US support in 2022–2024: The Accounting Chamber confirmed the use of funds in accordance with the concluded agreements

Main agreements and distribution of funding

The Accounting Chamber exercises systematic control over the use of international budget support and provides recommendations to increase the efficiency of the use of these funds. Implementation of recommendations provided based on the results of its relevant audits contributes to improving financial discipline and transparency in the management of public resources and maintaining trusting relations between partner countries.

Assistance from the United States of America accounted for a significant part of international support to Ukraine during 2022-2024, which determined this source as a key factor in ensuring economic and social stability in wartime conditions.

The total amount of direct budget support provided by the US government during the specified period is over 30 billion dollars*. These funds were implemented through several major agreements:

1. The project "Support for Public Expenditures to Ensure Sustainable Public Governance in Ukraine" (PEACE in Ukraine) – 27.05 billion USD, of which for PFU – 12.7 billion USD.
2. Additional Agreement No. 8 to the Agreement on the Implementation of the Development Task (09.07.2022 No. TF0B9122) – 1.7 billion USD.
3. Grant of the Trust Fund for Multilateral Donor Cooperation (21.04.2022 No. TF0B8350) – 1.1 billion USD.

Audits Conducted and Their Results

Accounting Chamber Within the framework of four audits, the US government audited the use of part of the direct budget support of the United States to Ukraine. The results of the audits, conducted, among other things, with the support of the Center for Audit Excellence of the Government Accountability Office of the United States of America, confirmed that the financial support provided to Ukraine by the United States was used effectively and in accordance with the specified goals. It was a decisive factor in the country's resilience, especially at the beginning of the large-scale invasion. The partnership funds made it possible to avoid a crisis in the field of social benefits, to pay pensions and salaries on time, to support the health care system and to ensure the basic humanitarian needs of the population.

1. Financial Audit of the grant of the Multilateral Donor Cooperation Trust Fund (Decision of the Accounting Chamber dated 11.07.2023 No. 14-1).

The audit confirmed the reliability of the financial statements related to the grant. No violations of the law were identified regarding the receipt and accounting of grant funds.

2. Efficiency Audit Direct Budget Support of the US Government and Other Donors to Ensure the Vital Needs of the Population of Ukraine in Wartime" (Decision of the Accounting Chamber dated 12.21.2023 No. 31-1).

The audit confirmed the targeted use of grant funds to ensure the basic needs of the population, in particular, for the payment of teachers and medical workers. Based on the audit results, the Accounting Chamber recommended improving the procedures for verifying recipients, establishing information exchange between state IT systems and registers, and introducing mechanisms for streamlining and optimizing social payments.

3. Efficiency Audit Direct US Budget Support at the Beginning of Russia's Military Invasion of Ukraine: Preventing Collapse and Maintaining Stress Resilience of the Ukrainian Medical Services System" (Accounting Chamber Decision No. 31-2 of 21.12.2023).

The Auditing Chamber's audit confirmed that $1.7 billion of direct budget support was directed to financing the program of state guarantees of medical care for the population, which ensured the uninterrupted provision of medical services under martial law. At the same time, the audit results provided recommendations to strengthen internal control of the National Health Service of Ukraine (hereinafter - NSZU) to prevent individual overpayments in the future.

4. Performance Audit Stability of the Pension Fund of Ukraine under Martial Law»  (Accounting Chamber decision dated 10/22/2024 No. 49-2).

The auditors of the Accounting Chamber confirmed that in wartime conditions the Pension Fund of Ukraine managed to ensure stable pension payments for over 10 million pensioners, in particular thanks to the attraction of loans and grants under the PEACE Project, the main donor of which was the USA. The specified funds, namely 12.7 billion USD , were used for their intended purpose, while the Accounting Chamber recommended that the Pension Fund continue to improve its internal work processes and ensure interaction between state registers to increase the efficiency and transparency of pension payments.

Main conclusions based on the audit results

Thanks to the audits conducted, the Accounting Chamber confirmed that US financial support was used effectively and in accordance with the specified goals, contributing to ensuring the country's financial stability under martial law.

These audits also revealed a number of factors, the elimination of which will contribute to greater efficiency in the use of funds, including international support, and better functioning of the relevant state systems in general. These include the need to improve internal control of responsible bodies, the need to increase the transparency of financial processes, the establishment of modern mechanisms for verifying social payments, improving the accounting of beneficiaries of assistance, etc.

«The recommendations proposed by the Accounting Chamber are aimed at strengthening control over the use of international assistance, eliminating identified shortcomings, and improving budget management in general. Their implementation will contribute to increasing the efficiency of the use of funds, which is an important step for maintaining the trust of international partners and strengthening the financial stability of Ukraine in the conditions of war and further restoration of the country,»– noted the Head of the Accounting Chamber Olga Pishchanska, after analyzing the results of the implementation of the recommendations of these audits.

Main results of implementing recommendations from US aid audits

• Medical services:

- In order to implement the recommendations of the Accounting Chamber based on the audit results, in 2024, UAH 14.6 million (USD 500 thousand) was returned to the budget, which in total constitutes 75% of the overpayments for the medical services package "Ensuring the preservation of human resources for the provision of medical care" funds.

- In addition, in accordance with the recommendations of the Accounting Chamber, the internal audit unit of the National Health Service of Ukraine identified an overpayment of UAH 46.8 million (USD 1.6 million),of which UAH 4.3 million (USD 140 thousand) has already been reimbursed as of March 5, 2025.

• Verification of beneficiaries:

- The Ministry of Economy of Ukraine verified persons who illegally received assistance through the “eSupport” Program. UAH 122.7 million (USD 4.2 million) was reimbursed from 19 thousand persons.

- Compatibility and electronic interaction of the Central Database of the Electronic Health System with the State Register of Individuals — taxpayers and the Register of Insured Persons of the State Register of Compulsory State Social Insurance.

- The procedures for verifying beneficiaries have been improved, information exchange between state IT systems and registers has been established, and mechanisms for streamlining and optimizing social payments have been introduced.

• Improving the work of the Pension Fund:

- Special pensions exceeding the maximum amount have been limited.

- Electronic circulation of documents of pension recipients who have left for permanent residence abroad has been introduced.

- Methodological recommendations for transferring funds to institutions in which persons are fully supported by the state have been approved.

- A new version of the protocol on information exchange for verifying pension payments has been approved.

- Improved mechanism for assigning and paying additional payments to non-working pensioners for living in a radioactive contamination zone for the period of martial law in Ukraine.

- Every month, selective processing of information on pension recipients who receive an increase in accordance with the Law of Ukraine “On the Status of Mountain Settlements in Ukraine” is carried out.

- Those responsible for updating directories of settlements where hostilities are taking place or temporarily occupied by the Russian Federation have been identified.

- Passports for budget programs in the field of pension provision have been introduced.

- Criteria and reporting logic have been developed for centralizing accounting of accrued and paid amounts by court decisions.

- A range of persons with disabilities and clear circumstances under which the medical advisory commission will not refer such persons for re-examination have been determined.

Implementation of recommendations, provided by the Accounting Chamber based on the results of these audits, contributes to systemic improvements in the management and transparency of accounting for funds, ensuring the confidence of key stakeholders in the use of these funds in accordance with the terms of the agreements concluded and their receipt by the appropriate beneficiaries.

*According to the data of the Ministry of Finance of Ukraine as of December 30, 2024.

More details about the audits of direct US budget support in the presentation by link