Financial control in the security and defense sector: foreign experience and development prospects

Introduction. Given the exceptional role of the security and defense sector, the current dynamic trends of its financial side, it is highly likely that control now plays a rather peculiar and specific role in the functioning of its institutions. The purpose of the paper is a critical analysis of the features of the functioning of the financial control system in the security and defense sector to identify problematic aspects and identify possible ways to overcome shortcomings and improve current control practices in this area. Results. As a result of the study, the need to strengthen the control system in the security and defense sector was substantiated and the main important industry features and specific features that affect it were identified. Among them: increased secrecy; the use of modernized procurement procedures and relevant platforms, not all procurements are open; European integration processes and the development of international cooperation and assistance, etc. Based on a critical analysis of existing foreign experience, proposals for improving control in the security and defense sector were summarized. In particular, the feasibility of using alternative types of control, including internal audit, is substantiated. The advantages of using analytical methods in control in the security and protection sector are proven and their list is identified, the feasibility of using benchmarking and using life cycle analysis of weapons and equipment is substantiated. Conclusions. To implement such innovations, the Ukrainian financial control system should implement various areas of its own development. In particular, it should be aimed at developing control institutions and analytical infrastructure (creating independent bodies, involving the public, introducing analytical centers, etc.). In addition, it is necessary to actively develop the digitalization of control, work towards strengthening its orientation towards ensuring the efficiency of resource use.