Building Accountability in Ukraine’s Public Sector: The Emerging Role of Audit Committees
As Ukraine continues to modernise its public administration and strengthen its public finance management system, the introduction of audit committees is emerging as a promising reform direction.
Recognised internationally for their value in promoting transparency and accountability, audit committees are now being explored in the Ukrainian context.
EU4PFM is supporting the Ministry of Finance in the process of establishing audit committees as part of wider efforts to improve internal audit and -control, risk management, and institutional resilience.
Why Audit Committees Matter
Audit committees serve as independent oversight bodies within public institutions. Their core role is to provide structured advice and assurance on internal control, risk management, and internal audit. In Ukraine — where institutions are navigating a complex reform landscape — audit committees can offer an important platform for expert dialogue, challenge, and continuous improvement.
They can help management and audit units:
– Strengthen internal control environments;
– Maintain the independence of internal audit;
– Address risks proactively;
– Ensure better follow-up on audit recommendations.
As highlighted in the Ministry of Finance’s 2022 handbook on audit committees, these bodies can help decision-makers in public institutions see beyond day-to-day concerns, offering space for strategic reflection and independent input.
A Strengthened Legal Framework
Ukraine’s legal and regulatory environment now provides a clear foundation for the establishment of audit committees. The Budget Code has been amended to require that audit committees be established as advisory bodies in all key spending units of the State Budget. This legal provision ensures that ministries and other central government institutions receiving state budget funds will integrate audit committees into their governance architecture.
In addition, Cabinet Resolution No. 1001, amended in May 2025, defines the purpose, key tasks, and operational principles of audit committees within state institutions.
Together, these regulatory instruments create both the mandate and the framework for implementation.
Functions and Focus
Audit committees in Ukraine can initially play a supportive role — providing insight on the functioning of internal audit, reviewing reports, and helping ensure follow-up actions are implemented. In time, their role may evolve to a broader oversight function, with responsibilities that include:
– Reviewing internal audit plans and performance;
– Monitoring implementation of audit recommendations;
– Advising on institutional risk profiles and control weaknesses.
The Ministry of Finance’s national guidance encourages a phased approach. Committees should grow into their role, starting with focused advisory tasks and progressively expanding their remit as confidence and capacity build.
Composition and Expertise
For audit committees to be effective, a balance of expertise and independence is essential. Ukrainian guidance suggests a mix of internal and external members, typically 3–5 people, with backgrounds in audit, finance, public administration, or risk management.
Independent members — particularly from academia, retired civil servants, international experts/organizations or civil society — can bring valuable outside perspectives. Committees should also be supported through training and access to relevant information to ensure their work is credible and informed.
Alignment with International Standards and EU Accession Requirements
The establishment of audit committees is also aligned with the Global Internal Audit Standards, which emphasize the need for internal audit to be functionally independent and supported by a governance structure that ensures objectivity and oversight. According to these standards, an audit committee — or equivalent oversight body — should be in place to approve the internal audit plan, monitor implementation, and safeguard the independence of the internal audit function. In the Ukrainian context, the creation of audit committees can play a critical role in meeting these standards, particularly in ministries and central bodies where internal audit units are often embedded in broader administrative hierarchies. Importantly, alignment with the Global Internal Audit Standards is also part of the EU accession requirements under Chapter 32 (Financial Control). Establishing audit committees therefore supports both improved governance and Ukraine’s broader European integration objectives.
International Experience and Adaptation
Audit committees are a common feature in many EU and OECD countries. In Ireland and the UK, they are mandatory across government bodies. In France and Poland, they support governance and audit follow-up in ministries and State Owned Enterprises (SOEs). The European Commission has also established an Audit Progress Committee that provides high-level oversight of internal audit and risk management. The Netherlands offers another example, where audit committees are embedded into central government structures and include independent experts who provide oversight on risk, control, and audit quality.
Ukraine’s model can draw on these international practices while respecting its own legal and institutional context.
Steps Forward in Ukraine
EU4PFM supports the overall development of audit committees as part of strengthening Ukraine’s public internal financial control system. This includes promoting awareness, encouraging institutional readiness, and helping to translate regulatory requirements into workable models.
In the Ministry of Finance, EU4PFM is providing targeted support for the establishment phase of its audit committee. This support focuses on developing a model that is operational, fit for purpose, and aligned with the applicable legal and regulatory framework. Activities include:
– Supporting the design of committee structures and documentation;
– Providing practical guidance on roles, responsibilities, and meeting procedures;
– Offering guidance and onboarding for future members;
– Facilitating experience-sharing with EU member states and other institutions.
This approach aims to ensure that audit committees are not only formally established but also equipped to function effectively and add value from the outset.
Creating a Culture of Oversight
Audit committees represent more than just a procedural innovation. They can catalyze a broader shift toward a culture of oversight — where transparency, professionalism, and risk awareness are part of daily decision-making.
For Ukraine, establishing audit committees is part of a larger journey — toward EU integration, recovery, and long-term reform. Audit committees can serve as a modest but powerful structure for promoting better governance, protecting audit independence, and ultimately enhancing public trust.