THE EFFICIENCY OF THE STATE INTERNAL FINANCIAL CONTROL

Abstract

The structural reform of the state financial control bodies brings forward the issues of assessing the control efficiency. Today, the mechanisms used to evaluate the efficiency of the financial control powers, as well as the notion of efficiency itself, are rather vague and subjective. The authors have classified and summarized the existing approaches to the assessment of the control efficiency and research findings in this sphere, identified the flaws and analyzed the reasons for poor applicability of the existing approaches in terms of current trends and problems of control activities. The generalization of existing quantitative and qualitative approaches to assessing the efficiency made it possible to classify the basic criteria that should be included in a potential model for evaluating the efficiency as well as develop additional factors that can have a significant impact on the control efficiency. The analysis of the actual performance of the state internal financial control authority and the inspections performed demonstrated the inapplicability of existing methods for assessing the efficiency of control activities. Proposals on the development of a radically new assessment model were made.

Keywords

• state internal financial control
• budget spending efficiency
• effectiveness of control activities
• state program effectiveness
• inefficient spending
• budget offense