The State Audit Service has received more powers to inspect procurement: details

21 January 16:22

The Cabinet of Ministers of Ukraine has granted the State Audit Service additional powers to inspect procurement. This was announced at a government meeting by Prime Minister of Ukraine Denys Shmyhal, according to Komersant ukrainskyi.

“We are improving the algorithm for conducting procurement audits by the State Audit Service. We are expanding the grounds for inspection in case of failure to hold open tenders, purchase of goods without using an electronic catalog, if required by law. We will also check compliance with the rules on localization of production,”

– said the Prime Minister and emphasized that the ultimate goal of these changes is to stimulate the purchase of domestic products.

The relevant amendments were made to the Cabinet of Ministers’ Resolution No. 631 of August 1, 2013 “On Approval of the Procedure for Procurement Inspections by the State Audit Service, its Interregional Territorial Bodies and Amendments to Certain Acts of the Cabinet of Ministers of Ukraine,” said Taras Melnychuk, the government’s representative in the Parliament.

According to the official, the Procedure introduced new grounds on which the service can conduct procurement audits. They include the following:

  • a reasonable need for documentary and factual verification of the established facts: division of the procurement item into parts in order to avoid open bidding / simplified procurement in accordance with the procedure established by law
  • purchase of goods under a contract (contracts) that is not localized in accordance with the law;
  • purchase of goods without using an electronic catalog and/or entering into agreements that provide for payment for goods without using an electronic catalog, if its use is mandatory in accordance with the law.

The Law also clarifies the procedure for providing all documents and information necessary for the audit, as well as the actions of officials in case of failure to provide them, suspension of procurement audit in certain circumstances, etc.

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State Audit Service

The State Audit Service of Ukraine (SAU) is a central executive body responsible for monitoring the efficient use of public resources. It was established in 2015 on the basis of the State Financial Inspection of Ukraine. The Service monitors budgetary funds and state property and ensures their intended use.

The main activities of the State Audit Service are focused on conducting state financial audits, inspections and audits. This includes analyzing expenditures, identifying violations that harm the state budget, and providing recommendations for improving the efficiency of financial management. This gives the state a tool to minimize financial losses.

To fulfill its tasks, the Service has territorial offices covering all regions of Ukraine. These offices operate autonomously but within the overall strategy of the State Audit Service. Their work ensures control over finances not only at the state but also at the local level, which makes the financial audit system more efficient and transparent.

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Остафійчук Ярослав
Editor