The Ministry of Education and Science will strengthen control over the use of IBRD funds for educational projects
In 2024, the Ministry of Education and Science of Ukraine (MES) adjusted the reporting to the International Bank for Reconstruction and Development (IBRD) for 2023, improved the procedure for concluding contracts with consultants, and brought the provisions of the agreement on the irrevocable transfer of funds between the Ministry of Finance and MES into line with the directions for using IBRD funds. These are the resultsof the implementation of the recommendations of the Accounting Chamber, provided following the results of the financial audit of the special purpose financial reporting under the project "Improving Higher Education in Ukraine for Results", supported by a loan IBRD (for 2023).
As a reminder, the audit found that the 2023 report included $130.5 million that did not go to a special account, as the funds were directed to replenish the general budget fund in 2021-2022. As a result, the Ministry of Education and Science corrected this information in the reporting form in 2024.
The auditors also identified a number of other systemic problems, in particular, gaps in the operational manual for the formation of accounting reports. To eliminate this deficiency, the Ministry of Education and Science has amended this manual, supplementing it with provisions on accounting for funds under the Project, features of working with accounts and reporting to the IBRD, and a cash flow chart. In accordance with the recommendations of the Accounting Chamber, the Ministry of Education and Science has also brought into line the provisions of the agreement on the irrevocable transfer of funds with the Ministry of Finance. In order to ensure automated maintenance of accounting and reporting documentation under the Project, the Ministry of Education and Science has initiated measures to finalize the modules of the automated accounting system; the technical task is currently being processed by the technical administrator of "IS-PRO". Thus, as of today, four of the five recommendations provided by the Accounting Chamber have been implemented, and one - started.
Please note that the Work Plan of the Accounting Chamber for 2025 includes conducting a financial audit of the financial statements for 2024 under this Project, therefore, monitoring the implementation of the initiated recommendation will continue within the framework of this audit.
For reference. The project "Improving Higher Education in Ukraine for Results" has been implemented since the end of 2021 and provides for a total loan of $200 million from the IBRD. Reporting on the use of these funds is prepared by the Ministry of Education and Science. Each year, the Accounting Chamber checks whether the preparation of this reporting is appropriate.