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The Verkhovna Rada of Ukraine supported in the second reading and in general the draft Law No. 10044-d, which makes key changes to the Law of Ukraine “On the Accounting Chamber” and a number of other legislative acts. The draft law received the support of 240 People’s Deputies and became an important stage in the development of the institution, the main goal of which is to strengthen independence and expand powers.
Also, the approved draft Law is designed to improve the assessment of Ukraine’s fulfillment of European integration obligations and is one of the structural benchmarks of the International Monetary Fund.
The draft law contains several conceptual innovations aimed at improving the work of the Accounting Chamber and external audit as a whole. In particular:
Strengthening independence
The law reflects the status of the Accounting Chamber as the supreme state collegial body of financial control (audit), declares political and strengthens financial independence, and also establishes the conditions under which the authority of the institution cannot be terminated or limited. For the first time, the procedure is provided for mandatory submission by the Cabinet of Ministers of Ukraine together with the draft Law on the State Budget of information regarding the inclusion in the mentioned draft of the Accounting Chamber’s proposals regarding its financial support (with a reasoned justification) in case of disagreements regarding the amount of such support.
Optimization of the structure of the Accounting Chamber
It is planned to reduce the number of members of the Accounting Chamber and improve their powers during the coordination of control measures. It is also planned to introduce the functioning of an advisory group of experts (with the participation of international experts) for the preliminary selection of candidates for the members of the Accounting Chamber.
Extension of powers
The Accounting Chamber will receive a broader mandate to control the funds of local budgets, economic entities of the state and communal sectors of the economy, extrabudgetary funds, as well as international aid funds. It is possible to audit consolidated financial statements of public sector entities and budgets.
Improvement of audit procedures
The new draft Law also provides for a risk-oriented approach to the selection of objects of control and audits, as well as simplification of the documentation of results, in particular, the cancellation of the obligation to draw up audit certificates.
Increasing the effectiveness and impact of the Accounting Chamber’s recommendations
It is planned to introduce updated approaches to monitoring the implementation of the recommendations of the Accounting Chamber and the procedures for reviewing the results of audits by the relevant committees of the Verkhovna Rada of Ukraine.
External evaluation of the Accounting Chamber’s activity
An external financial audit of the Accounting Chamber will be conducted at least once every three years, and an external assessment of compliance with international standards, taking into account the rules of transitional provisions, every five years.
“I would like to emphasize that the adopted law is far from the first and not the last positive changes in our institution. Thus, since the beginning of this year, the Accounting Chamber has already carried out all audits in accordance with methods developed on the basis of international standards, internal management processes have been significantly improved, a comprehensive analysis of the recommendations of the Accounting Chamber over the past 6 years has been carried out, control over the process of their implementation has been strengthened, etc.”, commented the Chairwoman of the Accounting Chamber Olha Pishchanska on the adoption of the draft law. She also thanked colleagues, parliament and international partners for their contribution to the development and adoption of this important document.
The law will enter into force after being signed by the President of Ukraine and officially promulgated, taking into account the final and transitional provisions.
