№ 1/2018

Fìnansi Ukr. 2018 (1): 100–111

ACCOUNTING AND AUDIT

STEFANIUK Ihor

Evaluation of the state financial control bodies’ activities

The article is devoted to the problem of assessing the efficiency of the state financial control institutions (SFCI). At present, many domestic researchers and practitioners determine the efficiency of SFCI by the recoupment of their operation. When using this approach, the public is forced to think that increasing the efficiency of control requires constant detection of more violations, while reducing the costs of control, which, in the author’s view, cannot last long. Instead, the author argues in favor of the feasibility of conducting such an assessment by using a system of balanced indicators, which reveals the implementation of preventive, mobilizational and informational functions of control. Using the example of the departments of the Accounting Chamber of Ukraine, the author outlines the balanced indicators and approaches to determining the social, organizational and economic effects of the activities of the control institutions presented. The need to consider in the evaluation the coefficient "level of public confidence to the activities (procedures, methods and results) of the SFCI" is substantiated. A model for determining the coefficient of confidence based on the principles of legality, independence, objectivity, transparency and provision of appropriate powers to the public councils of the control institutions is proposed. Besides, the author suggests a new model for assessing the activity of the SFCI, which takes into account two approaches – “performance-based” and “procedure-based” – and includes the following elements: 1) determination of the general amount of effects (social, organizational, and economic) received from the implementation of submissions, recommendations or prescriptions of the SFCI; 2) determination of the average coefficient of public confidence (public council) to the results of control over the principles of SFCI activities; 3) comparison of the sum of the effects, adjusted
to the average coefficient of public confidence, with the total costs of maintaining the SFCI. If the adjusted sum of all effects is twice more than the total costs of maintaining
the SFCI, there are grounds for an unconditionally positive conclusion on the efficiency of activities of the SFCI. If the adjusted sum of the effects is less than the total costs of maintaining the SFCI, then there are grounds for the negative assessment. In contrast to the evaluation based only on the cost- recovery criterion, this model will stimulate the SFCI to work more proactively and professionally in more control areas and maximize its preventive and mobilizing functions.

Keywords:control effects and effectiveness, maintenance costs, public confidence, integrated performance indicator

JEL: Н83, М42, М48

STEFANIUK I. . Evaluation of the state financial control bodies’ activities / I. . STEFANIUK // Фінанси України. - 2018. - № 1. - C. 100-111.

Article original in Ukrainian (pp. 100 - 111)

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