NADS improved internal control to implement the recommendations of the Accounting Chamber

The National Agency of Ukraine for Civil Service (hereinafter - NACS) has strengthened internal control and taken steps to improve the administration of its information resources. This will contribute to improving the quality of the implementation of the tasks assigned to the institution.

The measures were implemented to implement recommendations of the Accounting Chamber, provided based on the results of the audit of the effectiveness of the use of state budget funds allocated to NACS for management and functional management in the civil service, and the state of internal control of the main spending unit of state budget funds. It should be noted that the audit covered the period of the second half of 2021 – First half of 2023.

During the audit, it was found, in particular, that budget requests for 2022-2023 for a total amount of almost 21 million UAH were submitted to the National Agency for the State Supervision of Public Administration without economic justifications for the calculations of quantitative and cost indicators, without indicating the amount of available equipment and long-term items and the degree of their wear and tear.

Also, without proper economic justifications and detailed calculations, budget appropriations for a total amount of 13.45 million UAH were approved. Cases of insufficient internal control were also identified. All this could have led to improper use of budget funds.

Accordingly, in accordance with the recommendations of the Accounting Chamber, the NADS:

developed administrative regulations for the process of drawing up the budget and estimate and managing the allocated budget appropriations;

made amendments to the Instructions for organizing internal control and risk management in the NADS;

developed and approved administrative regulations for the process of administering the NADS's information resources, etc.

Having analyzed the information provided by the object of control, the Accounting Chamber concluded that the NADS had implemented all the recommendations provided. Therefore, the control over their implementation has been completed.

We note that according to the results of this audit, the Accounting Chamber drew attention to the fact that within the framework of the implementation of the government Strategy for the Reform of Public Administration of Ukraine for the period until 2021, the NADS was tasked with reforming the system of remuneration of civil servants, which was supposed to be implemented by 2023. However, the relevant draft Law of Ukraine “On Amendments to the Law of Ukraine “On Civil Service” regarding the introduction of unified approaches to the remuneration of civil servants based on the classification of positions” has not yet been adopted by the Verkhovna Rada, so the reform has not been fully implemented.

Since the implementation of the reform – international obligation of Ukraine under the Association Agreement with the European Union, the Accounting Chamber has launched a compliance audit on the topic of "Reform of the remuneration system in the public administration". The control measure will cover the period 2023 - 1st half of 2025 and aims to establish the status of the implementation of measures within the framework of the aforementioned reform.