In September 2007 practical implementation of Twinning project “Assisting the Main Control and Revision Office of Ukraine (KRU) in implementing a new system of Public Internal Financial Control” has started based on the contract concluded between the Delegation of the European Commission to Ukraine, Swedish National Financial Management Authority and the Main Control and Revision Office of Ukraine. Duration of the project is 27 months, including 3 months for initiation and concluding of this project.  

At the beginning of October after the Resident Twinning Advisor Vilhelm Reutersward has arrived, it was held working groups workshops, in the course of which basic objectives and tasks in different spheres of the MainCRO activity were outlined.

By objectives the Project is divided into four thematic components:

1) «Assistance in establishing a sound legal framework», which envisages review of the legal base (all primary, secondary and tertiary legislation, including normative documents) both in force and in draft form, and submittal of propositions with the aim of bringing legal base in line with the best European practice. Within the framework of this component it will be held round table discussion and presentations for the highest management of line ministries on principal aspects of a new legal base.   

It is foreseen to receive assistance in development of law draft “On Public Internal Financial Control”, to develop the Procedure for carrying out inspection by the state control and revision service (SCRS), approved by the decree of the Cabinet of Ministers of Ukraine No. 550 of 20 April 2006, the Procedure for carrying out of public financial audit of budget programs execution by the SCRS bodies, approved by the decree of the Cabinet of Ministers of Ukraine No. 1017 of 10 August 2004, the Procedure for carrying out of public financial audit of economic agents’ activity by the SCRS bodies, approved by the decree of the Cabinet of Ministers of Ukraine No. 361 of 25 March 2006, the Procedure for carrying out of public financial audit of budgets execution by the SCRS bodies, approved by the decree of the Cabinet of Ministers of Ukraine No. 698 of 12 May 2007, as well as methodological guidelines, developed on their basis.

At the same time it will be received assistance in development of normative and legislative drafts which shall introduce the system of internal control in public sector bodies.   

2) «Assistance to the Central Harmonization Unit in developing its structure and its relationship with line ministries», which envisages development of the Statute of the Central Harmonization Unit (CHU), for establishing its role and responsibilities, the Statute of the Internal Audit Service of a line ministry, protocol, which CHU and line ministries may accept for official definition of their respective roles and responsibility for introduction and maintenance of the public internal financial control system (PIFC).

3) «Assisting the CHU in developing methodologies and techniques for internal control and internal audit», within the framework of which it is envisaged to develop detailed practical reference material for introduction of internal managerial control within public sector bodies, as well as to develop guidelines on internal control and internal audit on the basis of the best European experience.

4) «Training», which covers a wide range of training courses, including training in internal control, internal audit, financial audit, performance audit and forensic audit (inspection). Within the framework of this component it will be held seminars in internal control for 100 high-level managers of line ministries, training courses for 100 specialists of SCRS and more than 110 specialists of line ministries, in the first place of the Ministry of Finance, as well as five pilot audits in line ministries, aimed at obtaining practical experience in internal auditing.   

In such a way implementation of the project will allow to reach the main goal – introduction of a new system of PIFC in Ukraine in line with internationally accepted standards and the best European practice.