Ukraine Facility: Enhanced Monitoring and Audit Procedures
Mykola Siutkin
You do business, we mitigate risks | Business Investment Risk Advisor | Co-founder of S&P Agency | Attorney | Co-publisher LDaily | Ironman
The Government of Ukraine has initiated a crucial structure for the management, monitoring, and control of funds allocated through the European macro-financial assistance program, known as the Ukraine Facility. Through the adoption of Resolution No. 1318, the Cabinet of Ministers formalized these processes to ensure the diligent use of the substantial aid provided by the European Union.
The Role of the State Audit Service
Central to this framework is the designation of the State Audit Service as the primary body for financial oversight. This institution is tasked with verifying expenditures related to the ambitious reforms outlined in the Ukraine Plan. This includes scrutinizing public procurement processes, compensation payments, and loans to ensure compliance and efficiency.
Additionally, functioning as the Anti-Fraud Coordination Service (AFCOS), the State Audit Service is vested with the responsibility to implement specific provisions outlined in the Framework Agreement between Ukraine and the EU. These provisions relate to fostering integrity and accountability in the utilization of funds under the Ukraine Facility instrument.
Collaborative Efforts for Transparency
In a bid to bolster transparency and effectiveness, the Ministry of Finance will collaborate with the State Audit Service to conduct a comprehensive audit of the Ukraine Plan's implementation. This Plan, approved by the Government on March 18, 2024, features over 150 performance indicators across 69 reform areas, with a strategic timeline extending through 2027.
Alla Basalayeva, the Head of the State Audit Service of Ukraine, highlighted the critical nature of this financial oversight. She pointed out the enhancements being made in auditing methodologies and the expansion of the Service's institutional capabilities. These steps are pivotal in assuring that the funds received from the EU are managed transparently and contribute significantly towards both immediate economic support and the longer-term objective of EU integration.
EU’s Financial Support to Ukraine
The Ukraine Facility is a testament to the EU's commitment to Ukraine, providing a whopping 50 billion euros from 2024 to 2027. This financial assistance is targeted at facilitating vital reforms necessary for Ukraine’s closer integration and potential future membership in the EU. The structured oversight and audit mechanisms put in place by the Ukrainian Government align with the broader goal of ensuring that these funds are utilized in the most effective and accountable manner possible.
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