The article examines certain aspects of the use of local budget funds in the context of the administrative reform of decentralization in Ukraine. The features of the organization and functioning of the financial control system at the local level are analyzed, existing problems and shortcomings in this area are considered. The issues of the effectiveness of financial control mechanisms for the use of local budget funds in the context of the administrative reform of decentralization are considered. Attention is focused on the fact that the administrative reform of decentralization has created new challenges for the financial control system, since the change in the administrative-territorial structure and the formation of new local self-government bodies required proper control over compliance with budget legislation in the process of distribution and use of public finances. Based on the study of statistical data for 2023-2024 on violations of budget legislation, the main trends and factors affecting the effectiveness of financial control were identified. Particular attention is paid to the transformation of control mechanisms in the context of the decentralization reform and changes in inter-budgetary relations. A comparative analysis of domestic and foreign experience in organizing financial control at the local level was carried out. Special emphasis was placed on the development of internal audit in local government bodies as a key tool for increasing the efficiency of the use of budget funds. Recommendations were formulated on the legislative regulation of financial control issues in the context of decentralization and ensuring proper coordination between various control bodies. The authors concluded that the main areas of improvement of financial control mechanisms in Ukraine are the improvement of regulatory and institutional support, the introduction of a risk-oriented approach, strengthening preventive control, the development of internal audit, the introduction of modern information technologies, expanding public participation and strengthening responsibility for violations of budget legislation.
Harbinska-Rudenko et al. (Tue,) studied this question.