Problem

2.7.7. There is a lack of proper accounting and transparency in the spending of funds allocated in the budgets of all levels for social protection for all categories of social aid recipients

General information about the problem

The problems in the social security sector include the ineffectiveness of the mechanism of accounting treatment of funds allocated for social support, which leads to a number of corruption risks, which generally consist in the possibility of abuse of the social security system by both recipients of social support and civil servants who can make subjective decisions based on the data of recipients, causing unjustified expenditures of budget funds. This problem is caused by the ineffectiveness of the social support mechanism and the complexity of the process of providing services in the social sphere, as well as the unfair and discriminatory procedure for allocating budget funds for financial support to public associations of individuals living with disabilities.
The ineffectiveness of the social support mechanism and the complexity of the process of providing social services are caused by the duplication of social support instruments, as well as the maintenance of registers of persons in need of social support and receiving cash payments without verification of information contained in other registers. The main factors contributing to these reasons include the existence of legislative provisions that provide for kinds of social assistance that are largely overlapping and the absence of a unified register of persons receiving different kinds of social assistance. Moreover, corruption risks in the process of providing social services are caused by the lack of proper accounting of the spending of funds earmarked in the state budget for social support for all categories of recipients.
Unfair distribution of financial support among public associations of individuals living with disabilities is caused by the lack of a clear legal requirement to provide the above-mentioned financial support from the budget exclusively on a competitive basis, insufficient transparency of existing competitive procedures and the absence of a legislatively prescribed ban on granting privileges to certain public associations of individuals living with disabilities in the course of providing state financial support.
Moreover, one of the additional factors behind the flawed and ineffective nature of the existing mechanism of financial support for public associations of individuals living with disabilities is failure to comply with the requirements of guidelines on the implementation of institutional support for public associations of individuals living with disabilities at the state level exclusively on a competitive basis (in addition to the project support currently provided).
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Implementation of SACP measures within the limits of the problem

The total number of OSR – 2
All measures of the SACP
measures, the implementation of which as of 30.09.2024
is about to begin to be completed
1 3 4
8
Implemented In progress Not started
Measures implemented (fully and partially) - 1 (12.5%)

Deadlines for all measures

01.03.2023 - 31.12.2025

Implementation of SACP measures within the scope of the Problem by main main performers

Ministry of Social Policy of Ukraine

14.3%
7

Ministry of Digital Transformation of Ukraine

0%
1

Achievement of ESR within the limits of the Problem

The total number of OSR – 2

SUMMARIZED GENERAL INFORMATION ON THE IMPLEMENTATION OF THE PROGRAM MEASURES IN TERMS OF DIRECTIONS, PROBLEMS AND EXPECTED STRATEGIC RESULTS

Name of the ESR Name of the measure The main implementer Monitoring results (latest) Performance note % виконаних заходів (fully and partially)
1.1. ESR 2.7.7.1 The Unified Social Sector Information System has been implemented and simplification of the provision of social services has been ensured 2.7.7.1.1. Developing the draft of the Social Code of Ukraine Ministry of Social Policy of Ukraine There is progress in the implementation of the measure In progress
0% 0/ 4
1.2. 2.7.7.1.2. Supporting the consideration of the draft Code indicated in subclause 2.7.7.1.1 in the Parliament of Ukraine Ministry of Social Policy of Ukraine Not started
1.3. 2.7.7.1.3. Drafting and submitting to the Cabinet of Ministers of Ukraine draft normative legal acts towards the implementation of the Social Code of Ukraine Ministry of Social Policy of Ukraine Not started
1.4. 2.7.7.1.4. Putting the Unified Social Sector Information System into commercial operation Ministry of Social Policy of Ukraine There is progress in the implementation of the measure In progress
2.1. ESR 2.7.7.2 A fair competitive selection process has been introduced for the purposes of providing assistance to public associations of individuals living with disabilities 2.7.7.2.1. Drafting and submitting to the Cabinet of Ministers of Ukraine a draft law that: 1) defines the term “public association of individuals living with disabilities”; 2) introduces institutional support for public associations of individuals living with disabilities at the national and local levels (if the relevant expenditures are incurred at the local level); 3) establishes the requirement that public associations of individuals living with disabilities shall receive funding out of the state budget or local budgets exclusively based on the outcome of open and transparent competitive selection processes — both for purposes of implementing programs (projects, activities) and as part of institutional support; 4) does not provide for any preferences for all-Ukrainian or other public associations of individuals living with disabilities. Ministry of Social Policy of Ukraine Implementation of the measure was started late In progress
100% 4/ 4
2.2. 2.7.7.2.2. Drafting and submitting to the Cabinet of Ministers of Ukraine a draft resolution of the Cabinet of Ministers of Ukraine on approval of the Procedure for Conducting a Competitive Selection Process for Institutional Support for Public Associations of Individuals Living with Disabilities, which: 1) introduces institutional support for public associations of individuals living with disabilities exclusively on a competitive basis; 2) does not provide for any preferences for specific public associations of individuals living with disabilities; 3) establishes nondiscriminatory criteria for eligibility of public associations of individuals living with disabilities to enter the competitive selection process, specifically requirements with respect to the number of members of the organization (several dozen people at most, but optimally – without requirements pertaining to membership), minimum representation in the regions (in one-fourth of the regions at most), and minimum duration of statutory activities (three years at most); 4) establishes justified, clear, measurable, and attainable criteria of evaluation of competitive process bids and selection of the winning bidders; 5) ensures complete transparency of the competitive selection process for the award of institutional support and publicity of all competitive process documentation, decisions made, and records documenting the implementation of the budget program and monitoring of the spending of institutional support funds; 6) establishes effective, justified, clear, measurable, and attainable key performance indicators (KPIs) of the spending of institutional support funds by public associations of individuals living with disabilities. Ministry of Social Policy of Ukraine Implementation of the measure has not started Not started
2.3. 2.7.7.2.3. Drafting and submitting to the Cabinet of Ministers of Ukraine a draft resolution of the Cabinet of Ministers of Ukraine amending the Procedure for Spending State Budget Funds Allocated for Financial Support of Public Associations of Individuals Living with Disabilities, approved by the resolution of the Cabinet of Ministers of Ukraine dated March 3, 2020, No. 166, Procedure for Spending State Budget Funds Allocated for Financial Support of the Ukrainian Association of the Blind and the Ukrainian Society of the Deaf, approved by the resolution of the Cabinet of Ministers of Ukraine dated March 14, 2018, No. 183, and the Procedure for Conducting a Competitive Process to Select Programs (Projects, Activities) Developed by Civil Society Institutions that Receive Financial Support for Their Implementation, approved by the resolution of the Cabinet of Ministers of Ukraine dated October 12, 2011, No. 1049, which: 1) sets forth the requirement that budgetary financial support for implementation of programs (projects, activities) shall be provided to public associations of individuals living with disabilities exclusively on a competitive basis; 2) does not provide for any preferences for specific public associations of individuals living with disabilities; 3) declares to be void the resolution of the Cabinet of Ministers of Ukraine dated March 14, 2018, No. 183, On Approval of the Procedure for Spending State Budget Funds Allocated for Financial Support of the Ukrainian Association of the Blind and the Ukrainian Society of the Deaf; 4) minimizes opportunities for conducting competitive selection processes without using the software module “Competitive Selection of Projects by Civil Society Institutions” (the electronic system for competitive selection); 5) ensures the publication of all materials of competitive bids, including spending budgets; 6) provides for the possibility of remuneration of competitive selection committee members other than representatives of the Fund for Social Security of Individuals Living with Disabilities, state and municipal officials, while specifying the maximum amount / percentage of such remuneration; 7) establishes additional standards of transparency of the competitive selection process, including the right of representatives of the mass media and the public to attend the meetings of the competitive selection committee, record video and audio, and broadcast the meetings of the competitive selection committee; 8) establishes the requirement that at least depersonalized results of the voting by competitive selection committee members on each issue be made public; 9) establishes the requirement that decisions of the competitive selection committee on the results of evaluation of competitive bids and scores given by each member of the competitive selection committee be made public (in depersonalized form); 10) defines a detailed procedure for appealing the decisions of the competitive selection committee to deny participation in the competitive selection process, access to the results of evaluation of competitive bids, and selection of the winning bidders; 11) stipulates that decisions of the competitive selection committee formed by the Fund for Social Security of Individuals Living with Disabilities shall be appealed in the manner prescribed by the Ministry of Social Policy; 12) stipulates that the winning bidders will receive financial support out of the state budget in accounts opened with state banks (instead of treasury accounts). Ministry of Social Policy of Ukraine The measure was implemented on time and in full Implemented
2.4. 2.7.7.2.4. Ministry of Digital Transformation of Ukraine Not started

Key sources on the state of the problem:

Assessment of the situation by international monitoring mechanisms and organizations: