Internal control within the conditions of performance budgeting of universities

Abstract

Subject. This article discusses the issues of improving the financing of universities, the development of performance-based budgeting to support their activities. Objectives. The article aims to assess the problematic aspects of financial support for the activities of higher education institutions, including using the performance-based budgeting, and identify the features of its implementation that affect the system of internal control at universities. Methods. For the study, we used the methods of analysis, grouping, comparison, and generalization. Results. The article summarizes the problematic provisions of financing the activities of universities, including the use of the performance-based budgeting method, and justifies the need to transform the internal control of universities. Conclusions. The article concludes that the development of the system of financing the activities of universities generally corresponds to foreign practice, although there are some shortcomings in the financing of higher education institutions. Internal control of universities should be modernized taking into account the strategic nature of the project financing process and the possibilities of digitalization of control activities.