Title of the project: Strengthening Capacities in External Audit in line with International Standards (EU4ACU)

The Donor of the project: European Union

The Implementer of the project: DAI Global Austria GmbH & Co KG

The Beneficiary/Recipient of the Project: Accounting Chamber of Ukraine

Project duration: 09/2020−09/2024

International agreement: Framework Agreement between the Government of Ukraine and the Commission of the European Communities dated January 12, 2006, ratified with the Application by the Law of Ukraine dated September 03, 2008 No. 360-VI. Agreement on financing the Public Finance Management Support Programme for Ukraine (EU4PFM).

General goal of the Project: More effective supervision of public resources by strengthening capacities in external auditof budget funds.

Objective: The Accounting Chamber develops sufficient capacity and legal mandate to perform its functions according to the international best practices.

Ukraine has been in the midst of numerous public and private sector reforms expected to bring the country closer to Europe and into alignment with EU and international standards and the good international practices. The Government’s current reform programme is guided by Ukraine’s Association Agreement with the European Union. Among the numerous reforms underway and planned in the public sector, public financial management (PFM) has been highlighted as a priority area for EU/Ukraine relations. This is reflected in the Development Strategy of the Accounting Chamber for 2019−2024, which is based on public demand for an objective expert assessment of the management of public funds and state property.

The acceleration of Ukraine's accession to the EU, the problems of wartime and the expected difficulties of post-war recovery actualized the issue of strengthening the institutional capacity of the Supreme Audit Institution of Ukraine according to the INTOSAI standards.

Strengthening Capacities in External Audit in line with International Standards Project (EU4ACU) is designed to bring more efficient oversight to public resources through enhanced capacities in external audit of budgetary funds.

The efforts of this Project are aimed at strengthening the institutional capacity of the Accounting Chamber to conduct an external audit in line with ISSAI standards and ensuring the INTOSAI principles and standards are incorporated into the ACU’s legal framework and everyday practices. The Project is implemented in four components (directions):

Component 1 Legislative approximation and regulatory changes, Support the development and implementation of a revised legislative framework for the ACU with a view to ensure future compliance with ISSAI;

Component 2 Institutional development, support implementation of the ACU institutional development strategy, improving strategic and operational planning and internal control system and building a robust process management, accountability and pathway development systems;

Component 3 Improved audit methodology, introduce a risk-oriented audit planning, ISSAI-based financial, compliance and performance audit manuals, processes and training programmes, support pilot financial, compliance and performance audits, implement modern audit quality control and assurance system, internal and external auditors cooperation framework;

Component 4 Strengthened follow-up mechanisms and communication on the main results of ACU's work, support the implementation of the ACU’s Communication Strategy through development and implementation of accessible information products and tools on the main results of the ACU’s work and the strengthening monitoring procedures for the implementation of the ACU recommendations and evaluation of monitoring results.