Disadvantages of budget (bookkeeping) accounting centers and recommendations for strengthening their internal control systems

Aim. The work aimed to identify key problems in the functioning of the internal control system in budget (bookkeeping) accounting centers in the context of public sector modernization and tightening requirements for transparency and rational use of budget funds.
Objectives. The work seeks to analyze the difficulties of implementing internal control in budget accounting centers; to identify discrepancies between regulations and the specific aspects of particular institutions; to determine the causes of insufficient effectiveness of existing control mechanisms; to propose measures to improve the internal control system.
Methods. The study employed methods of analyzing scientific literature, current regulations, and the results of practical implementation of internal control systems. The author’s methodological approach is based on a comprehensive review of regulations, risks, and management feedback.
Results. It has been established that the internal control system in budget (bookkeeping) accounting centers is characterized by a high degree of regulatory framework, but demonstrates a significant discrepancy between formally established procedures and their actual implementation. A number of problems were identified, namely excessive formalization of the control environment, low level of technological equipment, weak relationship between control procedures and management, lack of system analysis of violations. Improvement measures were proposed, in particular, the introduction of personal responsibility of controllers, mandatory certification of specialists, automation of the accounting environment, regulation of control procedures, monitoring of corrective actions, and logging of transactions. The proposed solutions are aimed at increasing the reliability and transparency of financial control in institutions using budget funds.
Conclusions. Analysis of the functioning of the internal control system in budget accounting centers revealed that, despite the presence of a regulatory framework, in practice, control is often performed formally, does not ensure the prevention of violations and the reduction of financial risks. The implementation of the proposed solutions will increase the reliability of reporting and strengthen the financial discipline. As a result, internal control will become a full-fledged management resource that reduces financial risks and promotes greater efficiency in the use of budget funds.

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