The Accounting Chamber revealed shortcomings in the use of state budget funds by the National Reserve "Kyiv-Pechersk Lavra" in the amount of UAH 29.5 million
The Ministry of Culture and Strategic Communications of Ukraine* did not fully ensure the creation and functioning of a comprehensive, regulatory, organizational system for managing the protection of cultural heritage of the National Reserve "Kyiv-Pechersk Lavra"**. The reserve was provided with funding for only half of its needs, and a small part of the necessary funds was allocated for the restoration of monuments.
This is stated in the Report on the results of the audit of the effectiveness of the use of state budget funds allocated to the National Reserve "Kyiv-Pechersk Lavra". The person responsible for the audit is Yelizaveta Pushko-Tsybulyak, a member of the Accounting Chamber. The control event covered the period 2020-2023.
Formation of the organizational structure of the reserve management
The National Reserve «Kyiv-Pechersk Lavra» is a component of the World Cultural Heritage Site "St. Sophia and the Kiev-Pechersk Lavra in Kyiv", which is included in the list of 8 UNESCO World Heritage Sites of Ukraine. It is the largest museum complex in Eastern Europe. There are 140 structures on the territory of the Reserve that are monuments of history and culture, including two unique underground complexes, architectural structures of religious significance.
The requirements for the organization of management of the World Cultural Heritage site provide for the creation of the UNESCO World Heritage Council, the Supervisory Board of the World Heritage Site, the World Heritage Site Management Authority, and the Supervisory Board of the National Reserve.
These structures have not yet been established in the Reserve, so the Ministry of Culture has not been fully ensured the implementation of certain powers and tasks in the field of management of the UNESCO heritage site, namely:
- monitoring the state of preservation of the World Heritage site;
- controlling the implementation of decisions of the UNESCO World Heritage Committee;
- participation in educational programs aimed at popularizing the World Heritage Site;
- providing conclusions on scientific and design documentation for conservation, restoration, museumization, repair and adaptation works that may affect the unique value of the site, etc.
Also, the Reserve has not approved the necessary documents for the proper organization of its activities: strategy, long-term plans for economic and social development and long-term plans for the main areas of activity.
Financing the Reserve's Needs and Use of Funds
In the period from 2020 to 2023, the Ministry allocated UAH 556.4 million under four budget programs***. At the same time, the Reserve's financing needs were met by only 51.2%, in particular, current expenditures - by 82.3%, capital - by 9.7%. The Ministry also did not use the available opportunities to redistribute budget expenditures within the total budget allocations of the main spending unit of budget funds, which created risks of non-preservation of immovable architectural monuments of national and local importance.
In general, due to ineffective management decisions, the Reserve did not use and returned to the budget UAH 25.2 million of the approved budget funds. This indicates unsystematic approach to planning and operational adjustment of activities and the budget.
The auditors also found that in 2020-2023, the Reserve used 29.5 million hryvnias uneconomically and inefficiently:
- 21.2 million hryvnias were directed to paying allowances to regular staff, although such a need was not identified;
- 500 thousand hryvnias were paid to a senior researcher of the Reserve who was illegally dismissed in 2016 for forced absenteeism;
- 7.8 million hryvnias were directed to allowances to employees who did not perform creative, museum or scientific functions.
Repair and restoration work
As of the beginning of 2024, out of 140 monuments registered with the Reserve, 38 are in unsatisfactory condition, and 4 are in emergency condition, which creates risks of their destruction.
Due to underfunding of capital expenditures, in 2020-2021 and 2023, the Reserve carried out repair and restoration work on only seven objects, for which 29.1 million hryvnias were spent.
Further failure to provide the Reserve with capital expenditures in the amounts necessary to carry out repair and restoration work on the cultural heritage objects of the Reserve increases the risks of their damage and destruction, which will lead to an increase in the amount of expenses required for their preservation.
Internal control
The Ministry did not ensure the organizational independence of the internal audit unit, which implies subordination and accountability to the head of the institution. At the same time, the unit was entrusted with functions not related to the tasks of internal audit.
The auditors found violations in the preparation of the Reserve's budget, in particular, improperly substantiated expenditure indicators in the amount of 1.9 million hryvnias.
«I would like to note that neither the Ministry nor the Reserve has created a comprehensive internal control system, tools for timely detection and prevention of negative trends are used, which would allow for prompt response and timely management decisions», – noted Yelizaveta Pushko-Tsybulyak.
It should be noted that the Accounting Chamber systematically investigates the activities of the Reserve. In 2019, an audit was conducted of the effectiveness of the use of state budget funds allocated to the Ministry of Culture of Ukraine for the preservation of historical, cultural and architectural heritage in national and state reserves, the implementation of measures to protect cultural heritage, passportization, inventory and restoration of architectural, cultural and UNESCO world heritage monuments. Of the 23 recommendations provided under this control measure, seven have not yet been implemented.
In 2023, the Accounting Chamber carried out an analysis of the management of the facilities of the National Reserve "Kyiv-Pechersk Lavra" (National Kyiv-Pechersk Historical and Cultural Reserve),which have financial implications for the state budget. Of the 14 recommendations provided under this measure, 8 were not implemented.
This year, to eliminate the identified problems and shortcomings, the Accounting Chamber recommended, in particular:
To the Cabinet of Ministers of Ukraine:
- establish the procedure for developing and approving the plan for organizing the territory of the historical and cultural reserve;
- approve the composition of the supervisory board of the Reserve;
- to ensure the maximum amount of development expenditure needs determined by the Reserve as a separate direction in the passport of the budget program under KPKVK 3801490 for the timely implementation of repair and restoration works on buildings and structures that have the status of cultural heritage monuments;
The Ministry of Culture and Strategic Communications of Ukraine:
- to determine or establish a management body for the World Heritage Site and create a supervisory board;
- create a UNESCO World Heritage Council in Ukraine;
- develop and approve recommendations on the formation of a management plan for World Heritage sites, etc.
For the National Reserve "Kyiv-Pechersk Lavra":
- develop and approve a strategy, long-term plans for economic and social development with a breakdown by year and long-term plans for the main areas of activity;
- approve a new edition of the Plan for the Organization of the Territory of the Historical and Cultural Reserve of State Importance, etc.
The State Secretary of the Ministry of Culture and Strategic Communications of Ukraine, Oleg Kurochenko, who was present at the meeting, thanked the Accounting Chamber for its work and noted that the Ministry would take into account the recommendations provided.
The report and decisions of the Accounting Chamber will be sent to the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine and the objects of control, as well as published on the official website of the institution.
*From 02.09.2019 to 22.03.2020 - Ministry of Culture, Youth and Sports of Ukraine; from 03/23/2020 to 09/05/2024 - Ministry of Culture and Information Policy of Ukraine.
**Until 2020 — National Kyiv-Pechersk Historical and Cultural Reserve.
***KPKVK 3801490 «Preservation of historical, cultural and architectural heritage in national and state reserves» in the period from 22.06.2020-01.01.2024;
KPKVK 3801170 «National measures in the spheres of culture and arts, protection of cultural heritage, export, import and return of cultural values, state language policy, interethnic relations, religion and protection of the rights of national minorities»;
KPKVK 3801340 «Fund for the development of institutions of national importance»;
KPKVK 3801280 «Fund for the development of institutions of national importance, including their construction».
