Reporting and control: how the Accounting Chamber functions in Ukraine and Poland

Financial resource management is a key component of any country’s operations. Various control mechanisms exist to ensure the efficient use of budget funds and transparency of financial activities. One of them is the Accounting Chamber, an internal financial control body that conducts independent audits and checks on the use of budget funds.

The institution plays an important role in ensuring the efficient use of public funds by controlling the financial activities of the government and state bodies. It promotes transparency, accountability and the fight against corruption. We have tried to compare the activities of the Accounting Chamber in Ukraine and our neighbour Poland, taking into account their experience, structure, powers, achievements and prospects.

Experience of work

The Accounting Chamber of Ukraine was established in 1996. It was given an important task to control the expenditure of budget funds and the efficiency of their use. Over the years, the institution has become an active participant in the audit process, providing well-grounded conclusions and recommendations on financial discipline.

The Accounting Chamber of Poland (Najwyższa Izba Kontroli, NIK), which is called the “think tank of the country”, has been in existence since 1919 and has extensive experience in controlling the expenditure of public funds. It is also actively involved in audits, contributing to transparency and accountability in financial management.

Structure and powers

In Ukraine, the Accounting Chamber is a collegial body whose structure is defined by the Law “On the Accounting Chamber”. It consists of thirteen members – the Chairman, his deputy and other members of the Accounting Chamber. The institution carries out audits, provides recommendations for improving the management of funds, and monitors financial activities.

In Poland, the Accounting Chamber is also an external financial control body that provides an independent audit of budgetary funds. It operates on the basis of the Constitution of the Republic of Poland, the NIK Act, the Charter and the Rules of Procedure of the Chairman of the Chamber. It is composed of members elected by the Sejm (Parliament) on the proposal of parties and groups of citizens.

The Chairman manages the activities of the Polish Chamber of Accounts with the help of the Vice-Presidents and the General Manager, to whom he assigns a range of tasks to be performed. The Polish Accounting Chamber also analyses budget programmes, activities of state-owned enterprises and non-governmental organisations.

The Polish Accounting Chamber is distinguished by a wide range of activities, including auditing of state bodies, analysis of public policy and fight against corruption. In comparison, the Accounting Chamber of Ukraine focuses mainly on audits and opinions on the use of public funds.

Challenges of the activity

The Ukrainian Accounting Chamber is actively working to ensure the transparency of the use of budget funds and reduce corruption risks. However, it remains a challenge to ensure proper implementation of recommendations and improve the compliance of public bodies with the law.

In Poland, the Accounting Chamber also has its own achievements in the area of control over the use of budget funds. It acts as an independent body that helps to increase the efficiency of public administration and prevent the misuse of funds. However, the challenge for the Polish Accounting Chamber is to ensure more active cooperation with the authorities and effective implementation of the recommendations provided.

The Accounting Chambers of Ukraine and Poland play an important role in ensuring financial discipline, efficient use of budget funds and transparency in public finance management. Both institutions face challenges in ensuring the proper implementation of their recommendations and improving their interaction with the authorities.

Approaches and functions

The Accounting Chamber of Ukraine functions as an independent body responsible to the Verkhovna Rada. It conducts audits, analyses budgetary activities and ensures the efficient use of public funds.

The Accounting Chamber of Poland performs similar functions, but it is actively engaged in research and analysis of public policy in the field of finance. This helps the state to develop more effective financial management strategies.

The independence of the Polish Accounting Chamber is guaranteed by the Constitution, which contains six articles that define the basic principles of the institution. The independence is evident in every aspect of its practical work, thus minimising conflicts of interest and preventing those audited or potentially audited from exerting pressure on the audit results.

In Poland, the Accounting Chamber is a more autonomous body with considerable independence in the selection of audited objects and implementation of audit tasks. The Ukrainian Accounting Chamber, although also independent, has limited possibilities in choosing the objects, as many decisions require the approval of the Verkhovna Rada.

Outlook

The activities of the Accounting Chambers in Ukraine and Poland reflect different contexts, histories and approaches to financial control and audit.

However, they have a common vector of development – improving financial management and ensuring transparency of public spending. In particular, both countries should deepen cooperation between the Accounting Chamber and other state control bodies to ensure more effective audits and inspections.

Reforms in the field of the Accounting Chamber are important for increasing trust in the state, attracting investments and ensuring sustainable economic development. Poland can transfer its rich experience and skills to Ukraine, contributing to its reform process.

Financing

In Ukraine, the Accounting Chamber relies mainly on state funding, which may affect its independence. It independently determines the amount of funding for its activities and submits it to the Ministry of Finance of Ukraine for inclusion in the draft state budget.

In Poland, the Accounting Chamber has more financial independence and the ability to influence its priorities due to various sources of funding. The draft budget approved by the NIK Council is submitted to the Sejm and then reviewed by the State Audit Commission and the Public Finance Committee.

Conclusions

Accounting Chambers in Ukraine and Poland play an important role in ensuring financial discipline, anti-corruption measures and public accountability. Improving the work of the institution is a key factor in creating effective financial systems that ensure accountable use of public funds and increase public trust in government institutions.

The activities of the Accounting Chambers in Ukraine and Poland reflect the difference in experience, history and organisational approaches. The Polish experience can provide valuable guidance and skills to Ukraine, contributing to its process of improving financial control and audit.

In general, the comparison of the activities of the Accounting Chambers in Ukraine and Poland opens up opportunities for the exchange of experience, learning from mistakes and implementing necessary reforms to improve financial control and ensure trust in public finances.

This publication was prepared by the «Institute of Analytics and Advocacy» within UNDP’s “Civil society and youth support” project, financed by  the The Ministry of Foreign Affairs of Denmark