LEGAL ASPECTS OF FINANCIAL CONTROL OVER THE USE OF PUBLIC FUNDS AND INTERNATIONAL ASSISTANCE: EXPERIENCE OF UKRAINE

Abstract

The article reveals certain aspects of the concept of ‘financial control over the use of public funds’ and the ways of its improvement. The authors draw attention to the fact that the financial control over the use of public funds, including the use of grants and loans received from international partners of Ukraine, involves a system of bodies with relevant competence, among which a special place is occupied by the Accounting Chamber and the State Audit Service. The article defines the powers of the Accounting Chamber in the field of control over the use of public funds, namely, the measures of the State external financial control (audit). It is noted that the Accounting Chamber also conducts an audit of the use of international assistance. For example, the Accounting Chamber provides an example of the audit of the use of a grant (direct budgetary support from the US Government and other donors under the grant No. TF0B8350, which is aimed at meeting the basic needs of the population). Attention is drawn to the imperfection of the procedure for controlling the use of international assistance funds, the inconsistency of control actions of individual state financial control bodies, which may reduce the confidence of foreign investors and affect the amount of funding. In addition, the functions and purpose of another temporary parliamentary control body are outlined: The Temporary Special Commission on Monitoring the Receipt and Use of International Material and Technical Assistance. The author also analyses the control functions of the State Audit Service of Ukraine, which, among other things, acts as the National Contact Centre for the organisation of interaction with the European Anti-Fraud Office. It is emphasised that currently a challenging trend in the development of financial control is control over the use of financial assistance received from the European Union in Ukraine to increase foreign partners' confidence in Ukraine. The authors propose possible ways to improve the organisation and functioning of the institution of state financial control.