Improving the Operation of Management Mechanisms in the Implementation of the State Regulation Measures in the Sphere of Public Procurement

The article is concerned with considering the current trends in improving the State regulation of the public procurement system in Ukraine. The author defines that one of the key elements of ensuring an adequate level of the State regulation of the public procurement system in our country is the effective organization of the State-based financial control in this sphere. The basis for ensuring the latter is the smooth operation of the relevant State governance mechanisms. The research is aimed at disclosing modern aspects of the State regulation of the public procurement system by implementing the State-based financial control measures, allocating existing problematic issues and developing a model for assessment of efficiency of the measures that will be implemented in the course of its improvement, taking into account the peculiarities of the sphere of public procurement in Ukraine. When writing this article, a direct relationship between the level of efficiency of the State-based financial control in the sphere of public procurement and the level of efficiency of the State regulation of this sphere is determined. It is specified that the key management mechanisms used in the implementation of the State-based financial control in the sphere of public procurement are the organizational, informational and legal ones. Precisely on their condition directly depends the efficiency of the State-based financial control in this sphere. It is determined that each of the above-mentioned the State governance mechanisms has a number of complex, interrelated problematic aspects that impede the maximum level of efficiency of the State-based financial control in the sphere of public procurement. In order to neutralize them, the author proposes to use an automate model for assessing the efficiency of eliminating the shortcomings of the major management mechanisms used in the implementation of the State-based financial control measures in the sphere of public procurement. The presented model allows tracing the impact of relevant measures over time for both the short and long term, is adapted to the economic and socio-political realities of Ukraine, takes into account most of the economic and social risks in the sphere under research.

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The State regulation of Public Procurement in Ukraine in the Context of Reforms and Integration Processes

Business Inform ◽

10.32983/2222-4459-2021-2-35-40 ◽

2021 ◽

Vol 2 (517) ◽

pp. 35-40

Author(s):

O. I. Laiko ◽

Keyword(s):

National Economy ◽

Public Procurement ◽

State Regulation ◽

The State ◽

Added Value ◽

The Public ◽

Goods And Services ◽

International Distribution ◽

Procurement System ◽

The Impact

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.

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REGULATORY PROVISION OF PUBLIC PROCUREMENT SYSTEM IN THE CONTEXT OF EUROPEAN INTEGRATION OF UKRAINE

Management ◽

10.30857/2415-3206.2019.2.6 ◽

2020 ◽

Vol 30 (2) ◽

pp. 75-85

Author(s):

Lyubov V. Murovana

Keyword(s):

European Integration ◽

Social Life ◽

Public Procurement ◽

The State ◽

International Standards ◽

Systematic Analysis ◽

National Legislation ◽

The Public ◽

Procurement System ◽

The Impact

Introduction. One of the main directions of Ukraine in international cooperation is the Euro integration process. The main purpose of which is the implementation of national legislation to European standards, with further adaptation and modification in accordance with international rules and regulations.Scientific research hypothesis. Any integration processes are quite complex and time-consuming, but they are necessary to improve the performance of the field in which they take place. Ukraine's European integration is aimed at ensuring the development of the spheres of political, legal, economic and social life of the country, including public procurement system in Ukraine.The purpose of the study is to analyze the impact of integration processes on the current regulatory framework of the public procurement system in Ukraine.Research methods. General and special methods, such as systematic analysis and generalization, were used to determine the state of disclosure of the research problem. The method of comparisons, analogies and systematization was used for the analysis of regulatory documents regulating the sphere of public procurement.Results. On the basis of the author's study of the current state of legal support of the public procurement system in the context of European integration of Ukraine, a gradual distribution of the evolution of national legislation in the field of public procurement to international standards was presented, with its further reformation into the field of public procurement. The basic functions of the institutional structure of the public procurement system are considered and the valid legal acts of the procurement process are summarized.Conclusions. The analysis of the process of reforming the system of "public procurement" in the field of "public procurement" is characterized by a rethinking of the spending units of public funds with the need to approximate national legislation to international standards. For this purpose, a number of normative legal acts have been adopted by the state authorities aimed at accelerating the process of European integration of Ukraine, but some of them require further research and adjustments in order to adapt to national legislation.

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IMPLEMENTATION OF THE RESPONSIBILITY PRINCIPLE IN THE SYSTEM OF FINANCIAL CONTROL OF PUBLIC PROCUREMENT

SCIENTIFIC BULLETIN OF POLISSIA ◽

10.25140/2410-9576-2018-2-2(14)-78-82 ◽

2018 ◽

Vol 1 (2(14)) ◽

pp. 78-82

Author(s):

Iryna Kyzmivna Drozd ◽

Mariia Serhiivna Pysmenna ◽

Nataliia Volodymyrivna Pohribna

Keyword(s):

Public Procurement ◽

International Standards ◽

Control Measures ◽

Financial Control ◽

Relevant Issue ◽

Target Setting ◽

The Public ◽

Control Actions ◽

Further Development ◽

Assessment Of Compliance

Urgency of the research. Ensuring the proper level of controllability of procurement contributes to effective action of legislated procedures of financial control, and increases the level of responsibility of participants of the public procurement process. Target setting. Putting forward the provisions of international standards ISSAI, which provide for the implementation of results of financial control in society, is the relevant issue of increasing the effectiveness of control measures. Actual scientific researches and issues analysis. Evolution of the views of scientists on the tasks of financial control in the field of procurement creates the framework for its further development in terms of increasing effectiveness. Uninvestigated parts of general matters defining. The study of the instruments for control actions to assess the implementation of the principle of responsibility in the field of procurement requires theoretical and practical justification. The research objective. The article aims to develop instruments for financial control of public procurement in order to implement the principle of responsibility in this area in accordance with the international standards of financial control ISSAI. The statement of basic materials. On the basis of the implementation of the ISSAI standards, the instruments for control actions to verify compliance with the principle of responsibility under the public procurement is proposed. Assessment of compliance with procurement criteria will provide evidence for substantiated findings and the effectiveness of control measures. Conclusions. As a result of the study, it was concluded that the combination of ISSAI norms and public procurement criteria at the level of financial control instruments will ensure its effectiveness.

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Risk-based assessment model of the state and municipal procurement system

E3S Web of Conferences ◽

10.1051/e3sconf/201911002090 ◽

2019 ◽

Vol 110 ◽

pp. 02090 ◽

Cited By ~ 1

Author(s):

Elena Karanina ◽

Ksenia Kartavyh

Keyword(s):

Public Procurement ◽

The State ◽

Assessment Model ◽

Government Contracts ◽

Loss Minimization ◽

Case Scenario ◽

Public Funds ◽

The Public ◽

Funds Management ◽

Procurement System

Every year, the volumes of funding in the sphere of provision of state and municipal demand increases significantly. Achieving the effectiveness of government contracts is one of the main and “eternal” problems of public funds management. For public procurement to be effective, it is necessary to meet the needs of the relevant actors, i.e. society, the state, and the private sector. In order to make a qualitative forecast of the results of public procurement placement, the development and implementation of measures aimed at improving the public procurement system, it is necessary to assess the current situation of manifestation of risks arising from the procurement of goods, works and services for state and municipal needs. For this purpose, a risk-based model for assessing the system of state and municipal procurement has been developed, which allows disclosing the nature of the risks of the procurement cycle fully and identifying a case scenario for choosing a way to loss minimization.

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Modern system of state procurement in ensuring innovative development of economics

Russian Journal of Industrial Economics ◽

10.17073/2072-1633-2018-3-242-248 ◽

2018 ◽

Vol 11 (3) ◽

pp. 242-248

Author(s):

T. S. Kolmykova ◽

E. V. Semenikhina ◽

E. A. Alpeeva

Keyword(s):

Public Procurement ◽

Great Influence ◽

The State ◽

Economic Research ◽

Federal Law ◽

The Public ◽

Modern System ◽

Innovative System ◽

Modern Economic ◽

Procurement System

Public procurement is a category of the modern economic system. They have a great influence on the formation of the innovative potential of the country and the regions. The state has a powerful management impact due to the modern system of public procurement. The state optimizes budget expenditures, minimizes uncontrolled costs, regulates prices for socially and economically important groups of goods. Public procurement is a complex innovative system. It includes elements: planning, formation and carrying out of purchases, the conclusion of the contract, the control of fulfillment of obligations between the customer and the supplier. The procurement system unites relations between authorities, legal and private persons. The process of public procurement is complex. He constantly undergoes changes and additions. According to the current Russian legislation, the procurement of goods, works or services is divided according to the subject matter into two groups: 1) purchases carried out by government customers to ensure state and municipal needs, controlled by Federal Law No. 44-FZ of 05.04.2013, and 2) carried out by certain types of legal entities or corporate purchases, controlled by Federal Law No. 223-FZ of July 18, 2011. State and municipal procurement are a tool for effective impact on the development of the economy. They perform the most important functions: regulative, reproductive, stimulating, social, innovative. Thus, the study of the public procurement system today is a significant and relevant issue in the field of economic research.

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Public Procurement as the Object of Audit and Management of the United Rural Territorial Communities in the Context of Decentralization

Accounting and Finance ◽

10.33146/2307-9878-2021-3(93)-142-148 ◽

2021 ◽

pp. 142-148

Author(s):

Walery Okulicz-Kozaryn ◽

◽

Kateryna Melnyk ◽

Keyword(s):

Public Procurement ◽

General System ◽

The State ◽

Economic Feasibility ◽

Procurement Process ◽

The Public ◽

State Audit ◽

Decision Making System ◽

Control Procedures ◽

The Impact

United territorial communities in the context of decentralization are authorized to carry out public procurement at their own discretion. However, additional responsibility reinforces the need to involve the institution of audit as a guarantor of the economic and social feasibility of the process. The purpose of the article is to determine the place of public procurement as one of the objects of the national audit system in order to increase the efficiency of management of united territorial communities. It was found that, despite the improvement of legislative regulation in the sphere of public procurement, the illegal, often “lobbied” use of budgetary funds requires increased control, both from the state and the public, and from the actual administration of the united territorial communities. The theoretical and methodological foundations of the state audit of public procurement were revealed. The directions of improving the state audit of the public procurement process in united rural territorial communities were proposed, while observing the priority of sustainable development goals. The capabilities of the electronic public procurement platform Prozorro were critically assessed. The reasons and prerequisites for the elimination of the corruption component of the public procurement process at the local (united territorial communities) and global (national economy) levels were identified. The need for IT-auditing in the field of legality and economic feasibility of using budget funds in rural territorial communities was proved. The impact of the audit on the general system of information and analytical support of management consists in assessing the effectiveness of activity processes, information processes and control procedures in order to improve the management model of activity and, accordingly, the decision-making system.

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STANDARDIZATION OF PUBLIC AUDIT OF PUBLIC PROCUREMENT IN UKRAINE THROUGH THE INTRODUCTION OF COMPLIANCE AUDITS

"EСONOMY. FINANСES. MANAGEMENT: Topical issues of science and practical activity" ◽

10.37128/2411-4413-2020-4-11 ◽

2020 ◽

pp. 156-174

Author(s):

Nataliya ZDYRKO

Keyword(s):

Public Procurement ◽

The State ◽

International Standards ◽

The Public ◽

Electronic Procurement ◽

State Audit ◽

Financial Audit ◽

Compliance Audit ◽

Audit Standard ◽

Procurement System

The independent legislative agency of Ukraine according to the international standards ISSAI in private carrying out of the state audit (including the published purchases) is made. It is established that international practice has identified three components of public audit: performance audit, financial audit and compliance audit. The necessity of standardization of the state audit of public procurements through legislative fixing of audit of conformity is proved. The main objects of compliance audit are proposed: the activities of the customer (participant), public resources and the activities of responsible government agencies. Recommended main directions and procedures for compliance audit for each object and by stages of the life cycle of procurement items. Features of the audit of compliance of redistribution by the customer of various receipts for public procurement are considered. Features of audit procedures for different types of public procurement are identified. The recommended procedure and algorithm for auditing the correctness of determining the subject of procurement from the customer. The main mistakes and violations of the participants, which take place during the audit of compliance with public procurement, have been identified. The peculiarities of compliance audit at the stage of public procurement planning, pre-contractual and contractual relations in the electronic procurement system, as well as at the stage of use of procurement items are highlighted. It was emphasized that the responsible body should regulate issues related to the functioning of the electronic information system, platforms and web portal in the field of public procurement. The key elements of the Public Procurement Compliance Audit Standard (purpose, objectives, subject, objects, subjects, stages, methods, principles) are proposed.

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Public procurement in Ukraine: analysis of advantages and disadvantages

Problems of Theory and Methodology of Accounting Control and Analysis ◽

10.26642/pbo-2021-2(49)-56-60 ◽

2021 ◽

pp. 56-60

Author(s):

O.A. Lahovska ◽

S.F. Lehenchuk ◽

S.V. Svirko

Keyword(s):

Sustainable Development ◽

Narrow Range ◽

Public Procurement ◽

The State ◽

Government Agencies ◽

State Budget ◽

The Public ◽

Advantages And Disadvantages ◽

Complex Process ◽

Procurement System

Public procurement is a complex process. With the help of public procurement, governments and government agencies purchase products, services, work, creating expenditures of the state budget and taxpayers. The purpose of implementing the e-procurement system was to reduce these costs and overcome the corruption component in this area. However, there are still many issues related to the inefficiency of certain components of this system. It is determined that domestic scientists identify a narrow range of benefits of the public procurement system, which is reduced to overcoming corruption and saving budget funds. The domestic scientists identify a narrow range of benefits from the use of public procurement. This is overcoming corruption and saving budget funds. In contrast, the foreign scientists see the public procurement system as an effective tool for sustainable development, innovation. The article analyzes the shortcomings and weaknesses of public procurement at each stage of their implementation, which allows identifying the main areas of improvement of the public procurement system, and summarizes the main advantages.

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INSTITUTIONAL SUPPORT OF PUBLIC FINANCES

INNOVATIVE ECONOMY ◽

10.37332/2309-1533.2021.5-6.1 ◽

2021 ◽

pp. 5-12

Author(s):

Alla Chornovol ◽

Yuliia Nemish ◽

Olha Biliavska

Keyword(s):

Public Finance ◽

Institutional Support ◽

The State ◽

External Control ◽

Financial Control ◽

Public Finances ◽

The Public ◽

Finance Management ◽

And Control ◽

The Impact

Purpose. The purpose of the article is to study the legal and organizational principles of public finance management. Methodology of research. To achieve this goal, the following tools of research methods were used: dialectical - to determine the initial conditions and content of public finance; analytical - when processing literary and Internet sources; causal - to determine the institutional support of public finances; abstract-logical - to generalize the presented material and draw conclusions. Findings. The issues of the essence, structure and peculiarities of the functioning of public finances in Ukraine are studied; the institutional units that ensure their formation and control over their use are specified. The peculiarities of the content of public finances of Ukraine are considered, the peculiarities of their components are determined in order to achieve not only economic, but also social goals by the state. Under the institutional support of public finances, we understand a purposeful hierarchical system of legal institutions that form, use, redistribute and control the funds of the public sector. Thus, based on this, among the components of institutional support are: state; executive, legislative and judicial powers; VRU, CMU, central executive bodies, higher judicial bodies, National Bank, Accounting Chamber; local councils, local executive bodies, budgetary institutions, subjects of state and communal property; advisory bodies under the President of Ukraine, the Cabinet of Ministers of Ukraine; scientific, public and professional institutions (organizations) in the field of public finance. The relevance of the study of issues related to improving the efficiency of state bodies on the basis of recommendations of international organizations and the formation of appropriate regulatory and legal support is substantiated. For example, it was noted that an action plan for the respective years should be developed, which includes directions for each area of the Strategy for Reforming the Public Finance Management System (in our opinion, public) and specifies the state bodies responsible for a particular area of public finance. The bodies of state financial control are determined in accordance with the current legislation, in particular: external control carried out by the legislative bodies - the committees of the Verkhovna Rada and the Accounting Chamber; executive authorities and the central bank - the Cabinet of Ministers (through specialized state bodies) and the NBU; and internal (performed by heads of state bodies) and internal audit (performed by the main managers of budget funds). The requirements of the current legislation to ensure openness of their spending and opportunities for free access to this information in order to strengthen public control over the use of public funds are analyzed. The composition and main problems of institutional support of public finances are formulated and practical recommendations for its evaluation are provided, which will allow to increase the efficiency of public finance management. Originality. The scientific novelty lies in the separation of the content of the institutional support of public finances and recommendations for its evaluation according to the established criteria. Practical value. The main provisions of this study in the form of evaluation proposals can be used to monitor the impact of public reform policy on the development of public finances. Key words: public finance; management; institutional support; public authorities; public financial control.

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Digitalisation of public procurement: The case study of Ukraine

Annales Universitatis Mariae Curie-Skłodowska sectio H Oeconomia ◽

10.17951/h.2019.53.3.61-71 ◽

2019 ◽

Vol 53 (3) ◽

pp. 61

Author(s):

Nataliya Synyutka ◽

Oksana Kurylo ◽

Mariya Bondarchuk

Keyword(s):

Public Procurement ◽

Synthesis Method ◽

Electronic System ◽

Theoretical Background ◽

The Public ◽

Electronic Procurement ◽

Public Consumption ◽

Procurement Procedure ◽

Procurement System ◽

The Impact

Theoretical background: There is an ongoing global acceleration of automation and digitalisation in financial processes, which points to significant changes in public spending policies. After an analysis of several scientific studies, fundamental approaches have been elaborated to understand public consumption and the system of state purchases. The basic hypothesis for this research was to study the possible impact of the electronic procurement market ProZorro on state purchases in Ukraine. Possible directions are: increasing competitiveness, optimising state expenditures and saving the budget funds of public services based on innovative digital technology.Purpose of the article: The main goal is to investigate the impact of the electronic public procurement system ProZorro on corruption and bureaucracy in the public sector of Ukraine. The study object is an analysis of the volume and structure of the public procurement market, the number of procedures and participants in a bidding process, and the savings amounts in ProZorro’s public purchases during the study period in Ukraine.Research methods: The following methods were used during the research of the Ukrainian electronic procurement system: dialectical method; analysis and synthesis method – for a comparison of certain types of public procurement; subthreshold and suprathreshold statistical methods – for analysing the dynamics of indicators of the domestic system of public procurement during the period under research for a comparison of the indicators of public consumption of certain ministries and departments, different regions and territorial entities; structural and logical analysis – for generalising the theoretical and methodological principles of building a public consumption system in Ukraine. The main source of data was the data and analytical base of the ProZorro electronic public procurement system.Main findings: Effects of the innovative digital paradigm on the transparency and efficiency of public procurement are determined. Considerable attention is paid to the implementation of the electronic public procurement system ProZorro in Ukraine. The expediency is substantiated for its implementation in the national practice of budget expenditures, and the principles and procedures of implementation are analysed. The practice and dynamics of the public procurement market in Ukraine are summarised. The conclusions of the advantages of electronic system are provided, including transparency and impartiality, stimulation of competition and non-discrimination of bidding participants, reduction of corruption and the effect of reducing the savings of budget funds. Potential risks, threats and disadvantages of the ProZorro system in Ukraine are highlighted. Among them are: a high proportion of non-competitive procedures; possible latent conflict regarding the participants’ interests; unreasonable time spent on individual procedures; the justification of the procurement procedure to one participant due to a dubious “urgent need”; unreasonable application of the procurement procedure to one participant due to the falsification of conditions or the division of the procurement subject; the existence of discriminatory requirements in the documentation of competitive bidding; and a lack of efficiency in the complaints handling mechanism.

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