Pilot project on internal control moves into practical phase
EU4PFM has launched the practical implementation of its pilot project on internal control. Over two days of working meetings, EU4PFM international experts Manfred van Kesteren and Bill Fraser met with representatives of the PIFC Harmonisation Department of the Ministry of Finance and the Coordination Centre for Free Legal Aid of the Ministry of Justice. The meetings formed part of EU4PFM’s practical support to the Ministry of Justice in the improvement of the internal control system.
The discussions focused on the pilot in the area of free legal aid. Participants reviewed the work plan and launched the first steps of its implementation. The Coordination Centre was introduced to high-level internal control diagnostic questionnaires – a tool recommended by the European Commission to assess maturity and identify areas for improvement.
The main focus of the meetings was on modern approaches to risk management and relevant international experience. Parties agreed that a joint approach that integrates best COSO practices while aligning with Ukrainian legislation will be developed during the pilot.
It was emphasised that risk matrices should serve as a universal decision-making tool for the leadership at all levels of governance. Their content, however, should be differentiated between strategic risks – for top management and operational risks – for managers and practitioners.
The agenda also covered a discussion on elements and stages of the full management cycle and strengthening practical cooperation between the 1st, 2nd and 3rd internal control lines.
This pilot is not only a test ground but also an important step towards embedding internationally recognised internal control frameworks – in particular, the COSO framework – into Ukrainian practice. Its mission is to equip public institutions with effective tools for managerial accountability and good governance, emphasising its connection of internal control to the internal budget cycle, risk management, and performance.
