Ukraine : Country Financial Accountability Assessment

Abstract

Ukraine has several strengths, such as
 an educated workforce, strong bookkeeping skills, and
 commitment to reforms, and a long-term vision of joining the
 European Union. In order to strengthen existing public
 financial accountability, Ukraine will need to build on its
 strength by undertaking several measures. Experience in many
 other countries shows that several required changes entail
 reaching political consensus, reforming existing
 institutions, or creating new institutions. This suggests
 that a realistic timetable for improvement in public
 financial accountability will have to stretch over several
 years and will depend on strong leadership from the top. The
 most important areas for action are: bringing revenues under
 the scope of independent external auditors; introducing the
 concept of internal audit; strengthening the capacity of the
 Accounting Chamber to conduct financial statement audits;
 strengthening the accountability of state owned enterprises;
 introducing international accounting standards for selected
 enterprises; adopting international best practices for
 licensing of audit professionals; and strengthening the
 disciplinary committee of the Chamber of Auditors to provide
 effective oversight. Other measures needed are to: train
 deparmtnetal staff in implementing program budgeting; fully
 implementing the Budget Code; expediting the implementing of
 the Treasury modernization project; and implementing
 standardized automated accounting and reporting systems.