AREAS FOR IMPROVING THE EVALUATION OF THE ACTIVITIES OF PUBLIC FINANCIAL CONTROL BODIES IN THE DEFENSE SECTOR

Abstract

The purpose of the article is to improve methodological approaches to evaluating the effectiveness of public financial control of defense procurement through the development of a system of indicators that takes into account the performance of control activities, the level of accountability, and the transparency of budgetary funds usage in the security and defense sector. Particular attention is paid to assessing the activities of the Accounting Chamber of Ukraine as the supreme state audit institution in the field of control over defense expenditures under martial law and the significant growth in the scale of public finances. Methodology. The methodological basis of the study is the integrated application of theoretical, analytical, statistical, and comparative research methods. Theoretical analysis was used to examine scientific approaches to assessing the effectiveness of public financial control, to generalize international and domestic approaches to performance auditing, and to substantiate the role of the principles of accountability and transparency in the field of defense procurement. A systems approach was applied to consider public financial control of defense procurement as an integrated multi-level system combining control, analytical, informational, and preventive functions. Statistical and analytical methods were used to evaluate the generalized performance indicators of the Accounting Chamber of Ukraine during 2016–2025, as well as to calculate the coefficients of productivity, effectiveness, and “conditional” efficiency of state auditors’ activities. Comparative analysis methods were applied to assess the dynamics of public financial control indicators under the transformation of the defense procurement system and the growth of budget expenditures during the period of martial law. The methodological approach is based on the use of indicators of productivity, effectiveness, and overall efficiency of public audit institutions, with their further adaptation to the specific features of defense procurement control. Research Results. The findings of the study indicate a significant transformation of the public financial control system for defense procurement in the context of increasing public finances and the growing role of the security and defense sector. It has been established that during 2016-2025 there was a tendency toward a reduction in the number of audited entities and control measures, accompanied by a simultaneous increase in the volume of audited public funds and identified violations. It is substantiated that such a trend reflects a gradual transition from a quantitative model of control to a risk-oriented approach focused on conducting comprehensive audits of the most financially significant areas of public administration. It has been determined that traditional efficiency indicators based solely on the number of inspections or the amount of detected violations do not allow for a comprehensive assessment of the real impact of public financial control on ensuring the efficient use of defense resources. It has been established that the significant level of secrecy in the field of defense procurement limits the possibilities for external analysis of audit results and reduces the level of transparency of control activities. The expediency of improving the system for evaluating the effectiveness of public financial control through the inclusion of indicators related to the implementation of recommendations, preventive orientation, the level of risk mitigation, transparency, and accountability of control activities has been substantiated. Practical Implications. The practical significance of the obtained results lies in the possibility of applying the proposed approaches to improve the methodological support for evaluating the activities of public financial control bodies in the field of defense procurement. The proposed system of indicators may be used by the Accounting Chamber of Ukraine, public financial control bodies, entities of the security and defense sector, as well as public authorities in the development of mechanisms for assessing the effectiveness of control activities. The obtained results may be applied in the development of risk-oriented approaches to the public audit of defense procurement, the improvement of accountability and transparency mechanisms in the use of budgetary funds, and the formation of an information and analytical environment for supporting managerial decision-making in the defense sector. The recommendations concerning the transition from the formal recording of violations to the assessment of the real impact of control activities on the efficiency of public financial resource utilization are of particular practical value. Value / Originality. The scientific novelty of the study lies in the improvement of methodological approaches to evaluating the effectiveness of public financial control of defense procurement through the integration of accountability, transparency, and risk-oriented criteria into the system for assessing the results of control activities. Unlike traditional approaches, which are mainly based on quantitative indicators of detected violations, it is proposed to evaluate the effectiveness of public financial control through a combination of indicators of productivity, effectiveness, analytical impact, and the implementation of recommendations issued by control bodies. Further development has been achieved in approaches to assessing the activities of the Accounting Chamber of Ukraine under martial law and significant restrictions on access to information in the field of defense procurement, which makes it possible to form a more balanced model of public financial control between the requirements of national security and the need to ensure transparency in the use of public financial resources.