Pathways for the Development of Internal Audit in Ukraine Was Discussed Today with the Ministry of Finance

EU4PFM international expert on PIFC Manfred van Kesteren presented conclusions and recommendations on organising internal audit in Ukraine based on report conducted by the EU4PFM Team to First Deputy Minister of Finance Denys Uliutin.

The event was also attended by Jurgita Domeikiene, EU4PFM Team Leader, Jenni Lundmark, Sector Manager of Public Finance Management, Budget Support, and Statistics at the EU Delegation to Ukraine, and representatives from the Ministry of Finance.The report analyses the experiences of EU member states that transitioned from centralised financial inspection to decentralised internal audit as well as the experiences from EU member and Non-member states with (semi-) centralised internal audit functions. The study found that decentralised internal audit mechanisms remain relevant, however hybrid or semi-centralised models appear to have positive effects on the efficiency and effectiveness of internal functions.

Based on a comparative analysis of the experience of four EU member states, the report proposes the following steps for Ukraine:

• Clear separation of financial inspection from other types of (external) audit activities, gradually transitioning towards a narrower, yet still significant, mandate for a “PIFC compliant” financial inspection function.
• Substantial investments in promoting managerial accountability and financial management and control.
• Significant investments to strengthen internal audit to become a professional and valued support function for managers.

This study marks a launch of discussion on Ukraine’s internal audit development, aiming to enhance control mechanisms and ensure efficient use of public funds.

For more details, read Manfred van Kesteren’s article.