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Governmental financial controllers, get unity! 22 October 2009

Under this slogan 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” finished work in Yalta on the 21st of October (the information about the seminar you can read on the site of the MainCRO from the 21st and 22nd of October).

It would be better to sum up the seminar later, after deeper comprehension of the large volume of obtained information. But today we could already say that the seminar has been successful, as for the first time during a lot of years participants from five countries (four of them were former Soviet Republics) received a possibility to exchange their experience of building governmental financial control.

The seminar proved that countries-participants faced serious challenges of the world financial crisis, negative consequences of which force states to extend their interference into economies, to intensify centralized control over use of all resources.

   As it was marked, none of the countries present at the seminar had total decentralization of public financial control. So along with introduction of internal control and internal audit in ministries and other central executive authorities components of centralized governmental financial control remain in place. This function is performed by sufficiently independent units of Ministries of Finance (Moldova, Uzbekistan and France) or by separate authorities subordinate to Ministries of Finance (Ukraine, Russia). Ukraine as well as Moldova has done the biggest number of steps on the way of building public financial control. 

Participants of the seminar have admitted that the important prerequisite for development of public financial control is its reformation simultaneously with improving accounting, public finance management and the administrative structure.

As it turned out, participants understood differently bases of control over the activity of enterprises of the public sector of economy. Discussions in this regard were the most emotional and even harsh. The special opinion was expressed by the representative of the Russian Federation persuaded that even under conditions of the financial crisis authorities of the governmental financial control don’t have to undertake the job of managers of public enterprises. Therefore, just in this part it would be advisable to continue discussions in future.

    Participants of the seminar have supported the initiative of Uzbekistan to consider the matter of creation of an international organization (association, union) of authorities of the governmental financial control.