Communities and authorities are addressing shortcomings and improving the management system for reconstruction projects
Opportunities have been created to complete reconstruction projects initiated in previous years and certain identified shortcomings in the implementation of these projects in the regions have been eliminated in order to implement recommendations of the Accounting Chamber, provided based on the results of the audit «Territorial communities at war: restoration of social and critical infrastructure».
As a reminder, the audit showed that the Ministry of Community and Territorial Development of Ukraine (hereinafter - the Ministry of Development),local authorities and local self-government bodies during 2023 and the first half of 2024 did not ensure effective control over the implementation of reconstruction projects funded by subventions from the state budget.
It was planned to implement 336 reconstruction projects in 2023-2025 using subventions. However, in 2023, only 36.9% of the allocated amount was used, and in the first half of 2024 - 16.8%. Therefore, a significant part of the projects were not completed within the specified time frame.
In accordance with the recommendations of the Accounting Chamber, the Cabinet of Ministers of Ukraine approved amendments to the Procedure for the Use of Funds for the Elimination of the Consequences of Armed Aggression, thanks to which funds unused by January 1, 2025 are allowed to be directed to the completion of restoration projects started in previous years.
In turn, the Ministry of Development and Trade is working on improving legislation in the field of restoration of territories, in particular, it is finalizing the draft law "On the Principles of Restoration of Ukraine". After the Government approves the composition of the restoration territories, the Ministry of Development and Infrastructure plans to develop a draft Plan for the Restoration and Development of Regions in cooperation with the authorities.
Also, individual control objects have taken or initiated measures to eliminate the shortcomings and violations identified by the auditors:
- The Department of Capital Construction of the Odessa City Council adjusted the overstated cost of works by 365.8 thousand UAH for two construction sites of main water supply networks in the city. The corresponding changes are reflected in the acts of work performed, and the specified amount was taken into account when paying for December 2024;
- in four regions, individual control objects have already begun work on implementing measures aimed at returning to the state budget unreasonably accrued and paid VAT amounts included in the cost of construction and installation works for housing construction projects;
- regional and city administrations also informed the Accounting Chamber about familiarization with the audit materials and indicated that they will take them into account in their further work.
Currently, the control objects have implemented a total of 15 out of 43 recommendations provided by the Accounting Chamber. For another 27 recommendations – have begun implementation.
The Accounting Chamber continues to monitor the implementation of measures to eliminate shortcomings and violations identified by the audit results, and will inform the public about the results achieved.