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The cooperation will go on 21 October 2009  |  Press-service of the KRU in the AR of Crimea

The Regional seminar “Organization of the System of Public Financial and Budget Control for the purpose of Prevention of Budget Violations in the context of Restriction of Resources” continued work in Yalta.

The second final day of the seminar was completely dedicated to problems of reformation of both public financial control and the financial management system. Main speeches were presented by the Ukrainian side. Among all countries-participants of the seminar Ukraine has reached the stage of modernization of management tools and has already achieved certain results. Our experience of the reformation evoked interest of representatives from Moldova and Uzbekistan.

Time proved that problems faced by former Soviet Republics are scalable. These are the dominance of fiscal forms of control, shortage of forms of preliminary control (practiced in the European Union) and unwillingness of managers to account personally for the management of the state objects ownership. To get rid of such inheritance, as Deputy Chairman of the MainCRO Genadiy Dmytrenko thinks, is possible only by consistent actions of legislative and executive branches of power. Main “products” of the PIFC reform in Ukraine are internal control and internal audit, which have appeared mainly due to efficient division of control authorities between branches of power. Till today it has been developed standards, worked up methodologies and practical recommendations of control and audit, it has been held 14 pilot projects, numerous seminars and “round tables”. The crisis gave push for introduction of new additional forms of preliminary and simultaneous governmental financial control. In particular, this year it was introduced an institute of public controllers at 44 large enterprises-monopolies, it was created a subdivision in the SCRS, which monitors public procurement in the operational regime. We have already achieved the first results: violations in the procurement sphere in the sum of 3.4 billion hryvnias had been prevented; 245 procurement procedures in the total sum of 2.2 billion hryvnias had been abolished. Genadiy Dmytrenko admitted “However, we still need managers who possess knowledge of internal control. Risk factors such as personnel turnover, bureaucratic barriers and so on also tell on negatively.

Director of the Department of the Budget System Reformation of the Ministry of Finance of Ukraine Yulia Futoranska told about organization of the budget control in the context of reformation of the public finance management system. For continuation of the subject she presented a draft law “On Public Internal Financial Control”. At the same time Yulia Futoranska spoke out conviction that the draft law would change the ideology of PIFC, would create new financial management in public resources administration, and would enhance its quality and efficiency.

During the discussion and exchange of thoughts participants of the seminar came to an agreement to hold similar meetings more often with the extension of the participants’ geography.       

In conclusion, Chairman of the MainCRO of Ukraine Mykola Syvulskiy and General Economic and Financial Controller of ADETEF Yannick Richet applied to participants of the seminar with thankful words.


Press-service of the KRU in the AR of Crimea