News: Switzerland Will Conduct a Financial Audit of Vinnytsia Budget
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Switzerland Will Conduct a Financial Audit of Vinnytsia Budget


According to the results of the selection, Vinnytsia City Territorial Community became one of the participants in the preparatory phase of the new ElocFin project "Effective Local Financial Management in Ukraine" implemented by the Swiss State Secretariat for Economic Affairs (SECO) and the Swiss Embassy in Ukraine.

Vinnytsia, as one of the participants in the project, in 2021 will evaluate the effectiveness of financial management of the local community according to the international methodology PEFA, which is a worldwide standard for evaluating financial management systems.

PEFA reports are not only a guide for reforming local and public financial management systems in many countries, but also serve as a tool for mobilizing donor assistance to implement these reforms.

During the participation in this project, a financial audit of the budget of Vinnytsia City Territorial Community will be conducted, which will consist of checking the validity of planning budget revenues and expenditures of the community budget, legality and efficiency of budget management, achieving their savings and intended use.

The findings of international experts will help assess the current state of the community budget, find untapped reserves and opportunities to attract additional revenues, will help to make informed decisions to increase the efficiency and rational use of budget funds, as well as increase transparency and openness in relations with the community.

Based on the results of the international PEFA evaluation, SECO plans to conclude a memorandum of cooperation with the cities selected for participation in the project. The memorandum envisages the development and further implementation of a plan to reform the local financial management system within the ElocFin international technical assistance project. Support will include consultations with international and Ukrainian experts, trainings and other activities to improve staff skills, as well as opportunities to share practical experience and knowledge.

It will be recalled that in March this year, the International Center for Policy Studies (ICPS) published the results of the annual Transparency Rating of Cities and Regions of Ukraine, led by Vinnytsia, Khmelnytskyi and Severodonetsk. These annual surveys have been conducted since 2017. Since then, Vinnytsia has consistently been in the top three in the ranking of urban transparency, but this time it topped it for the first time with a score of 99 points out of 100 possible. The research initiative is financially supported by the US Embassy in Ukraine and aims to increase the effectiveness of local governments in creating and overseeing regional policy, monitoring budgets and openness of local government.