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:

Capacities of the MoF on EU experience in budgetary system and alignment with EU requirements strengthened
Workshops on fiscal framework, program based and mid-term budgeting delivered
Concept Paper on program-based budgeting pilot in selected KSU developed
Guidance and feedback to the MoF during the preparation for the screening in PFM area provided
Technical specifications for the two IT solutions to support the MoF’s budget planning and monitoring function produced (IT system of the MoF ‘State Budget – Minfin’ and Automated information system of online-interaction with key budget spending units – AIS ‘Web-GRK’). The development of software finished and its trial operation will be completed in 2025.

Public Sector Accounting (PSA):

Workshop series on international/EU experiences delivered and analyses of accounting and financial frameworks conducted to enhance public sector financial management, legal frameworks, and methodological guidelines in line with international best practices
Analysis of compliance of NPSAR(S) with the latest edition of IPSAS conducted and transpositions tables for necessary amendments to NPSAR(S) for compliance with IPSAS developed
Educational materials for a certificate training program on PSA developed and 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)
Technical specifications for the development of the IT solution in in PSA and Financial Management was prepared and approved by the MoF
Proposals to (1) draft PSA modernization Strategy and Action Plan, (2) amendments to the procedure for assessing the performance of chief accountants of budget institutions and (3) recommendation to standard provisions on the accounting service of a budgetary institution developed.

Public Internal Financial Control (PIFC):

Country study reports on (1) advantages and disadvantages with centralised vs decentralised approaches to internal audit and (2) modalities for external quality assessments of the internal audit function prepared
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
Support provided to align Ukrainian internal audit standards with the updated Global Internal Audit Standards (GIAS), including gap analysis, implementation planning, and advisory inputs
Draft competency framework for public sector internal auditors finalized and presented, supporting professional development in line with GIAS
Internal Control pilot project launched in the Ministry of Justice, aimed at testing and improving practical implementation of managerial accountability and internal control practices
PIFC conferences for heads of Internal Audit Units at central and regional level and for senior management of public sector entities organised
Workshops on EU experiences-based Risk Management conducted
Study visit to exchange experiences in PIFC development with a peer CHU
Guidance and feedback to the MoF during the preparation of the Chapter 32 screening on Financial Control provided
Technical specifications developed for the portal of Public Internal Financial Control (PIFC).