Cross-border cooperation with EU countries: report on the work of the groups of auditors under the ENI PPP and Interreg NEXT programs in 2024 approved

The audit teams of the Chamber of Accounts for the joint operational programmes of cross-border cooperation of the European Neighbourhood Instrument 2014-2020 (hereinafter - ENI CBC) and Interreg NEXT 2021-2027 reported on their work for 2024. The information is set out in the relevant report, which was approved by the Chamber of Accounts.

In 2024, the implementation of four ENI 2014-2020 PPPs continued in Ukraine:

-  «Ukraine – Poland – Belarus» (cooperation with Belarus suspended);

-  «Ukraine – Hungary – Slovakia – Romania»;

-  «Ukraine – Romania»;

-  «Black Sea Basin».

The implementation of four Interreg NEXT 2021-2027** programs has also been launched:

- «Poland – Ukraine»;

- «Hungary – Slovakia – Romania – Ukraine»;

- «Romania – Ukraine»;

- «Black Sea Basin».

These programs implement projects aimed at solving problems related to infrastructure, ecology, social development, education, culture, tourism, preservation of ethnographic heritage, integration of people with disabilities into public activities, etc. The programs are implemented in border regions with Poland, Slovakia, Hungary and Romania, as well as those with access to the sea.

In April - July 2024, the Group of Auditors conducted two system audits of the Interreg NEXT programs "Romania - Ukraine" and «Black Sea Basin», during which the national part of the management and control systems was assessed, in particular in terms of the tasks of the National Management Body (Secretariat of the Cabinet of Ministers of Ukraine) and the National Controller (State Audit Service).

The following shortcomings were identified as a result of the audits:

- lack of an approved procedure for the functioning of the management and control system for Interreg NEXT programs;

- uncertainty of procedures for management checks by the National Controller;

- lack of procedures for preventing and detecting fraud by program participants, etc.

In November 2024, the Group of Auditors monitored the implementation of the recommendations provided under the two aforementioned audits and found that the Cabinet of Ministers of Ukraine and the State Audit Service had implemented most of them. In particular, the Resolution of the Cabinet of Ministers of Ukraine dated November 5, 2024 No. 1268 “On the introduction of a system of management and control over the implementation of the Interreg and Interreg NEXT cross-border and transnational cooperation programs” was developed and adopted, which:

- determined the mechanism of the system's functioning;

- regulated the issue of conducting management audits;

- regulated the issue of preventing, detecting and eliminating fraud within the framework of program implementation.

As a result, the auditors increased their assessment of the functioning of the program management and control system.

The results of the conducted system audits and monitoring of the implementation of the recommendations provided were sent to the Romanian Court of Accounts (Program Audit Authority) and agreed with the auditees.

All tasks received during 2024 from the audit authorities of the EU Member States were completed by the audit teams in a timely manner and in full.

Information on the activities carried out by the audit teams, in particular the audits conducted, their results and the status of implementation of the recommendations provided based on their results, was submitted quarterly to the Government of Ukraine, which in turn informs the European Commission on the status of implementation of the operational conclusions based on the results of the meetings of Cluster 5 of the Subcommittee on Economic and Other Sectoral Cooperation of the Association Committee between Ukraine and the EU. The above-mentioned operational conclusions, among other things, provide for Ukraine to ensure the effective functioning of the management and control systems for the Interreg NEXT 2021-2027 programs.

 Reference

*In December 2016, the Government of Ukraine and the European Commission signed four agreements on financing joint operational programs of cross-border cooperation of the European Neighborhood Instrument. The total budget of the ENI PPP programs implemented in Ukraine is about 403 million euros, about 90% of which is EU funds allocated on a non-repayable basis.

**In November 2023, the Government of Ukraine approved agreements on the financing of four cross-border and transnational cooperation programs for the programming period 2021-2027 under the Interreg NEXT programme. The total budget of these programs implemented in Ukraine is about 500 million euros, about 90% of which are EU funds allocated on a non-repayable basis.