Рublic financial control over the use of international financial assistance: legal and institutional aspects

Abstract

The article examines the legal foundations and current directions of development of the state financial audit of international financial assistance in Ukraine in the context of reforming the public financial management system and Ukraine’s integration into the European Union. A comprehensive analysis of the institutional role of the State Audit Service of Ukraine as a central executive authority with a special status within the system of state financial control is carried out. Particular attention is paid to the problems of limited human and analytical capacity, insufficient coverage of the most high-risk areas by control measures (in particular local budgets and public procurement), as well as the need to strengthen inter-institutional interaction with the Accounting Chamber, internal audit bodies and other subjects of financial control. It is demonstrated that these circumstances are of particular importance precisely under conditions of attracting significant volumes of international financial assistance.
The article analyzes the legal framework governing the exercise of powers by the State Audit Service of Ukraine as the National Controller within the Interreg and Interreg NEXT interregional cooperation programmes financed by the European Union, in accordance with the Procedure approved by Cabinet of Ministers of Ukraine Resolution No. 1268. The study identifies the key advantages of this Procedure, in particular institutional clarity, the introduction of management verifications, and electronic control mechanisms, as well as outlines existing challenges related to the risk-oriented approach, administrative burden, and the protection of beneficiaries’ rights. It is concluded that further improvement of the regulatory framework is required in order to ensure proportionality, legal certainty, and coherence with Ukraine’s national system of public financial control.
It is clarified that the Procedure for conducting a state financial audit by the bodies of the State Audit Service of Ukraine within the framework of international agreements, approved by Resolution of the Cabinet of Ministers of Ukraine No. 1483 of 19 November 2025, establishes a special procedural regime of state financial audit specifically intended to control the use of international financial assistance funds, including those provided under the Ukraine Facility mechanism, and does not amount to a modification of the general procedure for state financial audit. It is proved that Procedure No. 1483 performs a dual function: on the one hand, it serves as an instrument for implementing the institutional requirements of the Ukraine Facility and Regulation (EU) 2024/792 concerning the management, control and audit of EU funds; on the other hand, it acts as a catalyst for the internal transformation of the national system of state financial control, contributing to its approximation to the European model of performance and compliance audit.