Within the framework of the session on “Financial control and audit as a basis for improving quality of public finance management” Director of the Department of Budget Methodology and Public Sector Financial Reporting of the Ministry of Finance of the Russian Federation Sergey Romanov was talking about the difficulties of the existing system of internal financial control and audit.
"When we are talking basically about the state system of internal financial control, like any system, first and foremost it should be based on the principles of sufficiency and exclusion of duplicating functions. However, today many functions and authorities are included at the same time. The main aim of the state internal control and audit is to prevent, but not to monitor and bring out. The biggest mistake we have, the basic drawback in this system is when the corresponding authority substitute confuses the concepts and aims of internal control and internal audit, “said Sergey Romanov.
According to Sergey Romanov, internal control is the conscience of the employee, who, fulfilling his budget powers, must control himself.
"Do not substitute the concepts: when you create a control mechanism as a checkout, the system forgets about the audit, about internal control and everything stops. Of course, there will be no people, no effects and no offers. Therefore, who will need these proposals if the only meaningful suggestion of the internal auditor is a list of violations detected, not a single conclusion that can be made to minimize these infringement,“ Romanov addressed the Forum guests.