THE INFLUENCE OF THE ACCOUNTING CHAMBER ON THE FORMATIONAND IMPLEMENTATION OF THE STATE BUDGET OF UKRAINE IN WARTIME CONDITIONS

Abstract

Background. In the conditions of war, the effective state budget distribution and use are essential to ensure the defense of the state, support the economy and the proper standard of society living, and the Accounting Chamber, as the supreme audit institution, has a significant potential to influence these processes. The object of the study is the activity of the Accounting Chamber, the recommendations provided as a result of the audits, and their impact on the distribution and use of the state budget.

Methods. The recommendations are systematized and classified into groups depending on their areas. The structure of the provided and implemented recommendations in terms of objects, types of measures and areas was determined by the statistical method. Indicators of the recommendation implementation by areas and the average number of recommendations by types of measures were compared.

Results. The mechanisms of the direct and indirect influence of the Accounting Chamber on the distribution and use of the state budget are shown. 540 recommendations based on the results of audits in 2022, carried out under difficult conditions of martial law, were analyzed, of which 66% were derived from performance audits. The areas of influence on the state budget are (in order of decreasing number of recommendations): regulatory and legal acts and internal documents; improving the efficiency of the audit object; quality of planning and forecasting; budget expenditures; use of state property and land; internal control and audit of auditee; financial, budgetary and other forms of reporting; income of the state budget; data, registers, information systems and their interaction; personnel management, appointment of responsible persons; accounting; state enterprises; deficit, financing and public debt. In total, 26% of the recommendations have been implemented, which indicates an unused impact potential.

Conclusions. Ways to enhance the influence of the Accounting Chamber through improving the quality of reports and recommendations, speeding up and automating work processes, implementing international standards, improving the legal framework and interaction with stakeholders are proposed.