, etc.