Project Mission – а capable, efficient, transparent and accountable local finance management system focused on attaining sustainable economic and development goals, in line with government commitment under the EU-Ukraine Association Agreement and in line with the Ukraine's Public Finance Management Strategy of 2017-2020
Project Tasks – Strengthening public finance management system at local and regional government level.
Ministry of Finance of Ukraine
Hulla & Co Human Dynamics GmbH & Co KG
Four components to realize within the Project:
Component 1: Improving local government’s budgeting and accounting process (Sub-Component 1.1: Modernization of budget planning and budget execution monitoring systems for local governments, Sub-Component 1.2: Modernization of the accounting system in the public sector)
Component 2: Development of a comprehensive information and analytical system for planning and implementation of local budgets
Component 3: Stronger supervision of local debt management
Component 4: Effective internal control and financial audit at local level
Tasks by the components:
- Support Ministry of Finance in developing methodological recommendations for the local authorities on medium-term budget planning and standard forms of documents for different levels;
- Support local financial bodies of pilot administrative-territorial units in the development of medium-term budgets;
- Analyse legislation and provide recommendations to the Ministry of Finance of Ukraine on its improvement;
- Support the local budget funds administrators in implementing the National Public Accounting Standards;
- Develop training module on budget process and accounting, conduct training for local governments and specialists of public sector entities on accounting issues;
- Develop concept as well as functional and technical requirements to integrated informational analytical system used for local budgets planning and performance (IAS);
- testing developed IAS in pilot regions, conducting trainings using an updated IT system, developing and implementing training strategy;
- Develop methodological recommendations on debt management at the local level (assessment of the community's creditworthiness, procedures for the provision and control of local guarantees, loans, approaches to risk management);
- Optimization of data exchange necessary for local debt and local guarantee analysis;
- Prepare a preliminary study on the powers of the bodies of state financial control and audit (State Audit Office, Accounting Chamber, State Treasury Service) concerning the control and audit of local budgets.
- Conduct a study on the control of local financial authorities and develop proposals for their revision.
- Assist in developing common approaches to audit of local budgets by state financial control bodies and independent external audit.
- Develop proposals for the creation of mechanisms for public control over local finances and communal property.
Summary of LOGICA's achievements in 2018-2019
Links to the project website where the documents are posted:: http://logica-project.eu/first-component/page.html
- Prepared and submitted to Minfin:
- Investigation of foreign experience in the sphere of medium-term budget planning;
- Recommendations on implementation of mechanisms of public participation in the budget process at the local level and recommendations for participatory budget preparation;
(where to find: https://hromady.org/%d1%8f%d0%ba-%d0%b3%d0%be%d1%82%d1%83%d0%b2%d0%b0%d1%82%d0%b8-%d1%96%d0%bd%d1%84%d0%be%d1%80%d0%bc%d0%b0%d1%86%d1%96%d1%8e-%d0%bf%d1%80%d0%be-%d0%bf%d1%80%d0%be%d0%b5%d0%ba%d1%82-%d0%b1%d1%8e%d0%b4/)
- Budget Request Preparation Template and relevant approval documents (Financial Bodies decree, Local Council Chairman prescript) – submitted to local financial authorities;
- Draft Instruction for Typical Program Classification implementation at the local budgets level.
- Draft Recommendations on the Preparation and Approval of the Budget Regulation for the Budget Process at Local Level (Regulations are approved by Minfin Order № 228 dated 31.05.2019);
- Draft documents related to medium-term budget planning introduction at the local level;
- Report on international experience in functioning and funding authorities responsible for local budgets preparation and execution, their activity coordination, accountability of the Ministry of Finance.
- Training module «Program Performance Budgeting at the local level» developed and training for local financial bodies conducted (Sep-Nov 2018).
- PEFA assessment in Stara Synyava provided and PEFA report prepared (where to find: https://pefa.org/node/3716).
- Developed guidebook for mass media and citizens: How to deal with the local budgets labyrinth (where to find: https://decentralization.gov.ua/news/10813).
- Prepared and submitted to the local financial authorities Budget Calendar (where to find: https://decentralization.gov.ua/news/10699).
- Developed draft documents on the personnel management of the local financial authority (where to find: https://decentralization.gov.ua/news/11912).
Links to the project website where the documents are posted: http://logica-project.eu/first-component/page.html
- Prepared and submitted to Minfin:
- Report on accounting policy formulation for budget spending units;
- Analytical information on IPSAS implementation and accounting methods in EU member-countries;
- Analytical information on deviations from public accounting standards and recommendations for their improvement;
- Investigation results and relevant report on international experience of accounting systems in EU member-countries and OECD countries;
- Draft Methodological Recommendations on Revenue and Expenditure Accounting of Spending Units;
- Proposals on amendments to the national accounting standards in the public sector of Ukraine;
- Handout on accounting policy formulation for budget spending units (sent to Kyiv city state administration).
- Developed training materials on: “Public Accounting and Financial Reporting Modernization: Accounting National Standards Implementation”.
- Training Module “Public Accounting and Financial Reporting Modernization: Accounting National Standards Implementation” is download on On-line Platform of Association of Amalgamated Communities.
- Started work on Accounting and Reporting Guidebook for Local Budgets Spending Units.
- Translation of IPSAS is under the process as well training for representatives of public sector entities on accounting issues.