Implementation of recommendations: the Ministry of Health improved the control and monitoring systems for the implementation of joint projects with the World Bank

The Ministry of Health of Ukraine (hereinafter - MOH) has improved the financial control system, optimized accounting, and strengthened monitoring of the implementation of joint projects with the World Bank. These and other measures were taken to implement recommendations of the Accounting Chamber, provided based on the results of the financial audit of the project "COVID-19 Emergency Response and Vaccination in Ukraine", financed by a loan from the International Bank for Reconstruction and Development (hereinafter - IBRD),for the period 2021-2022.

For reference. In total, the project operated from July 2021 to the end of January 2025, with funding of over $58 million.

The Audit of the Accounting Chamber revealed significant shortcomings in the internal control system of the Ministry of Health, and the accounting and reporting system for the project was ineffective and insufficiently reliable: risk management and monitoring of project deficiencies were not carried out, and the procedure for exchanging information between project participants was not established.

The failure to develop appropriate methodological recommendations complicated the formation of reporting on World Bank loans in general,  MoH officials did not actually participate in the reporting process, as the documents were prepared and signed by external consultants.

Another significant problem was the inconsistency of accounting: the accounting policy statement had not been revised since 2018,  loan transactions were not separated from the general list,  which did not comply with the terms of the loan agreement(s). Until 2022, records of the project's currency transactions were kept manually, and the MoH chart of accounts was not adapted to the existing software, which led to the use of sub-accounts not provided for by regulatory documents.

In accordance with the recommendations of the Accounting Chamber, the MoH took a set of measures to eliminate the identified violations, in particular:

- updated the accounting policy in accordance with international standards, which ensured the proper reflection of all transactions under World Bank projects;

- automated accounting, which made it possible to optimize documentation and eliminate the risks of errors in financial reporting;

- updated the Project Operations Manual, which regulated procurement procedures in accordance with the requirements of the World Bank and national legislation;

- implemented a mechanism for exchanging information between responsible units, which increased the effectiveness of risk management and financial control, etc.

The Ministry of Health has also created a system of effective financial management of international projects, which has contributed to increasing the transparency of the use of funds and ensuring compliance with international standards.

All 15 recommendations of the Accounting Chamber under control have now been implemented.