{"id":18924,"date":"2024-04-04T10:10:37","date_gmt":"2024-04-04T07:10:37","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=18924"},"modified":"2024-04-04T10:10:37","modified_gmt":"2024-04-04T07:10:37","slug":"the-role-and-place-of","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-role-and-place-of\/","title":{"rendered":"Lutsyk Yu., Cherevatyi T., Kravchuk Yu. The Role And Place Of Internal Control And Internal Audit Systems In The Defense Procurement Process"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: H56; 57; E60
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-07<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Lutsyk<\/strong> Yuliya, <\/strong>Ph.D. in Economics, Associate Professor, Chief of the Department of Economics and Financial support Institute of Logistics and Support of Troops (Forces), National Defense University of Ukraine, Ky\u0456v<\/p>\n

ORCID ID:<\/strong> 0000-0002-1486-2336<\/a>
\ne-mail: <\/strong>Julia.Lutsik@gmail.com<\/a><\/p>\n

Cherevatyi Taras, <\/strong>Candidate of Military Sciences, Associate Professor of the Department of Economics and Financial Support of the Institute of Logistics and Support of Troops (Forces) of the National Defense University of Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-0866-295\u0425<\/a>
\ne-mail: <\/strong>cherevatiy_taras@ukr.net<\/a><\/p>\n

Kravchuk Yurii, <\/strong>student of The \u0406nstitute of State Military Management, National Defense University of Ukraine, Ky\u0456v<\/p>\n

ORCID ID:<\/strong> 0009-0006-6317-0535<\/a>
\ne-mail: <\/strong>uriykravchuk2377@gmail.com<\/a><\/p>\n

<\/h2>\n

The Role And Place Of Internal Control And Internal Audit Systems In The Defense Procurement Process<\/strong><\/h2>\n

\u00a0\u00a0<\/strong><\/p>\n

Abstract. Introduction<\/strong>. The procurement process in the Ministry of Defense of Ukraine has always been full of risks and required control at all its stages. Therefore, the package of measures for implementation of the internal control system allows the heads of the budgetary institutions (military authorities) to effectively control the procurement process in the relevant part.<\/p>\n

Purpose.<\/strong> The purpose of the article is to propose changes in the legal framework of Ukraine regarding the procurement process in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine.<\/p>\n

This issue became even more important with the beginning of full-scale aggression of the Russian Federation against Ukraine on February 24, 2022. The purposeful and effective use of budgetary funds for the purchase of commodities, weapons and military equipment is subject to special supervision both by the internal control and internal audit bodies of the Ministry of Defense of Ukraine and by the public.<\/p>\n

It was noted that, first of all, the relevant changes were made to the legislation in force at that time regarding the procurement process, but in the course of 2022 too many such changes were made to the laws of Ukraine and the decisions of the Cabinet of Ministers of Ukraine, which, in turn, only complicated the procurement process in the Ministry of Defense of Ukraine.<\/p>\n

This situation complicates the work of internal control bodies in identifying and managing risks in the procurement process.<\/p>\n

The issue of the development of new approaches to the audit of the procurement process, the introduction of a new philosophy of relations in the teams of the Department and territorial divisions of the Internal Audit of the Ministry of Defense of Ukraine, the change of approaches to the implementation of control measures was considered.<\/p>\n

Results.<\/strong> The article analyzes and suggests directions for improvement of activities of internal control and internal audit bodies regarding the procurement process in the Ministry of Defense of Ukraine taking into account the full-scale aggression of the russian federation against Ukraine.<\/p>\n

Conclusions.<\/strong> Suggestions for improving the internal control and internal audit of procurement under the wartime legal regime, which can and must be implemented as soon as possible.<\/p>\n

Keywords:<\/strong> internal control; internal audit; procurement; full-scale aggression of the russian federation against Ukraine; legal acts.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Verkhovna Rada of Ukraine. (2023). Constitution of Ukraine<\/em>.<\/em> \u2116\u00a0254k\/96-BP. https:\/\/zakon.rada.gov.ua\/laws\/show\/254%D0%BA\/96-%D0%B2%D1%80#Text.<\/li>\n
  2. Verkhovna Rada of Ukraine. (2023). On public procurement<\/em>.<\/em> \u2116 922-VI. http:\/\/zakon.rada.gov.ua\/laws\/show\/922-19#Text.<\/li>\n
  3. Verkhovna Rada of Ukraine. (2023). On defense procurement<\/em>.<\/em> \u2116 808-IX. https:\/\/zakon.rada.gov.ua\/laws\/show\/808-20#Text.<\/li>\n
  4. Cabinet of Ministers of Ukraine. (2023). Same issues of defense procurement of goods, work and services under martial law<\/em>.<\/em> \u2116 169. URL: https:\/\/zakon.rada.gov.ua\/laws\/show\/169-2022-%D0%BF#Text.<\/li>\n
  5. Cabinet of Ministers of Ukraine. (2023). Same issues of defense procurement during the period of martial law<\/em>. <\/em>\u21161275. URL: https:\/\/zakon.rada.gov.ua\/laws\/show\/1275-2022-%D0%BF#Text.<\/li>\n
  6. Cabinet of Ministers of Ukraine. (2023). On the approval of the specifics of procurement of goods, work and services for customers for by the Law of Ukraine \u201cOn public procurement\u201d for the period of validity of the legal regime of martial Law of Ukraine and within 90 days from the date of its termination or cancellation<\/em>. <\/em>\u2116 1178. URL: https:\/\/zakon.rada.gov.ua\/laws\/show\/1178-2022-%D0%BF#Text.<\/li>\n
  7. Cabinet of Ministers of Ukraine. (2023). Same issues of implementation of internal audit and formation of internal audit units<\/em>. \u2116 1001. URL: https:\/\/zakon.rada.gov.ua\/laws\/show\/1001-2011-%D0%BF#Text.<\/li>\n
  8. Cabinet of Ministers of Ukraine. (2023). On the approval of the Basic principles of internal control by managers of budget funds and amendments to the Resolution of the Cabinet of Ministers of 28.09.2011 <\/em>\u2116<\/em> 1001<\/em>. \u2116 1062. URL: https:\/\/zakon.rada.gov.ua\/laws\/show\/1062-2018-%D0%BF#Text.<\/li>\n
  9. Ministry of Defense of Ukraine. (2023). On approval of the order of organization in the system of internal control and risk management of the Defense of Ukraine<\/em>. \u2116145. https:\/\/www.mil.gov.ua\/content\/pdf\/vnytr_control\/n145_020419.pdf.<\/li>\n
  10. Ministry of Defense of Ukraine. (2023). On the approval of the Regulation on the Internal Audit Department of the Ministry of Defense of Ukraine<\/em>.<\/em> \u2116 280.<\/li>\n
  11. Ministry of Defense of Ukraine. (2023). On the organization of internal audit activities in the of the Ministry of Defense of Ukraine<\/em>. \u2116<\/li>\n
  12. Department of internal Audit of the Ministry of Defense of Ukraine. (2023). The procedure for documenting the results of audit tasks<\/em>.<\/em> \u2116<\/li>\n
  13. Department of internal Audit of the Ministry of Defense of Ukraine. (2023). On the approval of Methodological recommendations for assessing the effectiveness of the internal control system<\/em>.<\/em> \u2116<\/li>\n
  14. Loishyn,A., Kustrich, K.G. (2022). Problems of functioning of state internal financial control in Ukraine. Journal of Scientific Papers \u201cSocial Development and Security\u201d<\/em>, 12(4), 27-45. https:\/\/paperssds.eu\/index.php\/JSPSDS\/article\/view\/463.<\/li>\n
  15. Loishyn,A., Ulianov, K.E. (2023). Improvement of the approach to the organization and implementation of control over the use (development) of resources in the Armed Forces of Ukraine during the period of the legal regime of martial law. Journal of Scientific Papers \u201cSocial Development and Security\u201d<\/em>,<\/em> 13 (3), 98-115. https:\/\/paperssds.eu\/index.php\/JSPSDS\/article\/view\/554.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 06 February 2024<\/p>\n

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    Lutsyk Yu., Cherevatyi T., Kravchuk Yu. (2024). The Role And Place Of Internal Control And Internal Audit Systems In The Defense Procurement Process. Modern Economics, 43(2024), 51-56. DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-07.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    [vc_row][vc_column][vc_column_text] JEL Classification: H56; 57; E60 DOI: https:\/\/doi.org\/10.31521\/modecon.V43(2024)-07 [\/vc_column_text][vc_column_text]Lutsyk Yuliya, Ph.D. in Economics, Associate Professor, Chief of the Department of Economics and Financial support Institute of Logistics and Support of Troops (Forces), National Defense University of Ukraine, Ky\u0456v ORCID ID: 0000-0002-1486-2336 e-mail: Julia.Lutsik@gmail.com Cherevatyi Taras, Candidate of Military Sciences, Associate Professor of the Department of
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