Integration of financial and internal control of revenue-generating activities in public sector organizations

The expansion of paid services provided by public sector organizations creates a need for new control mechanisms that combine the requirements of budget legislation and the principles of market efficiency. The existing control system, which is primarily focused on the targeted use of budget funds, does not fully meet the specific requirements of revenue-generating activities, which creates risks and limits their development potential. Therefore, this article describes the dual nature of revenue-generating activities control, which combines the priority of financial control and the need for internal control, identifies key risk groups that require a differentiated approach, analyzes control mechanisms (preventive, corrective, and directive), and highlights their advantages and disadvantages. A comprehensive approach to the integration of financial and internal control has been developed, based on the integration of flexible management models and digital tools, which will allow public sector organizations to increase the competitiveness of their services, improve resource efficiency, and enhance the quality of control without compromising their social mission or budgetary discipline.