1. As recipients of budget funds, local councils open accounts in banks in accordance with the requirements set by the National Bank of Ukraine, since the Treasury does not have foreign currency accounts for receiving assistance in foreign currency.
2. Upon initially being recorded in accounts, such receipts are reflected in UAH at the exchange rate valid at the start of the day when transaction was made.
3. Since the currency of accounting for all budgetary institutions of Ukraine is UAH, local council should request the bank to process the sale of foreign currency (only financial institutions are allowed to sell foreign currency in Ukraine). Application is submitted in a free format.
4. The bank selling foreign currency moves into the interbank foreign exchange market of Ukraine and sells the amount at the commercial exchange rate established on the interbank market as of the time of transaction
5. As of the currency sale date, the accounts should also record the difference between the selling rate and the rate established by the National Bank of Ukraine on the same day and record then as associated expenditure or revenue
6. Funds from the sale of foreign currency in UAH are credited to the municipal budget exclusively on special registration accounts opened with the State Treasury Service of Ukraine under the code 42030000 "Proceeds from assistance programs of the European Union, foreign governments, international organizations, donors."
7. Municipality submits to the Treasury statements on foreign currency transactions.
8. If there are balances in foreign currency on current accounts opened in banking institutions in the name of a municipality, such balances are reflected in the foreign currency balance statement as part of regular reporting and submitted to the Treasury.
9. Once international assistance is credited to the accounts in the Treasury, local council adjusts its budget adding relevant expenditures.
10. The movement of funds received as foreign funds is reflected in detail in a report according to the form approved by the Treasury. This report shows in parallel the amounts of balances, revenues, and expenditures on the current account in foreign currency and in the national currency of Ukraine.
11. To use the funds, local council shall establish a Trust Fund in accordance with the terms and conditions of the Agreement on charitable financial assistance.
12. Reporting on expenditures that originated from donations is then conducted in accordance with the budget legislation.
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budget international support war war support
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Пресцентр ініціативи "Децентралізація"
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