Ukraine

Audit reveals inefficient spending of over UAH 500 million by the Ministry of Culture

The Ministry of Culture and Information Policy (renamed on September 13, 2024 to the Ministry of Culture and Strategic Communications of Ukraine) proved unable to fully ensure the formation and implementation of state policy in its field. In accordance with audit of the Accounting Chamber, more than 500 million hryvnias allocated for the management of culture and information policy were spent unsystematically and ineffectively.

According to the results of the analysis, the department used UAH 521.8 million for leadership and management in the specified area, but did not achieve the goal of the corresponding budget program. In particular, only 31% of normative legal acts were developed, which should correspond to the priorities of the government’s plans for 2023. Key documents, such as the Culture Development Strategy and the plan of measures for its implementation, have not been completed, as well as certain normative acts for the development of information security are missing.

The audit also found that between 2020 and 2022, the Ministry did not ensure systematic planning, monitoring and reporting on the performance of its tasks. The report states that the documents on the implementation of the plans were not approved by the minister, which shows the weakness of management. According to estimates, the structural subdivisions have completed only 40% of measures for the implementation of state policy in the cultural sphere.

In addition, the lack of proper planning of expenditures led to the non-use of UAH 1.3 billion, and the personnel deficit in key departments was only 25-60% of the required staff. The low competence of reform specialists was also the reason for the implementation of only 31% of policy-making measures, which led to the inefficient use of UAH 58.4 million for the payment of allowances.

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The audit revealed discrepancies in the accounting of state property in the amount of UAH 9.8 billion between the Ministry’s reporting and the data of the State Property Fund, which indicates deficiencies in asset management.

The Accounting Chamber recommended to the Ministry:

  • to develop clear indicators for assessing the quality of the provision of cultural services;
  • to prepare normative legal acts to ensure the performance of assigned functions;
  • specify the purpose of the budget program to achieve realistic and clear results;
  • carry out an assessment of the effectiveness of the management of state-owned objects;
  • submit to the State Property Fund data on the value of the property that correspond to accounting.

 

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