For people with visual impairments
On September 19, the Verkhovna Rada of Ukraine took another step towards improving the public external financial control (audit), passing the draft Law No. 10044-d in the first reading. This draft Law makes significant changes to the Law of Ukraine “On the Accounting Chamber”, in particular, it provides for the modernization of approaches to the audit of public funds, the strengthening of the independence of the Accounting Chamber and the implementation of the standards of supreme audit institutions (INTOSAI).
The draft Law aims to improve the key areas of activity of the Accounting Chamber. In particular, it is proposed to consolidate the status and powers of the Accounting Chamber as a supreme state collegial body of financial control (audit), and to use the INTOSAI Framework of Professional Pronouncements (IFPP) as the basis of the organizational and methodological principles of conducting audits. It is also proposed to expand the powers of the Accounting Chamber to carry out public control (audit) of local budget funds, activities of state enterprises and other entities.
In order to guarantee the independence of the Accounting Chamber, the draft Law, in particular, proposes to improve the competitive selection of Members of the Accounting Chamber and determines the quantitative composition of the Accounting Chamber. It is proposed to strengthen the financial independence of the Accounting Chamber due to the obligation of the Cabinet of Ministers of Ukraine, together with the draft Law on the State Budget of Ukraine, to submit information on the consideration of the Accounting Chamber’s proposals regarding its financial support in the mentioned draft. As for the auditors themselves, it is proposed to remove them from the scope of the Law of Ukraine “On Civil Service”, but to extend the scope of the Law of Ukraine “On Prevention of Corruption” to them.
In the draft Law, considerable attention is paid to strengthening interaction with the Parliament, among other things, it is proposed to oblige the specialized Committees of the VRU to consider the reports of the Accounting Chamber and to respond to the facts of improper implementation of the recommendations of the Accounting Chamber.
In addition, the changes proposed by the authors of the draft Law normalize the use of a risk-oriented approach by the Accounting Chamber when planning its work, improve the documentation of the results of measures of public external financial control (audit), strengthen the openness of the institution, and more.
Before the second reading of the draft law in the session hall, amendments may be made to it.
Reference: the draft Law “On Amendments to the Law of Ukraine “On the Accounting Chamber” and some other legislative acts of Ukraine” was registered in the Verkhovna Rada of Ukraine on September 16, 2024 under the number 10044-d.
After the Verkhovna Rada of Ukraine adopted the Law of Ukraine No. 3621-IX dated 21.03.2024, the powers of the Accounting Chamber to carry out compliance audits were normalized. This is the second significant draft Law, the purpose of which was to bring the status and legal basis of the Accounting Chamber closer to the standards of the International Organization of Supreme Audit Institutions (INTOSAI).
The draft Law was developed and is accompanied by a working group on the development of draft laws on the reform of the Accounting Chamber in the Committee on Budget, which includes People’s Deputies of Ukraine, representatives of the Accounting Chamber, the Ministry of Finance of Ukraine, international experts (from the EU Delegation to Ukraine, from the SIGMA Program, from USAID) and public representatives. The legislative proposals were developed taking into account the European integration obligations of Ukraine and the recommendations reflected in the relevant reports of the European Commission, in order to eliminate the main problems regarding the public external financial control (audit).
