2001年-世界发展银行全球_Ukraine___Country_Financial_Accountability_Assessment_43页_2mb

Ukraine: Country Financial Accountability Assessment Summary

Core Content

This document is a Country Financial Accountability Assessment (CFAA) conducted by the World Bank in 2001, aimed at evaluating the financial accountability framework in both the public and private sectors of Ukraine. The assessment was based on interviews with public and private institutions and a detailed legal and institutional analysis.

Main Purpose

The primary objective of the CFAA is to:

• Assess the adequacy of the financial accountability framework in ensuring proper use of public and private funds.
• Identify systemic weaknesses that pose fiduciary risks for World Bank programs and funds.
• Provide recommendations for improving financial governance and accountability.
• Support dialogue between the World Bank, the Ukrainian government, and other development partners.

Key Findings

1. Government Structure and Accountability

• Ukraine is a presidential democracy with a unitary state structure.
• The President is directly elected and holds executive power, while the unicameral Parliament provides legislative oversight.
• The Cabinet of Ministers is accountable to the President and is also subject to parliamentary oversight.
• Civil society is growing but still weak, and the Parliament has a working majority since 2000 supporting reforms.

2. Budgeting System

• The budgeting system was previously based on a centralized planning model.
• A new Budget Code was enacted in July 2001, replacing the old Law on Budget System (1990), which had contradictions with later regulations.
• The Budget Resolution (approved by Parliament by June 15 of the previous year) provides the policy framework for budget preparation.
• Budget implementation is based on monthly requirements rather than daily cash flow management.

3. Public Sector Financial Management

• The Central Control and Revision Department (KRU) acts as the vigilance department, monitoring spending and imposing penalties.
• Internal audit is lacking in Ukraine, as the KRU is not equipped to perform comprehensive internal audit functions.
• Revenues are not audited by independent auditors, and the Accounting Chamber (AC) is prohibited from auditing revenue.
• The Parliament's Budget Committee lacks the technical and research support needed to review audit reports effectively.

4. Accounting and Financial Reporting

• The Accounting Chamber is the main authority for financial reporting and auditing.
• The Treasury functions as the "Accountant General", preparing annual financial statements and managing public funds.
• Management information systems (MIS) are underdeveloped, despite strong bookkeeping skills in the public sector.
• National Accounting Standards (NAS) are in place, but compliance is weak, and enforcement mechanisms are inadequate.

5. State-Owned Enterprises (SOEs)

• SOEs are not subject to audit by the AC, except for budgetary allocations.
• Financial audits of SOEs are performed by Ukrainian firms, but the results are not reviewed by Parliament.
• The accountability of SOEs remains unclear.

6. Private Sector Accounting and Auditing

• The Ukrainian Federation of Professional Accountants and Auditors (UFPAA) and Chamber of Auditors are underdeveloped.
• Entry procedures for auditors are relaxed, and disciplinary enforcement is weak.
• The National Bank of Ukraine (NBU) has adopted International Accounting Standards (IAS), but the audit profession lacks credibility and professional competence.

Key Recommendations

• Bring revenues under independent external audit to improve transparency.
• Introduce internal audit as a formal function in the public sector.
• Strengthen the capacity of the Accounting Chamber (AC) to conduct financial statement audits.
• Enhance the accountability of SOEs by requiring them to be subject to audit.
• Adopt IAS for selected enterprises and ensure compliance.
• Adopt international best practices for licensing auditors and strengthen the disciplinary committee of the Chamber of Auditors.
• Train departmental staff in program budgeting and management accounting.
• Fully implement the Budget Code and expedite the Treasury modernization project.
• Implement standardized automated accounting and reporting systems in budget spending units.
• Strengthen revision and control departments in line ministries for internal audit.
• Amend business laws to improve corporate governance, particularly the rules on appointment and removal of auditors.

Conclusion

The assessment highlights the transition challenges Ukraine faces in moving from a Soviet legacy to a market-based economy. Despite legal and institutional progress, systemic weaknesses in financial accountability persist, particularly in revenue auditing, internal audit, and professional auditing standards. To ensure effective financial governance, Ukraine must strengthen its institutional capacity, train personnel, and adopt international standards. The World Bank plays a critical role in supporting these reforms to mitigate fiduciary risks and improve public financial accountability.