- The Law No. 4042-IX "On Amendments to the Law of Ukraine 'On the Accounting Chamber' and Certain Other Legislative Acts" entered into force on December 19, 2024.
- Certain provisions related to the status and remuneration of the Accounting Chamber’s members and personnel will come into effect on January 1, 2025.
- These changes align Ukrainian legislation with international standards of the International Organization of Supreme Audit Institutions (INTOSAI).
Institutional Status & Powers:
- The Accounting Chamber is now defined as the highest state collegial body for financial control (audit).
- The methodological framework of the Accounting Chamber’s work is aligned with INTOSAI’s professional standards.
- The scope of the Chamber’s oversight expands to cover public sector entities and all funds derived from foreign states, the EU, financial institutions, donor agencies, as well as mandatory state social and pension insurance funds.
- The Accounting Chamber may now audit consolidated financial statements across the public sector and examine various types of budgets.
Independence Guarantees:
- The Accounting Chamber’s authorities remain intact regardless of changes in the Verkhovna Rada’s (Parliament’s) term, or the introduction of martial law or a state of emergency.
- Should the Cabinet of Ministers not adopt the Accounting Chamber’s budget proposals, it must provide a justified explanation.
- Draft laws that affect the Accounting Chamber’s role or powers must be reviewed by the Chamber before enactment.
Chairman, Members, and Auditors of the Accounting Chamber:
- A preliminary selection of candidates for Accounting Chamber membership involves an advisory group with international experts. Clear criteria and selection procedures are established.
- The number of members is reduced to 11.
- Members have defined responsibilities and are tasked with coordinating control measures.
- Clear rules on remuneration are introduced for members, the Secretary, and auditors. Auditors are no longer classified as civil servants, but anti-corruption legislation still applies to them.
Organizational Updates:
- Every five years, the Accounting Chamber undergoes an external review to ensure compliance with international audit standards.
- A risk-based approach to activity planning is introduced.
- The Chamber will not conduct unscheduled audits, ensuring a more predictable and organized approach.
- Information about the Chamber’s meetings and relevant decisions will be made public on its website.
- Reporting procedures are streamlined: auditors will no longer prepare separate reports for each audit.
- Auditors gain the right to access necessary information, including data from state or local authority registries.
Implementation of Recommendations:
- Reports by the Accounting Chamber must be considered by relevant parliamentary committees.
- Parliament’s formal response is required if recommendations are not properly implemented.
- The Chamber will actively track and post the status of recommendation implementation on its website.
- If recommendations are not followed, the Chamber can suggest corrective measures to the Parliament.
- The procedures for appealing the Chamber’s decisions and the jurisdiction over interference cases have been clarified—such cases will be under the purview of the Supreme Court.
Conclusion:
The newly enacted law significantly strengthens the role, independence, and effectiveness of the Accounting Chamber. It enhances transparency, adopts international audit standards, broadens the scope of oversight, and ensures accountability through mandatory parliamentary engagement and public disclosure. This reform marks a critical step in improving the standards of external financial oversight in Ukraine.
