Feedback from the public

Measure

2.4.1.3.1. Preparing an analytical report for a substantiated definition of the criteria for a mandatory independent audit of enterprises under state ownership or establishing a mandatory independent audit for all state-owned enterprises without exception

Measure status:

Implemented

Actual execution date:

18.01.2024

The measure is aimed at achieving ESR:

2.4.1.3. An annual independent audit of public sector entities that are of strategic importance to the economy and security of the state has been introduced; periodic revision of the criteria for mandatory independent audits and the establishment of supervisory boards at public sector entities, including taking into account the level of corruption risks and the degree to which the relevant sector of the economy is affected by corruption

Problem solving:

2.4.1. The existing governance model at public sector entities is ineffective, resulting in losses and corruption

Deadlines:

01.03.2023 - 31.05.2023

Responsible implementors (authorities):

The main implementer: Ministry of Economy of Ukraine

Sources of funding:

state budget

Volumes of financing (thousand UAH):

within the established budget allocations for the relevant year

Performance indicator:

The analytical report has been prepared and made public.

Implementing status

Progress/Result of implementation:

According to the Ministry of Economy of Ukraine, an analytical report on the issue of substantiated definition of the criteria for a mandatory independent audit of enterprises under state ownership or establishing a mandatory independent audit for all state-owned enterprises without exception has been prepared.

The analytical report was published on January 18, 2024 on the official website of the Ministry of Economy of Ukraine in the section "Discussion of Draft Documents" (at the link: http://surl.li/tnwff)

In addition, the Ministry of Economy of Ukraine reported that the Law of Ukraine dated February 22, 2024 No. 3587-IX On Amendments to Certain Legislative Acts of Ukraine on Improving Corporate Governance amended, in particular, the Commercial Code of Ukraine and the Law of Ukraine On Management of State-Owned Properties, which provide for annual independent audits of the financial statements of all state-owned unitary enterprises, commercial companies with more than 50 per cent of shares (stakes) owned by the state.

At the same time, due to this Law the Cabinet of Ministers of Ukraine is no longer empowered to determine the criteria for classifying state unitary enterprises and commercial companies with more than 50 per cent of shares (stakes) owned by the state as those whose financial statements (including consolidated ones) are subject to mandatory audit by an independent auditor, depending on the book value of assets of such state unitary enterprises or commercial companies.

Monitoring results (quarterly):

09.05.2024:
The measure was not implemented on time and in full
07.02.2024:
The measure has not been implemented
15.11.2023:
The measure has not been implemented
15.08.2023:
The measure has not been implemented

Key sources of assessment:

1. Міністерство економіки України: Аналітичний звіт

Additional sources of information:

1. Міністерство економіки України: посилання на аналітичний звіт