FINANCIAL SECURITY POLICY OF TERRITORIAL COMMUNITIES: DEVELOPMENT, IMPLEMENTATION, EVALUATION

Abstract

The article substantiates the relevance of the development and implementation of financial security policy at the level of territorial communities and proposes its structure in the areas of: purpose and strategic priorities of financial security of the community; the volume of the reserve fund, the procedure for its formation and use; local debt management; accounting, audit and financial reporting of local self-government bodies, budgetary institutions and organizations, communal property enterprises; operating budget; investments; procurement; capital financing planning; risk management; long-term financial planning; improving tax administration; economic development of the territorial community. The peculiarities of the formation of the financial stability reserve are revealed, ie the establishment of minimum levels of funds to ensure stable servicing of local debt, meeting future needs and protection against financial instability. The focus is on local debt management as a determinant of financial security, as well as ensuring the financial stability of the system of communal property enterprises. Emphasis is placed on the need to develop separate methods for assessing the level of financial security at the level of local communities, as existing approaches focused on the national level or the level of economic entities will not allow to reliably assess financial security at the local level. The development of the methodology for assessing the financial security of territorial communities focuses on two basic aspects: taking into account the peculiarities of the functioning of the system of local self-government in Ukraine, the universality of application for all territorial communities. The methodology is proposed as a matrix of indicators that demonstrate the competitive advantages and weaknesses of the local community, assess the performance of local governments, local economic development, and identify potential opportunities for financial development of the community, including by ranking within the region.