Departmental control is the control of a higher authority in relation to subordinate organizations

Departmental control is a procedure for the supervision of higher structures over lower ones. It acts as an integral component of administrative activities. Let us further consider what constitutes an organization of departmental control.

General information

The structure of any management system should include units providing its control and audit functions. It is this provision that is considered to be the initial one when assessing different opinions on the formation of supervisory institutions. In the late 90's. an idea of ​​a holistic, unified control system of the state appeared. In this regard, the task was set of forming a complex of authorized structures. It was assumed that the new construction of the system will reduce the number of inspectors, making state control more effective.

Institutional Objectives

Departmental control bodies should provide:

1. Supervision of compliance of activities of lower structures with the requirements of the law.
2. Timely prevention, detection and suppression of violations of regulatory requirements.
3. Taking measures for the conservation, effective and targeted use of material values.
4. Identification of non-operating reserves to improve the performance of lower structures.

Functions of Authorized Institutions

They are set by industry guidelines. These documents are developed by ministries and other administrative institutions in accordance with the regulatory and methodological materials regulating state control. Supervisory authorities operate within their competence and fulfill their responsibilities. Among their main functions, it should be noted:

1. Work coordination structural units authorized to implement departmental control.
2. Planning and execution of inspections.
3. Development of draft legal documents regulating departmental control.
4. Providing methodological support to lower structures to increase the efficiency of their work.
5. Study and dissemination in the relevant sectors of the most advanced forms of organization and implementation of departmental control.
6. Analysis of the identified violations and making suggestions for updating and supplementing the legislative framework governing economic relations in the prescribed manner.
7. Providing oversight of the elimination by the subordinate structures of discovered inconsistencies, taking into account the inspections performed, their results and measures that have been taken.
8. Preparation and submission of reports on the work performed.

Check Classification

Control and audit may be:

1. Planned. They involve checking the activities of organizations that are subordinate to the relevant government body or are part of it.
2. Unplanned. Control and audit can be carried out on behalf of law enforcement services and their leaders in the framework of criminal cases, judicial instances based on materials in their production.
3. Cameral.

In addition, the control and audit department conducts activities to monitor, evaluate, analyze, identify causal relationships, forecast circumstances that may affect the results of the work of subordinate structures.This activity is called monitoring.

Heads of supervisory authorities

They are responsible for the work carried out by their control and audit department. At present, the role of inspectors has increased significantly. The heads of services performing departmental financial control and economic supervision, by their position, are part of the collegial structures of the respective ministries. The legislation provides for a special procedure for their appointment. Nominations must be agreed in the prescribed manner:

1. In state bodies (except for local administrative and executive structures of the basic and primary levels) and other organizations, regional associations included in the list of federal institutes, their divisions - with the Ministry of Finance.
2. In departments (subordinate institutes) - with the corresponding higher ministries, associations.
3. In local administrative and executive structures of the basic and primary levels - with the territorial divisions of the Ministry of Finance.

Work specifics

Departmental control is regulated by industry instructions. To increase the effectiveness of their work, supervisory structures develop methodological, regulatory, and reference books, directions, recommendations, suggestions, and reviews regarding the planning and implementation of inspections, and the improvement of supervisory methods. By presidential decree, ministries and other administrative institutions are obligated to carry out departmental control over the activities of all structures subordinate to them or included in them, with a federal form of ownership or with its share.

Important point

Under the ministries and other administrative structures, special organizations may be formed that exercise departmental control. In the event that it is held at an enterprise with a share of state property in the reporting period, it is exempted from annual audits. Individual responsibility for the state of supervisory activities rests with the leaders of the respective institutions.

Existing difficulties

According to experts, with the advent of new types of ownership, the expansion of the independence of existing enterprises, as well as a reduction in the number of line ministries and a change in their functions, the scope of departmental control is significantly reduced. Currently, the problem of improving supervisory methods is becoming increasingly relevant. This is primarily due to the fact that departmental control implements a subordinate, auxiliary function. It is not a separate administrative task, but only provides regulation of certain deviations in the work of business entities. In this regard, departmental control cannot make fundamental changes in the nature and form of their activities. In modern market conditions, however, this type of supervision must be reliable, responsive and mobile. In this regard, it is considered inappropriate to form a large departmental control apparatus in the ministerial structure.

Meanwhile, there is another opinion. Experts believe that departmental control should be better than non-departmental, since departments are given greater independence, they have highly qualified specialists who know better the features of the activities of subordinate enterprises. Therefore, a reduction in their numbers may lead to a decrease in the effectiveness of supervision.

Conducting internal audits at enterprises

Such departmental control is carried out by the head, accountants or employees of the insurance organization, members of the audit commission or a specially formed unit of the administrative apparatus, which is subordinate to the head. The key objective of the audit is to ensure the effective functioning at all levels of protecting the property interests of owners, shareholders and the entire enterprise as a whole. The audit is carried out according to the instructions and plan approved by the director. Unfortunately, the current qualifications of experts, their dependence on the management of branches, staff turnover the lack of specific guidelines, the imperfection of the salaries of specialists do not allow to achieve all the goals. According to the Federal Law "On Business Companies", the audit committee conducts control over the activities of such enterprises, their branches, subsidiaries, the head and officials. She is elected by the general meeting of participants. He also approved the verification procedure.

Work of the Audit Commission

This structure is responsible for overseeing compliance with:

1. Charter of the enterprise.
2. The internal routine.
3. The validity of contracts and business transactions.

The Revision Commission monitors the safety of property, the expenditure of inventory and cash, the correctness of accounting, calculation with employees, reporting. In addition, she checks the timeliness of the consideration by officials and the administration of the applications and complaints of members of the company.

Commission rights

The audit service may:

1. Check the safety of cash and property, the conformity of their use to the intended purpose.
2. Require employees for the necessary materials for the audit.
3. Participate in business audits carried out by authorized government agencies.
4. Take measures to compensate for the harm and bring the perpetrators to justice in case of theft, embezzlement and other abuses.
5. Make suggestions based on the results of inspections.

Upon completion of the activity, the commission draws up an act of departmental control. This document is attached to the annual report of the enterprise. Without the conclusion of the commission, the general meeting is not entitled to approve financial documentation. In the annual report, the commission highlights the results of its activities. In particular, in the report, the company’s participants are informed about the degree of implementation of the plan for social and industrial development, the financial condition of the enterprise, the safety of property, compliance by employees with the rules and the charter. In addition, in a separate section the results of the direct work of the commission are presented. In particular, issues related to planning, implementation of audits in the current year, key indicators, measures taken by the administration are highlighted. The report concludes with suggestions aimed at eliminating the discovered violations and deficiencies, increasing the efficiency of the enterprise next year.