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Key Agreements and Funding Allocation
The Accounting Chamber of Ukraine conducts systematic control for the use of international budget support and provides recommendations to enhance the efficiency of these funds. Implementing the recommendations provided as a result of its audits contributes to improved financial discipline, greater transparency in state resource management, and stronger trust between partner countries.
US assistance has constituted a significant portion of international support for Ukraine during 2022–2024, making this funding source a key factor in ensuring economic and social stability during wartime.
The total amount of direct budget support provided by the US government during the specified period exceeds USD 30 billion*. These funds were implemented through several main agreements:
- Project “Support for Public Expenditures to Ensure Sustainable Public Management in Ukraine” (PEACE in Ukraine): USD 27.05 billion, including USD 12.7 billion for the State Pension Fund.
- Additional Agreement No. 8 to the Task Implementation Agreement in the Field of Development (dated June 09, 2022, No. TF0B9122): USD 1.7 billion.
- Grant of the Targeted Fund for Multilateral Donor Cooperation (dated April 21, 2022, No. TF0B8350): USD 1.1 billion.
Conducted Audits and Their Results
Within the framework of four audits, the Accounting Chamber examined the use of a portion of the direct budget support provided by the US to Ukraine. The audit results—including those conducted with the support of the Center for Audit Excellence of the US Government Accountability Office (GAO)—confirmed that the financial support provided by the USA was used effectively and in accordance with the defined objectives. It was a decisive factor in the country's resilience, especially at the onset of the large-scale invasion. The partner funds enabled the avoidance of a crisis in social payments, the timely payments of pensions and salaries, the support of the healthcare system, and the provision of basic humanitarian needs for the population.
1. Financial Audit of the Grant from the Targeted Fund for Multilateral Donor Cooperation (Accounting Chamber’s Decission No. 14-1, dated July 11, 2023)
The audit confirmed the accuracy of the financial statements related to the grant. No violations of the legislation regarding the receipt and accounting of the grant funds were detected.
2. Performance Audit “Direct Budget Support from the US Government and Other Donors to Meet Ukraine’s Vital Population Needs during Wartime” (Accounting Chamber’s Decission No. 31-1, dated December 21, 2023)
The audit confirmed that the grant funds were targeted for meeting the basic needs of the population, including the payment of salaries for educators and healthcare workers. Based on the audit, the Accounting Chamber recommended improving verification procedures for recipients, enhancing information exchange between state IT systems and registries, and implementing mechanisms to streamline and optimize social payments.
3. Performance Audit “US Direct Budget Support at the Beginning of the Russian Military Invasion of Ukraine: Preventing Collapse and Preserving the Resilience of the Ukrainian Healthcare System” (Accounting Chamber’s Decission No. 31-2, dated December 21, 2023)
The audit confirmed that USD 1.7 billion of direct budget support was allocated to finance the government-guaranteed medical care program, ensuring uninterrupted medical services during wartime. At the same time, the audit provided recommendations to strengthen internal controls within the National Health Service of Ukraine (NHSU) to prevent future overpayments.
4. Performance Audit “Resilience of the Ukrainian Pension Fund during Wartime” (Accounting Chamber’s Decission No. 49-2, dated October 22, 2024)
The Accounting Chamber auditors confirmed that, under wartime conditions, the Ukrainian Pension Fund managed to ensure stable pension payments for over 10 million pensioners, partly through the engagement of loans and grants under the PEACE Project, whose primary donor was the USA. The funds—namely, USD 12.7 billion—were used for their intended purposes. Meanwhile, the Accounting Chamber recommended that the Pension Fund continue improving its internal work processes and provide interaction between state registries to enhance the efficiency and transparency of pension payments.
Main Findings from the Audits
The audits have confirmed that US financial support was used effectively and in accordance with the defined objectives, thereby contributing to the country’s financial stability during wartime.
Moreover, these audits have identified several factors, the elimination of which will contribute to greater future efficiency in fund usage—including international support—and to the improved functioning of relevant state systems overall. This includes the need to enhance the internal control of responsible authorities, increase the transparency of financial processes, establish modern mechanisms for verifying social payments, and improve the tracking of aid recipients, among other measures.
“The recommendations provided by the Accounting Chamber are aimed at strengthening the control over the use of international assistance, addressing identified shortcomings, and improving overall budget management. Their implementation will contribute to the more efficient use of funds, which is a crucial step in maintaining the trust of international partners and reinforcing Ukraine’s financial resilience during the war and in its subsequent recovery,” stated Olha Pishchanska, Chairwoman of the Accounting Chamber, summarizing the analysis of the audit recommendation outcomes.
Key Outcomes from the Implementation of the Recommendations on US Aid Audits
- Medical Services:
- In accordance with the Accounting Chamber’s recommendations following the audit, in 2024, UAH 14.6 million (USD 500,000) was reimbursed to the budget. This amount represents 75% of the overpaid funds under the “Ensuring the Retention of Human Resources for Medical Services” package.
- Additionally, following the Accounting Chamber’s recommendations, the internal audit unit of the NHSU identified an overpayment of UAH 46.8 million (USD 1.6 million), of which UAH 4.3 million (USD 140,000) has been reimbursed as of 05 March 2025.
- Verification of Aid Recipients:
- The Ministry of Economy of Ukraine verified individuals who improperly received aid under the “eSupport” Program, reimbursed UAH 122.7 million (USD 4.2 million) from 19,000 persons.
- Compatibility and electronic interaction were ensured between the Central Database of the Electronic Healthcare System and the State Registry of Individual Taxpayers and the Registry of Insured Persons of the State Registry of Compulsory Social Insurance.
- Verification procedures for aid recipients were improved, information exchange between state IT systems and registries was established, and mechanisms for streamlining and optimizing social payments were implemented.
- Improvements of the Pension Fund’s operation:
- Special pensions exceeding the maximum limit were curtailed.
- An electronic document circulation system was implemented for pension recipients who have emigrated permanently.
- Methodological recommendations were approved for transferring funds to institutions where individuals are under full state support.
- A new version of the information exchange protocol for verifying pension payments was approved.
- The mechanism for the appointment and payment of additional allowances to non-working pensioners residing in radioactively contaminated zones during martial law in Ukraine was improved.
- A monthly selective processing of information about pension recipients receiving increases under the Law “On the Status of Mountain Settlements in Ukraine” is being carried out.
- Persons responsible for updating directories of settlements affected by hostilities or temporarily occupied by the Russian Federation were designated.
- Passports for budget programs in the field of pension provision were implemented.
- Criteria and a reporting framework for the centralization of accrued and paid amounts accounting by court decisions were developed.
- The circle of persons with disabilities and the specific circumstances under which the medical advisory commission will not refer such individuals for reexamination were defined.
The implementation of the Accounting Chamber’s recommendations under results of these audits contributes to systematic improvements in management and transparency in fund accounting, ensuring that key stakeholders remain confident that these funds are used in accordance with the terms of the agreements and are received by the proper beneficiaries.
*According to data from the Ministry of Finance of Ukraine as of 30 December 2024.
For more details on the conducted audits of the US direct budget support, please refer to the presentation via the provided link.
