Transformation of Control in the Public Sector: Current Challenges and Development Directions

Abstract

The development of control in the public sector under current conditions is influenced by a range of factors, including legislative changes, digitalization, and institutional transformations. Together with the evolving requirements of public administration, these factors determine the directions, types, instruments, and characteristics of control. The purpose of this study is to identify the key challenges associated with the transformation of control under current conditions and to characterize the directions of its development that most effectively incorporate innovative regulatory requirements. The study employs general scientific and specialized research methods, including analysis and synthesis, generalization, evaluation, and visualization. The findings indicate that control in the public sector is undergoing continuous transformation in response to emerging challenges. In this context, the development of internal control, as one of its key forms, represents a promising direction for improving control activities through a more comprehensive approach. Based on a critical analysis of the current regulatory framework, it has been established that internal control in the public sector, particularly in local self-government bodies, is founded on the principles of timeliness, clearly defined objectives and tasks, consistency, specificity, transparency, and a results-oriented approach rather than on identifying those responsible for deficiencies. The study identifies the major challenges and structural components of the internal control system and proposes the stages for its implementation in local self-government bodies. The introduction of an internal control system in such public sector entities enables all institutions and enterprises acting as managers and recipients of budget funds to be covered by control procedures. This contributes not only to improving the efficiency of public resource utilization but also to implementing optimization measures. Furthermore, it is demonstrated that the proposed approaches are based on international standards and incorporate both risk-oriented and managerial perspectives. It has also been established that the core elements of the internal control system not only define its organizational structure but also address the challenges currently faced by public sector entities. Future research on the development of control in the public sector should focus on the algorithmization of control procedures and the formulation of tasks for their computerization and software implementation. Another important area for further investigation is the development of models for evaluating the effectiveness of control and identifying risks arising during control activities. In addition, further studies should substantiate and develop action plans for implementing internal control in specific public sector entities and address issues related to the computerization and documentation of control procedures.