Fundamentals of State Financial Control by Local Governments

Public financial control is an integral part of the public financial management system. The need for an effective public financial control in Ukraine is driven by the need to ensure proper formation and efficiency use of local financial resources budgets and the state as a whole to implement its functions. The effectiveness of public financial control depends on the effectiveness of socio-economic development of the country, individual regions, and economic entities in particular. Financial control at the local level self-government is one of the means of realizing the right of the state to protect the interests of the country and the regions by law, in order to ensure the implementation of state and regional policy. The activities of the entities at the local level are aimed at preventing and timely disclosure of the facts of illegal activities in the area of local finance.

The article examines the essence of local self-government, which is one of the main catalysts for the country's economic growth. The main task today is to create capable and effective communities that will become such a catalyst in Ukraine. It is important to ensure that communities are able to concentrate their finances and direct them on regional development projects. The theoretical provisions on the development of the local financial control system in Ukraine are also summarized. A method for assessing the effectiveness of financial control at the local government level is proposed. The system of state financial control of Ukraine is considered. The main tasks of the State Audit Service of Ukraine are outlined. The comparative characteristics of the Accounting Chamber of Ukraine and the State Audit Office are presented. The attention is focused on the problems that impede the functioning of the state financial control as a system, in particular it is emphasized that its components do not function. The types of audit carried out by the bodies of the State Audit Service of Ukraine are distinguished. The problems of the system of state financial control over the efficient use of local budget funds are generalized.