Budget Process Modernisation

Updated on: 25 August 2025

Efforts undertaken by EU4PFM in relation to budget process modernisation focus on international best practices

Public Sector Accounting (PSA)

Documentation for a new digital solution on e-Accounting and Reporting developed

Workshop series covering international experiences on specific challenges in PSA delivered

Analysis of NPSASR(S) compliance with the latest edition of IPSAS conducted

Transpositions tables, including necessary amendments to NPSASR(S) for compliance with IPSAS developed

Training programme on PSA according to national standards developed and training sessions delivered

Public Internal Financial Control (PIFC)

Dialogue with the Ukrainian audit community enhanced on possible pathways to strengthen and optimise internal audit function

The pilot project on internal control in the Ministry of Justice launched

Country Study Report on experiences, highlighting advantages and disadvantages with centralised vs decentralised approaches to internal audit finalised

Workshops on Internal Control practical aspects and risk management based on EU experiences conducted

Scope of the PIFC portal is defined

Budget Planning

IT system for budget planning and monitoring launched and used for development of 2025 and 2026 State Budgets

Capacities of the Ministry of Finance on EU experience in budgetary system and alignment with EU requirements strengthened

Budget Planning:

Workshop series in preparation for the screening in PFM area delivered.
Presentation on the Financial Management Information System (FMIS) provided.
Presentation on the Public Investment Management (PIM) System provided.
Workshops on fiscal framework, strategic budgeting and budget planning delivered.
Assistance in the Transposition of the Directive on requirements for budgetary frameworks provided.
Capacities of the MoF on EU experience in budgetary system and alignment with EU requirements strengthened.
Concept Paper on program-based budgeting pilot in selected KSU developed.
Guidelines for the Implementation of the EU Own Resources Framework prepared.

Public Sector Accounting (PSA):

Workshop series on international/EU experiences delivered.
Analysis of compliance of NPSAR(S) with the latest edition of IPSAS conducted.
Transpositions tables for necessary amendments to NPSAR(S) for compliance with IPSAS developed.
Educational materials for a certificate training program on PSA developed and trainings delivered.
Advanced training courses for more than 450 civil servants and local government officials on the PSA were conducted.
Practical implementation of the developed NPSAR(S) based on IPSAS analyzed and tested in a pilot entity (hospital).
Concept Note for the development of the IT solution in PSA and Financial Management was prepared and approved by the MoF.
Technical specifications for the development of the IT solution in PSA prepared.
Broader analyses of accounting and financial frameworks conducted to enhance public sector financial management, legal frameworks, and methodological guidelines in line with international best practices.
Draft PSA modernization Strategy and Action Plan reviewed and updated based on stakeholder and expert feedback.
Proposals for amendments to the Procedure for assessing the performance of chief accountants of budget institutions developed and analyzed for practical implementation.
Proposals for regulatory legal acts regarding the classification of accounting service professions, grading, and qualification requirements for accounting specialists developed, reflecting best international practices. Draft methodological guidelines and the IPSAS-based NPSAR(S) were piloted in a public hospital to validate their practical applicability and inform final adjustments.
Recommendation to Standard Provisions on the Accounting Service of a Budgetary Institution developed and included to the Resolution dated May 16, 2025 No. 566 “On Amendments to the Model Regulation on the Accounting Service of a Budgetary Institution”.

Public Internal Financial Control (PIFC):

Country Study Report on advantages and disadvantages with centralised vs decentralised approaches to internal audit prepared.
Results of Country Study Report presented and discussed with senior management and CHU paving the way to further explore the topic in 2024.
Workshops on EU Experiences- based Risk Management conducted.
Trainings/workshops on Internal Control for the Agency of Restoration conducted.
Preparations for development of PIFC portal finalized by delivering the functional requirements.
PIFC conferences for heads of Internal Audit Units at central and regional level and for senior management of public sector entities.
Study visit to Prague to exchange experiences in PIFC development with a peer CHU.
Peer to peer exchange with CHU of an EU-member State.
Survey based country study on modalities to organize external quality assessment for internal audit.
Support provided to align Ukrainian internal audit standards with the updated Global Internal Audit Standards (GIAS), including gap analysis, implementation planning, and advisory inputs.
Amendments to the Budget Code and related government decrees supported, contributing to the legal foundation for improved internal control and internal audit in line with EU principles.
Draft competency framework for public sector internal auditors finalized and presented, supporting professional development in line with GIAS.
Country study report delivered on modalities for external quality assessments of the internal audit function.
Guidance and feedback to the MoF during the preparation of the Chapter 32 screening on Financial Control provided.
Internal Control pilot project launched in the Ministry of Justice, aimed at testing and improving practical implementation of managerial accountability and internal control practices.