Draft Law of Ukraine

"On State Financial Control"

The draft is an alternative to draft law N 1131 "On the System of State Financial Control in Ukraine", introduced by People's Deputy Yu.Karmazin, and to draft law N 1131-1 "On Financial Control", introduced by the Cabinet of Ministers of Ukraine.

The draft determines the concept, general legal and organizational grounds for exercising state financial control (hereinafter referred to as "Control"). The draft aims at legal provision for performing a unified state policy in the field of Control. Also the draft mentions that it does not regulate the issue of financial control over objects and subjects of non-governmental sector of the economy.

The draft outlines the objective and key tasks of Control, as well as its chief principles. Apart from that, the draft determines the exhaustive list of subjects of state financial control as well as the list of subjects of budgetary control. Separate articles define objects and the subject of Control.

The draft stipulates classification of types of Control depending on:

• the category of the controlling body (general, specific and regulating);
• the time of exercising Control (preliminary, current and subsequent);
• the nature of relations between the subject and the object of Control (internal (departmental) and external).

Also the draft sets forth possible methods for exercising state financial control depending on the types of control measures taken by subjects of Control.

Among organizational measures for exercising state financial control, the draft determines that subjects of Control shall take control measures on the basis of plans of operation, decisions (instructions) of the Verkhovna Rada of Ukraine, the President of Ukraine, the Cabinet of Ministers of Ukraine, as well as upon applications of other state bodies exclusively within their authorities, set forth by the laws regulating activity of subjects of Control. However, subjects of Control shall be prohibited from taking control measures on their own initiative (except for cases stipulated by the draft).

Also the draft outlined grounds for building relations between subjects of Control and various state bodies, including law enforcements bodies, as well as grounds for making public results of activity of subjects of Control.

The draft, if approved, will permit legislatively regulating issues of exercising financial control over the state sector of economy, setting forth types of such Control, organizational grounds and the procedure for cooperation of controlling bodies with themselves and other bodies, as well as other issues in the field of exercising state financial control, which to date remain unregulated.